Document:

<PAGE>

                                  Exhibit 10.38

                            Expendable Launch Vehicle
                           Integrated Support Contract

                                   NAS10-02026

                                                                   *Text Omitted
                                          Confidential Treatment Requested Under
                                  17 C.F.R.(S)(S)200.80(b)(4), 200.83 and 240b-2

<PAGE>

<TABLE>
<S>                             <C>                                   <C>                                   <C>
====================================================================================================================================
SOLICITATION, OFFER AND AWARD   1. THIS CONTRACT IS A RATED ORDER .   RATING                                PAGE
                                UNDER DPAS (15 CFR 350)                                                         1 OF 427
====================================================================================================================================
2. CONTRACT NO.      3. SOLICITATION NO.       4. TYPE OF SOLICITATION      5. DATE ISSUED           6. REQUISITION/PURCHASE' NO.
   NAS10-02026          RFP 10-01-0001           [ ]SEALED BID (IFB)         September 24, 2001                  M022129
                                                 [X]NEGOTIATED (RFP)
------------------------------------------------------------------------------------------------------------------------------------
7. ISSUED BY               CODE                               8. ADDRESS OFFER TO (If other than Item 7)
JOHN F. KENNEDY SPACE CENTER, NASA
MAIL CODE: SEB-ELVIS
KENNEDY SPACE CENTER, FL  32899

====================================================================================================================================
NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder"
====================================================================================================================================
SOLICITATION
------------------------------------------------------------------------------------------------------------------------------------
9. Sealed offers in original and (See L-7) copies for furnishing the supplies or services in the Schedule will be received at the
place specified in Item 8, or if handcarried, in the depository located in (See Article L-6) until (See Article L-6) local time, on
(See Article L-6).
CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L,. Provision No. 52.214-7 or 52.215-1. All offers are
subject to all terms and conditions contained in this solicitation.
------------------------------------------------------------------------------------------------------------------------------------
10. FOR               A. NAME                  B. TELEPHONE NO. (NO COLLECT CALLS)        C. EMAIL ADDRESS
INFORMATION                                    ----------------------------------
CALL:                                             AREA CODE   NUMBER        EXT.
          .              Roger A.MacLeod          (321)       867-2879                       roger.macleod-1@ksc.nasa.gov
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11. TABLE OF CONTENTS
------------------------------------------------------------------------------------------------------------------------------------
(X)  SEC. DESCRIPTION                             PAGE(S)   (X) SEC.   DESCRIPTION                                    PAGE(S)
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PART I - THE SCHEDULE                                       PART II - CONTRACT CLAUSES
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[X]   A   SOLICITATION/CONTRACT FORM                  1     [X]   I    CONTRACT CLAUSES                                  74
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[X]   B   SUPPLIES OR SERVICES AND PRICES/COSTS       9     PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.
------------------------------------------------------------------------------------------------------------------------------------
[X]   C   DESCRIPTION/SPECS./WORK STATEMENT          36     [X]   J    LIST OF ATTACHMENTS                               87
------------------------------------------------------------------------------------------------------------------------------------
[X]   D   PACKAGING AND MARKING                      38     PART IV - REPRESENTATIONS AND INSTRUCTIONS
------------------------------------------------------------------------------------------------------------------------------------
[X]   E   INSPECTION AND ACCEPTANCE                  40     [X]   K    REPRESENTATIONS, CERTIFICATIONS AND              336
------------------------------------------------------------------------------------------------------------------------------------
[X]   F   DELIVERIES OR PERFORMANCE                  41                OTHER STATEMENTS OF OFFERORS
 -----------------------------------------------------------------------------------------------------------------------------------
[X]   G   CONTRACT ADMINISTRATION DATA               42     [X]   L    INSTRS., CONDS., AND NOTICES TO OFFERORS         345
------------------------------------------------------------------------------------------------------------------------------------
[X]   H   SPECIAL CONTRACT REQUIREMENTS              54     [X]   M    EVALUATION FACTORS FOR AWARD                     421
====================================================================================================================================
OFFER (Must be fully completed by offeror)
====================================================================================================================================
NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.
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12. In compliance with the above, the undersigned agrees, if this offer is accepted within 180 calendar days (60 calendar days
unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all
items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time
specified in the schedule.
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13.  DISCOUNT FOR PROMPT PAYMENT     .   10 CALENDAR DAYS        20 CALENDAR DAYS        30 CALENDAR DAYS        CALENDAR DAYS
(See Section I, clause No. 52-232-8)                     %                       %                       %                    %
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14. ACKNOWLEDGMENT OF AMENDMENTS (The offer or   AMENDMENT NO           DATE            AMENDMENT NO          DATE
acknowledges receipt of amendments to the        -----------------------------------------------------------------------------------
SOLICITATION).                                    1                   10/3/2001          4                   11/7/2001
                                                 -----------------------------------------------------------------------------------
For offerors and related documents numbered
and dated:                                        2                   10/24/2001         5                   3/7/2002
                                                 -----------------------------------------------------------------------------------
                                                  3                   11/1/2001          6                   4/2/2002
------------------------------------------------------------------------------------------------------------------------------------
15. NAME AND   CODE    71-086-9563     FACILITY      05BD6                      16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN
ADDRESS OF                                                                      OFFER (Type or print)
OFFEROR              Analex Corporation                                         Christopher Pestak
                     5904 Richmond Hwy                                          Senior Vice President
                     Alexandria, VA  22303
------------------------------------------------------------------------------------------------------------------------------------
15B.  TELEPHONE NO.             15C. CHECK IF REMITTANCE ADDRESS             17. SIGNATURE                    18. OFFER DATE
(Include area code)             IS DIFFERENT FROM ABOVE - ENTER                Original Signed by
  216-977-0257                  [X] SUCH ADDRESS IN SCHEDULE                   Christopher Pestak                  6/3/02
====================================================================================================================================
AWARD (To be completed by Government)
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19. ACCEPTED AS TO ITEMS NUMBERED     20. AMOUNT          21. ACCOUNTING AND APPROPRIATION
     CLIN 1001 - CLIN 1012             $53,900,997.00        VA/VA-90302.ISC/2550C/400000/54/02
------------------------------------------------------------------------------------------------------------------------------------
22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION     23. SUBMIT INVOICES TO ADDRESS SHOWN IN:    .     ITEM
    [ ] 10 U.S.C. 2304(c) ( )    [ ]41 U.S.C. 253(c) ( )             (4 copies unless otherwise specified)         See G-3 & G-5
------------------------------------------------------------------------------------------------------------------------------------
24. ADMINISTERED BY (If other than Item 7)  CODE                 25. PAYMENT WILL BE MADE BY        CODE
                                                                  NASA/KSC
                                                                  GENERAL ACCOUNTING A/P
                                                                  GG-B-C2
                                                                  KENNEDY SPACE CENTER, FL 32899
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26. NAME OF CONTRACTING OFFICER (Type or print)     27. UNITED STATES OF AMERICA            28. AWARD DATE
    James E. Hattaway, Jr.                                 Original Signed By                  6-5-02
                                                                James E. Hattaway Jr
                                                     (Signature of Contracting Officer)
====================================================================================================================================
IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.
====================================================================================================================================
NSN 7540-01-152-8064                    33-133                                                     STANDARD FORM 33 (REV. 9-97)
PREVIOUS EDITION NOT USABLE                                                                        Prescribed by GSA
                                                                                                   FAR (48 CFR) 53.214(c)
</TABLE>

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Expendable Launch Vehicle Integrated Support Contract                NAS10-02026

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                              PART I - THE SCHEDULE
                                    SECTION B
                      SUPPLIES OR SERVICES AND PRICE/COSTS

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

B-1   SCHEDULE OF SUPPLIES OR SERVICES

The Contractor shall provide all non-personal services necessary to furnish the
Contract Line Item Numbers (CLINs) to NASA as described in Section C, C-1,
"Scope of Work" and in accordance with Attachment J-1, "Statement of Work" on a
fixed price/cost plus award fee basis and Indefinite-Delivery Indefinite-
Quantity effort as required.

1.0   Phase-In Period   (Performance Period:   KSC: June 1, 2002 - July 7, 2002,
              VAFB: June 1- 30, 2002)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                                            TOTAL
 (CLIN)                           DESCRIPTION                         QTY   UNIT   AMOUNT ($)
---------------------------------------------------------------------------------------------
<S>         <C>                                                       <C>   <C>      <C>
                                                                      1
1001        Phase-In Period (Firm-Fixed-Price)                              Lot      $.00

            Phase-in  period  between  award and  initiation of the
            basic period of performance,  not to exceed 30 calendar
            days in accordance with SOW 2.0.
---------------------------------------------------------------------------------------------
</TABLE>

================================================================================
BASIC PERIOD - Expendable Launch Vehicle Integrated Support for a 3-year,
three-month performance period.
           (Performance Period: KSC: July 8, 2002 September 30, 2005,
                               VAFB: July 1, 2002 September 30, 2005)
================================================================================

1.1  Basic Contract Core Requirements (Fixed Price Award Fee)

The Contractor shall provide the necessary  services to accomplish the following
technical  services in accordance  with the SOW.  Pricing for Section 1.0 of the
SOW is deemed to be included in the CLIN prices below.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
CONTRACT LINE                                                          UNIT       TOTAL
 ITEM (CLIN)                 DESCRIPTION                 QTY   UNIT    PRICE    AMOUNT ($)
------------------------------------------------------------------------------------------
<S>             <C>                                      <C>    <C>   <C>       <C>
1002            ELV Program Management Support in accordance with SOW 3.0       $1,635,405

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

1002A           ELV Program Management Support (FY 02)    3     MO    $39,815   $  119,445

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

1002B           ELV Program Management Support (FY 03)   12     MO    $40,615   $  487,380

------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
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<S>             <C>                                      <C>    <C>   <C>        <C>
1002C           ELV Program Management Support (FY 04)   12     MO    $42,159    $505,908

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

1002D           ELV Program Management Support (FY05)    12     MO    $43,556    $522,672

------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
CONTRACT LINE                                                           UNIT       TOTAL
 ITEM (CLIN)                 DESCRIPTION                 QTY   UNIT     PRICE    AMOUNT ($)
-------------------------------------------------------------------------------------------
<S>             <C>                                       <C>   <C>   <C>        <C>
1003            Safety and Mission Assurance in accordance with SOW 4.0          $4,088,685
-------------------------------------------------------------------------------------------
1003A           Safety and Mission Assurance (FY 02)       3    MO    $103,131   $  309,393
-------------------------------------------------------------------------------------------
1003B           Safety and Mission Assurance (FY 03)      12    MO    $ 98,912   $1,186,944
-------------------------------------------------------------------------------------------
1003C           Safety and Mission Assurance (FY 04)      12    MO    $104,352   $1,252,224
-------------------------------------------------------------------------------------------
1003D           Safety and Mission Assurance (FY 05)      12    MO    $111,677   $1,340,124
-------------------------------------------------------------------------------------------
1004            Launch Site Support Engineering (LSSE) in accord with SOW 5.0    $3,419,568
-------------------------------------------------------------------------------------------
1004A           LSSE (FY 02)                               3    MO    $ 81,360   $  244,080
-------------------------------------------------------------------------------------------
1004B           LSSE (FY 03)                              12    MO    $ 85,077   $1,020,924
-------------------------------------------------------------------------------------------
1004C           LSSE (FY 04)                              12    MO    $ 88,310   $1,059,720
-------------------------------------------------------------------------------------------
1004D           LSSE (FY 05)                              12    MO    $ 91,237   $1,094,844
-------------------------------------------------------------------------------------------
1005            Technical Integration Services in accordance with SOW 6.0        $2,879,676
-------------------------------------------------------------------------------------------
1005A           Technical Integration Services (FY 02)     3    MO    $ 66,308   $  198,924
-------------------------------------------------------------------------------------------
1005B           Technical Integration Services (FY 03)    12    MO    $ 71,822   $  861,864
-------------------------------------------------------------------------------------------
1005C           Technical Integration Services (FY 04)    12    MO    $ 74,551   $  894,612
-------------------------------------------------------------------------------------------
1005D           Technical Integration Services (FY 05)    12    MO    $ 77,023   $  924,276
-------------------------------------------------------------------------------------------
1006            Communications and Telemetry in accordance with SOW 7.0          $8,851,941
-------------------------------------------------------------------------------------------
1006A           Communications and Telemetry (FY02)        3    MO    $208,047   $  624,141
-------------------------------------------------------------------------------------------
1006B           Communications and Telemetry (FY03)       12    MO    $220,428   $2,645,136
-------------------------------------------------------------------------------------------
1006C           Communications and Telemetry (FY04)       12    MO    $228,814   $2,745,768
-------------------------------------------------------------------------------------------
1006D           Communications and Telemetry (FY05)       12    MO    $236,408   $2,836,896
-------------------------------------------------------------------------------------------
1007            Vandenberg AFB Unique in accordance with SOW 8.0                 $4,055,439
-------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
-------------------------------------------------------------------------------------------
<S>             <C>                                       <C>   <C>   <C>        <C>
1007A           Vandenberg AFB Unique (FY 02)              3    MO    $105,857   $  317,571
-------------------------------------------------------------------------------------------
1007B           Vandenberg AFB Unique (FY 03)             12    MO    $100,116   $1,201,392
-------------------------------------------------------------------------------------------
1007C           Vandenberg AFB Unique (FY 04)             12    MO    $103,943   $1,247,316
-------------------------------------------------------------------------------------------
1007D           Vandenberg AFB Unique (FY 05)             12    MO    $107,430   $1,289,160
-------------------------------------------------------------------------------------------
</TABLE>

Maximum Available Award Fee shall be included in provision B-3 " AWARD FEE".

1.2  Mission Direct Support (IDIQ)

The Government reserves the right to order fixed price, Indefinite Delivery/
Indefinite Quantity (IDIQ) mission direct support services, independent
of core requirements, under these CLINs from the items listed below. The
Contracting Officer may order the services any time by written notice to the
Contractor in accordance with the ordering procedures set forth in Section H of
this contract. Task orders will be performance-based and will be restricted to
the acquisition of "outcomes" where the period of performance and discrete task
objectives will be limited to work and products that can be defined and priced

The services furnished under this IDIQ article supplement and are in addition to
the services furnished under the contract's core requirements. Notwithstanding
the issuance or pendency of a task/delivery order, the Contractor will not be
entitled to additional payment, beyond the contract price for core requirements,
for any work already required (as to substance, quantity and schedule) under the
contract's/SOW core requirements provisions.

Hourly Rates for Mission-Direct Support Services

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
SOW   Rate Type                                   Description                                 Ordering Unit
-----------------------------------------------------------------------------------------------------------
<S>   <C>          <C>                                                                         <C>
9.1   Individual   A combined average rate for one hour of service performed by a single      Worker Hour
      Composite    skilled worker from Safety & Mission Assurance, Launch Site Support
                   Engineering, or Technical Integration Services outside of core hours at
                   KSC or VAFB.
-----------------------------------------------------------------------------------------------------------
9.2   Individual   A combined average rate for one hour of service performed by a single      Worker Hour
      Composite    skilled worker from VAFB Operations, Troubleshooting or Repair outside
                   of core hours.
-----------------------------------------------------------------------------------------------------------
9.3     Full       A combined crew rate for one hour of service performed  by a full crew     Crew Hour
        Crew       supporting Communications and Telemetry outside of core hours. There
      Composite    are separate rates depending upon location of service at KSC or at VAFB.
-----------------------------------------------------------------------------------------------------------
9.4    Reduced     A combined crew rate for one hour of service performed by a reduced        Crew Hour
        Crew       crew supporting Communications and Telemetry outside of core hours.
      Composite    There are separate rates depending upon location of service at KSC or
                   VAFB.
-----------------------------------------------------------------------------------------------------------
9.5   Individual   A combined average rate for one hour of a single skilled worker            Worker Hour
      Composite    performing On-Call Troubleshooting or Repair outside of core hours.
-----------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
 CONTRACT                                                                                 Total
LINE ITEM                                                                                Amount
 (CLIN)                          DESCRIPTION                           QTY     UNIT        ($)
-------------------------------------------------------------------------------------------------
 <S>        <C>                                                      <C>         <C>    <C>
 1008       Mission Direct Support Services
            The contractor  shall accept task orders issued only by the  contracting officer.
            The Contractor shall provide the services as ordered to accomplish the following.
-------------------------------------------------------------------------------------------------
 1008A      Additional Support for Safety and  Mission  Assurance,
            Launch Site Support Engineering, and Technical           As          Hr     See Table
            Integration Services, in accordance with SOW 9.1         Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008B      Additional Support for VAFB Operations, Troubleshooting and Repair in accordance
            with SOW 9.2
-------------------------------------------------------------------------------------------------
 1008BA     Scheduled support for VAFB Operations, Troubleshooting   As          Hr     See Table
            and Repair in accordance with SOW 9.2                    Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008BB     Call-out support for VAFB  Operations, Troubleshooting   As          Hr     See Table
            and Repair in accordance with SOW 9.2                    Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008C      Hourly  Support for Communications  and Telemetry Outside of Core Work Shift in
            accordance with SOW 9.3
-------------------------------------------------------------------------------------------------
 1008CA     KSC Support for Communications and Telemetry Outside     As          Hr     See Table
            of Core Work Shift                                       Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008CB     VAFB Support for Communications and Telemetry Outside    As          Hr     See Table
            of Core Work Shift                                       Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008D      Reduced Support for Communications and Telemetry Outside of Core Work Shift in
            accordance with SOW 9.4.
-------------------------------------------------------------------------------------------------
 1008DA     KSC Reduced Support for Communications and Telemetry     As          Hr     See Table
            Outside of Core Work Shift                               Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008DB     VAFB Reduced Support for Communications and Telemetry    As          Hr     See Table
            Outside of Core Work Shift                               Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008E      On-Call Troubleshooting and Repair Support in accordance with SOW 9.5.
-------------------------------------------------------------------------------------------------
 1008EA     On-Call Troubleshooting and Repair Support in            As          Hr     See Table
            accordance with SOW 9.5 -Communication Technician at     Ordered            B-1.1
            KSC.
-------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
 <S>        <C>                                                      <C>         <C>    <C>
-------------------------------------------------------------------------------------------------
 1008EB     On-Call Troubleshooting and Repair Support in            As          Hr     See Table
            accordance with SOW 9.5 -Communication Technician at     Ordered            B-1.1
            VAFB.
-------------------------------------------------------------------------------------------------
 1008EC     On-Call Troubleshooting and Repair Support in            As          Hr     See Table
            accordance with SOW 9.5 -Manager at VAFB.                Ordered            B-1.1
-------------------------------------------------------------------------------------------------
 1008F      Guard Services at VAFB in accordance with SOW 9.6        As          24     See Table
                                                                     Ordered     hrs    B-1.2
-------------------------------------------------------------------------------------------------
 1008G      Access Control Monitors (ACM) at VAFB in accordance      As          24     See Table
            with SOW 9.7                                             Ordered     hrs    B-1.3
-------------------------------------------------------------------------------------------------
</TABLE>

Upon identification of a task(s) by the Contracting Officer, a request to the
contractor for estimated number of hours/units required to complete the
identified task(s), and subsequent negotiation of agreed to hours/units, the
Government may issue task orders utilizing the contractor's fully burdened,
fixed-price rates shown in Table B-1.1 to B -1.3. The price in each year
includes all direct costs (including shift differentials as applicable),
applicable indirect costs and anticipated profit.

Table B-1.1 HOURLY LABOR RATES

[*]

Table B-1.2 24 HOUR SHIFT/ACCESS POINT RATES

[*]

Table B-1.2 24 HOUR RATES

[*]

<TABLE>
<CAPTION>
Public Affairs Support (IDIQ)
-------------------------------------------------------------------------------------------------
 CONTRACT                                                                                 Total
LINE ITEM                                                                                Amount
 (CLIN)                          DESCRIPTION                           QTY      UNIT       ($)
-------------------------------------------------------------------------------------------------
  <S>       <C>                                                      <C>       <C>      <C>
  1008H     Satellite  Uplink  Services for NASA Public Affairs      As          24     See Table
            Support in accordance with SOW 9.8                       Ordered     Hrs    B-1.4
------------------------------------------------------------------------------ ------------------
  1008I     Public Affairs Support in accordance with SOW 9.9        As          50     See Table
                                                                     Ordered   guests   B-1.5
-------------------------------------------------------------------------------------------------
  1008J     Public Affairs Support accordance with SOW 9.9           As          25     See Table
                                                                     Ordered   guests   B-1.5
-------------------------------------------------------------------------------------------------
</TABLE>

The Contracting Officer may issue task orders utilizing the contractor's
fixed-prices as shown in Table B -1.4 & 1.5. The price in each year includes all
direct costs (including shift differentials as applicable), applicable indirect
costs and anticipated profit.

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Table B-1.4 Satellite Uplink Services for NASA Public Affairs Support (SOW
            9.8)

[*]

Table B-1.5 Public Affairs Support in accordance with SOW 9.9

[*]

1.3  Cost Basis (Non Fee Bearing)

The dynamic nature of the ELV integrated support items makes it impossible to
accurately predict contractor acquired property (CAP), and travel/per-diem. The
Government will account for these requirements as separate CLINs and has
baselined these costs as indicated in the CLINs below. Materials, supplies and
travel, shall be paid at cost, non-fee bearing, in accordance with the clause in
Section I, FAR 52.216-11, Cost Contract - No Fee (APR 1984). The contractor
shall retain original vendor receipts and furnish them to the contracting
officer upon request to substantiate billings. These items will be excluded from
input to the cost base upon which the award fee pool is calculated.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                                                   Total
 (CLIN)                  DESCRIPTION                     QTY   UNIT   Estimated Amount
--------------------------------------------------------------------------------------
<S>         <C>                                          <C>   <C>    <C>
1009/1010   Cost Basis (Non-fee bearing)
            The Contractor shall provide Contractor Acquired Property that must be
            authorized in accordance with NFS 1845.502-70 subject to a
            determination by the contracting officer that it is allocable to the
            contract and reasonably necessary, to support performance of fixed
            price CLINs 1002 - 1008 in accordance with the SOW.
--------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                                                   Total
 (CLIN)                  DESCRIPTION                     QTY   UNIT   Estimated Amount
--------------------------------------------------------------------------------------
<S>         <C>                                           <C>   <C>   <C>
1009        Contractor Acquired Property (CAP) The
            Contractor shall provide CAP in accordance    --    --        See Note 1
            with the requirements of the SOW.
----------------------------------------------------------------------------- --------
1009A       CAP (FY 02)                                    3    MO    $  684,653 (NTE)
--------------------------------------------------------------------------------------
1009B       CAP (FY 03)                                   12    MO    $1,394,323 (NTE)
--------------------------------------------------------------------------------------
1009C       CAP (FY 04)                                   12    MO    $1,447,314 (NTE)
--------------------------------------------------------------------------------------
1009D       CAP (FY05)                                    12    MO    $1,495,296 (NTE)
--------------------------------------------------------------------------------------
1010        Travel and Per Diem The Contractor shall
            perform travel as required in  accordance     --     --      See Note 2
            with the requirements set forth in the SOW
--------------------------------------------------------------------------------------
1010A       Travel (FY 02)                                 3    MO    $   72,363 (NTE)
--------------------------------------------------------------------------------------
1010B       Travel (FY 03)                                12    MO    $  147,344 (NTE)
--------------------------------------------------------------------------------------
1010C       Travel (FY 04)                                12    MO    $  152,944 (NTE)
--------------------------------------------------------------------------------------
1010D       Travel (FY05)                                 12    MO    $  158,014 (NTE)
--------------------------------------------------------------------------------------
</TABLE>

NOTE 1: Cost Basis (Non-Fee-Bearing) Contractor Acquired Property (CAP). .

The Not-To-Exceed (NTE) amount is the ceiling for the cost-reimbursable line
items. Contractor Acquired Property will be reimbursed for incurred costs on a
non-fee bearing basis. All contractor-

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acquired property must be authorized by the contract and is subject to a
determination by the contracting officer that it is allocable to the contract
and reasonably necessary.

During contract performance the contractor is required to procure items for
which the nature and quantity would not be expected to be included in fixed
price requirements (SOW 3.0 -- 8.0). Only specific categories of items will be
allowable to be acquired under this CLIN. These types of items include NASA
customer transient office supplies, all expendable, consumable supplies and
materials, (e.g., magnetic tapes, strip charts, clean room garments, components
and piece parts); all mobile and lift equipment, shop and calibration equipment,
communications equipment, and maintenance equipment.

NOTE 2: Travel and Per Diem

Pursuant to Title 11, Section 21 of the Federal Civilian Employee and Contractor
Travel Expense Act of 1985 (PL 99-234), reimbursement for travel associated with
fixed price effort shall be in accordance with the provisions of FAR 31.205-46.

