Document:

exhibit_10-26.htm

    EXHIBIT 10.26

    
 

    Portions
of this Exhibit 10.26 have been omitted based upon a request for confidential
treatment. This Exhibit 10.26, including the non-public information, has been
filed separately with the Securities and Exchange Commission “*” designates
portions of this document that have been redacted pursuant to the request for
confidential treatment filed with the Securities and Exchange
Commission.

     

    

    GENERAL
TERMS AGREEMENT

    

    between

    

    

    THE
BOEING COMPANY

    

    and

    

    TITANIUM
METALS CORPORATION

    

    

    

    

    

    GTA – * dated 01-01-2011

    

    
      
        
           

        

         

      

      
        
        

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

     

    TITLE
PAGE

    TABLE OF
CONTENTS

    AMENDMENT
PAGE

    RECITAL
PAGE

     

    
      	
              1.0

            	
              DEFINITIONS 

            	
              7

            

    

     

    
      	
              2.0

            	
              ORDERING 

            	
              8

            

    

    
      	
               
      

            	
              2.1

            	
              Issuance
      of Orders 

            	
              8

            

    

    
      	
               
      

            	
              2.2

            	
              Acceptance
      of Orders 

            	
              9

            

    

    
      	
               
      

            	
              2.3

            	
              Written
      Authorization to Proceed 

            	
              9

            

    

     

    
      	
              3.0

            	
              TITLE AND RISK OF LOSS 

            	
              9

            

    

     

    
      	
              4.0

            	
              DELIVERY 

            	
              10

            

    

    
      	
               
      

            	
              4.1

            	
              Schedule 

            	
              10

            

    

    
      	
               
      

            	
              4.2

            	
              Reserved 

            	
              
                10

              

            

    

    
      	
               
      

            	
              4.3

            	
              Notice
      of Labor Negotiations 

            	
              
                10

              

            

    

     

    
      	
              5.0

            	
              ON-SITE REVIEW AND RESIDENT
      REPRESENTATIVES 

            	
              
                10

              

            

    

    
      	
               
      

            	
              5.1

            	
              Review 

            	
              
                10

              

            

    

    
      	
               
      

            	
              5.2

            	
              Resident
      Representatives 

            	
              11

            

    

     

    
      	
              6.0

            	
              CREDIT OFFICE VISIBILITY 

            	
              12

            

    

    
      	
               
      

            	
              6.1

            	
              Seller
      Information 

            	
              12

            

    

    
      	
               
      

            	
              6.2

            	
              Subcontractor/Supplier
      Information 

            	
              12

            

    

     

    
      	
              7.0

            	
              PACKING AND SHIPPING 

            	
              12

            

    

    
      	
               
      

            	
              7.1

            	
              General 

            	
              12

            

    

    
      	
               
      

            	
              7.1.1

            	
              Shipping
      Documentation 

            	
              13

            

    

    
      	
               
      

            	
              7.1.2

            	
              Insurance 

            	
              13

            

    

    
      	
               
      

            	
              7.1.3

            	
               Shipping
      Container Labels 

            	
              13

            

    

    
      	
               
      

            	
              7.1.4

            	
              Carrier
      Selection 

            	
              13

            

    

    
      	
               
      

            	
              7.1.5

            	
              Invoices 

            	
              13

            

    

    
      	
               
      

            	
              7.1.6

            	
              Noncompliance 

            	
              
                13

              

            

    

    
      	
               
      

            	
              7.1.7

            	
              Reserved 

            	
              
                14

              

            

    

    
      	
               
      

            	
              7.2

            	
              Barcode
      Marking and Shipping 

            	
              
                14

              

            

    

     

    
    

    
      	
              8.0

            	
              QUALITY ASSURANCE, INSPECTION, REJECTION, &
      ACCEPTANCE 

            	
              14

            

    

    
      	
               
      

            	
              8.1

            	
              Controlling
      Document 

            	
              
                14

              

            

    

    
      	
               
      

            	
              8.2

            	
              Seller's
      Inspection 

            	
              
                14

              

            

    

    
      	
               
      

            	
              8.2.1

            	
              Seller's
      Disclosure 

            	
              
                14

              

            

    

    
      	
               
      

            	
              8.2.2

            	
              Seller’s
      Acceptance 

            	
              
                15

              

            

    

    
      	
               
      

            	
              8.3

            	
              Boeing's
      Inspection and Rejection 

            	
              
                15

              

            

    

     

     

    
      