1.4  Vehicle Engineering and Analysis (CPAF)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                         Total Estimated
  (CLIN)                DESCRIPTION                    Cost             Award Fee
--------------------------------------------------------------------------------------
<S>         <C>                                     <C>             <C>
1011        Vehicle Engineering and Analysis in     $20,682,688     (See Provision B-3)
            accordancewith SOW 10.0

            (Cost-Plus-Award-Fee)
--------------------------------------------------------------------------------------
</TABLE>

1.5 Facility Upgrade/Modification/Repair, Design and Construction. (Fixed-price,
Indefinite-delivery, Indefinite quantity)

------------------------------------------------------------------------------
 CONTRACT                                                             Total
LINE ITEM                                                            Estimated
  (CLIN)                DESCRIPTION                   QTY     UNIT    Amount
------------------------------------------------------------------------------
1012        Facility Upgrade/Modification/Repair,   As         JO      $TBD*
            Design and Construction in accordance   Ordered
            with SOW 11.0
------------------------------------------------------------------------------
The Government reserves the right to order Facility Upgrade/Modification/Repair,
Design and Construction projects under this CLIN. The Contracting Officer may
order the items/services any time by written notice to the Contractor from the
effective date of the contract through 9/30/2005. The Contractor shall provide
the items/services necessary in accordance with SOW 11.0.
------------------------------------------------------------------------------

* To be determined.

Task/delivery orders for facilities modifications, design, and/or construction
may be issued to the Contractor at the sole discretion of the contracting
officer. It is agreed that work requests for Facility
Upgrade/Modification/Repair, Design and Construction items may be issued as
fixed price task orders during the term of the contract, and that the Government
has no obligation to issue any such work request. In the event any such
task/delivery orders are issued, they will in accordance with task ordering
procedures in Section H.

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Summary BASIC Period (FY 2002 thru FY 2005)

--------------------------------------------------------------------
FIRM-FIXED PRICE                 (CLIN 1001)             $       .00
--------------------------------------------------------------------
FIXED-PRICE AWARD FEE            (CLINS 1002-1007)       $24,930,726
--------------------------------------------------------------------
MISSION DIRECT IDIQ              (CLINS 1008)            $       TBD
--------------------------------------------------------------------
COSTS BASIS                      (CLINS 1009 &1010)      $ 5,550,778
--------------------------------------------------------------------
ESTIMATED COST (CPAF)            (CLINS 1011)            $20,682,688
--------------------------------------------------------------------
MAXIMUM AVAILABLE AWARD FEE*     (CLINs  1002-1007 and
                                  CP CLIN 1011)          $ 2,736,805
--------------------------------------------------------------------
FACILITY
UPGRADE/MODIFICATION/REPAIR,        (CLINS 1012)         $       TBD
DESIGN AND CONSTRUCTION (IDIQ)
--------------------------------------------------------------------
--------------------------------------------------------------------
TOTAL ESTIMATED CONTRACT VALUE                           $53,900,997
--------------------------------------------------------------------

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

================================================================================

OPTION 1 - Expendable Launch Vehicle Integrated Support. The Government
reserves the right to exercise an option for a 3-year performance period. The
Contracting Officer will exercise options in accordance with the procedures at
FAR Subpart 17.2

            (Performance Period: October 1, 2005- September 30, 2008)

================================================================================

2.1  Contract Core Requirements (Fixed Price Award Fee)

The Contractor shall provide the necessary services to accomplish the following
technical services in accordance with the SOW. Pricing for Section 1.0 of the
SOW is deemed to be included in the CLIN prices below.

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<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
 CONTRACT
 LINE ITEM                                                          UNIT       Total
  (CLIN)             DESCRIPTION                     QTY   UNIT     PRICE    Amount($)
---------------------------------------------------------------------------------------
<S>          <C>                                     <C>    <C>    <C>       <C>
2002         ELV Program Management Support in accordance with SOW 3.0       $1,647,312
---------------------------------------------------------------------------------------
2002A        ELV Program Management Support          12     MO     $44,640   $  535,680
             (FY 06)
---------------------------------------------------------------------------------------
2002B        ELV Program Management Support          12     MO     $45,736   $  548,832
             (FY 07)
---------------------------------------------------------------------------------------
2002C        ELV Program Management Support          12     MO     $46,900   $  562,800
             (FY 08)
---------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                          UNIT
 (CLIN)                      DESCRIPTION             QTY   UNIT    PRICE     Amount($)
---------------------------------------------------------------------------------------
<S>         <C>                                      <C>    <C>   <C>        <C>
  2003      Safety and Mission Assurance in accordance with SOW 4.0          $4,405,356
---------------------------------------------------------------------------------------
  2003A     Safety and Mission Assurance (FY 06)     12     MO    $115,947   $1,391,364
---------------------------------------------------------------------------------------
  2003B     Safety and Mission Assurance (FY 07)     12     MO    $121,709   $1,460,508
---------------------------------------------------------------------------------------
  2003C     Safety and Mission Assurance (FY 08)     12     MO    $129,457   $1,553,484
---------------------------------------------------------------------------------------
  2004      Launch Site Support Engineering
            (LSSE) in accordance with SOW 5.0                                $3,450,624
---------------------------------------------------------------------------------------
  2004A     LSSE (FY 06)                             12     MO    $ 93,507   $1,122,084
---------------------------------------------------------------------------------------
  2004B     LSSE (FY 07)                             12     MO    $ 95,804   $1,149,648
---------------------------------------------------------------------------------------
  2004C     LSSE (FY 08)                             12     MO    $ 98,241   $1,178,892
---------------------------------------------------------------------------------------
  2005      Technical Integration Services in                                $2,913,024
            accordance with SOW 6.0
---------------------------------------------------------------------------------------
  2005A     Technical Integration Services (FY 06)   12     MO    $ 78,939   $  947,268
---------------------------------------------------------------------------------------
  2005B     Technical Integration Services (FY 07)   12     MO    $ 80,878   $  970,536
---------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
---------------------------------------------------------------------------------------
<S>         <C>                                       <C>   <C>   <C>        <C>

---------------------------------------------------------------------------------------
2005C       Technical Integration Services (FY 08)    12    MO    $82,935    $  995,220
---------------------------------------------------------------------------------------
2006        Communications and Telemetry in
            accordance with SOW 7.0                                          $8,942,412
---------------------------------------------------------------------------------------
2006A       Communications and Telemetry (FY06)       12    MO    $242,343   $2,908,116
---------------------------------------------------------------------------------------
2006B       Communications and Telemetry (FY07)       12    MO    $248,294   $2,979,528
---------------------------------------------------------------------------------------
2006C       Communications and Telemetry (FY08)       12    MO    $254,564   $3,054,768
---------------------------------------------------------------------------------------
2007        Vandenberg  AFB Unique in accordance
            with SOW 8.0                                                     $4,106,340
---------------------------------------------------------------------------------------
2007A       Vandenberg AFB Unique (FY 06)             12    MO    $110,206   $1,322,472
---------------------------------------------------------------------------------------
2007B       Vandenberg AFB Unique (FY 07)             12    MO    $114,427   $1,373,124
---------------------------------------------------------------------------------------
2007C       Vandenberg AFB Unique (FY 08)             12    MO    $117,562   $1,410,744
---------------------------------------------------------------------------------------
</TABLE>

Maximum Available Award Fee shall be included in provision B-3 "AWARD FEE".

2.2  Mission Direct Support (IDIQ)

The Government reserves the right to order fixed price, Indefinite
Delivery/Indefinite Quantity (IDIQ) mission direct support services, independent
of core requirements, under these CLINs from the items listed below. The
Contracting Officer may order the services any time by written notice to the
Contractor in accordance with the ordering procedures set forth in Section H of
this contract. Task orders will be performance-based and will be restricted to
the acquisition of "outcomes" where the period of performance and discrete task
objectives will be limited to work and products that can be defined and priced.

The services furnished under this IDIQ article supplement and are in addition to
the services furnished under the contract's core requirements. Notwithstanding
the issuance or pendency of a task/delivery order, the Contractor will not be
entitled to additional payment, beyond the contract price for core requirements,
for any work already required (as to substance, quantity and schedule) under the
contract's/SOW core requirements provisions.

Hourly Rates for Mission-Direct Support Services

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                                                                                               Ordering
SOW    Rate Type                                Description                                      Unit
---------------------------------------------------------------------------------------------------------
<S>   <C>          <C>                                                                        <C>
9.1   Individual   A combined average rate for one hour of service performed by a single      Worker Hour
      Composite    skilled worker from Safety & Mission  Assurance, Launch Site Support
                   Engineering, or Technical Integration Services outside of core hours at
                   KSC or VAFB..
---------------------------------------------------------------------------------------------------------
9.2   Individual   A combined  average  rate for one hour of service  performed by a single   Worker Hour
---------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
---------------------------------------------------------------------------------------------------------
<S>   <C>          <C>                                                                        <C>
      Composite    skilled worker from VAFB Operations,  Troubleshooting  or Repair outside
                   of core hours.
---------------------------------------------------------------------------------------------------------
9.3      Full      A combined crew rate for one hour of service performed by a full crew       Crew Hour
         Crew      supporting Communications and Telemetry outside of core hours. This
      Composite    rate will vary depending upon location of service at KSC or at VAFB.
---------------------------------------------------------------------------------------------------------
9.4    Reduced     A combined crew rate for one hour of service performed by a reduced         Crew Hour
         Crew      crew supporting Communications and Telemetry outside of core hours.
      Composite    There are separate rates depending upon location of service at KSC or
                   VAFB
---------------------------------------------------------------------------------------------------------
9.5   Individual   A combined average rate for one hour of a single skilled worker            Worker Hour
      Composite    performing On-Call Troubleshooting or Repair outside of core hours.
---------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CONTRACT                                                                          Total
LINE ITEM                    DESCRIPTION                  QTY       UNIT         Amount
 (CLIN)                                                                            ($)
---------------------------------------------------------------------------------------------
<S>         <C>                                          <C>         <C>    <C>
2008        Mission Direct Support Services
            The contractor shall accept task orders issued only by the contracting officer.
            The Contractor shall provide the services as ordered to accomplish the following.
---------------------------------------------------------------------------------------------
2008A       Additional Support for Safety and Mission    As
            Assurance, Launch Site Support               Ordered     Hr     See Table
            Engineering, and Technical Integration                          B-2.1
            Services, in accordance with SOW 9.1
---------------------------------------------------------------------------------------------
2008B       Additional Support for VAFB Operations, Troubleshooting  and
            Repair in accordance with SOW 9.2
---------------------------------------------------------------------------------------------
2008BA      Scheduled support for VAFB Operations,       As          Hr     See Table
            Troubleshooting and Repair in accordance     Ordered            B-2.1
            with SOW 9.2
---------------------------------------------------------------------------------------------
2008BB      Call-out support for VAFB Operations,        As          Hr     See Table
            Troubleshooting and Repair in accordance     Ordered            B-2.1
            with SOW 9.2
---------------------------------------------------------------------------------------------
2008C       Hourly Support for Communications and Telemetry Outside of Core Work Shift in
            accordance with SOW 9.3
---------------------------------------------------------------------------------------------
2008CA      KSC Hourly Support for Communications        As          Hr     See Table
            and Telemetry Outside of Core Work Shift     Ordered            B-2.1
---------------------------------------------------------------------------------------------
2008CB      VAFB Hourly Support for  Communications      As          Hr     See Table
            and Telemetry Outside of Core Work Shift     Ordered            B-2.1
---------------------------------------------------------------------------------------------
2008D       Reduced  Support for  Communications  and Telemetry  Outside of Core
            Work Shift in accordance with SOW 9.4.
---------------------------------------------------------------------------------------------
2008DA      KSC Reduced Support for  Communications      As          Hr     See Table
            and Telemetry Outside of Core Work Shift     Ordered            B-
---------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
-------------------------------------------------------------------------------------
<S>         <C>                                          <C>       <C>      <C>
                                                                            2.1
-------------------------------------------------------------------------------------
            VAFB Reduced Support for                     As          Hr     See Table
2008DB      Communications and Telemetry Outside of      Ordered            B-2.1
            Core Work Shift
-------------------------------------------------------------------------------------
2008E       On-Call Troubleshooting and Repair Support in accordance with SOW 9.5.
-------------------------------------------------------------------------------------
2008EA      On-Call Troubleshooting and Repair Support   As          Hr     See Table
            in accordance with SOW 9.5 -Communication    Ordered            B-2.1
            Technician at KSC.
-------------------------------------------------------------------------------------
2008EB      On-Call Troubleshooting and Repair Support   As          Hr     See Table
            in accordance with SOW 9.5 -Communication    Ordered            B-2.1
            Technician at VAFB.
-------------------------------------------------------------------------------------
2008EC      On-Call Troubleshooting and Repair Support   As          Hr     See Table
            in accordance with SOW 9.5 -Manager          Ordered            B-2.1
            at VAFB.
-------------------------------------------------------------------------------------
2008E       On-Call Troubleshooting and Repair Support   As          Hr     See Table
            in accordance with SOW 9.5.                  Ordered            B-2.1
-------------------------------------------------------------------------------------
2008F       Guard Services at VAFB in accordance with    As        24 hrs   See Table
            SOW 9.6                                      Ordered            B-2.2
-------------------------------------------------------------------------------------
2008G       Access  Control  Monitors (ACM) at VAFB in   As        24 hrs   See Table
            accordance with SOW 9.7                      Ordered            B-2.3
-------------------------------------------------------------------------------------
</TABLE>

Upon identification of a task(s) by the Contracting Officer, a request to the
contractor for estimated number of hours/units required to complete the
identified task(s), and subsequent negotiation of agreed to hours/units, the
Government may issue task orders utilizing the contractor's fully burdened,
fixed-price rates shown in Table B-2.1 to B-2.3. The price in each year includes
all direct costs (including shift differentials as applicable), applicable
indirect costs and anticipated profit.

Table B-2.1 HOURLY LABOR RATES

[*]

Table B-2.2 24 HOUR SHIFT/ACCESS POINT RATES

[*]

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Table B-2.3 24 HOUR RATES

[*]

Public Affairs Support (IDIQ)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                                                  Total
 (CLIN)                   DESCRIPTION                               QTY       UNIT       Amount ($)
----------------------------------------------------------------------------------------------------
<S>         <C>                                                   <C>       <C>         <C>
2008H       Satellite  Uplink  Services for NASA Public Affairs   As        24 Hrs      See Table B-
            Support in accordance with SOW 9.8                    Ordered               2.4
----------------------------------------------------------------------------------------------------
2008I       Public Affairs Support in accordance with SOW 9.9     As        50 guests   See Table B-
                                                                  Ordered               2.5
----------------------------------------------------------------------------------------------------
2008J       Public Affairs Support accordance with SOW 9.9        As        25 guests   See Table B-
                                                                  Ordered               2.5
----------------------------------------------------------------------------------------------------
</TABLE>

The Contracting Officer may issue task orders utilizing the contractor's
fixed-prices as shown in Table B -2.4 and 2.5. The price in each year includes
all direct costs (including shift differentials as applicable), applicable
indirect costs and anticipated profit.

Table B-2.4 Satellite Uplink Services for NASA Public Affairs Support (SOW 9.8)

[*]

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Table B-2.5   Public Affairs Support in accordance with SOW 9.9

[*]

2.3  Cost Basis (Non Fee Bearing)

The dynamic nature of the ELV integrated support items makes it impossible to
accurately predict contractor acquired property (CAP), and travel/per-diem. The
Government will account for these requirements as separate CLINs and has
baselined these costs as indicated in the CLINs below. Materials, supplies and
travel, shall be paid at cost, non-fee bearing, in accordance with the clause in
Section I, FAR 52.216-11, Cost Contract - No Fee (APR 1984). The contractor
shall retain original vendor receipts and furnish them to the contracting
officer upon request to substantiate billings. These items will be excluded from
input to the cost base upon which the award fee pool is calculated.

--------------------------------------------------------------------------------
                                                                     Total
CONTRACT LINE                                                      Estimated
 ITEM (CLIN)               DESCRIPTION             QTY   UNIT        Amount
--------------------------------------------------------------------------------
2009/2010       Cost Basis (Non-fee  bearing)
                The Contractor shall provide the Contractor Acquired Property
                that must be authorized, and is subject to a determination by
                the contracting officer that it is allocable to the contract and
                reasonable necessary, for effort related to fixed price core
                requirements and travel as required to support performance of
                fixed price CLINs 1002 - 1008 in accordance with the SOW.
--------------------------------------------------------------------------------
2009            Contractor Acquired Property (CAP) The
                Contractor shall provide CAP, defined in NFS
                1845.502-70, in accordance with the
                requirements of the SOW.                           See Note 1
--------------------------------------------------------------------------------
2009A           CAP (FY 06)                        12     MO    $1,539,974 (NTE)
--------------------------------------------------------------------------------
2009B           CAP (FY 07)                        12     MO    $1,585,484 (NTE)
--------------------------------------------------------------------------------
2009C           CAP (FY 08)                        12     MO    $1,633,749 (NTE)
--------------------------------------------------------------------------------
2010            Travel and Per Diem The Contractor shall
                perform travel as required in accordance with
                the requirements set forth in the SOW              See Note 2
--------------------------------------------------------------------------------
2010A           Travel (FY 06)                     12     MO    $  162,736 (NTE)
--------------------------------------------------------------------------------
2010B           Travel (FY 07)                     12     MO    $  167,545 (NTE)
--------------------------------------------------------------------------------
2010C           Travel (FY 08)                     12     MO    $  172,645 (NTE)
--------------------------------------------------------------------------------

NOTE 1:   Cost Basis (Non-Fee-Bearing) Contractor Acquired Property (CAP).  .

The Not-To-Exceed (NTE) amount is the ceiling for the cost-reimbursable line
items. Contractor Acquired Property will be reimbursed for incurred costs on a
non-fee bearing basis. All contractor-acquired property must be authorized by
the contract and is subject to a determination by the contracting officer that
it is allocable to the contract and reasonably necessary.

During contract performance, the contractor is required to procure items for
which the nature and quantity would not be expected to be included in fixed
price requirements (SOW 3.0 - 8.0). Only specific categories of items will be
allowable to be acquired under this CLIN. These types of items include

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NASA customer transient office supplies, all expendable, consumable supplies and
materials, (e.g., magnetic tapes, strip charts, clean room garments, components
and piece parts); all mobile and lift equipment, shop and calibration equipment,
communications equipment, and maintenance equipment.

NOTE 2: Travel and Per Diem

Pursuant to Title 11, Section 21 of the Federal Civilian Employee and Contractor
Travel Expense Act of 1985 (PL 99-234), reimbursement for travel associated with
fixed price effort shall be in accordance with the provisions of FAR 31.205-46.

2.4  Vehicle Engineering and Analysis (CPAF)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                         Total Estimated
 (CLIN)                DESCRIPTION                     Cost              Award Fee
---------------------------------------------------------------------------------------
<S>         <C>                                     <C>             <C>
2011        Vehicle Engineering and Analysis in     $19,472,927     (See Provision B-3)
            accordance with SOW 10.0

            (Cost-Plus-Award-Fee)
---------------------------------------------------------------------------------------
</TABLE>

2.5 Facility Upgrade/Modification/Repair, Design and Construction. (Fixed-price,
Indefinite-delivery, Indefinite quantity)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                                                         Total
 (CLIN)                       DESCRIPTION                     QTY     UNIT   Estimated Amount
---------------------------------------------------------------------------------------------
<S>                                                         <C>       <C>         <C>
2012        Facility Upgrade/Modification/Repair, Design    As        JOB         $ TBD*
            and  Construction in accordance with SOW 11.0   Ordered

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

The Government reserves the right to order Facility Upgrade/Modification/Repair,
Design and Construction projects under this CLIN. The Contracting Officer may
order the services any time by written notice to the Contractor from10/01/2005
through 9/30/2008. The Contractor shall provide the necessary effort in
accordance with SOW 11.0

---------------------------------------------------------------------------------------------
</TABLE>

*    To be determined.

Task/delivery orders for facilities modifications, design, and/or construction
may be issued to the Contractor at the sole discretion of the contracting
officer. It is agreed that work requests for Facility
Upgrade/Modification/Repair, Design and Construction items may be issued as
fixed price task orders during the term of the contract, and that the Government
has no obligation to issue any such work request. In the event any such
task/delivery orders are issued, they will in accordance with task ordering
procedures in Section H.

Summary Option Period 1 (FY 2006 thru FY 2008)

---------------------------------------------------------------
FIXED-PRICE AWARD FEE   (CLINS 2002-2007)     $25,465,068
---------------------------------------------------------------
MISSION DIRECT IDIQ     (CLINS 2008)          $   TBD
---------------------------------------------------------------
COSTS BASIS             (CLINS 2009 & 2010)   $ 5,262,133 (NTE)
---------------------------------------------------------------
ESTIMATED COST (CPAF)   (CLINS 2011)          $19,472,927
---------------------------------------------------------------

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--------------------------------------------------------------------
                                 (CLINs  2002-2007 and
MAXIMUM AVAILABLE AWARD FEE*     CP CLIN 2011)           $ 2,696,280
--------------------------------------------------------------------
FACILITY
UPGRADE/MODIFICATION/REPAIR,
DESIGN AND CONSTRUCTION (IDIQ)        (CLINS 2012)       $   TBD
--------------------------------------------------------------------

--------------------------------------------------------------------
TOTAL ESTIMATED CONTRACT VALUE                           $52,896,408
--------------------------------------------------------------------

================================================================================

OPTION 2 - Expendable Launch Vehicle Integrated Support. The Government reserves
the right to exercise an option for a 3-year performance period. The Contracting
Officer will exercise options in accordance with the procedures at FAR Subpart
17.2

            (Performance Period: October 1, 2008- September 30, 2011)

================================================================================

3.1  Contract Core Requirements (Fixed Price Award Fee)

The Contractor shall provide the necessary services to accomplish the following
technical services in accordance with the SOW. Pricing for Section 1.0 of the
SOW is deemed to be included in the CLIN prices below.

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<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                                          UNIT       Total
 (CLIN)                   DESCRIPTION                QTY   UNIT    PRICE     Amount($)
---------------------------------------------------------------------------------------
<S>         <C>                                      <C>    <C>   <C>        <C>
3002        Program Management in accordance with SOW 3.0                    $1,757,100
---------------------------------------------------------------------------------------
3002A       ELV Program Management Support(FY 09)    12     MO    $ 47,863   $  574,356
---------------------------------------------------------------------------------------
3002B       ELV Program Management Support(FY 10)    12     MO    $ 48,801   $  585,612
---------------------------------------------------------------------------------------
3002C       ELV Program Management Support(FY 11)    12     MO    $ 49,761   $  597,132
---------------------------------------------------------------------------------------
3003        Safety and Mission Assurance in accordance with SOW 4.0          $5,070,024
---------------------------------------------------------------------------------------
3003A       Safety and Mission Assurance (FY 09)     12     MO    $136,054   $1,632,648
---------------------------------------------------------------------------------------
3003B       Safety and Mission Assurance (FY 10)     12     MO    $140,610   $1,687,320
---------------------------------------------------------------------------------------
3003C       Safety and Mission Assurance (FY 11)     12     MO    $145,838   $1,750,056
---------------------------------------------------------------------------------------
3004        Launch Site Support Engineering (LSSE) in accord with SOW 5.0    $3,680,592
---------------------------------------------------------------------------------------
3004A       LSSE (FY 09)                             12     MO    $100,258   $1,203,096
---------------------------------------------------------------------------------------
3004B       LSSE (FY 10)                             12     MO    $102,224   $1,226,688
---------------------------------------------------------------------------------------
3004C       LSSE (FY 11)                             12     MO    $104,234   $1,250,808
---------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                          UNIT      Total
 (CLIN)                        DESCRIPTION           QTY   UNIT    PRICE    Amount ($)
--------------------------------------------------------------------------------------
<S>         <C>                                      <C>    <C>   <C>       <C>
3005        Technical Integration Services in accordance with SOW 6.0       $3,107,160
--------------------------------------------------------------------------------------
3005A       Technical Integration Services (FY 09)   12     MO    $84,638   $1,015,656
--------------------------------------------------------------------------------------
3005B       Technical Integration Services (FY 10)   12     MO    $86,298   $1,035,576
--------------------------------------------------------------------------------------
3005C       Technical Integration Services (FY 11)   12     MO    $87,994   $1,055,928
--------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
<S>         <C>                                     <C>    <C>   <C>         <C>
3006        Communications and Telemetry in accordance with SOW 7.0          $9,537,216
---------------------------------------------------------------------------------------
3006A       Communications and Telemetry (FY09)      12     MO    $259,791   $3,117,492
---------------------------------------------------------------------------------------
3006B       Communications and Telemetry (FY10)      12     MO    $264,884   $3,178,608
---------------------------------------------------------------------------------------
3006C       Communications and Telemetry (FY11)      12     MO    $270,093   $3,241,116
---------------------------------------------------------------------------------------
3007        Vandenberg AFB Unique in accordance with SOW 8.0                 $4,576,308
---------------------------------------------------------------------------------------
3007A       Vandenberg AFB Unique (FY 09)            12     MO    $123,320   $1,479,840
---------------------------------------------------------------------------------------
3007B       Vandenberg AFB Unique (FY 10)            12     MO    $127,233   $1,526,796
---------------------------------------------------------------------------------------
3007C       Vandenberg AFB Unique (FY 11)            12     MO    $130,806   $1,569,672
---------------------------------------------------------------------------------------
</TABLE>

Maximum Available Award Fee shall be included in provision B-3 "AWARD FEE".

3.2  Mission Direct Support (IDIQ)

The Government reserves the right to order fixed price, Indefinite
Delivery/Indefinite Quantity (IDIQ) mission direct support services, independent
of core requirements, under these CLINs from the items listed below. The
Contracting Officer may order the services any time by written notice to the
Contractor in accordance with the ordering procedures set forth in Section H of
this contract. Task orders will be performance-based and will be restricted to
the acquisition of "outcomes" where the period of performance and discrete task
objectives will be limited to work and products that can be defined and priced.

The services furnished under this IDIQ article supplement and are in addition to
the services furnished under the contract's core requirements. Notwithstanding
the issuance or pendency of a task/delivery order, the Contractor will not be
entitled to additional payment, beyond the contract price for core requirements,
for any work already required (as to substance, quantity and schedule) under the
contract's/SOW core requirements provisions.

Hourly Rates for Mission-Direct Support Services

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                                                                                   Ordering
SOW    Rate Type                                   Description                       Unit
---------------------------------------------------------------------------------------------
<S>   <C>          <C>                                                            <C>
9.1   Individual   A combined average rate for one hour of service performed by   Worker Hour
      Composite    a single skilled worker from Safety & Mission Assurance,
                   Launch Site Support Engineering, or Technical Integration
                   Services outside of core hours at KSC or VAFB.
---------------------------------------------------------------------------------------------
9.2   Individual   A combined average rate for one hour of service performed by   Worker Hour
      Composite    a single skilled worker from VAFB Operations,
                   Troubleshooting or Repair outside of core hours.
---------------------------------------------------------------------------------------------
9.3   Full Crew    A combined crew rate for one hour of service performed by a    Crew Hour
      Composite    full crew supporting Communications and Telemetry outside of
                   core hours. This
---------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<S>   <C>          <C>                                                            <C>
---------------------------------------------------------------------------------------------
                   rate will vary depending upon location of service at KSC or
                   at VAFB.
---------------------------------------------------------------------------------------------
9.4    Reduced     A combined crew rate for one hour of service performed by a    Crew Hour
        Crew       reduced crew supporting Communications and Telemetry outside
      Composite    of core hours. There are separate rates depending upon
                   location of service at KSC or VAFB
---------------------------------------------------------------------------------------------
9.5   Individual   A combined average rate for one hour of a single skilled       Worker Hour
      Composite    worker performing On-Call Troubleshooting or Repair outside
                   of core hours.
---------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                                                  Total
 (CLIN)                         DESCRIPTION                            QTY     UNIT      Amount ($)
-----------------------------------------------------------------------------------------------------
<S>         <C>                                                      <C>       <C>    <C>
3008        Mission Direct Support Services
            The contractor shall accept task orders issued only by the contracting officer.The
            Contractor shall provide the services as ordered to accomplish the following.
-----------------------------------------------------------------------------------------------------
3008A       Additional Support for Safety and Mission Assurance,
            Launch Site Support Engineering, and Technical             As       Hr    See Table B-3.1
            Integration Services, in accordance with SOW 9.1         Ordered
-----------------------------------------------------------------------------------------------------
3008B       Additional Support for VAFB Operations,
            Troubleshooting and Repair in accordance with SOW
            9.2Hourly Support for Communications and Telemetry
            Outside of Core Work Shift in accordance with SOW
            9.3
-----------------------------------------------------------------------------------------------------
3008BA      Scheduled support for VAFB Operations, Troubleshooting     As       Hr    See Table B-3.1
            and Repair in accordance with SOW 9.2                    Ordered
-----------------------------------------------------------------------------------------------------
            Call-out support for VAFB Operations, Troubleshooting      As       Hr    See Table B-3.1
3008BB      and Repair in accordance with SOW 9.2                    Ordered
-----------------------------------------------------------------------------------------------------
3008C       Hourly Support for Communications and
            Telemetry Outside of Core Work Shift in
            accordance with SOW 9.3
-----------------------------------------------------------------------------------------------------
3008CA      KSC Hourly Support for Communications and Telemetry         As      Hr    See Table B-3.1
            Outside of Core Work Shift                               Ordered
-----------------------------------------------------------------------------------------------------
3008CB      VAFB Hourly Support for Communications and Telemetry       As
            Outside of Core Work Shift                               Ordered    Hr    See Table B-3.1
-----------------------------------------------------------------------------------------------------
3008D       Reduced Support for Communications and
            Telemetry Outside of Core Work Shift in
            accordance with SOW 9.4.
-----------------------------------------------------------------------------------------------------
 3008DA     KSC Reduced Support for  Communications and Telemetry      As
            Outside of Core Work Shift                               Ordered    Hr    See Table B-3.1
-----------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
----------------------------------------------------------------------------------------------
<S>      <C>                                             <C>          <C>      <C>
3008DB   VAFB Reduced Support for Communications         As Ordered
         and Telemetry Outside of Core Work Shift                      Hr      See Table B-3.1
----------------------------------------------------------------------------------------------
3008E    On-Call Troubleshooting and Repair Support in accordance with
         SOW 9.5
----------------------------------------------------------------------------------------------
3008EA   On-Call Troubleshooting and Repair Support in   As Ordered    Hr      See Table B-3.1
         accordance with SOW 9.5 -Communication
         Technician at KSC.
----------------------------------------------------------------------------------------------
3008EB   On-Call Troubleshooting and Repair Support in   As Ordered    Hr      See Table B-3.1
         accordance with SOW 9.5 -Communication
         Technician at VAFB.
----------------------------------------------------------------------------------------------
3008EC   On-Call Troubleshooting and Repair Support in   As Ordered    Hr      See Table B-3.1
         accordance with SOW 9.5 -Manager at VAFB.
----------------------------------------------------------------------------------------------
3008F    Guard Services at VAFB in accordance with       As Ordered   24 hrs   See Table B-3.2
         SOW 9.6
----------------------------------------------------------------------------------------------
3008G    Access Control Monitors (ACM) at VAFB in       As Ordered   24 hrs   See Table B-3.3
         accordance with SOW 9.7
----------------------------------------------------------------------------------------------
</TABLE>

Upon identification of a task(s) by the Contracting Officer, a request to the
contractor for estimated number of hours/units required to complete the
identified task(s), and subsequent negotiation of agreed to hours/units, the
Government may issue task orders utilizing the contractor's fully burdened,
fixed-price rates shown in Table B-3.1 to B-3.3. The price in each year includes
all direct costs (including shift differentials as applicable), applicable
indirect costs and anticipated profit.

Table B-3.1      HOURLY LABOR RATES

[*]

Table B-3.2 24   HOUR SHIFT/ACCESS POINT RATES

[*]

Table B-3.3 24   HOUR RATES

[*]

Public Affairs Support (IDIQ)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                                           Total
 (CLIN)                     DESCRIPTION                     QTY       UNIT         Amount ($)
<S>         <C>                                           <C>         <C>       <C>
-----------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
-----------------------------------------------------------------------------------------------
<S>         <C>                                           <C>       <C>         <C>
 3008H      Satellite Uplink Services for NASA Public     As          24 Hrs    See Table B-3.4
            Affairs Support in accordance with SOW        Ordered
            9.8
-----------------------------------------------------------------------------------------------
 3008I      Public Affairs Support in accordance with     As        50 guests   See Table B-3.5
            SOW 9.9                                       Ordered
-----------------------------------------------------------------------------------------------
 3008J      Public Affairs Support accordance with        As        25 guests   See Table B-3.5
            SOW 9.9                                       Ordered
-----------------------------------------------------------------------------------------------
</TABLE>

The Contracting Officer may issue task orders utilizing the contractor's
fixed-prices as shown in Table B-3.4 and 3.5. The price in each year includes
all direct costs (including shift differentials as applicable), applicable
indirect costs and anticipated profit.

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Table B-3.4 Satellite Uplink Services for NASA Public Affairs Support (SOW 9.8)

[*]

Table B-3.5 Public Affairs Support in accordance with SOW 9.9

[*]

3.3  Cost Basis (Non Fee Bearing)

The dynamic nature of the ELV integrated support items makes it impossible to
accurately predict contractor acquired property (CAP), and travel/per-diem. The
Government will account for these requirements as separate CLINs and has
baselined these costs as indicated in the CLINs below. Materials, supplies and
travel, shall be paid at cost, non-fee bearing, in accordance with the clause in
Section I, FAR 52.216-11, Cost Contract - No Fee (APR 1984). The contractor
shall retain original vendor receipts and furnish them to the contracting
officer upon request to substantiate billings. These items will be excluded from
input to the cost base upon which the award fee pool is calculated.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CONTRACT
LINE ITEM                                                                        Total
 (CLIN)                      DESCRIPTION                   QTY     UNIT     Estimated Amount
---------------------------------------------------------------------------------------------
<S>          <C>                                            <C>     <C>     <C>
3009/3010    Cost Basis
             (Non-fee bearing)
             The Contractor shall provide the Contractor Acquired Property that must be
             authorized, and is subject to a determination by the contracting officer that
             it is allocable to the contract and reasonable necessary, for effort related to
             fixed price core requirements and travel as required to support performance of
             fixed price CLINs 1002 - 1008 in accordance with the SOW.
---------------------------------------------------------------------------------------------
3009          Contractor Acquired Property (CAP) The Contractor shall          See Note 1
              provide CAP, defined in NFS 1845.502-70, in accordance with
                      the requirements of the SOW. --
---------------------------------------------------------------------------------------------
3009A        CAP (FY 09)                                    12      MO      $ 1,688,825 (NTE)
---------------------------------------------------------------------------------------------
3009B        CAP (FY 10)                                    12      MO      $ 1,738,816 (NTE)
---------------------------------------------------------------------------------------------
3009C        CAP (FY 11)                                    12      MO      $ 1,790,392 (NTE)
---------------------------------------------------------------------------------------------
3010         Travel and Per Diem The  Contractor shall perform travel as       See Note 2
             required in accordance with the requirements set forth in the
             SOW
---------------------------------------------------------------------------------------------
3010A        Travel (FY 09)                                 12      MO      $ 172,736 (NTE)
---------------------------------------------------------------------------------------------
3010B        Travel (FY 10)                                 12      MO      $ 177,849 (NTE)
---------------------------------------------------------------------------------------------
3010C        Travel (FY 11)                                 12      MO      $ 183,124 (NTE)
---------------------------------------------------------------------------------------------
</TABLE>

NOTE 1: Cost Basis (Non-Fee-Bearing) Contractor Acquired Property (CAP).

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The Not-To-Exceed (NTE) amount is the ceiling for the cost-reimbursable line
items. Contractor Acquired Property will be reimbursed for incurred costs on a
non-fee bearing basis. All contractor-acquired property must be authorized by
the contract and is subject to a determination by the contracting officer that
it is allocable to the contract and reasonably necessary.

During contract performance the contractor is required to procure items for
which the nature and quantity would not be expected to include in fixed price
requirements (SOW 3.0 - 8.0). Only specific categories of items will be
allowable to be acquired under this CLIN. These types of items include NASA
customer transient office supplies, all expendable, consumable supplies and
materials, (e.g., magnetic tapes, strip charts, clean room garments, components
and piece parts, etc.); all mobile and lift equipment, shop and calibration
equipment, communications equipment, and maintenance equipment.

NOTE2: Travel and Per Diem

Pursuant to Title 11, Section 21 of the Federal Civilian Employee and Contractor
Travel Expense Act of 1985 (PL 99-234), reimbursement for travel associated with
fixed price effort shall be in accordance with the provisions of FAR 31.205-46.

3.4  Vehicle Engineering and Analysis (CPAF)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
 CONTRACT
LINE ITEM                                         Total Estimated
  (CLIN)                DESCRIPTION                     Cost          Award Fee
-------------------------------------------------------------------------------------
<S>         <C>                                     <C>             <C>
3011        Vehicle Engineering and Analysis in     $19,598,278     (See Provision B-3)
            accordance with SOW 10.0
            (Cost-Plus-Award-Fee)
--------------------------------------------------------------------------------------
</TABLE>

3.5  Facility Upgrade/Modification/Repair, Design and Construction.
     (Fixed-price, Indefinite-delivery, Indefinite quantity)

--------------------------------------------------------------------------------
 CONTRACT                                                              Total
LINE ITEM                                                             Estimated
  (CLIN)                DESCRIPTION                   QTY     UNIT     Amount
--------------------------------------------------------------------------------
3012        Facility Upgrade/Modification/Repair,   As        JOB       $TBD*
            Design and Construction in accordance   Ordered
            with SOW 11.0
--------------------------------------------------------------------------------
The Government reserves the right to order Facility Upgrade/Modification/Repair,
Design and Construction projects under this CLIN. The Contracting Officer may
order the items/services any time by written notice to the Contractor from
10/01/2005 through 9/30/2008. The Contractor shall provide the items/services
necessary in accordance with SOW 11.0.
--------------------------------------------------------------------------------

Task/delivery orders for facilities modifications, design, and/or construction
may be issued to the Contractor at the sole discretion of the contracting
officer. It is agreed that work requests for Facility
Upgrade/Modification/Repair, Design and Construction items may be issued as
fixed price task orders during the term of the contract, and that the Government
has no obligation to issue any such work request. In the event any such
task/delivery orders are issued, they will in accordance with task ordering
procedures in Section H.

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Summary Option Period 2 (FY 2009 thru FY 2011)

------------------------------------------------------------------------
FIXED-PRICE AWARD FEE            (CLINS 3002-3007)      $27,728,400
------------------------------------------------------------------------
MISSION DIRECT IDIQ              (CLINS 3008)           $    TBD
------------------------------------------------------------------------
COSTS BASIS                      (CLINS 3009 &3010)     $5,751,742_(NTE)
------------------------------------------------------------------------
ESTIMATED COST (CPAF)            (CLINS 3011)           $19,598,278
------------------------------------------------------------------------
MAXIMUM AVAILABLE AWARD FEE*     (CLINs 3002-3007 and
                                 CP CLIN 3011)          $ 2,839,600
------------------------------------------------------------------------
FACILITY                         (CLINS 3012)
UPGRADE/MODIFICATION/REPAIR,
DESIGN AND CONSTRUCTION (IDIQ)                          $    TBD
------------------------------------------------------------------------

------------------------------------------------------------------------
TOTAL ESTIMATED CONTRACT VALUE                          $55,918,020
------------------------------------------------------------------------

B-2  FIRM FIXED PRICE (NFS 1852.216-78) (DEC 1988)(CLIN 0001)

The total firm fixed price for CLIN 0001 of this contract is $    .00
                                                               ---
                                 (End of Clause)

B-3  AWARD FEE

(a) In addition to the profit/fee set forth elsewhere in the contract, the
Contractor may earn a total award fee amount on the basis of performance during
the evaluation periods.

(b) The amount of award fee earned by the contractor under fixed price CLINs
1002-1007, 2002-2007, 3002-3007 and cost-plus CLINs 1011, 2011 and 3011 shall be
determined in accordance with the Performance Evaluation Plan, Section J,
Attachment J-6.

(c) The maximum available award fee, excluding base fee, if any, is reflected in
Table B-3 below. A portion of the total available award fee (both the fixed
price and cost-plus) in the schedule is allocated to each of the evaluation
periods. This allocation is in equal distributions of fee among the periods.

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Table B-3 Available and Earned Fee
--------------------------------------------------------------------------------
                                  Maximum                                   Mod
Period     Evaluation Period   Available Fee   Earned Fee   Score Rating    No.
--------------------------------------------------------------------------------
   1     07/01/02 - 09/30/02      $217,161        $TBD
--------------------------------------------------------------------------------
   2     10/01/02 - 03/31/03      $415,219        $TBD
--------------------------------------------------------------------------------
   3     04/01/03 - 09/30/03      $415,219        $TBD
--------------------------------------------------------------------------------
   4     10/01/03 - 03/31/04      $417,124        $TBD
--------------------------------------------------------------------------------
   5     04/01/04 - 09/30/04      $417,124        $TBD
--------------------------------------------------------------------------------
   6     10/01/04 - 03/31/05      $427,479        $TBD
--------------------------------------------------------------------------------
   7     04/01/05 - 09/30/05      $427,479        $TBD
--------------------------------------------------------------------------------
         OPTION 1
--------------------------------------------------------------------------------
   8     10/01/05 - 03/31/06      $439,126        $TBD
--------------------------------------------------------------------------------
   9     04/01/06 - 09/30/06      $439,126        $TBD
--------------------------------------------------------------------------------
  10     10/01/06 - 03/31/07      $451,744        $TBD
--------------------------------------------------------------------------------
  11     04/01/07 - 09/30/07      $451,744        $TBD
--------------------------------------------------------------------------------
  12     10/01/07 - 03/31/08      $457,270        $TBD
--------------------------------------------------------------------------------
  13     04/01/08 - 09/30/08      $457,270        $TBD
--------------------------------------------------------------------------------
         OPTION 2
--------------------------------------------------------------------------------
  14     10/01/08 - 03/31/09      $462,309        $TBD
--------------------------------------------------------------------------------
  15     04/01/09 - 09/30/09      $462,309        $TBD
--------------------------------------------------------------------------------
  16     10/01/09 - 03/31/10      $473,158        $TBD
--------------------------------------------------------------------------------
  17     04/01/10 - 09/30/10      $473,158        $TBD
--------------------------------------------------------------------------------
  18     10/01/10 - 03/31/11      $484,333        $TBD
--------------------------------------------------------------------------------
  19     04/01/11 - 09/30/11      $484,333        $TBD
--------------------------------------------------------------------------------

                                 (End of Clause)

B-4  SPECIAL COST PROVISIONS (Applicable to CLIN's 1011, 2011, 3011)

Without otherwise affecting the applicability of the cost principles set forth
in FAR Part 31 and pursuant to the terms of the contract clause entitled
"Allowable Cost and Payment," the contractor shall be reimbursed for such actual
and allowable expenditures incurred in the performance of work required by this
contract as may be approved by the contracting officer subject to the following
limitations and provisions:

A.   Provisional Billing Rates and Reimbursement Ceiling Rates

1. Provisional billing rates for overhead and G&A costs will be specified in
writing under separate cover, and may be revised either retroactively or
prospectively by the contracting officer. In accordance with FAR Clause
52.216-15, the contractor shall submit within 90 days after its fiscal year end,
and on an annual basis, a copy of its final indirect cost rates proposal to the
contracting officer concurrent with the submission to the Corporate
Administrative Contracting Officer (CACO) responsible for settlement of the
indirect rates.

2. Notwithstanding the terms of the contract clause entitled "Allowable Cost and
Payment," the contractor shall not be reimbursed for G&A costs in excess of the
established ceilings.

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3. Costs attributable to a rate increase in excess of the established G&A
ceiling rates shall be unallowable unless caused by compliance with new
mandatory state or Federal requirements. If the contractor incurs costs in
excess of the ceiling rates and wishes to obtain reimbursement, it shall submit
a proposal to the contracting officer setting forth fully and completely the
facts and circumstances believed to be responsible for the incurrence of costs
above the ceiling(s). The contracting officer may make an equitable adjustment
to the contract ceiling(s) if and to the extent the contractor's proposal
demonstrates that costs incurred in excess of the ceiling(s) were attributable
to the circumstances described above and were not reasonably susceptible to
being offset by reasonable and prudent reductions in indirect costs in other
areas within the contractor's control.

4. The contractor shall not make changes to its methods of allocating G&A costs
subject to ceilings in order to charge these costs to indirect expense pools not
subject to ceilings without the approval of the contracting officer. The
contractor shall be responsible for applying this same methodology to its
subcontractors whose contracts are cost reimbursable.

B.   Fringe Benefits

The contractor shall inform the contracting officer of all proposed changes in
fringe benefits which may result in an increased cost to the contract as soon as
practicable but, in any event, prior to such changes being implemented. Fringe
benefits include, but are not limited to, such items as health insurance, life
insurance, pension plans, retiree health care, savings plans, bonus plans,
education assistance, and leave policies. Failure to comply with the terms of
this clause may result in the disallowance of costs.

C.   Transfer of Accrued Benefits

The successful offeror will accept transfer of accrued sick leave hours of
personnel hired from the incumbent contractor without a break in service from
the predecessor contract in excess of 60 days. However, the costs of these
carry-over hours will not be paid under the successor contract unless used.
Additionally, the successor contractor will recognize the vacation accrual
rates, earned through seniority, of personnel hired from the incumbent
contractor without a break in service from the predecessor contract in excess of
60 days.

                               (End of provision)

B-5  MINIMUM/MAXIMUM IDIQ CONTRACT VALUE

For the IDIQ portion of this contract, the guaranteed minimum quantity of work
is covered by the fixed price core work.

There will be no further obligation on the part of the Government to issue any
orders. The total maximum quantity ordered under this contract shall not exceed
$4 Million per year. All orders placed under this contract will be applied to
the guaranteed minimum and maximum.

                                  (End of text)

                                [END OF SECTION]

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                                    SECTION C
                    DESCRIPTION/SPECIFICATION/WORK STATEMENT

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

C-1  SCOPE OF WORK (KSC 52.210-90) (FEB 1990)(Modified)

The Contractor shall, in accordance with the terms and conditions set forth
herein, manage and provide the non-personal services, products and data for NASA
as described in Statement of Work for Expendable Launch Vehicles Integrated
Support, attached hereto and made part of Section J, Attachment J-1.

The Contractor's obligation under the cost reimbursement contract line item
includes resolution of unusual or emergency situations or increased work volume,
which may occur from time to time. Such requirements shall be considered to be
within the scope of the contract, entirely within the Contractor's original
contractual obligation, and will not constitute nor be construed as a change
within the meaning of the "Changes" clause of this contract. However, if
assigned work is considered by the Contractor to be outside the scope of his
contractual obligation, the Contractor (before performing any effort pursuant to
such Government direction) shall refer such question to the Contracting Officer
for resolution.

C-2  DATA REQUIREMENTS LIST

The Contractor shall furnish all data identified and described in Attachment
J-2, Appendix 1 (Data Requirements List - KSC Form 16-245, hereinafter called
DRL) and in supplemental DRLs to be subsequently furnished to the Contractor for
additional data, which the Government is authorized to request in accordance
with the terms of this contract. Such data shall be prepared in accordance with
the Data Requirement Description - KSC Form 16-246 (hereinafter called DRD)
attached to the DRL and referenced in the DRL for each line item of data
specified in the DRL.

The Government reserves the right to reasonably defer the dates of delivery of
any or all line items of data specified in the DRL. Such right may be exercised
at no increase in the contract amount. The Government also reserves the right to
terminate the requirement for any or all line items of data specified in the
DRL. In the event the Government exercises this right, the contract amount shall
be subject to equitable adjustment in accordance with the Changes clause."

To the extent that data required to be furnished by other provisions of this
contract are also identified and described in the DRL, or supplemental DRLs, and
in the DRDs referenced in such DRL(s), compliance with the DRL shall be accepted
as compliance with such other provisions. In the event of conflict between the
identity and description of data called for by specific provisions of this
contract and the DRL or DRDs, the DRL and DRDs shall control the data to be
furnished.

Nothing contained in this Data Requirements List provision shall relieve the
Contractor from furnishing data called for by, or under the authority of, other
provisions of this contract, which are not identified and described in the DRL
attached to this contract. Whenever such data are identified, either by the
Contractor or the Government, they will be listed on a DRL and described on
DRDs.

Except as otherwise provided in this contract, the cost of data to be furnished
in response to the DRL attached to this contract is included in the total
contract value.

                                [END OF SECTION]

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                                    SECTION D
                              PACKAGING AND MARKING

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

D-1  PACKAGING, HANDLING, AND TRANSPORTATION (NFS 1852.211-70) (JUNE 2000)

(a) The Contractor shall comply with NPG 6000.1E, "Requirements for Packaging,
Handling, and Transportation for Aeronautical and Space Systems, Equipment, and
Associated Components", dated April 26, 1999, as may be supplemented by the
statement of work of specifications of this contract, for all items designated
as Class I, II, or III.