        GTA –
*

         

      

    

    
      
        Table of Contents

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              8.4

            	
              Rights
      of Boeing’s Customers and Regulators to Perform Inspections, Surveillance,
      and Testing 

            	
              
                16

              

            

    

    
      	
               
      

            	
              8.5

            	
              Retention
      of Records 

            	
              
                16

              

            

    

    
      	
               
      

            	
              8.6

            	
              Inspection 

            	
              
                17

              

            

    

    
      	
               
      

            	
              8.7

            	
              Reserved 

            	
              
                17

              

            

    

    
      	
               
      

            	
              8.8

            	
              Regulatory
      Approvals 

            	
              
                17

              

            

    

     

    
      	
              9.0

            	
              EXAMINATION OF RECORDS 

            	
              18

            

    

     

    
      	
              10.0

            	
              CHANGES 

            	
              
                18

              

            

    

    
      	
               
      

            	
              10.1

            	
              Changes
      Clause 

            	
              18

            

    

     

    
      	
              11.0

            	
              GENERAL & INTERNATIONAL
      REQUIREMENTS 

            	
              19

            

    

    
      	
               
      

            	
              11.1

            	
              Language 

            	
              19

            

    

    
      	
               
      

            	
              11.2

            	
              Currency 

            	
              
                19

              

            

    

    
      	
               
      

            	
              11.3

            	
              Import/Export 

            	
              
                19

              

            

    

     

    
      	
              12.0

            	
              TERMINATION FOR CONVENIENCE 

            	
              20

            

    

    
      	
               
      

            	
              12.1

            	
              Basis
      for Termination; Notice 

            	
              20

            

    

    
      	
               
      

            	
              12.2

            	
              Termination
      Instructions 

            	
              20

            

    

    
      	
               
      

            	
              12.3

            	
              Seller's
      Claim 

            	
              22

            

    

    
      	
               
      

            	
              12.4

            	
              Failure
      to Submit a Claim 

            	
              
                22

              

            

    

    
      	
               
      

            	
              12.5

            	
              Partial
      Termination             

            	
              
                23

              

            

    

    
      	
               
      

            	
              12.6

            	
              Product
      Price 

            	
              
                23

              

            

    

    
      	
               
      

            	
              12.7

            	
              Exclusions
      or Deductions 

            	
              
                23

              

            

    

    
      	
               
      

            	
              12.8

            	
              Partial
      Payment/Payment 

            	
              
                23

              

            

    

    
      	
               
      

            	
              12.9

            	
              Seller's
      Accounting Practices 

            	
              
                25

              

            

    

    
      	
               
      

            	
              12.10

            	
              Records 

            	
              
                25

              

            

    

     

    
      	
              13.0

            	
              CANCELLATION FOR DEFAULT 

            	
              
                25

              

            

    

    
      	
               
      

            	
              13.1

            	
              Events
      of Default 

            	
              
                25

              

            

    

    
      	
               
      

            	
              13.2

            	
              Remedies 

            	
              28

            

    

     

    
      	
              14.0

            	
              EXCUSABLE DELAY 

            	
              
                28

              

            

    

     

    
      	
              15.0

            	
              SUSPENSION OF WORK 

            	
              
                29

              

            

    

     

    
      	
              16.0

            	
              TERMINATION OR WRONGFUL
      CANCELLATION 

            	
              
                29

              

            

    

     

    
      	
              17.0

            	
              ASSURANCE OF PERFORMANCE 

            	
              
                30

              

            

    

     

    
      	
              18.0

            	
              RESPONSIBILITY FOR
    PROPERTY 

            	
              
                30

              

            

    

     

    
      	
              19.0

            	
              LIMITATION OF SELLER'S RIGHT TO ENCUMBER
      ASSETS 

            	
              
                31

              

            

    

     

    
      	
              20.0

            	
              PROPRIETARY INFORMATION AND
      ITEMS 

            	
              
                31

              

            

    

     

     

    
      
        GTA –
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        3

        
          

        

      

      
        
        

      

    

    
      	
              21.0

            	
              COMPLIANCE 

            	
              
                34

              

            

    

    
      	
               
      

            	
              21.1

            	
              Compliance
      with Laws 

            	
              
                34

              

            

    

    
      	
               
      

            	
              21.2

            	
              Government
      Requirements 

            	
              
                35

              

            

    

    
      	
               
      

            	
              21.3

            	
              Ethics
      and Code of Conduct 

            	
              