(b) The Contractor's packaging, handling, and transportation procedures may be
used, in whole or in part, subject to the written approval of the Contracting
Officer, provided (1) the Contractor's procedures are not in conflict with any
requirements of this contract, and (2) the requirements of this contract shall
take precedence in the event of any conflict with the Contractor's procedures.

(c) The Contractor must place the requirements of this clause in all
subcontracts for items that will become components of deliverable class I, II or
III items.

                                 (End of Clause)

D-2  MATERIAL INSPECTION AND RECEIVING REPORT (NFS 1852.246-72) (JUN 1995)

(a) At the time of each delivery to the Government under this contract, the
Contractor shall furnish a Material Inspection and Receiving Report (DD Form 250
series) prepared in [Insert number of copies, including original] copies, an
original and copies [Insert number of copies].

(b) The Contractor shall prepare the DD Form 250 in accordance with NASA FAR
Supplement 1846.672-1. The Contractor shall enclose the copies of the DD Form
250 in the package or seal them in a waterproof envelope, which shall be
securely attached to the exterior of the package in the most protected location.

(c) When more than one package is involved in a shipment, the Contractor shall
list on the DD Form 250, as additional information, the quantity of packages and
the package numbers. The Contractor shall forward the DD Form 250 with the
lowest numbered package of the shipment and print the words "CONTAINS DD FORM
250" on the package.

                                 (End of clause)

D-3  MARKING INSTRUCTIONS (KSC 52.247-92) (NOV 2000)
     Transportation Officer, NASA
        J-BOSC Warehouse, Building M6-744
        Kennedy Space Center, Florida  32899

In addition, special marks or ultimate consignee will be shown as:

     Marked For:  Ultimate Consignee
                  Mail Code
                            -----------------
                  Building #
                             ------------------
                  Contract #
                             -----------------

                                 (End of Clause)

                                [END OF SECTION]

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                                    SECTION E
                            INSPECTION AND ACCEPTANCE

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

E-1  LISTING OF CLAUSES INCORPORATED BY REFERENCE

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1)
CLAUSE
NUMBER        DATE                     TITLE

52.246-3    APR 1984   INSPECTION OF SUPPLIES -- COST-REIMBURSEMENT
52.246-4    AUG 1996   INSPECTION OF SERVICES -- FIXED-PRICE
52.246-5    APR 1984   INSPECTION OF SERVICES -- COST-REIMBURSEMENT
52.246-10   FEB 1999   INSPECTION OF FACILITIES
52.246-12   AUG 1996   INSPECTION OF CONSTRUCTION
52.246-13   AUG 1996   INSPECTION - DISMANTLING, DEMOLITION, OR
                       REMOVAL OF IMPROVEMENTS
52.246-16   APR 1984   RESPONSIBILITY FOR SUPPLIES

E-2  INSPECTIONS AND ACCEPTANCE

Inspection and acceptance shall be in accordance with FAR Clauses contained
herein and shall be performed at Vandenberg Air Force Base, CA and Kennedy Space
Center, Cape Canaveral Air Station, FL and such other places of performance or
delivery of work required under this contract.

E-3  QUALITY ASSURANCE REQUIREMENTS

The contractor shall establish and maintain a quality control system that
satisfies the requirements of ANSI/ ISO/ASQC Q9001-1994 or Q9001-2000, "Quality
Systems-Model for Quality Assurance Production Installation and Servicing" and
amendments thereto. If the Contractor's quality control system is compliant to
the Q9001-1994 revision, it must be transitioned to Q9001-2000 revision by
December 2003.

A detailed quality manual, in accordance with the Statement of Work, is
incorporated as Section J, Attachment 9 . If applicable, the Contractor will
submit an updated manual by December 2003 when the Contractor's quality control
system is revised to comply with the Q9001-2000 revision. The revised manual
will be incorporated to replace Section J, Attachment 9.

                                 (End of Clause)

                                [END OF SECTION]

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                                    SECTION F
                            DELIVERIES OR PERFORMANCE

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

F-1  LISTING OF CLAUSES INCORPORATED BY REFERENCE

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

I.   FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1)

CLAUSE
NUMBER      DATE                   TITLE
52.242-15   AUG 1989   STOP-WORK ORDER (ALTERNATE I)
52.252-16   AUG 1989   STOP-WORK ORDER - FACILITIES
52.247-29   JUN 1988   F.O.B. ORIGIN

F-2  PLACE OF PERFORMANCE (KSC 52.212-92) (FEB 1990)

The place of performance shall be at Vandenberg Air Force Base, CA; Kennedy
Space Center, Cape Canaveral Air Force Station, FL; Launch Service Provider
facilities; and, other launch sites as approved by the Contracting Officer.

                                 (End of Clause)

F-3  PERIOD OF PERFORMANCE AND EFFECTIVE ORDERING PERIOD

The basic period of performance and effective ordering period of this contract
shall be for a period of three years, four months from the effective date of the
contract. Task Orders may be issued under this contract during the basic
performance period and option periods.

<TABLE>
<CAPTION>
                  Government
                  Period of Performance                  Fiscal Year   CLINs
                  ------------------------------------   -----------   -----------
<S>               <C>                                    <C>           <C>
Phase-In          KSC: June1, 02 -July 7, 02             FY02          1001
                  VAFB: June 1-30, 2002

Basic Period      KSC: July 08, 02 - September 30, 05    FY02-05       1002 - 1012
                  VAFB: July 01, 02 - September 30, 05

Option Period 1   October 01, 05 - September 30, 08      FY06-08       2002 - 2012

Option Period 2   October 01, 08 - September 30, 11      FY09-11       3002 - 3012
</TABLE>

                                  (End of Text)

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                                [END OF SECTION]
                                    SECTION G
                          CONTRACT ADMINISTRATION DATA

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

G-1  LISTING OF CLAUSES INCORPORATED BY REFERENCE

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

CLAUSE
NUMBER         DATE                             TITLE

52.227-11     JUN 1997   PATENT RIGHTS -- RETENTION BY THE CONTRACTOR (SHORT
                         FORM)--as modified by NASA FAR Supplement 1852.227-11

1852.227-70   NOV 1998   NEW TECHNOLOGY

1852.242-73   JUL 1997   NASA CONTRACTOR FINANCIAL MANAGEMENT REPORTING

1852.245-70   JUL 1997   CONTRACTOR REQUESTS FOR GOVERNMENT-OWNED EQUIPMENT

                                (End Of Clause)

G-2  AUTONOMOUS CONTRACTOR OPERATION

The contractor shall appoint a duly authorized representative at the work site
with full authority to receive and execute, on behalf of the Contractor, such
contract modifications, notices, policy directives, etc., as may be issued
pursuant to the terms of this contract.

G-3  INVOICING AND PAYMENT FOR FIXED-PRICE CONTRACT LINE ITEMS (CLINS)

(a) The contractor shall submit a single invoice for CLIN 0001 after completion
of 30- day phase-in services. The CLIN number and dates of services performed
must be included in the invoice.

(b) The contractor shall submit a single monthly invoice for fixed price
services delivered under the Schedule B contract line items. The applicable CLIN
numbers and the dates of services performed must be included in the invoice.

(c) The contractor shall submit invoices for each IDIQ Task Order, containing a
period of performance less than 30 days, after delivery of the services ordered.
The CLIN number, Task Order Number and dates of the services performed must be
included in the invoice.

(d) IDIQ Task Orders containing a period of performance greater than 30 days are
eligible for performance-based payments, or customary progress payments,
depending on the nature of the services provided. In these cases, specific
payment terms will be included within the task order. The CLIN number, Task
Order Number and dates of the services performed must be included in the
invoice.

(e) IDIQ Task Orders for Construction and Facilities Modifications shall be
invoiced and paid in accordance with FAR 52.232-5, entitled Payments under
Fixed-Price Construction Contracts. The CLIN number, Task Order Number and dates
of the services performed must be included in the invoice.

All invoice payments for Construction are subject to acceptance by the
government, as described in FAR 52. 232-27, entitled Prompt Payment for
Construction Contracts. All other invoice payments are subject to acceptance by
the government, as described in FAR 52.232-25, entitled Prompt Payment.

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Invoices for items (a) through (e) shall be submitted to the address below with
copies to the Contracting Officer and the Contracting Officer's Technical
Representative (COTR).

          John F. Kennedy Space Center, NASA
          General Accounting, A/P, GG-B-C2
          Kennedy Space center, FL 32899

Instructions for Invoicing and Payment for Cost-Reimbursable Contract Line Items
and Award Fee are described below in G-4.

G-4 AWARD FEE FOR SERVICE CONTRACTS (NFS 1852.216-76) (JUN 2000)

(a) The contractor can earn award fee from a minimum of zero dollars to the
maximum stated in B-3, "Estimated Cost and Award Fee", NASA FAR Supplement
clause 1852.216-85, in this contract.

(b) Beginning 4 months after the effective date of this contract, the Government
shall evaluate the Contractor's performance every 6 months to determine the
amount of award fee earned by the contractor during the period, including option
periods if exercised. The Contractor may submit a self-evaluation of performance
for each evaluation period under consideration. These self-evaluations will be
considered by the Government in its evaluation. The Government's Fee
Determination Official (FDO) will determine the award fee amounts based on the
Contractor's performance in accordance with Section J, Attachment J-6,
"Performance Evaluation Plan". The plan may be revised unilaterally by the
Government prior to the beginning of any rating period to redirect emphasis.

(c) The Government will advise the Contractor in writing of the evaluation
results. The Government will make payment based on issuance of unilateral
modification to the contract by contracting officer.

(d) After 85 percent of the potential award fee has been paid, the Contracting
Officer may direct the withholding of further payment of award fee until a
reserve is set aside in an amount that the Contracting Officer considers
necessary to protect the Government's interest. This reserve shall not exceed 15
percent of the total potential award fee.

(e) The amount of award fee that can be awarded in each evaluation period is
limited to the amounts for each contract year set forth at B-3. Award fee that
is not earned in an evaluation period cannot be reallocated to future evaluation
periods.

(f) (1) Provisional award fee payments will be made under this contract pending
the determination of the amount of fee earned for an evaluation period. If
applicable, provisional award fee payments will be made to the Contractor on a
monthly basis. The total amount of award fee available in an evaluation period
that will be provisionally paid is 75 percent of 1/6 of the current periods
maximum potential award fee or the prior period's evaluation score.

(2) Provisional award fee payments will be superseded by the final award fee
evaluation for that period. If provisional payments exceed the final evaluation
score, the Contractor will either credit the next payment voucher for the amount
of such overpayment or refund the difference to the Government, as directed by
the Contracting Officer.

(3) If the Contracting Officer determines that the Contractor will not achieve a
level of performance commensurate with the provisional rate, payment of
provisional award fee will be discontinued or

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reduced in such amounts as the Contracting Officer deems appropriate. The
Contracting Officer will notify the Contractor in writing if it is determined
that such discontinuance or reduction is appropriate.

(4) Provisional award fee payments will be made prior to the first award fee
determination by the Government.

(g) Award fee determinations are unilateral decisions made solely at the
discretion of the Government.

                                 (End of clause)

G-5 SUBMISSION OF VOUCHERS FOR PAYMENT (NFS 1852.216-87) (MARCH 1998)

(a) The designated billing office for cost vouchers for purposes of the Prompt
Payment clause of this contract is indicated below. Public vouchers for payment
of costs shall include a reference to the number of this contract.

(b)(1) If the contractor is authorized to submit interim cost vouchers directly
to the NASA paying office, the original voucher should be submitted to:

(i)    For approval: Cost Vouchers, forward not more often than once every two
       weeks:
          John F. Kennedy Space Center, NASA
          Procurement Office/OP-OS-ELV
          Kennedy Space center, FL 32899
(ii)   For payment:
          John F. Kennedy Space Center, NASA
          General Accounting, A/P, GG-B-C2
          Kennedy Space center, FL 32899

(2) For any period that the Defense Contract Audit Agency has authorized the
Contractor to submit interim cost vouchers directly to the Government paying
office, interim vouchers are not required to be sent to the Auditor, and are
considered to be provisionally approved for payment, subject to final audit.

(3) Copies of vouchers should be submitted as directed by the Contracting
Officer.

(c) If the contractor is not authorized to submit interim cost vouchers
directly to the paying office as described in paragraph (b), the contractor
shall prepare and submit vouchers as follows:

(1) One original and two copies of Standard Form (SF) 1034, SF 1035, or
equivalent Contractor's attachment to:

          Cognizant DCAA Audit Office

(2) Two copies of SF 1034, SF 1035A, or equivalent Contractor's attachment to
the following offices by insertion in the memorandum block of their names and
addresses:

     (i)  NASA Contracting Officer (1 copy)
     (ii) Project Management Office/COTR (1copy)

          (3)  The Contracting Officer may designate other recipients as
               required.

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(d) Award Fee: Pursuant to the clause 1852.216-76, Award Fee for Service
Contracts, the amount of award fee earned, when determined, shall be reflected
in a unilateral contract modification issued by the Contracting Officer. The
payment office will make payment based on the unilateral modification.

Public vouchers for payment of fee shall be prepared similarly to the
procedures in paragraphs (b) or (c) of this clause, whichever is applicable,
and be forwarded to:

(i)    For approval: Award Fee Vouchers, forward not more often than once a
       month:
          John F. Kennedy Space Center, NASA
          Procurement Office/OP-OS-ELV
          Kennedy Space center, FL 32899
(ii)   For payment:
          John F. Kennedy Space Center, NASA
          General Accounting, A/P, GG-B-C2
          Kennedy Space center, FL 32899

This is the designated billing office for fee vouchers for purposes of the
Prompt Payment clause of this contract.

(e) In the event that amounts are withheld from payment in accordance with
provisions of this contract, a separate voucher for the amount withheld will be
required before payment for that amount may be made.

                                 (End of Clause)

G-6 DESIGNATION OF NEW TECHNOLOGY REPRESENTATIVE AND PATENT REPRESENTATIVE (NFS
1852.227-72) (JULY 1997)

(a) For purposes of administration of the clause of this contract entitled "New
Technology" or "Patent Rights--Retention by the Contractor (Short Form),"
whichever is included, the following named representatives are hereby
designated by the Contracting Officer to administer such clause:

========================================================================
Title             Office Code   Address (including  zip code)
------------------------------------------------------------------------
New Technology    YA-C1         John F. Kennedy Space Center Attn: David
Representative                  Makufka
                                Technology Transfer Officer
                                NASA/YA-C1
                                Kennedy Space Center, FL 32899
------------------------------------------------------------------------
Patent            CC-A          John F. Kennedy Space Center Attn:
Representative                  Randy Heald
                                Patent Counsel
                                NASA/CC-A
                                Kennedy Space Center, FL 32899
========================================================================

(b) Reports of reportable items, and disclosure of subject inventions, interim
reports, final reports, utilization reports, and other reports required by the
clause, as well as any correspondence with respect to such matters, should be
directed to the New Technology Representative unless transmitted in response to
correspondence or request from the Patent Representative. Inquires or requests
regarding disposition of rights, election of rights, or related matters should
be directed to the Patent Representative. This clause shall be included in any
subcontract hereunder requiring a "New Technology" clause or "Patent
Rights--Retention by the Contractor (Short Form)" clause, unless otherwise
authorized or directed by the Contracting Officer. The respective
responsibilities and authorities of the above-named representatives are set
forth in 1827.305-370 of the NASA FAR Supplement.

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                                 (End of clause)

G-7 TRAVEL OUTSIDE OF THE UNITED STATES

(a) The Contracting Officer must authorize in advance and in writing travel to
locations outside of the United States by Contractor employees that is to be
charged as a cost to this contract. This approval may be granted when the travel
is necessary to the efforts required under the contract and it is otherwise in
the best interest of NASA.

(b) The Contractor shall submit requests to the Contracting Officer at least 30
days in advance of the start of the travel. The Contracting Officer may waive
the 30 days advance notice for emergency travel or for other unforeseen travel
requirements outside the United States.

(c) The Contractor shall submit a travel report at the conclusion of the travel.
The Contracting Officer's approval of the travel will specify the required
contents and distribution of the travel report.

                                 (End of Clause)

G-8 INSTALLATION-ACCOUNTABLE GOVERNMENT PROPERTY (NFS 1852.245-71) (JUN 1998)

(a) The Government property described in the clause at 1852.245-77, List of
Installation- Accountable Property and Services, shall be made available to the
Contractor on a no-charge basis for use in performance of this contract. This
property shall be utilized only within the physical confines of the NASA
installation that provided the property. Under this clause, the Government
retains accountability for, and title to, the property, and the Contractor
assumes the following user responsibilities:

Property Custodian and User Responsibilities defined in
NPD 4200.1 and NPG 4200.1

The contractor shall establish and adhere to a system of written procedures for
compliance with these user responsibilities. Such procedures must include
holding employees liable, when appropriate, for loss, damage, or destruction of
Government property.

(b)(1) The official accountable record-keeping, physical inventory, financial
control, and reporting of the property subject to this clause shall be retained
by the Government and accomplished by the installation Supply and Equipment
Management Officer (SEMO) and Financial Management Officer. If this contract
provides for the contractor to acquire property, title to which will vest in
the Government, the following additional procedures apply:

(i) The contractor's purchase order shall require the vendor to deliver the
property to the installation central receiving area;

(ii) The contractor shall furnish a copy of each purchase order, prior to
delivery by the vendor, to the installation central receiving area:

(iii) The contractor shall establish a record of the property as required by
FAR 45.5 and 1845.5 and furnish to the Industrial Property Officer a DD Form
1149 Requisition and Invoice/Shipping Document (or installation equivalent) to
transfer accountability to the Government within 5 working days after receipt
of the property by the contractor. The contractor is accountable for all
contractor-acquired property until the property is transferred to the
Government's accountability.

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(iv) Contractor use of Government property at an off-site location and off-site
subcontractor use require advance approval of the contracting officer and
notification of the SEMO. The contractor shall assume accountability and
financial reporting responsibility for such property. The contractor shall
establish records and property control procedures and maintain the property in
accordance with the requirements of FAR Part 45.5 until its return to the
installation.

(2) After transfer of accountability to the Government, the contractor shall
continue to maintain such internal records as are necessary to execute the user
responsibilities identified in paragraph (a) and document the acquisition,
billing, and disposition of the property. These records and supporting
documentation shall be made available, upon request, to the SEMO and any other
authorized representatives of the contracting officer.

                                 (End of clause)

G-9 LIST OF INSTALLATION-ACCOUNTABLE PROPERTY AND SERVICES (NFS 1852.245-77)
(JUL 1997)

In accordance with the clause at 1852.245-71, Installation-Accountable
Government Property, the Contractor is authorized use of the types of property
and services listed below, to the extent they are available, in the performance
of this contract within the physical borders of the installation which may
include buildings and space owned or directly leased by NASA in close proximity
to the installation, if so designated by the Contracting Officer.

(a) Office space, work area space, and utilities. Government telephones are
available for official purposes only; pay telephones are available for
contractor employees for unofficial calls.

(b) General-and special-purpose equipment, including office furniture.

(1) Equipment to be made available is listed in Section J, Attachment J-4,
"Installation Provided Property List". The Government retains accountability
for this property under the clause at 1852.245-71, Installation-Accountable
Government Property, regardless of its authorized location.

(2) If the Contractor acquires property, title to which vests in the Government
pursuant to other provisions of this contract, this property also shall become
accountable to the Government upon its entry into Government records as
required by the clause at 1852.245-71, Installation-Accountable Government
Property.

(3) The Contractor shall not bring to the installation for use under this
contract any property owned or leased by the Contractor, or other property that
the Contractor is accountable for under any other Government contract, without
the Contracting Officer's prior written approval.

(c) Supplies from stores stock.

(d) Publications and blank forms stocked by the installation.

(e) Safety and fire protection for Contractor personnel and facilities.

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(f) Installation service facilities: ["None"].

(g) Medical treatment of a first-aid nature for Contractor personnel injuries
or illnesses sustained during on-site duty.

(h) Cafeteria privileges for Contractor employees during normal operating
hours.

(i) Building maintenance for facilities occupied by Contractor personnel.

(j) Moving and hauling for office moves, movement of large equipment, and
delivery of supplies. Moving services shall be provided on-site, as approved by
the Contracting Officer.

(k) The user responsibilities of the Contractor are defined in paragraph (a) of
the clause at 1852.245-71, Installation-Accountable Government Property.

                                 (End of Clause)

G-10 CERTIFICATION FOR SERVICES AND/OR RECEIPT OF SUPPLIES (KSC 52.212-94) (SEP
1998)

Certification of services performed hereunder and/or receipt of supplies
furnished shall be accomplished by the Contracting Officer's Technical
Representative, COTR, Mail Code VA-C. The original and a copy of the
certificate shall be forwarded by the certifying official without delay to the
General Accounting, A/P, KSC, Attention: Code GG-B-C2. An information copy
shall be furnished to the Contracting Officer, KSC, attention: Code OP-OSO-ELV.

                                 (End of Clause)

G-11 LIMITATION OF FUNDS (FIXED-PRICE CONTRACT) (NFS 1852.232-77) (MARCH 1989)
(Modified)

(a) Of the total price of all fixed-price contract line items (CLIN's) the sum
of $1,387,584.00 is presently available for payment and allotted to this
contract. It is anticipated that from time to time additional funds will be
allocated to the contract in accordance with the following schedule, until the
total price of said items is allotted:

                         SCHEDULE FOR ALLOTMENT OF FUNDS

Table G-1 CONTRACT FUNDING FOR FIXED-PRICE

------------------------------------------------------------------
 MOD No    FP CONTRACT VALUE   CONTRACT FUNDING*    ADEQUATE THRU
------------------------------------------------------------------
At Award     $ 24,930,725         $1,387,584       AUGUST 31, 2002
------------------------------------------------------------------

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

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

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

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

(b) The Contractor agrees to perform or have performed work on the items
specified in paragraph (a) of this clause up to the point at which, if this
contract is terminated pursuant to the Termination for Convenience of the
Government clause of this contract, the total amount payable by the Government
(including amounts payable for subcontracts and settlement costs) pursuant to
paragraphs (f) and (g) of that clause would, in the exercise of reasonable
judgment by the Contractor, approximate the total amount at the time allotted
to the contract. The Contractor is not obligated to continue performance of the
work

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beyond that point. The Government is not obligated in any event to pay or
reimburse the Contractor more than the amount from time to time allotted to the
contract, anything to the contrary in the Termination for Convenience of the
Government clause notwithstanding.

(c)(1) It is contemplated that funds presently allotted to this contract will
cover the work to be performed until (see table G-1).

(2) If funds allotted are considered by the Contractor to be inadequate to
cover the work to be performed until that date, or an agreed date substituted
for it, the Contractor shall notify the Contracting Officer in writing when
within the next 60 days the work will reach a point at which, if the contract
is terminated pursuant to the Termination for Convenience of the Government
clause of this contract, the total amount payable by the Government (including
amounts payable for subcontracts and settlement costs) pursuant to paragraphs
(f) and (g) of that clause will approximate 75 percent of the total amount then
allotted to the contract.

(3) (i) The notice shall state the estimate when the point referred to in
paragraph (c)(2) of this clause will be reached and the estimated amount of
additional funds required to continue performance to the date specified in
paragraph (c)(1) of this clause, or an agreed date substituted for it.

(ii)The Contractor shall, 60 days in advance of the date specified in paragraph
(c)(1) of this clause, or an agreed date substituted for it, advise the
Contracting Officer in writing as to the estimated amount of additional funds
required for the timely performance of the contract for a further period as may
be specified in the contract or otherwise agreed to by the parties.

(4) If, after the notification referred to in paragraph (c)(3)(ii) of this
clause, additional funds are not allotted by the date specified in paragraph
(c)(1) of this clause, or an agreed date substituted for it, the Contracting
Officer shall, upon the Contractor's written request, terminate this contract
on that date or on the date set forth in the request, whichever is later,
pursuant to the Termination for Convenience of the Government clause.

(d) When additional funds are allotted from time to time for continued
performance of the work under this contract, the parties shall agree on the
applicable period of contract performance to be covered by these funds. The
provisions of paragraphs (b) and (c) of this clause shall apply to these
additional allotted funds and the substituted date pertaining to them, and the
contract shall be modified accordingly.

(e) If, solely by reason of the Government's failure to allot additional funds
in amounts sufficient for the timely performance of this contract, the
Contractor incurs additional costs or is delayed in the performance of the work
under this contract, and if additional funds are allotted, an equitable
adjustment shall be made in the price or prices (including appropriate target,
billing, and ceiling prices where applicable) of the items to be delivered, or
in the time of delivery, or both.

(f) The Government may at any time before termination, and, with the consent of
the Contractor, after notice of termination, allot additional funds for this
contract.

(g) The provisions of this clause with respect to termination shall in no way
be deemed to limit the rights of the Government under the default clause of
this contract. The provisions of this Limitation of Funds clause are limited to
the work on and allotment of funds for the items set forth in paragraph (a) of
this clause. This clause shall become inoperative upon the allotment of funds
for the total price of said work except for rights and obligations then
existing under this clause.

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(h) Nothing in this clause shall affect the right of the Government to
terminate this contract pursuant to the Termination for Convenience of the
Government clause of this contract.

                                 (End of clause)

G-12 CONTRACT FUNDING (NFS 1852.232-81) (JUN 1990) (Modified)

(a) For purposes of payment of cost, exclusive of fee, in accordance with the
Limitation of Funds Clause, the total amount allotted by the government for the
Cost-Reimbursable portion of this contract is shown in the table below. These
allotments are applicable to the ELVIS services provided in all
Cost-Reimbursable Services, except CLIN's funded by Task Orders, and are
considered adequate to reimburse the contractor's performance through the dates
shown in the table.

         Table G-2 CONTRACT FUNDING FOR COST-REIMBURSABLE
------------------------------------------------------------------
  MOD No   CR CONTRACT VALUE   CONTRACT FUNDING*    ADEQUATE THRU
------------------------------------------------------------------
At Award   $ 26,233,466        $ 1,460,092         AUGUST 31, 2002
------------------------------------------------------------------

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

(b) An additional amount obligated under this contract for payment of fee for
fixed price and cost-reimbursement is shown in the table below.

---------------------------------------------------------------
               MAXIMUM
  MOD No   AVAILABLE AWARD
                 FEE         CONTRACT FUNDING    ADEQUATE THRU
---------------------------------------------------------------
At Award   $ 2,736,805           $152,324       AUGUST 31, 2002
---------------------------------------------------------------

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

                                 (End of clause)

G-13 CONTRACT FUNDING FOR PAYMENT OF AWARD FEE

The total amount allotted by the government to this contract for payment of
Award Fee is shown in the Table below. This Award Fee funding is applicable to
both the Fixed-Price and the Cost-Reimbursable Contract Line Items.

             Table G-3 Contract Funding for Award Fee
-------------------------------------------------------------------------
Award Fee Period   Modification   Award Fee Earned   Cumulative Award Fee
-------------------------------------------------------------------------

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

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

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

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

                                 (End of Clause)

                                [END OF SECTION]

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                    SECTION H - SPECIAL CONTRACT REQUIREMENTS

H-1  LISTING OF CLAUSES INCORPORATED BY REFERENCE

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

 CLAUSE
 NUMBER         DATE                            TITLE
-----------   --------                          -----
52.223-5      APR 1998   POLLUTION PREVENTION AND RIGHT TO-KNOW INFORMATION
1852.204-74   AUG 2000   CENTRAL CONTRACTOR REGISTRATION
1852.208-81   AUG 1993   RESTRICTIONS ON PRINTING AND DUPLICATING
1852.223-74   MAR 1996   DRUG- AND ALCOHOL-FREE WORKFORCE
1852.225-70   FEB 2000   EXPORT LICENCES (ALTERNATE I)
                         Insert in Paragraph (b): NASA/KSC and NASA/VAFB
1852.228-72   SEP 1993   CROSS-WAIVER OF LIABILITY FOR SPACE SHUTTLE SERVICES
1852.228-75   OCT 1988   MINIMUM INSURANCE COVERAGE
1852.228-78   SEP 1993   CROSS-WAIVER OF LIABILITY FOR NASA EXPENDABLE LAUNCH
                         VEHICLE (ELV) LAUNCHES

H-2  ORGANIZATIONAL CONFLICT OF INTEREST

(a) It has been determined that the services to be provided under this contract
create significant potential Organizational Conflicts of Interest with current
and future launch service providers.

(b) The contractor will assist in analyzing products and activities of various
KSC contractors involved in processing flight and payload hardware and software;
support NASA's internal risk assessment and management process; review mission
compatibility drawings provided by the launch service providers; verify overall
launch service provider compliance with test procedures and acceptance test
results; maintain cognizance of hardware productions, design changes and
non-conformances at prime launch service provider facilities; and, provide ELV
telemetry and communications at various locations. The nature of the potential
conflicts arises from the contractor's participation as the primary source of
launch vehicle engineering and analysis and its related and necessary access to
various types and levels of data and processes that are proprietary to the
various launch and payload services contractors. Based on these significant
potential organizational conflicts of interest, launch service providers are
ineligible to respond to the solicitation and be considered for award as either
a prime or a subcontractor. A launch service provider, for the purposes of this
provision, is defined as a prime contractor or subcontractor that designs,
assembles, launches and/or manufactures a launch vehicle.

(c) The prime contractor and its major subcontractors shall not compete directly
or as a competitive team member in any solicitation for NASA launch services and
shall be ineligible for award of a prime contract for launch services for NASA,
or any level subcontract there under, during their incumbency on this contract
and for a period five years after expiration or other termination of this
contract.

(d) For purposes of this clause, "major subcontractor" means a subcontractor
responsible for services under this contract equal to or greater than 15% or
more of direct labor cost during the life of the contract, or a subcontractor
which as a result of performance under this contract is provided or obtains
access to materials, data, processes or other matters of a non-public nature

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which are proprietary to a third party serving as a launch services
contractor/subcontractor, launch processing contractor/subcontractor, or payload
manufacturing and/or processing contractor/subcontractor.

(e) The contractor and its subcontractor(s), if any, shall flow down the
requirements of this clause to all subcontracts, at any tier, unless the
cognizant Contracting Officer has agreed in advance in writing that, based on
the nature of the services to be acquired and the access associated therewith,
the potential for an organizational conflict of interest under the proposed
subcontract arrangement is too remote to require application of the clause to
that specific subcontract.

                                  (End of Text)

H-3  HANDLING OF DATA

(a) In the performance of this contract, it is anticipated that the Contractor
may have access to, be furnished, or use the following categories of data (which
may be technical data, computer software, administrative, management
information, or financial, including cost or pricing):

(1) Data of third parties which NASA has agreed to handle under protective
arrangements; and

(2) NASA-generated data not releasable under the Freedom of Information Act
(FOIA), the use and dissemination of which, the NASA intends to control.

(b) In order to protect the interests of NASA and the owners, licensors and
licensees of such data, the Contractor agrees, with respect to any such third
party or NASA-generated data that is either marked with a restrictive legend,
specifically identified in this contract, or otherwise identified in writing by
the Contracting Officer as being subject to this clause, to:

(1) Use, disclose, and reproduce such data only to the extent necessary to
perform the work required under this contract;

(2) Allow access to such data only to those of its employees that require access
for their performance under this contract;

(3) Preclude access and disclosure of such data outside the Contractor's
organization; and

(4) Return or dispose of such data, as the Contracting Officer may direct, when
the data is no longer needed for contract performance.

(c) The Contractor agrees to inform and instruct its employees of its and their
obligations under this clause and to appropriately bind its employees
contractually to comply with the access, use, disclosure, and reproduction
provisions of this clause. The Contractor agrees to enter into non-disclosure
agreements with Launch Service Providers (LSP) and any other launch vehicle
manufacturers to the extent that the performance of employee duties requires
access to information/data properly marked as proprietary by the LSP or launch
vehicle manufacturers.

(d) In the event that data includes a legend that the Contractor deems to be
ambiguous or unauthorized, the Contractor may inform the Contracting Officer of
such condition. Notwithstanding such a legend, as long as such legend provides
an indication that a restriction on use or disclosure was intended, the
Contractor shall treat such data pursuant to the requirements of this clause
unless otherwise directed, in writing, by the Contracting Officer.

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(e) Notwithstanding the above, the Contractor shall not be restricted in use,
disclosure, and reproduction of any data that:

(1) Is, or becomes, generally available or public knowledge without breach of
this clause by the Contractor;

(2) Is known to, in the possession of, or is developed by the Contractor
independently of any disclosure of, or without reference to, proprietary,
restricted, confidential, or otherwise protectable data under this clause;

(3) Is rightfully received by the Contractor from a third party without
restriction;

(4) Or is required to be produced by the Contractor pursuant to a court order or
other Government action.

If the Contractor believes that any of these events or conditions that remove
restrictions on the use, disclosure, and reproduction of the data apply, the
Contractor shall promptly notify the Contracting Officer of such belief prior to
acting on such belief, and, in any event, shall give notice to the Contracting
Officer prior to any unrestricted use, disclosure, or reproduction of such data.

                                 (End of clause)

H-4  CONVERSION TO FIXED PRICE (CPAF CLIN ONLY)

NASA expects to shift risk to the contractor as it collects performance and cost
data under the contract. If other than a cost plus award fee contract type
becomes more appropriate for the subject CLIN, NASA would, in lieu of exercising
the next option, consider re-procuring the requirement using the different
contract type. If, after analysis, NASA decides to exercise the option, the
parties must first negotiate, in good faith, to revise the contract type.

                                 (End of Clause)

H-5  GOVERNMENT FURNISHED SERVICES

The government will furnish the following services to the contractor at KSC and
VAFB (as noted) on a no-charge-for-use basis to the extent reasonably necessary
for the contractor to fulfill its contractual obligations:

     Calibration and Standards Services (KSC & VAFB)

     Central receiving (KSC Only)

     Conference Room (Mission Briefing Room in the Operations &Checkout Bldg,
     Training Auditorium) audio/video set up support (KSC Only)

     Administrative Desktop Computers (existing Section J Attachment 4 desktop
     computers will be provided "As Is," maintenance and replacement are the
     responsibility of the contractor). (KSC & VAFB)

     Emergency Medical Services (KSC & VAFB)

     Fire Protection Service (KSC & VAFB)

     Food Services (cafeteria, snack bars, vending machines) (KSC & VAFB)

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     Hazardous Waste Disposal (KSC & VAFB)

     Heating, Ventilating, and Air Conditioning (HVAC) (KSC Only)

     Janitorial Services (KSC Only)

     Library Services (KSC Only)

     Mail Services (to one designated location) (KSC & VAFB)

     Maintenance of Facilities on CCAFS (KSC Only)

     NASA Malfunction Laboratory (KSC Only)

     Occupational Health Services (KSC Only)

     On-site Film Laboratory and Processing Service (KSC & VAFB)

     On-site Passenger Bus Service (KSC Only)

          On-site Work Space (KSC, VAFB & LSP On-Site Resident Offices)

          On-site Storage Space at Hangar AE (KSC)

     Operational Voice, Video and Data Communications (except systems/services
     required to be provided by the contractor per SOW) (KSC & VAFB)

     Administrative Voice, Video and Data Communications (except mobile phones,
     fax machines and pagers) (KSC & VAFB)

     Pesticide Control (KSC Only)

     Printing/Micro-imaging at Central KSC Print Shop (KSC Only)

     Roads and Grounds Maintenance (KSC & VAFB)

          Security for KSC and VAFB (issuing base access credentials, law
          enforcement, payload escort). Security for KSC only (O&M of electronic
          surveillance systems)

          Water and Sewage (KSC & VAFB)

                                 (End of Clause)

H-6  PLACING ORDERS For OUTSOURCING DESKTOP INITIATIVE FOR NASA (ODIN) SUPPORT

As a contractor performing services for NASA, the Outsourcing Desktop Initiative
for NASA (ODIN) contract may be used in performance of this contract. For an
overview of ODIN and the services available, information is available on the Web
at http://odin.oao.net/contract-summary.htm. The contractor is authorized to
place orders for ODIN services directly with the ODIN contractor for the
relevant site, provided that an ODIN Government Contracting Officer has
specifically authorized such order in writing. Submit requests for authorization
to:

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          John F. Kennedy Space Center, NASA
          Attn: Marjorie Ann Nelson
          OSF ODIN Delivery Order Contracting Officer
          M/C: OP-MS-B
          Kennedy Space Center, FL 32899

The contractor shall include with its order a letter from the Contracting
Officer stating such authorization. The ODIN contractor is required to honor all
orders placed.

Such orders shall be considered to create separate contracts between each such
contractor and the ODIN contractor receiving the order. The Government shall not
be liable under the ODIN contract for any order placed by such contractor.
However, the ODIN contractor shall provide ODIN services so ordered under the
same terms and conditions, and at the same prices, as if the Government had
placed such order under the ODIN contract, except for those provisions peculiar
to Government procurement, such as, but not limited to, disputes resolution and
allocation of Government funding provisions.

                                 (End of Clause)

H-7  NON-PERSONAL SERVICES

(a) No personal services, as defined in FAR 37.101, shall be performed under
this contract. No Contractor employee will be directly supervised by the
Government. All individual employee assignments, and daily work direction, shall
be given by the applicable employee supervisor. If the Contractor believes any
Government action or communication has been given that would create a personal
services relationship between the Government and any Contractor employee, the
Contractor shall promptly notify the Contracting Officer of this communication
or action.

(b) The Contractor shall not perform any inherently governmental actions, as
defined in FAR 7.501, under this contract. No Contractor employee shall hold him
or herself out to be a Government employee, agent, or representative. No
Contractor employee shall state orally or in writing at any time that he or she
is acting on behalf of the Government. In all communications in connection with
this contract, Contractor employees shall identify themselves as Contractor
employees and specify the name of the company for which they work. Proper
identification should also include email addresses. The contractor shall require
proper identification of contractor personnel who attend meetings, answer
Government telephones, or work in situations where their actions could be
construed as acts of Government officials. In all communications with other
Government contractors in connection with this contract, the Contractor employee
shall state that they have no authority to in any way change the contract and
that if the other contractor believes this communication to be a direction to
change their contract, they should notify the Contracting Officer for that
contract and not carry out the direction until a clarification has been issued
by the Contracting Officer.

(c) The Contractor shall ensure that all of its employees working on this
contract are informed of the substance of this clause. Nothing in this clause
shall limit the Government's rights in any way under any other provision of the
contract, including those related to the Government's right to inspect and
accept the services to be performed under this contract. The substance of this
clause shall be included in all subcontracts at any tier.

                                  (End of Text)

H-8  TASK ORDERING PROCEDURE

NOTE: THE FOLLOWING TASK ORDERING PROCEDURE APPLIES ONLY TO STATEMENT OF WORK,
SECTION 9.0 "MISSION DIRECT SUPPORT", AND SECTION 11 "CONSTRUCTION AND
FACILITIES MODIFICATION"

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(a) Only the Contracting Officer may issue task orders to the Contractor,
providing specific authorization or direction to perform work within the scope
of the contract and as specified in the schedule. The Contractor may incur costs
under this contract in performance of task orders and task order modifications
issued in accordance with this clause. No other costs are authorized unless
otherwise specified in the contract or expressly authorized by the Contracting
Officer.

(b) Prior to issuing a task order, the Contracting Officer shall provide the
Contractor with the following data:

(1) A functional description of the work identifying the objectives or results
desired from the contemplated task order.

(2) Proposed performance standards to be used as criteria for determining
whether the work requirements have been met.

(3) A request for a task plan and proposal from the Contractor to include the
technical approach, period of performance, appropriate cost or price
information, and any other information required to determine the reasonableness
of the Contractor's proposal.

     (i)  For Mission Direct Support Services )

          For each mission the Contracting Officer will request a task plan and
          proposed hours for Mission Direct Services to support Vehicle
          Production Operations for that mission approximately three weeks prior
          to Authority to Proceed (ATP).

          For each mission the Contracting Officer will request a task plan and
          proposed hours for Mission Direct Services to support the Launch
          Campaign Operations for that mission approximately one month prior to
          Spacecraft arrival at the designated launch site.

     (ii) For Facilities Modifications, Design and Construction

          For each project the Contracting Officer will request a task plan and
     a detailed proposal. The request for proposal will indicate the required
     date for submission of the proposal based upon the complexity of the
     project.

(c) For Mission Direct Support Services, the Contractor shall submit a task plan
and proposal conforming to the request within 10 working days after receipt of
the Contracting Officer's request. For Facilities Modifications, Design and
Construction the Contractor shall submit a task plan and proposal conforming to
the request within the period of time designated in the Contracting Officer's
request for proposal.

(d) After review and any necessary discussions, the Contracting Officer may
issue a task order to the Contractor containing, as a minimum, the following:

(1) Date of the order.

(2) Contract number and order number.

(3) Functional description of the work identifying the objectives or results
desired from the task order, including special instructions or other information
necessary for performance of the task.

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(4) Performance standards, and where appropriate, quality assurance standards.

(5) Maximum dollar amount authorized (price).

(6) Any other resources (travel, materials, equipment, facilities, etc.)
authorized.

(7) Delivery/performance schedule including start and end dates.

(8) If contract funding is by individual task order, accounting and
appropriation data will be included.

(e) The Contractor shall provide acknowledgment of receipt to the Contracting
Officer within 5 calendar days after receipt of the task order.

(f) If time constraints do not permit issuance of a fully defined task order in
accordance with the procedures described in paragraphs (a) through (d), a task
order that includes a ceiling price may be issued.

(g) The Contracting Officer may amend tasks in the same manner in which they
were issued.

(h) In the event of a conflict between the requirements of the task order and
the Contractor's approved task plan, the task order shall prevail.

                                 (End of clause)

H-9  ORDERING (FAR 52.216-18)(OCT 1995) (Applies to IDIQ CLINS)

NOTE: THE FOLLOWING APPLIES ONLY TO STATEMENT OF WORK, SECTION 9.0 "MISSION
DIRECT SUPPORT", AND SECTION 11 "CONSTRUCTION AND FACILITIES MODIFICATION"

(a) Any supplies and services to be furnished under this contract shall be
ordered by issuance of delivery orders or task orders by the individuals or
activities designated in the Schedule. Such orders may be issued from the award
date of this contract through the end of the effective ordering period specified
in Clause F-3.

(b) All delivery orders or task orders are subject to the terms and conditions
of this contract. In the event of conflict between a delivery order or task
order and this contract, the contract shall control.

(c) If mailed, a delivery order or task order is considered "issued" when the
Government deposits the order in the mail. Orders may be issued orally, by
facsimile, or by electronic commerce methods only if authorized in the Schedule.

                                 (End of clause)

H-10 ORDER LIMITATIONS (FAR 52.216-19) (OCT 1995) (Applies to IDIQ CLINS)

NOTE: THE FOLLOWING APPLIES ONLY TO STATEMENT OF WORK, SECTION 9.0 "MISSION
DIRECT SUPPORT", AND SECTION 11 "CONSTRUCTION AND FACILITIES MODIFICATION"

(a) Minimum order. When the Government requires supplies or services covered by
this contract in an amount of less than $250, the Government is not obligated to
purchase, nor is the Contractor obligated to furnish, those supplies or services
under the contract.

(b) Maximum order. The Contractor is not obligated to honor--
(1) Any order for a single item in excess of $1,500,000;
(2) Any order for a combination of items in excess of $2,200,000; or

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(3) A series of orders from the same ordering office within 3 days that together
call for quantities exceeding the limitation in subparagraph (1) or (2) above.

(c) If this is a requirements contract (i.e., includes the Requirements clause
at subsection 52.216-21 of the Federal Acquisition Regulation (FAR)), the
Government is not required to order a part of any one requirement from the
Contractor if that requirement exceeds the maximum-order limitations in
paragraph (b) above.

(d) Notwithstanding paragraphs (b) and (c) above, the Contractor shall honor any
order exceeding the maximum order limitations in paragraph (b), unless that
order (or orders) is returned to the ordering office within 3 days after
issuance, with written notice stating the Contractor's intent not to ship the
item (or items) called for and the reasons. Upon receiving this notice, the
Government may acquire the supplies or services from another source.

H-11 INDEFINITE QUANTITY (FAR 52.216-22)(OCT 1995) (Applies to IDIQ CLINS)

(a) This is an indefinite-quantity contract for the supplies or services
specified, and effective for the period stated, in the Schedule. The quantities
of supplies and services specified in the Schedule are estimates only and are
not purchased by this contract.

(b) Delivery or performance shall be made only as authorized by orders issued in
accordance with the Ordering clause. The Contractor shall furnish to the
Government, when and if ordered, the supplies or services specified in the
Schedule up to and including the quantity designated in the Schedule as the
"maximum. The Government shall order at least the quantity of supplies or
services designated in the Schedule as the "minimum."

(c) Except for any limitations on quantities in the Order Limitations clause or
in the Schedule, there is no limit on the number of orders that may be issued.
The Government may issue orders requiring delivery to multiple destinations or
performance at multiple locations.

(d) Any order issued during the effective period of this contract and not
completed within that period shall be completed by the Contractor within the
time specified in the order. The contract shall govern the Contractor's and
Government's rights and obligations with respect to that order to the same
extent as if the order were completed during the contract's effective period;
provided, that the Contractor shall not be required to make any deliveries under
this contract after the period of performance specified in any issued Task
Order.

                                 (End of clause)

H-12 SAFETY AND HEALTH (NFS 1852.223-70) (MAY 2001)

(a) Safety is the freedom from those conditions that can cause death, injury,
occupational illness, damage to or loss of equipment or property, or damage to
the environment. NASA's safety priority is to protect: (1) the public, (2)
astronauts and pilots, (3) the NASA workforce (including contractor employees
working on NASA contracts), and (4) high-value equipment and property.

(b) The Contractor shall take all reasonable safety and occupational health
measures in performing this contract. The Contractor shall comply with all
Federal, State, and local laws applicable to safety and occupational health and
with the safety and occupational health standards, specifications, reporting
requirements, and any other relevant requirements of this contract.

(c) The Contractor shall take, or cause to be taken, any other safety, and
occupational health measures the Contracting Officer may reasonably direct. To
the extent that the Contractor may be entitled to an equitable adjustment for
those measures under the terms and conditions of this contract, the equitable

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adjustment shall be determined pursuant to the procedures of the changes clause
of this contract; provided, that no adjustment shall be made under this Safety
and Health clause for any change for which an equitable adjustment is expressly
provided under any other clause of the contract.

(d) The Contractor shall immediately notify and promptly report to the
Contracting Officer or a designee any accident, incident, or exposure resulting
in fatality, lost-time occupational injury, occupational disease, contamination
of property beyond any stated acceptable limits set forth in the contract
Schedule; or property loss of $25,000 or more, or Close Call (a situation or
occurrence with no injury, no damage or only minor damage (less than $1,000) but
possesses the potential to cause any type mishap, or any injury, damage, or
negative mission impact) that may be of immediate interest to NASA, arising out
of work performed under this contract. The Contractor is not required to include
in any report an expression of opinion as to the fault or negligence of any
employee. In addition, service contractors (excluding construction contracts)
shall provide quarterly reports specifying lost-time frequency rate, number of
lost-time injuries, exposure, and accident/incident dollar losses as specified
in the contract Schedule.

(e) The Contractor shall investigate all work-related incidents, accidents, and
Close Calls, to the extent necessary to determine their causes and furnish the
Contracting Officer a report, in such form as the Contracting Officer may
require, of the investigative findings and proposed or completed corrective
actions.

(f)(1) The Contracting Officer may notify the Contractor in writing of any
noncompliance with this clause and specify corrective actions to be taken. The
Contractor shall promptly take and report any necessary corrective action.

(2) If the Contractor fails or refuses to institute prompt corrective action in
accordance with subparagraph(f)(1) of this clause, the Contracting Officer may
invoke the stop-work order clause in this contract or any other remedy available
to the Government in the event of such failure or refusal.

(g) The Contractor (or subcontractor or supplier) shall insert the substance of
this clause, including this paragraph (g) and any applicable Schedule
provisions, with appropriate changes of designations of the parties, in
subcontracts of every tier that -

(1) Amount to $1,000,000 or more (unless the Contracting Officer makes a written
determination, after consultation with installation safety and health
representatives, that this is not required);

(2) Require construction, repair, or alteration in excess of $25,000; or

(3) Regardless of dollar amount, involve the use of hazardous materials or
operations.

(h) Authorized Government representatives of the Contracting Officer shall have
access to and the right to examine the sites or areas where work under this
contract is being performed in order to determine the adequacy of the
Contractor's safety and occupational health measures under this clause.

(i) The contractor shall continually update the safety and health plan when
necessary. In particular, the Contractor shall furnish a list of all hazardous
operations to be performed, and a list of other major or key operations required
or planned in the performance of the contract, even though not deemed hazardous
by the Contractor. NASA and the Contractor shall jointly decide which operations
are to be considered

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hazardous, with NASA as the final authority. Before hazardous operations
commence, the Contractor shall submit for NASA concurrence --

(1) Written hazardous operating procedures for all hazardous operations; and/or

(2) Qualification standards for personnel involved in hazardous operations.