                35

              

            

    

    
      	
               
      

            	
              21.4

            	
              Code
      of Basic Working Conditions and Human Rights 

            	
              
                36

              

            

    

     

    
      	
              22.0

            	
              INTEGRITY IN PROCUREMENT 

            	
              
                36

              

            

    

     

    
      	
              23.0

            	
              UTILIZATION OF SMALL BUSINESS
      CONCERNS 

            	
              
                36

              

            

    

     

    
      	
              24.0

            	
              BOEING'S RIGHTS IN SELLER'S PATENTS, COPYRIGHTS, TRADE
      SECRETS, AND TOOLING 

            	
              
                37

              

            

    

     

    
      	
              25.0

            	
              TERMINATION OF AIRPLANE
      PROGRAM 

            	
              
                38

              

            

    

    
      	
               
      

            	
              25.1

            	
              Program
      Termination 

            	
              
                38

              

            

    

    
      	
               
      

            	
              25.2

            	
              Termination
      Liability 

            	
              
                38

              

            

    

     

    
      	
              26.0

            	
              PUBLICITY 

            	
              
                38

              

            

    

     

    
      	
              27.0

            	
              PROPERTY INSURANCE 

            	
              
                39

              

            

    

    
      	
               
      

            	
              27.1

            	
              Insurance 

            	
              
                39

              

            

    

    
      	
               
      

            	
              27.2

            	
              Certificate
      of Insurance 

            	
              
                39

              

            

    

    
      	
               
      

            	
              27.3

            	
              Notice
      of Damage or Loss 

            	
              
                39

              

            

    

     

    
      	
              28.0

            	
              RESPONSIBILITY FOR
      PERFORMANCE 

            	
              
                40

              

            

    

    
      	
               
      

            	
              28.1

            	
              Subcontracting 

            	
              
                40

              

            

    

    
      	
               
      

            	
              28.2

            	
              Reliance 

            	
              
                40

              

            

    

    
      	
               
      

            	
              28.3

            	
              Assignment 

            	
              
                41

              

            

    

     

    
      	
              29.0

            	
              NON-WAIVER/PARTIAL INVALIDITY 

            	
              
                41

              

            

    

     

    
      	
              30.0

            	
              HEADINGS 

            	
              
                41

              

            

    

     

    
      	
              31.0

            	
              LICENSING 

            	
              
                41

              

            

    

     

    
      	
              32.0

            	
              RESERVED 

            	
              
                42

              

            

    

     

    
      	
              33.0

            	
              DISPUTES 

            	
              
                42

              

            

    

     

    
      	
              34.0

            	
              RESERVED 

            	
              
                42

              

            

    

     

    
      	
              35.0

            	
              TAXES 

            	
              
                42

              

            

    

    
      	
               
      

            	
              35.1

            	
              Inclusion
      of Taxes in Price 

            	
              
                42

              

            

    

    
      	
               
      

            	
              35.2

            	
              Litigation 

            	
              
                43

              

            

    

    
      	
               
      

            	
              35.3

            	
              Rebates 

            	
              
                43

              

            

    

     

     

    
      
        GTA –
*

         

      

    

    
      
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              36.0

            	
              INDUSTRIAL PARTICIPATION 

            	
              
                43

              

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

      
        GTA –
*

         

      

    

    
      
        Table of Contents

      

      
        5

        
          

        

      

      
        
        

      

    

    

    AMENDMENTS

    

    
      	
              Amend

              Number

            	
              Description

            	
              Date

            	
              Approval

            
	
               
      

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

               

            	
               
      

               

               

               

               

            	 
      	 
      

    

    

     

    

      
        GTA –
*

         

      

    

    
      
        
           

        

        Table of Contents

      

      
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    GENERAL
TERMS AGREEMENT

    

    

    RELATING
TO

    

    

    PRODUCTS
OR SERVICES

    

     

    THIS
GENERAL TERMS AGREEMENT (“GTA”) is entered into as of enter date of GTA, by and
between Titanium Metals
Corporation, a Delaware corporation, with
its principal office in
Dallas, Texas, ("Seller"), and The Boeing Company, a Delaware corporation
with an office in Seattle, Washington ("Boeing").  Hereinafter, the
Seller and Boeing may be referred to jointly as “Parties” hereto.