                                 (End of clause)

H-13 KEY PERSONNEL AND FACILITIES (NFS 1852.235-71) (MAR 1989)

(a) The personnel and/or facilities listed below (or specified in the contract
Schedule) are considered essential to the work being performed under this
contract. Before removing, replacing, or diverting any of the listed or
specified personnel or facilities, the Contractor shall (1) notify the
Contracting Officer reasonably in advance and (2) submit justification
(including proposed substitutions) in sufficient detail to permit evaluation of
the impact on this contract.

(b) The Contractor shall make no diversion without the Contracting Officer's
written consent; provided, that the Contracting Officer may ratify in writing
the proposed change, and that ratification shall constitute the Contracting
Officer's consent required by this clause.

(c) The list of personnel and/or facilities (shown below or as specified in the
contract Schedule) may, with the consent of the contracting parties, be amended
from time to time during the course of the contract to add or delete personnel
and/or facilities.

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

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                                 (End Of Clause)

H-14 OBSERVANCE OF LEGAL HOLIDAYS (NFS 1852.242-72) (AUGUST 1992)

(a)  The on-site Government personnel observe the following holidays:

     New Year's Day
     Labor Day
     Martin Luther King, Jr.'s Birthday
     Columbus Day
     President's Day
     Veterans Day
     Memorial Day
     Thanksgiving Day
     Independence Day
     Christmas Day

Any other day designated by Federal statute, Executive order, or the President's
proclamation.

(b) When any holiday falls on a Saturday, the preceding Friday is observed. When
any holiday falls on a Sunday, the following Monday is observed. Observance of
such days by Government personnel shall not by itself be cause for an additional
period of performance or entitlement of compensation except as set forth within
the contract.

                                 (End Of Clause)

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H-15 MISSION CRITICAL SPACE SYSTEM PERSONNEL RELIABILITYPROGRAM (NFS
1852.246-70) (MARCH 1997)

In implementation of the Mission Critical Space System Personnel Reliability
Program, described in 14CFR1214.5, the Government shall identify personnel
positions that are mission critical. Some of the positions as identified may now
or in the future be held by employees of the Contractor. Upon notification of
the Contracting Officer that a mission-critical position is being or will be
filled by one or more of the Contractor's employees, the Contractor shall (1)
provide the affected employees with a clear understanding of the investigative
and medical requirements and, (2), to the extent permitted by applicable law,
assist the government by furnishing personal data and medical records.

The standard that will be used in certifying individuals for a mission-critical
position is that they must be determined to be suitable, competent, and reliable
in the performance of their assigned duties in accordance with the screening
requirements 14CFR 1214.5. If the Government determines that a contractor
employee occupying or nominated to occupy a mission-critical position will not
be certified for such duty, the Contracting Officer shall (1) furnish to the
employee the specific reasons for its action; (2) advise the employee that
he/she may avail himself/herself of the review procedures that are a part of the
certification system; and (3) furnish him/her a copy of those procedures upon
request.

If a Contractor employee who has been nominated for (but has not yet filled) a
mission-critical position is not certified, the Contractor agrees to defer the
appointment to the position until the employee has had an opportunity to pursue
the referenced procedures. If the employee is an incumbent to the position, the
Contractor agrees, upon the request of the Government, to remove him/her from
the position temporarily pending an appeal of the action under the review
procedures. If any employee not certified elects not to take action under the
procedures, or, if having taken action, is no successful in obtaining a reversal
of the determination, the Contractor agrees not to appoint the employee to the
position, or if already appointed, to promptly remove the employee.

                                 (End of Clause)

H-16 SECURITY CONTROLS AT KSC/VAFB (KSC 52.204-90) (NOV 2000) (MODIFIED)

A. Identification of Employees

1. The contractor shall require each employee engaged on the work site to
display NASA-furnished identification badges and special access badges at all
times. The contractor shall obtain and submit badging request forms for each
person employed or to be employed by the contractor under this contract. The
contractor shall designate its own security and badging officials to act as
points-of-contact for the KSC Security Office. Prior to proceeding with onsite
performance, the contractor shall submit the following information to the
Protective Services Branch, Code TA-E2, Kennedy Space Center:

                    a.   Contract number and location of work site(s)
                    b.   Contract commencement and completion dates
                    c.   Status as prime or subcontractor
                    d.   Names of designated security and badging officials

2. Identification and badging of employees shall be accomplished as soon as
practicable after award of the contract. During performance of the contract, the
contractor shall, upon termination of an employee, immediately deliver badges
and/or passes issued to the employee to the NASA Security Office. It is agreed
and understood that all NASA identification badges/passes remain the property of
NASA, and the Government reserves the right to invalidate such badges/passes at
any time.

B. Access to Controlled Areas within KSC/VAFB

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1. Certain areas within KSC/VAFB have been designated as Controlled Areas. These
are normally surrounded by fencing and have an entrance gate monitored by a
guard or monitoring device. Access into such areas is classified into "escorted"
or "unescorted" access. For each employee for which the contractor desires to
have unescorted access, the prescribed forms must be submitted to the NASA
Security Office. Due to the time required to process requests for unescorted
access, the contractor is advised to complete and submit the required forms as
soon as practicable after contract award. Within 14 working days after the
receipt of the forms, the NASA Security Office will determine whether the person
is eligible for unescorted access.

2. The prime contractor is responsible for providing escort services for any of
his employees and/or any subcontractor employees who are not eligible for
unescorted access.

3. All requests for unescorted access by subcontractors will be submitted
through the prime contractor for forwarding to the NASA Security Office.

                                 (End of Clause)

H-17 OCCUPATIONAL HEALTH (KSC 52.223-93) (NOV 2000)(MODIFIED)

1. Occupational Health Services at KSC

The medical services set forth in KMI 1810.1I entitled KSC Occupational Medicine
Program, will be provided to the contractor by the Government to the extent that
there will not be any restriction of the employees' rights under applicable
Workers' Compensation statutory provisions.

Information from records generated as a result of rendition of these medical
services may be obtained from the Chief, Occupational Health Branch, Code TA-C2,
upon written request.

2. Health Examinations and Physical Requirements Standards

The contractor shall provide the following data to the Chief, Occupational
Health Branch, Code TA-C2:

a. A breakdown of the various health examinations required in support of this
contract; providing type, frequency, and a roster of personnel affected.

b. The applicable physical requirements standards for personnel certification,
if the contractor has physical requirements standards, which are stricter than
the applicable KSC (Federal) standards; otherwise the KSC (Federal) physical
requirements standards are applicable to this contract.

3. Occupational Health Services at VAFB

Emergency ambulance service shall be provided to the contractor by the
Government at Vandenberg Air Force Base, CA. The contractor shall be responsible
for all other contractor health services.

                                 (End of Clause)

H-18 KSC INFORMATION TECHNOLOGY (IT) SECURITY PROGRAM (KSC 52.239-90) (AUG 1999)

KSC Contractors that process NASA data shall comply with NASA's Information
Technology (IT) Security Program. Contractors shall ensure, as computers are
reassigned or excessed, that computers' hard disks are erased so that sensitive
data and Government-licensed software cannot be recovered.

The Contractor shall comply with the following:

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     a)   NPD 2810.1, Security of Information Technology, available for review
          at
          http://nodis.hq.nasa.gov/Library/Directives/NASA-WIDE/Policies/
          Legal_Policies/NPD_2810_1.html

     b)   NPG 2810, Security of Information Technology, available for review at
          http://www.ksc.nasa.gov/nasa-only/cio/nasadocs/npg2810_21may99.pdf

     c)   KDP-KSC-P-1836, Removing Data and Licensed Software from Information
          Technology Storage Devices, available for review under Kennedy
          Documented Procedures, (AA) at
          http://wit.ksc.nasa.gov/BusinessWorld/html/ksc_procedures.html

                                 (End of Clause)

H-19 CONTROLS APPLICABLE TO CONTRACTOR'S ACTIVITIES (KSC 52.242-90) (DEC 2000)

The below listed Kennedy Space Center publications and subsequent revisions
thereof are applicable to this contract and are incorporated herein by
reference. These publications prescribe regulatory procedural criteria, which
are applicable to the contractor. The contractor, upon receipt of notice of
noncompliance with any provisions of the below listed publications from the
Contracting Officer or his representatives, shall promptly take corrective
action.

      JHB 2000           Consolidated Comprehensive Emergency Management Plan

      KHB 1200.1         "Management of Facilities, Systems & Equipment
                         Handbook"

      KHB 1610.1         "KSC Security Handbook"

      KHB 1710.2         "Kennedy Space Center Safety Practices Handbook"

      KMI 1710.18        "KSC Safety Assurance Policy:

      KMI 1800.2         "KSC Hazard Communication Program"

      KMI 1810.1 Rev I   KSC  Occupational   Medicine  Program  On-site
                         Contractors   shall  comply  withAttachment D, KSC
                         Skin Cancer Prevention Program

      KMI 1860.1         "KSC Radiation Protection Program"

      KHB 1870.1         "KSC Sanitation and Pollution Control Handbook"

      KHB 2570.1         "KSC Radio Frequency Spectrum Management Handbook"

      KMI 2410.2         "Information Resources Management"

      KHB 4000.1         "Supply Support System Manual, Part 5, Equipment
                         Management"

      KHB 8800.6         "KSC Environmental Control Handbook"

      KHB 8800.7         "Hazardous Waste Management"

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       KMI 8800.8        "KSC Environmental Management"

       Construction Contractor's Safety Information & Requirements For KSC
                   (Applicable to Construction Contracts Only)

                                 (End of Clause)

H-20 CENTERWIDE WORKFORCE REPORTS (KSC 52.242-93) (NOV 2000)

The Contractor shall submit, on a quarterly basis (DRD-12 Quarterly Headcount
Report), a workforce report delineating information about its workforce. The
report shall include: the contract number, the contractor's total on-site
workforce, total on-site union represented employees by bargaining unit, total
on-site non-union represented employees, and total off-site workforce performing
on the contract. The Contractor shall provide this information no later than 10
days after the close of each reporting period, which end March 31st, June 30th,
September 30th, and December 31st. The report shall be submitted to the
Contracting Officer with copies to KSC Workforce Planning and Analysis office
(Code BA-D).

                                 (End of Clause)

H-21 AUTHORIZED CHANGES (KSC 52.243-90) (FEB 1990)

The Contracting Officer or his duly appointed representative are the only
individuals authorized to issue instructions to the contractor in matters
relating to this contract. The identification, scope of authority and duties of
representatives of the Contracting Officer shall be set forth in letters issued
by the Contracting Officer and copies of such designations shall be furnished to
the Contractor. (End of Clause)

H-22 CONDUCT OF FACILITY PROJECTS (KSC 52.236-130) (APR 2000)

A. Approval

The contractor shall not award or otherwise proceed with implementation of any
facility project without a NASA approved Facility Project - Brief Project
Document (NASA Form 1509). The contractor shall prepare or otherwise support the
preparation of NASA Form 1509's in accordance with the current edition of NPG
8820.2, Facility Project Implementation Handbook, and the current version of the
KSC procedure for Facility Project Approval and Implementation. For purposes of
this requirement a Facility Project is defined as any new construction, repair,
and /or modification affecting Government real property located on KSC
regardless of the source of funding, or located elsewhere and funded by KSC, and
costing more than $50,000.

Planning and design activities leading to the implementation of the actual
construction, repair or modification work normally can be accomplished prior to
1509 approval. When in doubt, guidance as to whether or not a particular
activity is a Facility Project, is "implementation" versus "planning and
design," and / or the applicability of this requirement in relation to specific
projects should be obtained from the KSC Spaceport Services Management
Integration Office.

B. File Documentation

Construction subcontract file documentation shall include a copy of the approved
NASA Form 1509 authorizing the project. For construction subcontracts requiring
Contracting Officer consent, the consent file shall include a copy of the
approved NASA Form 1509 authorizing the project.

                                 (End of Clause)

H-23 CONSTRUCTION AND LABOR PROVISIONS

In the event any portion of work to be performed under the contract are deemed
by the Contractor to fall within the "construction" category as defined in FAR
22.400, the Contractor may place a subcontract for that work.

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The Construction Contract clauses as set forth in the General Provisions shall
be applicable to the extent of any "construction" work performed under the
contract. To the extent that there is an inconsistency between other clauses
referenced above, the latter shall govern.

The Contractor will utilize the current U.S. Department of Labor General Wage
Determination, available from the Contracting Officer, as the minimum wages to
be paid the classes of employees described therein in the performance of work
under the contract.

                                 (End of Clause)

H-24 AMERICANS WITH DISABILITIES ACT, SECTION 508 POLICY

The contractor shall comply with accessibility requirements for electronic and
information technology access as defined in Section 508 of the Rehabilitation
Act (29 U.S.C. 794d). Detailed requirements for accessibility have been
established by the Architectural and Transportation Barriers Compliance Board
(Access Board) at 36 CFR Part 1194.

                                 (End of Clause)

H-25 HAZARD COMMUNICATION (KSC 52.223-94) (NOV 2000)

A. In order to comply with Federal, OSHA, and State Regulations, the Contractor
shall participate in the KSC Chemical Hazard Communication Program as
implemented by KMI 1800.2B, Chemical Hazard Communication.

B. The Contractor shall coordinate submission of hazardous material safety data,
to the NASA/KSC Materials Safety Data Sheet Archive, with the Joint Base
Operations Support Contract MSDS Program Administrator.

                                 (End of Clause)

H-26 EMERGENCY MEDICAL TREATMENT (KSC 52.223-105) (JUL 2000)

The contractor shall immediately call (see below for applicable telephone
numbers) for assistance with personnel injury or illness for any incident
requiring emergency medical treatment for contractor or subcontractor personnel,
or invitees on KSC, or if any person on the job site is rendered unconscious.
The contractor shall require the victim to sign an appropriate "refusal of
treatment" form, if medical evaluation/treatment is offered and refused.

     From KSC or CCAFS property: 911

     From a KSC issued cellular telephone: 867-7911

     From other than a KSC issued cellular telephone: 321-867-7911

     Commercial telephone users on KSC or CCAFS property: 911

                                 (End of Clause)

H-27 NOTICE OF COMPLETION OF TASK ORDER

The Contractor shall notify the Contracting Officer's Technical Representative,
or authorized representative in writing upon completion of each individual task
order.

                                  (End of Text)

H-28 ASBESTOS-CONTAINING BUILDING MATERIALS (KSC52.223-19)(JAN 2002)

Asbestos-Containing Building Materials (ACBM) are known to be present in
facilities assigned under the scope of this contract. The government will
provide information regarding the location and quantity of know ACBM in NASA/KSC
facilities to the facility tenant organizations through the JBOSC Environmental
Health office.

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Special requirements, coordination, and precautions will apply to any work
taking place under contracts that involve disturbance of ACBM. Contractors whose
contracts require work involving ACBM are required to provide a written program
for such work as part of its health and safety plan which is consistent with the
requirements of 29 CFR 1926.1101. The contractor shall coordinate any such work
involving ACBM with JBOSC Environmental Health, SGS Fire Services, and any other
resident government or contractor organization whose employees may have access
to the work location.

                                 (End of Clause)

H-29 RELEASE OF TOTAL AND UNIT PRICING INFORMATION

Offerors are hereby notified that NASA will comply with FAR 15.503(b)(1)(iv) and
15.506(d)(2) in making publicly available the items, quantities, and unit prices
of each contract award.

                                  (End of Text)

                                [End of Section]

                           PART II - CONTRACT CLAUSES
                          SECTION I - CONTRACT CLAUSES

--------------------------------------------------------------------------------
I-1  LISTING OF CLAUSES INCORPORATED BY REFERENCE

NOTICE: The following contract clauses pertinent to this section are hereby
incorporated by reference:

I. FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1)

 CLAUSE
 NUMBER           DATE     TITLE
---------         ----     -----
52.202-1        OCT 1995   DEFINITIONS

52.202-1        OCT 1995   DEFINITIONS (ALTERNATE I)(APR 1984)

52.203-3        APR 1984   GRATUITIES

52.203-5        APR 1984   COVENANT AGAINST CONTINGENT FEES

52.203-6        JUL 1995   RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT

52.203-7        JUL 1995   ANTI-KICKBACK PROCEDURES

52.203-8        JAN 1997   CANCELLATION, RESCISSION AND RECOVERY OF FUNDS
                           FOR ILLEGAL OR IMPROPER ACTIVITY

52.203-10       JAN 1997   PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER
                           ACTIVITY

52.203-12       JUN 1997   LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN
                           FEDERAL TRANSACTIONS

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52.204-2        AUG 1996   SECURITY REQUIREMENTS

52.204-4        AUG 2000   PRINTING/COPYING DOUBLE-SIDED ON RECYCLED PAPER

52.209-6        JUL 1995   PROTECTING THE GOVERNMENT'S INTEREST WHEN
                           SUBCONTRACTING WITH CONTRACTORS DEBARRED,
                           SUSPENDED, OR PROPOSED FOR DEBARMENT

52.215-2        JUN 1999   AUDIT AND RECORDS--NEGOTIATION

52.215-8        OCT 1997   ORDER OF PRECEDENCE - UNIFORM CONTRACT FORMAT

52.215-15       DEC 1998   PENSION ADJUSTMENTS AND ASSET REVERSIONS

52.215-21       OCT 1997   REQUIREMENTS FOR COST OR PRICING DATA OR
                           INFORMATION OTHER THAN COST OR PRICING DATA -
                           MODIFICATIONS

52.216-7        FEB 2002   ALLOWABLE COST AND PAYMENT
                           Insert (30th) in Paragraph (a)(3)

52.216-11       APR 1984   COST CONTRACT - NO FEE (APPLIES TO CLINS 1009, 2009,
                           3009, 1010, 2010, 3010)

52.216-22       OCT 1995   INDEFINITE QUANTITY (APPLIES TO CLINS 1008A thru-
                           1008J, 2008A thru 2008J, 3008A thru 3008J, and 1012,
                           2012, and 3012)

52.217-8        NOV 1999   OPTION TO EXTEND SERVICES

52.217-9        MAR 2000   OPTION TO EXTEND THE TERM OF THE CONTRACT
                           Insert "within the last 6 month of performance" and
                           "at least 60 days", respectively, in paragraph (a).
                           Insert "(9 years, 6 months)" in paragraph (c).

52.219-6        JUL 1996   NOTICE OF TOTAL SMALL BUSINESS SET-ASIDE

52.219-8        OCT 2000   UTILIZATION OF SMALL BUSINESS CONCERNS

52.219-14       DEC 1996   LIMITATION ON SUBCONTRACTING

52.222-1        FEB 1997   NOTICE TO THE GOVERNMENT OF LABOR DISPUTES

52.222-2        JUL 1990   PAYMENT FOR OVERTIME PREMIUMS
                           Insert "$ 0 " in paragraph (a).

52.222-3        AUG 1996   CONVICT LABOR

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52.222-4        SEP 2000   CONTRACT WORK HOURS AND SAFETY STANDARDS
                           ACT - OVERTIME COMPENSATION

52.222-21       FEB 1999   PROHIBITION OF SEGREGATED FACILITIES

52.222-26       FEB 1999   EQUAL OPPORTUNITY

52.222-35       APR 1998   AFFIRMATIVE ACTION FOR DISABLED VETERANS AND
                           VETERANS OF THE VIETNAM ERA

52.222-36       JUN 1998   AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES

52.222-37       JAN 1999   EMPLOYMENT REPORTS ON DISABLED VETERANS AND
                           VETERANS OF THE VIETNAM ERA

52.222-41       MAY 1989   SERVICE CONTRACT ACT OF 1965, AS AMENDED

52.222-42       MAY 1989   STATEMENT OF EQUIVALENT RATES FOR FEDERAL HIRES

52.222-43       MAY 1989   FAIR LABOR STANDARDS ACT AND SERVICE CONTRACT
                           ACT--PRICE ADJUSTMENT (MULTIPLE YEAR AND
                           OPTION CONTRACTS)(Applicable to fixed-price line
                           items only)

52.223-3        JAN 1997   HAZARDOUS MATERIAL IDENTIFICATION AND
                           MATERIAL SAFETY DATA (ALTERNATE I) (JUL 1995)
                           Insert "None" in paragraph (b).

52.223-5        APR 1998   POLLUTION PREVENTION AND RIGHT-TO-KNOW INFORMATION

52.223-6        JAN 1997   DRUG-FREE WORKPLACE

52.223-10       AUG 2000   WASTE REDUCTION PROGRAM

52.223-12       OCT 2000   REFRIGERATION EQUIPMENT AND AIR CONDITIONERS

52.223-14       OCT 2000   TOXIC CHEMICAL RELEASE REPORTING

52.225-13       JUL 2000   RESTRICTIONS ON CERTAIN FOREIGN PURCHASES

52.227-1        JUL 1995   AUTHORIZATION AND CONSENT

52.227-2        AUG 1996   NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT
                           INFRINGEMENT

52.227-3        APR 1984   PATENT INDEMNITY

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52.227-14       JUN 1987   RIGHTS IN DATA--GENERAL (ALTERNATE II & III) As
                            modified by NASA FAR Supplement 1852.227-14

52.227-17       JUN 1987   RIGHTS IN DATA--SPECIAL WORKS As modified by NASA
                           FAR Supplement 1852.227-17

52.227-19       JUN 1987   COMMERCIAL COMPUTER SOFTWARE -- RESTRICTED
                           RIGHTS as modified by NFS 852.227-19

52.228-5        JAN 1997   INSURANCE - WORK ON A GOVERNMENT INSTALLATION

52.228-7        MAR 1996   INSURANCE--LIABILITY TO THIRD PERSONS

52.229-3        JAN 1991   FEDERAL, STATE, AND LOCAL TAXES

52.232-1        APR 1984   PAYMENTS

52.232-16       FEB 2002   PROGRESS PAYMENTS (and Alternate I-MAR 2000)
                           Insert (30th) in Paragraph (k)(1)

52.232-17       JUN 1996   INTEREST

52.232-18       APR 1984   AVAILABILITY OF FUNDS

52.232-22       APR 1984   LIMITATION OF FUNDS

52.232-23       JAN 1986   ASSIGNMENT OF CLAIMS

52.232-25       FEB 2002   PROMPT PAYMENT  (and Alternate I - FEB 2002)

52.232-34       MAY 1999   PAYMENT BY ELECTRONIC FUNDS TRANSFER--OTHER
                           THAN CENTRAL CONTRACTOR REGISTRATION
                           Insert "no later than 15 days prior to submission of
                           the first request for payment" in Paragraph (b)(1).

52.233-1        DEC 1998   DISPUTES (ALTERNATE I) (DEC 1991)

52.233-3        AUG 1996   PROTEST AFTER AWARD (ALTERNATE I) (JUN 1985)

52.237-2        APR 1984   PROTECTION OF GOVERNMENT BUILDINGS,
                           EQUIPMENT, AND VEGETATION

52.237-3        JAN 1991   CONTINUITY OF SERVICES

52.237-10       OCT 1997   UNCOMPENSATED OVERTIME

52.242-1        APR 1984   NOTICE OF INTENT TO DISALLOW COSTS

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52.242-3        OCT 1995   PENALTIES FOR UNALLOWABLE COSTS

52.242-4        JAN 1997   CERTIFICATION OF FINAL INDIRECT COSTS

52.242-13       JUL 1995   BANKRUPTCY

52.243-1        AUG 1987   CHANGES - FIXED PRICE (ALTERNATE II) (APR 1984)

52.243-1        AUG 1987   CHANGES - FIXED PRICE (ALTERNATE III) (APR 1984)

52.243-2        AUG 1987   CHANGES--COST-REIMBURSEMENT (ALTERNATE II) (APR 1984)

52.244-5        DEC 1996   COMPETITION IN SUBCONTRACTING

52.244-6        MAR 2001   SUBCONTRACTS FOR COMMERCIAL ITEMS

52.245-18       FEB 1993   SPECIAL TEST EQUIPMENT

52.246-25       FEB 1997   LIMITATION OF LIABILITY-- SERVICES

52.247-1        APR 1984   COMMERCIAL BILL OF LADING NOTATIONS

52.249-2        SEP 1996   TERMINMATION FOR CONVENIENCE OF THE
                           GOVERNMENT (FIXED-PRICE)

52.249-6        SEP 1996   TERMINATION (COST-REIMBURSEMENT)

52.249-14       APR 1984   EXCUSABLE DELAYS

52.251-1        APR 1984   GOVERNMENT SUPPLY SOURCES

52.253-1        JAN 1991   COMPUTER GENERATED FORMS

II. FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1) - CONSTRUCTION CLAUSES

 CLAUSE
 NUMBER           DATE     TITLE
---------       --------   -----
52.204-2        AUG 1996   SECURITY REQUIREMENTS (ALTERNATE II)

52.211-10       APR 1984   COMMENCEMENT, PROSECUTION, AND COMPLETION OF
                           WORK (DEFINED SEPARATELY IN TASK ORDERS)

52.222-6        FEB 1995   DAVIS-BACON ACT

52.222-7        FEB 1988   WITHHOLDING OF FUNDS

52.222-8        FEB 1988   PAYROLLS AND BASIC RECORDS

52.222-9        FEB 1988   APPRENTICES AND TRAINEES

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52.222-10       FEB 1988   COMPLIANCE WITH COPELAND ACT REQUIREMENTS

52.222-11       FEB 1988   SUBCONTRACTS (LABOR STANDARDS)

52.222-12       FEB 1988   CONTRACT TERMINATION -- DEBARMENT

52.222-13       FEB 1988   COMPLIANCE WITH DAVIS-BACON AND RELATED ACT
                           REGULATIONS

52.222-14       FEB 1988   DISPUTES CONCERNING LABOR STANDARDS

52.222-15       FEB 1988   CERTIFICATION OF ELIGIBILITY

52.222-23       FEB 1999   NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION
                           TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY FOR
                           CONSTRUCTION

52.222-27       FEB 1999   AFFIRMATIVE ACTION COMPLIANCE REQUIREMENTS FOR
                           CONSTRUCTION

52.227-4        APR 1984   PATENT INDEMNITY - CONSTRUCTION CONTRACTS

52.232-5        MAY 1997   PAYMENTS UNDER FIXED-PRICE CONSTRUCTION CONTRACTS

52.232-27       MAR 2001   PROMPT PAYMENT FOR CONSTRUCTION CONTRACTS

52.236-2        APR 1984   DIFFERING SITE CONDITIONS

52.232-3        APR 1984   SITE INVESTIGATION AND CONDITIONS AFFECTING THE WORK

52.236-5        APR 1984   MATERIAL AND WORKMANSHIP

52.236-7        NOV 1991   PERMITS AND RESPONSIBILITIES

52.236-8        APR 1984   OTHER CONTRACTS

52.236-9        APR 1984   PROTECTION OF EXISTING VEGETATION, STRUCTURES,
                           EQUIPMENT, UTILITIES, AND IMPROVEMENTS

52.236-10       APR 1984   OPERATIONS AND STORAGE AREAS

52.236-11       APR 1984   USE AND POSSESSION PRIOR TO COMPLETION

52.236-12       APR 1984   CLEANING UP

52.236-13       NOV 1991   ACCIDENT PREVENTION

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52.236-13       NOV 1991   ACCIDENT PREVENTION (ALTERNATE I)

52.236-14       APR 1984   AVAILABILITY AND USE OF UTILITY SERVICES

52.236-21       FEB 1997   SPECIFICATIONS AND DRAWINGS FOR CONSTRUCTION
                           (ALTERNATE II)

52.236-22       APR 1984   DESIGN WITH FUNDING LIMITATIONS (Insert in paragraph
                           (c) will be included in applicable task orders)

52.236-23       APR 1984   RESPONSIBILITY OF THE ARCHTECT-ENGINEER CONTRACTOR

52.236-25       APR 1984   REQUIREMENTS FOR REGISTRATION OF DESIGNERS

52.236-27       FEB 1995   SITE VISIT (CONSTRUCTION) (Insert in paragraph (b)
                           will be included in applicable task orders)

52.242-14       APR 1984   SUSPENSION OF WORK

52.243-4        AUG 1987   CHANGES

52.243-6        APR 1984   CHANGE ORDER ACCOUNTING

52.249-2        SEP 1996   TERMINATION FOR CONVENIENCE OF THE
                           GOVERNMENT (FIXED-PRICE) (ALTERNATE I) (SEP 1996)

52.249-3        SEP 1996   TERMINATION FOR CONVENIENCE OF THE
                           GOVERNMENT (DISMANTLING, DEMOLITION,OR
                           REMOVAL OF IMPROVEMENTS)

52.249-10       APR 1984   DEFAULT (FIXED-PRICE CONSTRUCTION)

III. NASA FAR SUPPLEMENT (48 CFR CHAPTER 18) CLAUSES

  CLAUSE
  NUMBER          DATE               TITLE
-----------     --------             -----
1852.203-70     JUN 2001   DISPLAY OF INSPECTOR GENERAL POSTERS

1852.204-76     JUL 2001   SECURITY REQUIREMENTS FOR UNCLASSIFIED INFORMATION
                           TECHNOLOGY RESOURCES
                           (Insert in paragraph c "180" days)

1852.209-72     DEC 1988   COMPOSITION OF THE CONTRACTOR

1852.215-84     JUN 2000   OMBUDSMAN
                Insert:  "Dr. Julian M. Earls", "(216) 433- 3014", and
                "Tom Luedtke" "(202) 358-2090", KSC Ombudsman is James Jennings,
                Deputy Center Director .

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1852.216-89     JUL 1997   ASSIGNMENT AND RELEASE FORMS

1852.219-74     SEP 1990   USE OF RURAL AREA SMALL BUSINESSES

1852.219-76     JUL 1997   NASA 8 PERCENT GOAL

1852.223-75     FEB 2002   MAJOR BREACH OF SAFETY OR SECURITY

1852.227-17     OCT 1995   RIGHTS IN DATA -- SPECIAL WORKS

1852.228-75     OCT 1988   MINIMUM INSURANCE COVERAGE

1852.237-70     DEC 1988   EMERGENCY EVACUATION PROCEDURES

1852.237-71     JAN 1997   PENSION PORTABILITY

1852.243-71     MAR 1997   SHARED SAVINGS

IV. NASA FAR SUPPLEMENT (48 CFR CHAPTER 18) CLAUSES- CONSTRUCTION

1852.209-72      EC 1988   COMPOSITION OF THE CONTRACTOR

1852.236-73      EC 1988   HURRICANE PLAN

1852.236-75      UG 1998   PARTNERING FOR CONSTRUCTION CONTRACTS

1852.243-72      PR 1998   EQUITABLE ADJUSTMENTS

I-2 CLAUSES INCORPORATED BY REFERENCE (FAR 52.252-2) (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force
and effect as if they were given in full text. Upon request, the Contracting
Officer will make their full text available. Also, the full text of a clause may
be accessed electronically at this/these address(es):

     http://www.arnet.gov/far/
     http://www.hq.nasa.gov/office/procurement/regs/nfstoc.htm

                                 (End of clause)

I-3 SCA MINIMUM WAGES AND FRINGE BENEFITS APPLICABLE TO SUCCESSOR CONTRACT
PURSUANT TO PREDECESSOR CONTRACTOR COLLECTIVE BARGAINING AGREEMENTS (CBA) (FAR
52.222-47) (MAY 1989)

An SCA wage determination applicable to this work has been requested from the
U.S. Department of Labor. If an SCA wage determination is not incorporated
herein, the bidders/offerors shall consider the economic terms of the collective
bargaining agreement (CBA) between the two incumbent Contractors, The Boeing
Company - Kennedy Space Center., and the International Brotherhood of Electrical
Workers, Local 2088; and SMI International and Teamsters and Warehousemen Union,
Local No. 381 If the economic terms of the collective bargaining agreement or
the collective bargaining agreement itself is not attached to the solicitation,
copies can be obtained from the Contracting Officer. Pursuant to Department of
Labor Regulation, 29 CFR 4.1b and paragraph (g) of the clause at 52.222-41,
Service Contract Act of 1965, as amended, the economic terms of that agreement
will apply to the contract resulting from this solicitation, notwithstanding the
absence of a wage determination reflecting such terms, unless it is determined
that the agreement was not the result of arm's length negotiations or that after
a hearing pursuant to section 4(c) of the Act, the economic terms of the
agreement are substantially at variance with the wages prevailing in the area.

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                                 (End of Clause)

I-4  SUBCONTRACTS (ALTERNATE I) (FAR 52.244-2) (AUG 1998)

(a)  Definitions. As used in this clause --
Approved purchasing system means a Contractor's purchasing system that has been
reviewed and approved in accordance with Part 44 of the Federal Acquisition
Regulation (FAR).
Consent to subcontract means the Contracting Officer's written consent for the
Contractor to enter into a particular subcontract.
Subcontract means any contract, as defined in FAR Subpart 2.1, entered into by a
subcontractor to furnish supplies or services for performance of the prime
contract or a subcontract. It includes, but is not limited to, purchase orders,
and changes and modifications to purchase orders.

(b) This clause does not apply to subcontracts for special test equipment when
the contract contains the clause at FAR 52.245-18, Special Test Equipment.

(c) When this clause is included in a fixed-price type contract, consent to
subcontract is required only on unpriced contract actions (including unpriced
modifications or unpriced delivery orders), and only if required in accordance
with paragraph (d) or (e) of this clause.

(d) If the Contractor does not have an approved purchasing system, consent to
subcontract is required for any subcontract that --
(1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or
(2) Is fixed-price and exceeds --

(i) For a contract awarded by the Department of Defense, the Coast Guard, or the
National Aeronautics and Space Administration, the greater of the simplified
acquisition threshold or 5 percent of the total estimated cost of the contract;
or
(ii) For a contract awarded by a civilian agency other than the Coast Guard and
the National Aeronautics and Space Administration, either the simplified
acquisition threshold or 5 percent of the total estimated cost of the contract.

(e) If the Contractor has an approved purchasing system, the Contractor
nevertheless shall obtain the Contracting Officer's written consent before
placing the following subcontracts:

All Subcontracts for Facilities Modifications, Design or Construction and any
other Subcontracts over $ 100,000

(f)(1) The Contractor shall notify the Contracting Officer reasonably in advance
of placing any subcontract or modification thereof for which consent is required
under paragraph (c), (d), or (e) of this clause, including the following
information:
(i) A description of the supplies or services to be subcontracted.
(ii) Identification of the type of subcontract to be used.
(iii) Identification of the proposed subcontractor.
(iv) The proposed subcontract price.
(v) The subcontractor's current, complete, and accurate cost or pricing data and
Certificate of Current Cost or Pricing Data, if required by other contract
provisions.
(vi) The subcontractor's Disclosure Statement or Certificate relating to Cost
Accounting Standards when such data are required by other provisions of this
contract.
(vii) A negotiation memorandum reflecting --

(A) The principal elements of the subcontract price negotiations;
(B) The most significant considerations controlling establishment of initial or
evised prices;
(C) The reason cost or pricing data were or were not required;
(D) The extent, if any, to which the Contractor did not rely on the
subcontractor's cost or pricing data in determining the price objective and in
negotiating the final price;

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(E) The extent to which it was recognized in the negotiation that the
subcontractor's cost or pricing data were not accurate, complete, or current;
the action taken by the Contractor and the subcontractor; and the effect of any
such defective data on the total price negotiated;

(F) The reasons for any significant difference between the Contractor's price
objective and the price negotiated; and

(G) A complete explanation of the incentive fee or profit plan when incentives
are used. The explanation shall identify each critical performance element,
management decisions used to quantify each incentive element, reasons for the
incentives, and a summary of all trade-off possibilities considered.

(2) If the Contractor has an approved purchasing system and consent is not
required under paragraph (c), (d), or (e) of this clause, the Contractor
nevertheless shall notify the Contracting Officer reasonably in advance of
entering into any

(i) cost-plus-fixed-fee subcontract, or
(ii) fixed-price subcontract that exceeds the greater of the simplified
acquisition threshold or 5 percent of the total estimated cost of this contract.

The notification shall include the information required by paragraphs (f)(1)(i)
through (f)(1)(iv) of this clause.

(g) Unless the consent or approval specifically provides otherwise, neither
consent by the Contracting Officer to any subcontract nor approval of the
Contractor's purchasing system shall constitute a determination --
(1) Of the acceptability of any subcontract terms or conditions;
(2) Of the allowability of any cost under this contract; or
(3) To relieve the Contractor of any responsibility for performing this
contract.

(h) No subcontract or modification thereof placed under this contract shall
provide for payment on a cost-plus-a-percentage-of-cost basis, and any fee
payable under cost-reimbursement type subcontracts shall not exceed the fee
limitations in FAR 15.404-4(c)(4)(i).

(i) The Contractor shall give the Contracting Officer immediate written notice
of any action or suit filed and prompt notice of any claim made against the
Contractor by any subcontractor or vendor that, in the opinion of the
Contractor, may result in litigation related in any way to this contract, with
respect to which the Contractor may be entitled to reimbursement from the
Government.

(j) The Government reserves the right to review the Contractor's purchasing
system as set forth in FAR Subpart 44.3.

(k) Paragraphs (d) and (f) of this clause do not apply to the following
subcontracts, which were evaluated during negotiations: NONE.

                                 (End of clause)

I-5 SECURITY CLASSIFICATION REQUIREMENTS (NFS 1852.204-75) (SEP 1989)

Performance under this contract will involve access to and/or generation of
classified information; work in a security area, or both, up to the level of
SECRET. See Federal Acquisition Regulation clause 52.204-2 in this contract and
DD Form 254, Contract Security Classification Specification, Attachment J-7.

                                 (End of Clause)

I-6 EMERGENCY MEDICAL SERVICES AND EVACUATION (NFS 1852.242-78) (APRIL 2001)

The contractor shall, at its own expense, be responsible for making all
arrangements for emergency medical services and evacuation, if required, for its
employees while performing work under this contract outside the United States or
in remote locations of the United States. If necessary to deal with certain
emergencies, the contractor may request the Government to provide medical
services or evacuation. If the Government performs such services, the contractor
shall reimburse the Government for the costs incurred.

                                 (End of clause)

I-7 ENGINEERING CHANGE PROPOSALS (NFS 1852.243-70) (FEBRUARY 1998)

(a) Definitions.

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"ECP" means an Engineering Change Proposal (ECP) which is a proposed engineering
change and the documentation by which the change is described, justified, and
submitted to the procuring activity for approval or disapproval.

"MIL-STD-973" means a DOD publication entitled, Military Standard Configuration
Control - Engineering Changes, Deviations and Waivers, 15 July 1988.

(b) Either party to the contract may originate ECPs. The originator shall
forward proposed ECPs to the Contracting Officer. Unless another process has
been approved by the Government or specified by the Contracting Officer, the ECP
formats, forms and controls specified in MIL-STD-973 shall be used.
Implementation of an approved ECP may occur by either a supplemental agreement
or, if appropriate, as a written change order to the contract.

(c) Any ECP submitted to the Contracting Officer shall include a "not-to-exceed"
[price or estimated cost] increase or decrease adjustment amount, if any, and
the required [time of delivery or period of performance] adjustment, if any,
acceptable to the originator of the ECP. If the change is originated within the
Government, the Contracting Officer shall obtain a written agreement with the
contractor regarding the "not-to-exceed"[price or estimated cost] and [delivery
or period of performance] adjustments, if any, prior to issuing an order for
implementation of the change.

(d) After submission of a contractor initiated ECP, the contracting officer may
require the contractor to submit the following information:

(1) Cost or pricing data in accordance with FAR 15.403-5 if the proposed change
meets the criteria for its submission under FAR 15.403-4; or

(2) Information other than cost or pricing data adequate for contracting officer
determination of price reasonableness or cost realism. The contracting officer
reserves the right to request additional information if that provided by the
contractor is considered inadequate for that purpose. If the contractor claims
applicability of one of the exceptions to submission of cost or pricing data, it
shall cite the exception and provide rationale for its applicability.

(e) If the ECP is initiated by NASA, the contracting officer shall specify the
cost information requirements, if any.

                                 (End of clause)

I-8 Estimate of Percentage of Recovered Material Content for EPA-Designated
Products (FAR 52.223-9) (AUGUST 2000)

(a) Definitions. As used in this clause -

"Post-consumer material" means a material or finished product that has served
its intended use and has been discarded for disposal or recovery, having
completed its life as a consumer item. Post-consumer material is a part of the
broader category of "recovered material".

"Recovered material" means waste materials and by-products recovered or diverted
from solid waste, but the term does not include those materials and by-products
generated from, and commonly reused within, an original manufacturing process.

(b) The contractor, on completion of this contract, shall-

                                            [*] Confidential Treatment Requested

                                     Page 66

<PAGE>

Expendable Launch Vehical Integrated Support Contract                NAS10-02026

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

1.   Estimate the percentage of the total recovered material used in contract
     performance, including, if applicable, the percentage of post-consumer
     material content; and

2.   Submit this estimate to the Contracting Officer within 10 working days of
     contract completion.

                                 (End of Clause)

                                [END OF SECTION]

                                     Page 67

<PAGE>

Expendable Launch Vehical Integrated Support Contract                NAS10-02026

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

                     PART III - LIST OF DOCUMENTS, EXHIBITS
                              AND OTHER ATTACHMENTS

                         SECTION J - LIST OF ATTACHMENTS

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

ARTICLE J-1 LIST OF ATTACHMENTS

The following documents are attached at the end of this contract and made a part
hereof:

<TABLE>
<CAPTION>
Attachment   Title                                                         No. Pages
----------   -----------------------------------------------------------   ---------
<S>          <C>                                                           <C>
   J-1       Statement of Work (April 1, 2002)                             72 pages

   J-2       Data Requirements List/Data Requirements Description          46 pages
             (DRL/DRD's)

   J-3       NASA Facilities and Facility Systems at Vandenberg AFB         4 pages

   J-4       Installation Provided Property List                           55 pages

   J-5       Department of Labor Wage Determination                        15 pages

   J-6       Performance Evaluation Plan                                   16 pages

   J-7       DD Form 254, Contract Security Classification Specification    7 pages

   J-8       Contractor Safety and Health Plan                             90 pages

   J-9       Contractor Quality Manual (ISO/ANSI)                          32 pages

   J-10      Statement of Equivalent Rates for Federal Hires                2 pages

   J-11      Acronyms                                                       3 pages

   J-12      Information Technology (IT) Support Functions                  6 pages
</TABLE>

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

                                    Page 68<PAGE>

                                  Exhibit 10.39

                                  HADRON, INC.
                             2002 STOCK OPTION PLAN

1.   Purpose. The purpose of this Hadron, Inc. 2002 Stock Option Plan (the
     "Plan") is to further the interests of Hadron, Inc., a Delaware corporation
     (the "Company"), and its shareholders by providing incentives in the form
     of grants of stock options to key employees and other persons who
     contribute materially to the success and profitability of the Company.

2.   Definitions. The following definitions shall apply to the Plan:

     (a)  "Board" means the board of directors of the Company.

     (b)  "Change of Control" means:

          i.   a determination or agreement by the Company to sell substantially
               all of its assets, merge, dissolve, liquidate or reorganize;

          ii.  a determination or agreement by the holders of a majority of the
               Common Stock of the Company to sell a majority of the outstanding
               Common Stock of the Company to a third party; or

          iii. the occurrence of any other change in control event, as defined
               by the Board.

     (c)  "Code" means the Internal Revenue Code of 1986, as amended, and
          includes applicable Treasury regulations.

     (d)  "Committee" means the Compensation Committee of the Board. The
          Committee shall (i) consist of not less than three (3) members of the
          Board who are not employees of the Company, (ii) be constituted to
          satisfy the applicable requirements of Rule 16b-3 for qualification of
          the transactions contemplated under the Plan for exemption under Rule
          16b-3, and (iii) be constituted to satisfy the applicable requirements
          of Code Section 162(m) for qualification of the transactions
          contemplated under the Plan for exemption under Code Section 162(m).
          The Board may from time to time remove members from, or add members
          to, the Committee. Vacancies on the Committee, howsoever caused, shall
          be filled by the Board.

     (e)  "Common Stock" means the Common Stock, par value $0.02, of the
          Company, or such other class of shares or securities to which the Plan
          may apply pursuant to Section 8 of the Plan.

     (f)  "Company" means Hadron, Inc., a Delaware corporation.

     (g)  "Date of Grant" means the date on which an Option is granted.

<PAGE>

     (h)  "Disability" means total and permanent inability, by reason of illness
          or accident, to perform the duties of the Recipient's occupation or
          position with the Company, as determined by the Board based upon
          medical evidence acceptable to the Board.

     (i)  "Eligible Person" means any person who performs or has in the past
          performed services for the Company, whether as a director, officer,
          Employee, consultant or other independent contractor, and any person
          who performs services relating to the Company as an employee or
          independent contractor of a corporation or other entity that provides
          services for the Company.

     (j)  "Employee" means any person employed on an hourly or salaried basis by
          the Company. In the case of a Recipient who is an Employee of the
          Company, such person must be employed by the Company at the time the
          Option is granted.

     (k)  "Fair Market Value" as of a particular date shall mean the fair market
          value of the Common Stock. If the Common Stock is admitted to trading
          on a national securities exchange, fair market value of the Common
          Stock on any date shall be the closing price reported for the Common
          Stock on the last day preceding such date on which a sale was
          reported. If the Common Stock is admitted to quotation on the National
          Association of Securities Dealers Automated Quotation ("Nasdaq")
          System or other comparable quotation system and has been designated as
          a National Market System ("NMS") security, fair market value of the
          Common Stock on any date shall be the closing sale price reported for
          the Common Stock on such system on the last date preceding such date
          on which a sale was reported. If the Common Stock is admitted to
          quotation on the Nasdaq System but has not been designated as an NMS
          security, the fair market value of the Common Stock on any date shall
          be the average of the highest bid and lowest asked prices of such
          share on such system on the last date preceding such date on which
          both bid and ask prices were reported. If the Committee determines
          that the value of the Common Stock determined on the basis of selling
          or bid and asked prices as provided above in this Section 2(k) does
          not reflect the fair market value of the Common Stock because no
          actual sale prices or bona fide bid and asked prices are available for
          a date within a reasonable period before the valuation date, then the
          fair market value of the Common Stock shall be determined by the
          Committee in its sole discretion and in good faith as required by
          Section 422 of the Code.

     (l)  "Incentive Stock Option" means a stock option, granted pursuant to
          this Plan or any other Company plan, that satisfies the requirements
          of Section 422 of the Code and that entitles the Recipient to purchase
          stock of the Company. Incentive Stock Options may be granted only to
          employees of the Company or any Subsidiary that is a subsidiary
          corporation within the meaning of Section 424(f) of the Code. To the
          extent that any Option does not qualify as an Incentive Stock Option,
          it shall be deemed a Non-Qualified Stock Option.

                                        2

<PAGE>

     (m)  "Non-Qualified Stock Option" means a stock option, granted pursuant to
          the Plan, that is not an Incentive Stock Option and that entitles the
          Recipient to purchase stock of the Company.

     (n)  "Option" means an Incentive Stock Option or a Non-Qualified Stock
          Option.

     (o)  "Option Agreement" means a written agreement, between the Company and
          a Recipient, that sets out the terms and restrictions of an Option.

     (p)  "Option Shareholder" means a Recipient who has acquired Shares upon
          exercise of an Option.

     (q)  "Option Shares" means Shares that a Recipient receives upon exercise
          of an Option.

     (r)  "Plan" means this Hadron, Inc. 2002 Stock Option Plan, as amended from
          time to time.

     (s)  "Recipient" means an individual who receives an Option.

     (t)  "Rule 16b-3" means Rule 16b-3 promulgated under the Securities
          Exchange Act of 1934, as amended, or any successor to Rule 16b-3, as
          in effect when discretion is being exercised with respect to the Plan.

     (u)  "Share" means a share of the Common Stock, as adjusted in accordance
          with Section 8 of the Plan.

3.   Administration. The Committee shall administer the Plan. The Committee has
     the exclusive power to select the Recipients of Options pursuant to the
     Plan, to establish the terms of the Options granted to each Recipient, and
     to make all other determinations necessary or advisable. The Committee has
     the sole discretion to determine whether the performance of an Eligible
     Person warrants the grant of an Option, and to determine the size and type
     of the Option. The Committee has full and exclusive power to construe and
     interpret the Plan, to prescribe, amend, and rescind rules and regulations
     relating to the Plan, and to take all actions necessary or advisable for
     the Plan's administration. The Committee, in the exercise of its powers,
     may correct any defect or supply any omission, or reconcile any
     inconsistency in the Plan, or in any Agreement, in the manner and to the
     extent it deems necessary or expedient to make the Plan fully effective. In
     exercising this power, the Committee may retain counsel at the expense of
     the Company. The Committee also has the power to determine the duration and
     purposes of leaves of absence which may be granted to a Recipient without
     constituting a termination of the Recipient's employment for purposes of
     the Plan. Any of the Committee's determinations shall be final and binding
     on all persons. A member of the Committee shall not be liable for
     performing any act or making any determination in good faith.