     

    Now, therefore, in
consideration of the mutual covenants set forth herein, the Parties agree as
follows:

     

    AGREEMENTS

     

    1.0                      DEFINITIONS

     

     

    The
definitions set forth below shall apply to this GTA, any Order, and any related
Special Business Provisions ("SBP") (collectively "the
Agreement").  Words importing the singular shall also include the
plural and vice versa.

     

    
      	
               
      

            	
              A.

            	
              "Customer"
      means any owner, lessee or operator of an aircraft or commodity, or
      designee of such owner, lessee or
operator.

            

    

     

    
      	
               
      

            	
              B.

            	
              "FAA"
      means the United States Federal Aviation Administration or any successor
      agency thereto.

            

    

     

    
      	
               
      

            	
              C.

            	
              "FAR"
      means the Federal Acquisition Regulations in effect on the date of this
      Agreement.

            

    

     

    
      	
               
      

            	
              D.

            	
              "Procurement
      Representative" means the individual designated by Boeing as being
      primarily responsible for interacting with Seller regarding this Agreement
      or any Order.

            

    

     

    
      	
               
      

            	
              E.

            	
              “On-Time
      Delivery” by Seller shall be defined as Seller having * Product available
      to ship on * as established in accordance with Section 2.2
      below.

            

    

     

    
      	
               
      

            	
              F.

            	
              "Order"
      means each purchase contract and purchase order issued by Boeing and
      either accepted by Seller under the terms of this GTA and SBP or issued
      within Boeing’s authority under this GTA and
  SBP.

            

    

     

     

    
      
        GTA –
*

         

      

    

    
      
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              G.

            	
              "Product"
      means titanium product of the specific grade, form and size enumerated on
      Attachment 1 to the SBP furnished or to be furnished to Boeing under any
      Order * assemblies for Boeing and Boeing Entities (as defined in the
      applicable SBP).

            

    

     

    
      	
               
      

            	
              H.

            	
              “Services”
      means the work to be performed by Seller under an Order for Boeing as set
      forth in the statement of work and Specifications established in the
      applicable SBP.

            

    

     

    
      	
               
      

            	
              I.

            	
              “Service
      Provider” means TMX Aerospace or any other entity designated by Boeing as
      its agent from time to time for the purpose of interacting with Seller in
      the administration of Orders.

            

    

     

    
      	
               
      

            	
              J.

            	
              “Specifications”
      means chemical, physical and other specifications (which may include
      processing, procedures and inspecting and testing criteria) for
      Products.

            

    

     

    
      	
               
      

            	
              K.

            	
              "Tooling"
      means all tooling, used in production or inspection of Products or
      Services, either provided to Seller or supplied by Seller whereby Boeing
      agrees to pay Seller for the manufacture of the
  tooling.

            

    

     

    2.0                     
ORDERING

     

     

    2.1                      Issuance
of Orders

     

     

    Boeing or
its Service Provider may issue Orders to Seller from time to
time.  Each Order shall contain a description of the Products or
Services ordered, a reference to the applicable specifications, drawings or
supplier part number, the quantities and prices, the delivery schedule, the
terms and place of delivery and any special conditions.  Prices for
Products shall be as set forth on Attachment 1 to the SBP and incorporated
herein by this reference.

     

    Boeing
and Seller shall agree in writing upon the scheduled delivery date for any
Product requested for delivery in less than the lead time expressly established
for such Product in the * (as such term is used in the applicable SBP) * issued
by Seller to Boeing.

     

    Each
Order shall be governed by and be deemed to include the provisions of this GTA
and the applicable SBP.  Each Order shall reference the SBP number, or
shall be corrected by Boeing or its Service Provider within * of Seller’s
acknowledgement of the original Order.  *  Any other Order
terms and conditions, which conflict with this Agreement, do not apply unless
specifically agreed to in writing by the Parties.

     

     

    
      
        GTA –
*

         

      

    

    
      
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    2.2                      Acceptance
of Orders

     

     

    Each
Order is Boeing's offer to Seller and acceptance is strictly limited to its
terms.  Unless specifically agreed to in writing by the Procurement
Representative of Boeing, Boeing objects to, and is not bound by, any terms or
condition that differs from or adds to the Order.  Seller shall
respond with its written acknowledgement within * of receipt of an
Order.  Any Order not acknowledged with * shall be deemed
automatically accepted; provided that, the Order contains terms consistent with
this Agreement, is for Products represented in the the applicable SBP, conforms
to established and accepted Specifications, the delivery date shall
*.  Boeing may revoke any Order prior to Boeing’s receipt of Seller’s
written acceptance.