                                        3

<PAGE>

4.   Shares Subject to Plan; Substitution Awards.

     (a)  Subject to the provisions of Section 8 of the Plan and the authority
          granted to the Committee pursuant to Section 3 above, the maximum
          aggregate number of Shares that may be subject to Options is one
          million, five hundred thousand (1,500,000). The Shares may be
          authorized but unissued Shares, or may be treasury stock of the
          Company. If an unexercised Option expires or becomes unexercisable,
          the unpurchased Shares subject to such Option shall be available for
          other Options. If any Shares (whether subject to or received pursuant
          to an Option granted under the Plan, purchased on the open market, or
          otherwise obtained, and including Shares that are deemed (by
          attestation or otherwise) to have been delivered to the Company as
          payment for all or any portion of the exercise price of an Option) are
          withheld or applied as payment by the Company in connection with the
          exercise of an Option or the withholding of taxes related thereto,
          such Shares, to the extent of any such withholding or payment, shall
          again be available or shall increase the number of Shares available,
          as applicable, for future Options under the Plan. The Board may from
          time to time determine the appropriate methodology for calculating the
          number of Shares issued pursuant to the Plan.

     (b)  The Committee may grant Options under the Plan in substitution for
          stock and stock based awards held by employees, directors or other key
          persons of another corporation in connection with a merger or other
          consolidation of the employing corporation with and into the Company
          or a subsidiary of the Company or the acquisition by the Company or a
          subsidiary of the Company of the property or stock of the employing
          corporation. The Committee may direct that the substitute awards be
          granted on such terms and conditions as they deem appropriate under
          the circumstances. Any substitute awards granted under this provision
          shall not count against the share limitation set forth in Section 4(a)
          above.

5.   Eligibility; Non-Employee Director Grants.

     (a)  Any Eligible Person that the Committee in its sole discretion
          designates is eligible to receive an Option. However, only an Employee
          may receive an Incentive Stock Option. The Committee's grant of an
          Option to a Recipient in any year does not entitle the Recipient to an
          Option in any other year. Furthermore, the Committee may grant Options
          on different terms to different Recipients and/or to the same
          Recipient if the Recipient is awarded more than one Option. The
          Committee may consider such factors as it deems pertinent in selecting
          Recipients and in determining the types and sizes of their Options.
          Recipients may include persons who previously received stock, stock
          options, stock appreciation rights, or other benefits under the Plan
          or another plan of the Company, whether or not the previously granted
          benefits have been fully exercised or vested. Nothing in the Plan or
          any Option, or in any agreement entered into pursuant to the Plan
          shall confer upon any Employee, director or outside consultant the
          right to continue in the employ or service of the Company or effect
          any right which the Company may have to terminate the employment or
          service of such Employee, director, or

                                        4

<PAGE>

          outside consultant regardless of the effect of such termination of
          employment or service on the rights of the Employee, director or
          outside consultant under the Plan or any Option. Any Option granted by
          the Committee to a non-employee director elected or appointed to the
          Board must be ratified by the Board.

     (b)  Each non-employee director elected or appointed to the Board shall
          automatically receive, on the date of his or her first initial
          appointment to the Board, an Option to purchase 5,000 shares of Common
          Stock (the "Initial Option") at a per share exercise price equal to
          the Fair Market Value of the Common Stock on the initial grant date.
          In addition, each non-employee director shall automatically receive on
          each anniversary of his initial election or appointment to the Board
          an option to purchase 5,000 shares of the Company's Common Stock
          exercisable at a per share value equal to the Fair Market Value for
          the Common Stock on the applicable additional grant date to the extent
          that options remain available under the Plan. Each Option granted
          under this Section 5(b) shall terminate, to the extent not exercised
          prior thereto, upon the earlier to occur of (i) the tenth anniversary
          of grant and (ii) 90 days after the cessation of the Recipient's
          service as a member of the Board (to the extent vested upon the date
          of such cessation).

6.   Options. The Committee may grant Options to purchase Common Stock to
     Recipients in such amounts as the Committee determines in its sole
     discretion. Except as otherwise limited herein, an Option may be in the
     form of an Incentive Stock Option or a Non-Qualified Stock Option. The
     Committee may grant an Option alone or in addition to another Option. Each
     Option shall satisfy the following requirements:

     (a)  Written Agreement. Each Option granted to a Recipient shall be
          evidenced by an Option Agreement. The terms of the Option Agreement
          need not be identical for different Recipients or for the same
          Recipient if awarded more than one Option. The Option Agreement shall
          contain such provisions as the Committee deems appropriate and shall
          include a description of the substance of each of the requirements in
          this Section 6.

     (b)  Designation of Type of Option. Each Option Agreement shall state on
          its face whether the Option is intended to be a "tax qualified,"
          incentive stock option under Code Section 422, or a "nonqualified,"
          stock option subject to Code Section 83.

     (c)  Number of Shares. Each Option Agreement shall specify the number of
          Shares that the Recipient may purchase upon exercise of the Option. No
          Recipient shall be granted, in any calendar year, Options to purchase
          more than 1,000,000 Shares. The limitation described in this Section
          6(c) shall be adjusted proportionately in accordance with Section 8 of
          the Plan. If an Option is canceled in the same fiscal year of the
          Company in which it was granted (other than in connection with a
          transaction described in Section 8 of the Plan), the canceled Option
          will be counted against the limitation described in this Section 6(c).

                                        5

<PAGE>

     (d)  Exercise Price.

          (i)  Incentive Stock Options. Except as otherwise provided in
               subsection 6(d)(iii) or subsection 6(m) of the Plan, the exercise
               price of each Share subject to an Incentive Stock Option shall
               equal the exercise price designated by the Committee, but shall
               not be less than the Fair Market Value of the Share on the Date
               of Grant.

          (ii) Non-Qualified Stock Options. Except as otherwise provided in
               subsection 6(d)(iii) of the Plan or in this subsection 6(d)(ii),
               in the case of Options intended to be "nonqualified" stock
               options issued to Employees, the exercise price shall be at least
               one hundred percent (100%) of the fair market value of a Share of
               Common Stock on the Grant Date, such that the amount of
               compensation such Recipient/Employee shall realize on exercise
               shall be based solely on the increase in the value of the Shares
               of Common Stock subsequent to the Grant Date, as required by
               Regulation Section 1.162-27. Notwithstanding the foregoing, such
               exercise price may be less than one hundred percent (100%) of the
               fair market value of a Share of Common Stock on the Grant Date if
               the amount below fair market value is attributable to the
               attainment of a performance goal that satisfies the requirements
               of Regulation Section 1.162-27 and Code Section 162(m), or any
               successor statute or Regulation regarding the same subject
               matter. The exercise price of "Non-Qualified Stock Options"
               issued to non-employees shall equal the exercise price designated
               by the Committee. Notwithstanding the foregoing, in no event will
               the exercise price of a Non-Qualified Stock Option be less than
               the par value of the Common Stock on the Grant Date.

          (iii) Exceptions. Any Option that is (1) granted to a Recipient in
               connection with the acquisition ("Acquisition"), however
               effected, by the Company of another corporation or entity
               ("Acquired Entity") or the assets thereof, (2) associated with an
               option to purchase shares of stock or other equity interest of
               the Acquired Entity or an affiliate thereof ("Acquired Entity
               Option") held by such Recipient immediately prior to such
               Acquisition, and (3) intended to preserve for the Recipient the
               economic value of all or a portion of such Acquired Entity
               Option, may be granted with such exercise price as the Committee
               determines to be necessary to achieve such preservation of
               economic value. Any Non-Qualified Option that is granted to a
               Recipient not previously employed by the Company, or a parent or
               subsidiary of the Company, as a material inducement to the
               Recipient's commencing employment with the Company may be granted
               with such exercise price as the Committee determines to be
               necessary to provide such material inducement.

                                        6

<PAGE>

     (e)  Duration of Option.

          (i)  Incentive Stock Option. Except as otherwise provided in Section
               6, an Incentive Stock Option shall expire on the earlier of the
               tenth anniversary of the Date of Grant or the date set by the
               Committee on the Date of Grant.

          (ii) Non-Qualified Stock Option. Except as otherwise provided in this
               Section 6, a Non-Qualified Stock Option shall expire on the tenth
               anniversary of its Date of Grant or, at such earlier or later
               date set by the Committee on the Date of Grant.

     (f)  Vesting of Option. Each Option Agreement shall specify the vesting
          schedule applicable to the Option. The Committee, in its sole
          discretion, may accelerate the vesting of any Option at any time.

     (g)  Death. If a Recipient dies, an Option granted to the Recipient shall
          expire on the earlier of the one-year anniversary of the date of the
          Recipient's death or the date specified in Section 6(e) of the Plan.
          During the one-year period following the Recipient's death, the Option
          may be exercised by the beneficiary or the estate of the Recipient to
          the extent it could have been exercised at the time the Recipient
          died, subject to any adjustment under Section 8 of the Plan.

     (h)  Disability. If the Recipient terminates employment with the Company
          because of his Disability, an Option granted to the Recipient shall
          expire on the earlier of the one-year anniversary of the Recipient's
          last day of employment with the Company or the date specified in
          Section 6(e) of the Plan. During the one-year period following the
          Recipient's termination of employment by reason of Disability, the
          Option may be exercised as to the number of Shares for which it could
          have been exercised at the time the Recipient became disabled, subject
          to any adjustments under Section 8 of the Plan.

     (i)  Retirement. If the Recipient terminates employment with the Company by
          reason of normal retirement under the Company's retirement policies,
          an Option granted to the Recipient shall expire on the earlier of 90
          days after the Recipient's last day of employment or the date
          specified in Section 6(e) of the Plan. During the 90 day period
          following the Recipient's normal retirement, the Option may be
          exercised as to the number of Shares for which the Option would have
          been exercisable on the retirement date, subject to any adjustment
          under Section 8 of the Plan.

     (j)  Termination of Service. Subject to Section 6(e) of the Plan, if the
          Recipient's employment with the Company terminates for any reason
          other than death, Disability or retirement, an Option granted to the
          Recipient shall expire 30 days after the Recipient's last day of
          employment, unless the Committee sets a later expiration date on the
          Date of Grant. The Committee may not delay the expiration of an
          Incentive Stock Option more than 90 days after termination of the

                                        7

<PAGE>

          Recipient's employment. During any delay of the expiration date, the
          Option shall be exercisable only to the extent it is exercisable on
          the date the Recipient's employment terminates, subject to any
          adjustment under Section 8 of the Plan.

     (k)  Cause. Notwithstanding any provisions set forth in the Plan, if the
          Recipient (i) commits any act of malfeasance or wrongdoing affecting
          the Company or any parent or subsidiary, (ii) breaches any covenant
          not to compete or employment agreement with the Company, or (iii)
          willfully and continuously fails to perform substantially his duties
          with the Company (other than any failure due to the Recipient's death
          or Disability), any unexercised portion of the Option shall expire
          immediately upon the earlier of the occurrence of such event or the
          last day the Recipient is employed by the Company. No act or failure
          to act shall be deemed willful unless the Recipient acts or fails to
          act not in good faith and without reasonable belief that his action or
          failure is in the best interest of the Company.

     (l)  Conditions Required for Exercise. An Option is exercisable only to the
          extent it is vested according to the terms of the Option Agreement.
          Furthermore, an Option is exercisable only if the issuance of Shares
          upon exercise would comply with applicable securities laws. Each
          Option Agreement shall specify any additional conditions required for
          the exercise of the Option, such as the execution of a Stock
          Restriction Agreement by the Recipient in a form specified by the
          Company.

     (m)  Ten Percent Shareholders. An Incentive Stock Option granted to an
          individual who, on the Date of Grant, owns stock possessing more than
          10 percent of the total combined voting power of all classes of stock
          of the Company, shall have an exercise price of 110 percent of Fair
          Market Value on the Date of Grant and shall be exercisable only during
          the five-year period immediately following the Date of Grant. For
          purposes of calculating stock ownership of any person, the attribution
          rules of Code Section 424(d) shall apply, and any stock that such
          person may purchase under outstanding options shall not be considered.

     (n)  Maximum Option Grants. The aggregate Fair Market Value, determined on
          the Date of Grant, of Shares with respect to which any Incentive Stock
          Options under the Plan and all other plans of the Company become
          exercisable by any individual for the first time in any calendar year
          shall not exceed $100,000. To the extent that any Stock Option exceeds
          this limit, it shall be deemed a Non-Qualified Stock Option.

     (o)  Method of Exercise. An Option shall be deemed exercised when the
          person entitled to exercise the Option (i) delivers written notice to
          the Secretary of the Company (or his delegate, in his absence) of the
          decision to exercise, (ii) concurrently tenders to the Company full
          payment for the Shares to be purchased pursuant to the exercise, and
          (iii) complies with any other requirements in the Recipient's Option
          Agreement and such other reasonable requirements as the Committee
          establishes pursuant to Section 7 of the Plan. The Committee shall

                                        8

<PAGE>

          determine the acceptable form of consideration for exercising an
          Option, including the method of payment. The acceptable form of
          consideration may consist of any combination of cash, certified check
          in an amount equal to the full exercise price, wire transfer or,
          subject to the approval of the Committee: (i) pursuant to Section 6(p)
          of the Plan, promissory note; (ii) Shares for which the holder thereof
          has good title, free and clear of all liens and encumbrances, and that
          such holder either has held for at least six months or has purchased
          on the open market; (iii) pursuant to procedures approved by the
          Committee, through the sale of the Shares acquired on exercise of the
          Option through a broker-dealer to whom the Recipient has submitted an
          irrevocable notice of exercise and irrevocable instructions to deliver
          promptly to the Company the amount of sale or loan proceeds sufficient
          to pay the exercise price, together with, if requested by the Company,
          the amount of federal, state, local or foreign withholding taxes
          payable by the Recipient by reason of such exercise, or through
          simultaneous sale through a broker of Shares acquired upon exercise.
          No person shall have the rights of a shareholder with respect to
          Shares subject to an Option until a certificate or certificates for
          the Shares have been delivered to him. A partial exercise of an Option
          shall not affect the holder's right to exercise the remainder of the
          Option from time to time in accordance with the Plan.

     (p)  Loan from Company to Exercise Option. The Committee may, in its
          discretion and subject to the requirements of applicable law,
          recommend to the Company that it lend the Recipient the funds needed
          by the Recipient to exercise an Option. The Recipient shall apply to
          the Company for the loan, completing the forms and providing the
          information required by the Company. The loan shall be secured by such
          collateral as the Company may require, subject to its underwriting
          requirements and the requirements of applicable law. The Recipient
          shall execute a promissory note and any other documents deemed
          necessary by the Company.

     (q)  Designation of Beneficiary. Each Recipient may file with the Company a
          written designation of a beneficiary to receive the Recipient's
          Options in the event of the Recipient's death prior to full exercise
          of such Options. If the Recipient does not designate a beneficiary, or
          if the designated beneficiary does not survive the Recipient, the
          Recipient's estate shall be his beneficiary. Recipients may, by
          written notice to the Company, change a beneficiary designation.

     (r)  Nontransferability of Option.

          (i)  Except as provided in subsection 6(r)(iii) below, each Option
               shall be exercisable only by the Recipient during the Recipient's
               lifetime, or, if permissible under applicable law, by the
               Recipient's guardian or legal representative.

          (ii) Except as provided in subsection 6(r)(iii) below, no Option
               (prior to the time, if applicable, Shares are issued in respect
               of such Option), and no right under any Option, may be assigned,
               alienated, pledged, attached, sold or otherwise transferred to
               encumbered by a Recipient otherwise than

                                        9

<PAGE>

               by will or by the laws of descent and distribution and any such
               purported assignment, alienation, pledge, attachment, sale,
               transfer or encumbrance shall be void and unenforceable against
               the Company; provided, that the designation of a beneficiary
               shall not constitute an assignment, alienation, pledge,
               attachment, sale, transfer or encumbrance.

          (iii) To the extent and in the manner permitted by applicable law, and
               to the extent and in the manner permitted by the Committee, and
               subject to such terms and conditions as may be prescribed by the
               Committee, a Recipient may transfer a Non-Qualified Stock Option
               to:

               (A)  a child, stepchild, grandchild, parent, stepparent,
                    grandparent, spouse, former spouse, sibling, niece, nephew,
                    mother-in-law, father-in-law, son-in-law, daughter-in-law,
                    brother-in-law, or sister-in-law of the Recipient (including
                    adoptive relationships);

               (B)  any person sharing the Recipient's household (other than a
                    tenant or employee);

               (C)  a trust in which persons described in (A) and (B) have more
                    than 50 percent of the beneficial interest;

               (D)  a foundation in which persons described in (A) or (B) or the
                    Recipient control the management of assets; or

               (E)  any other entity in which the persons described in (A) or
                    (B) or the Recipient own more than 50 percent of the voting
                    interests;

               provided such transfer is not for value. The following shall not
               be considered transfers for value: a transfer under a domestic
               relations order in settlement of marital property rights, and a
               transfer to an entity in which more than 50 percent of the voting
               interests are owned by persons described in (A) above or the
               Recipient, in exchange for an interest in such entity.

     (s)  Change of Control. In the event of a Change of Control, the portion of
          an outstanding Option that is not then vested and/or exercisable shall
          become fully vested and exercisable as of the date of such Change of
          Control. If a Change of Control occurs, the Committee in its
          discretion may, at the time an Option is awarded or at any time
          thereafter, take one or more of the following actions: (i) provide for
          payment to the Recipient of cash or other property with a Fair Market
          Value equal to the amount that would have been received upon the
          exercise of the Option had the Option been exercised or paid upon the
          Change in Control, (ii) adjust the terms of the Option in a manner
          determined by the Committee to reflect the Change in Control, (iii)
          cause the Option to be assumed, or new rights substituted therefor, by
          another entity, (iv) make such other provision as the Committee may
          consider equitable to Recipients and in the best interests of the
          Company, or (v) designate a date when each outstanding Option, if

                                       10

<PAGE>

          not exercised, shall terminate; provided however, that such a date
          shall not be so designated unless the Committee provides at least 30
          days advance written notice of the date of termination to each
          Recipient. In any such event, all other provisions, terms and
          conditions of this Plan shall remain in full force and effect and the
          Committee is expressly authorized to take the action described in the
          preceding sentence and to amend this Plan or take such other actions
          as may be necessary, appropriate or incidental to the actions
          described above.

7.   Taxes; Compliance with Law; Approval of Regulatory Bodies; Legends. The
     Company shall have the right to withhold from payments otherwise due and
     owing to the Recipient or his beneficiary or to require the Recipient or
     his beneficiary to remit to the Company in cash upon demand an amount
     sufficient to satisfy any federal (including FICA and FUTA amounts), state,
     and/or local withholding tax requirements at the time the Recipient or his
     beneficiary recognizes income for federal, state, and/or local tax purposes
     with respect to any Option.

     The Board may grant Options and the Company may deliver Shares under the
     Plan only in compliance with all applicable federal and state laws and
     regulations and the rules of all stock exchanges on which the Company's
     stock is listed at any time. An Option is exercisable only if either (i) a
     registration statement pertaining to the Shares to be issued upon exercise
     of the Option has been filed with and declared effective by the Securities
     and Exchange Commission and remains effective on the date of exercise, or
     (ii) an exemption from the registration requirements of applicable
     securities laws is available. The Plan does not require the Company,
     however, to file such a registration statement or to assure the
     availability of such exemptions. Any certificate issued to evidence Shares
     issued under the Plan may bear such legends and statements, and shall be
     subject to such transfer restrictions, as the Board deems advisable to
     assure compliance with federal and state laws and regulations and with the
     requirements of this Section 7. No Option may be exercised, and Shares may
     not be issued under the Plan, until the Company has obtained the consent or
     approval of every regulatory body, federal or state, having jurisdiction
     over such matters as the Board deems advisable.

     Each person who acquires the right to exercise an Option or to ownership of
     Shares by bequest or inheritance may be required by the Board to furnish
     reasonable evidence of ownership of the Option as a condition to his
     exercise of the Option or receipt of Shares. In addition, the Board may
     require such consents and releases of taxing authorities as the Board deems
     advisable.

     With respect to persons subject to Section 16 of the 1934 Act, transactions
     under the Plan are intended to comply with all applicable conditions of
     Rule 16b-3 under the 1934 Act, as such Rule may be amended from time to
     time, or its successor under the 1934 Act. To the extent any provision of
     the Plan or action by the Board or the Company fails to so comply, it shall
     be deemed null and void, to the extent permitted by law and deemed
     advisable by the Board.

                                       11

<PAGE>

8.   Adjustments.

     (a)  If a stock dividend, stock split, share combination, exchange of
          shares, recapitalization, consolidation, spin-off, reorganization, or
          liquidation of or by the Company shall occur, the Board shall adjust
          the number and class of Shares for which Options are authorized to be
          granted, the number and class of Shares then subject to Options
          previously granted, and the price per Share payable upon exercise of
          each Option to the extent the Board deems appropriate to reflect the
          applicable transaction.

     (b)  The Board or the Committee may also adjust the number of shares
          subject to outstanding Awards and the exercise price and the terms of
          outstanding Awards to take into consideration material changes in
          accounting practices or principles, extraordinary dividends,
          acquisitions or dispositions of stock or property or any other event
          if it is determined by the Board of the Committee that such adjustment
          is appropriate to avoid distortion in the operation of the Plan,
          provided that no such adjustment shall be made in the case of an
          Incentive Stock Option, without the consent of the Recipient, if it
          would constitute a modification, extension or renewal of the Option
          within the meaning of Section 424(h) of the Code.

9.   Liability of the Company. The Company shall not be liable to any person for
     any tax consequences incurred by a Recipient or other person with respect
     to an Option.

10.  Indemnity of Board or Committee. The Company hereby indemnifies and holds
     harmless the members of the Board or the Committee against all liability
     and expenses (including reasonable attorney, paralegal, and professional
     fees and court costs) arising from any threatened, pending or completed
     action, suit, proceeding (including administrative proceedings or
     investigations) or appeal, incurred by reason of the fact that such
     individual is or was a member of the Board (for the purposes of
     administration of the Plan) or the Committee, provided that such individual
     (i) acted, in good faith and in a manner he or she reasonably believed to
     be in, or not opposed to, the best interests of the Company as well as the
     Employees, directors, outside consultants and Recipients, or (ii) with
     respect to any criminal action or proceeding, had no reasonable cause to
     believe his or her conduct was unlawful.

11.  Amendment and Termination of Plan. The Board may alter, amend, suspend or
     terminate the Plan, provided that no such action shall deprive a Recipient,
     without his consent, of any Option granted to the Recipient pursuant to the
     Plan or of any of his/her rights under such Option. Notwithstanding the
     foregoing, no provision herein (including Section 5(b)) related to
     automatic grants of Options to non-employee directors may be amended more
     frequently than once every six months and no amendment to such provisions,
     unless approved by the shareholders of the Company, shall become effective
     earlier than six months after Board approval. Except as provided otherwise
     in this Section 11, the Board shall obtain shareholder approval of any
     amendment of the Plan or any Option to the extent the Board determines that
     it is desirable to obtain approval of the Company's shareholders, to retain
     eligibility for exemption from the limitations of Code Section 162(m), to
     have available the ability for Options to qualify under Code

                                       12

<PAGE>

     Section 422 as Incentive Stock Options, to comply with the requirements of
     any exchange or quotation system on which the Common Stock is listed or
     quoted, or for any other purpose the Board deems appropriate."

12.  Trading Policy Restrictions. Option exercises under the Plan shall be
     subject at all times to the Company's insider trading policy related
     restrictions, terms and conditions as may be established by the Board, or
     any committee thereof, from time to time.

13.  Expenses of Plan. The Company shall bear the expenses of administering the
     Plan.

14.  Duration of Plan. Options may be granted only during the 10 years
     immediately following the original effective date of the Plan.

15.  Notices. All notices to the Company shall be in writing and shall be
     delivered to the Secretary of the Company. All notices to a Recipient shall
     be delivered personally or mailed to the Recipient at his address appearing
     in the Company's personnel records. The address of any person may be
     changed at any time by written notice given in accordance with this Section
     15.

16.  Applicable Law. The validity, interpretation, and enforcement of the Plan
     are governed in all respects by the laws of Delaware and the United States
     of America.

17.  Effective Date. The effective date of the Plan shall be the earlier of (i)
     the date on which the Board adopts the Plan or (ii) the date on which the
     shareholders approve the Plan.

Date Plan adopted by Board of Directors:   March 20, 2002
                                           (subject to shareholder approval)

Date Plan adopted by Shareholders:         May 21, 2002

                                           /s/ Karen Dickey
                                           -------------------------------------
                                           Karen Dickey
                                           Secretary

                                       13

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