     

     Any
rejection by Seller of an Order shall specify the reasons for rejection and any
changes or additions that would make the Order acceptable to Seller; provided,
however, that Seller may not reject any Order for reasons inconsistent with the
provisions of this Agreement or the applicable SBP.

     

    2.3                      Written
Authorization to Proceed

     

     

    Boeing's
Procurement Representative may give written or electronic authorization to
Seller to commence performance before Boeing issues an Order.  If
Boeing’s authorization specifies that an Order will be issued, Boeing and Seller
shall proceed as if an Order had been issued; provided that if the Order, once
issued, contains terms that differ from those contained in the written
authorization to proceed, such Order shall be regarded by Seller as a change to
the Order under Section 10.1 of this GTA.  This Agreement, the
applicable SBP and the terms stated in the authorization shall be deemed to be a
part of Boeing's offer and the Parties shall promptly and in good faith agree on
any open Order terms.  If Boeing does not specify in its authorization
that an Order shall be issued, Boeing's obligation is strictly limited to the
terms of the authorization.

     

    If Seller
commences performance before an Order is issued or without receiving Boeing's
prior authorization to proceed, such performance shall be at Seller's risk and
expense.

     

    3.0                      TITLE AND RISK OF LOSS

     

     

    Except as
otherwise agreed in writing by the Parties, title to and risk of any loss of or
damage to the Products shall pass at the *. or Incoterm point as specified in
the applicable Order, except for loss or damage thereto resulting from Seller's
fault or negligence.  Title and risk of loss shall pass at (i) * for
all U.S. domestic shipments (* as defined in the Uniform Commercial Code of the
State of Washington) and (ii) * for all international shipments (* as defined in
INCOTERMS 2000).

     

     

    
      
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    4.0                      DELIVERY

     

     

    Except as
otherwise agreed in writing by the Parties, the terms of delivery shall be (i)
*.

     

    4.1                      Schedule

     

     

    Seller
shall strictly adhere to the shipment, delivery or completion schedules
specified in the Order.  In the event of any anticipated or actual
delay, including but not limited to delays attributed to labor disputes, Seller
shall: (i) promptly notify Boeing in writing of the reasons for the delay and
the actions being taken to overcome or minimize the delay; and (ii) provide
Boeing with a written recovery schedule.  If Boeing requests, Seller
shall, at Seller’s expense (unless the delay is caused by Boeing or the Service
Provider in which case Boeing shall be liable for any additional expense), ship
via air or other expedited routing to avoid the delay or minimize it as much as
possible.  Seller shall not deliver Products or Services prior to the
scheduled delivery dates unless authorized in writing by Boeing.

     

    Boeing
shall, at no additional cost to Boeing, retain goods furnished in excess of the
specified quantity or in excess of any allowable overage unless, within * of
shipment, Seller requests return of such excess.  In the event of such
request, Seller shall reimburse Boeing for reasonable costs associated with
storage and return of excess.

     

    If
Products or Services are manufactured with reference to Boeing Proprietary
Information or Materials (as defined in GTA Section 20.0), Seller agrees that
pursuant to the Proprietary Information and Items GTA Section 20.0 of this
Agreement, it will not sell or offer such Products or Services for sale to
anyone other than Boeing without Boeing’s prior written consent.

     

    4.2                      Reserved.

     

    4.3                      Notice
of Labor Negotiations

     

    When
requested by Boeing, Seller will provide notice to Boeing of any actual or
threatened labor dispute and of the fact of labor contract negotiations that
would be expected to disrupt the timely performance of the
Order.  Seller shall require a similar notice from Seller’s
subcontractors or suppliers, except as may be prohibited by law.

     

    5.0                      ON-SITE REVIEW AND RESIDENT REPRESENTATIVES

     

    5.1                      Review

     

    Seller
hereby grants, and shall cause any of its subcontractors or suppliers to grant,
to Boeing the right to visit the facility of Seller or any of its subcontractors
or suppliers during normal operating hours and with reasonable prior notice to
review progress and performance with respect to production, schedule, cost
(consistent with the limitations contained in GTA Section 9.0), quality and
protection of Boeing's proprietary rights under any Order.  Any Boeing
representative shall be allowed access to all areas used for the performance of
the Agreement.  Such access shall be subject to the regulations of any
governmental agency regarding admissibility and movement of personnel on the
premises of Seller or any of its subcontractors or suppliers and the normal
workplace rules and regulations with respect to safety, security and
confidentiality.

     

    Boeing
shall notify Seller prior to any visit.  Such notice shall contain the
names, citizenship and positions of the visiting personnel and the duration and
purpose of such visit.

     

     

    
      
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    5.2                      Resident
Representatives

     

    Boeing
may, in its sole discretion, and for such period, as it deems necessary, locate
resident personnel ("Resident Team") at Seller's facility. The Resident Team
shall function under the direction of a resident Boeing manager, if appropriate,
or a manager located at Boeing who will supervise Resident Team
activities.  The Resident Team shall be subject to the regulations of
any governmental agency regarding admissibility and movement of personnel on the
premises of Seller or any of its subcontractors or suppliers and the normal
workplace rules and regulations with respect to safety, security and
confidentiality.

     

    The
Resident Team shall be allowed access to or to review, as the case may be, all
work areas, program status reports and management reviews used for or relating
to Seller's performance of the Agreement, but may not have access to any of
Seller’s Product cost or similar information except for the process as set forth
in GTA Section 9.0.

     

    Seller
shall supply the Resident Team with office space, desks, facsimile machines,
telephones, high-speed access to internet services (if available from local
providers), stationery supplies, filing cabinets, communication facilities,
secretarial  services and any other items reasonably requested by
Boeing.  A reasonable portion of the Resident Team's working area
shall be dedicated to space for private telephone calls, meetings and similar
Boeing activities.  All costs and expenses for such facilities and
services, if required, shall be paid by Seller.

     

    Notwithstanding
such assistance, access and review, Seller remains solely responsible for
performing in accordance with each Order.

     

     

    
      
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    6.0                      CREDIT OFFICE VISIBILITY

     

    6.1                      Seller
Information

     

    Seller
shall send financial data from information made available to the general public
via 10-K and 10-Q reporting requirements to the Boeing Corporate Credit
Office.  In the event the Seller is no longer required to disclose
financial information to the general public via 10-K and 10-Q reporting
requirements, Seller shall provide *, or as requested to the Boeing Corporate
Credit Office for *.  Said data shall include but not be limited to
*.  Copies of such data are to be made available within * of any
written request by Boeing’s Corporate Credit Office.  Boeing shall
treat all such information as confidential.

     

    6.2                      Subcontractor/Supplier
Information

     

    Seller
shall maintain a process to evaluate and assess on an on-going basis the
financial health of its subcontractor(s) and supplier(s) supporting this
Agreement. Boeing Corporate Credit reserves to right to review and evaluate
Seller’s process.  Seller will include provisions as part of its
subcontracts that allow information to be shared with Boeing Corporate Credit
and allow Boeing Corporate Credit to evaluate and assess the financial health of
such subcontractors and suppliers directly.  In addition, Seller shall
ensure that Boeing may disclose to Seller any financial information received by
Boeing Corporate Credit as part of this GTA Section 6.2. No action by Boeing
Corporate Credit shall relieve Seller from its responsibilities under this
Section 6.0 or any other obligation under this Agreement.

     

    7.0                      PACKING AND SHIPPING

     

    7.1                      General

     

    Seller
shall pack the Products in accordance with Boeing Document D37522-6 “Supplier
Packaging” as amended from time to time. Said document is incorporated herein
and made a part hereof by this reference.  Seller shall comply with
carrier tariffs.  Unless the Order specifies otherwise,
*.  Unless otherwise specified in the Order, *.  For
Products shipped domestically, Seller shall *.  In such event, Seller
shall *.  Boeing may charge Seller for damage to or deterioration of
any Products resulting from (i) packing that does not meet Boeing’s
Specifications or packing requirements or (ii) packaging that does not meet
Boeing’s Specifications or packaging requirements.  Seller shall
comply with any special instructions stated in the applicable Order; provided
that, if such special instructions deviate from Boeing’s Specifications, such
instruction will be governed by the terms of GTA Section
10.0.   *.

     

     

    
      
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    7.1.1                      Shipping
Documentation

     

    Shipments
by Seller or its subcontractors or suppliers must include packing
sheets.  Each packing sheet must include at a minimum the following:
a) Seller's name, address, phone number; and supplier code number b) Order and
item number; c) ship date for the Products; d) total quantity shipped and
quantity in each container, if applicable; e) legible packing slip number; f)
nomenclature; g) unit of measure; h) “ship to” information if other than Boeing;
i) warranty data and certification, as applicable; j) rejection tag, if
applicable; k) Seller's certification that Products or Services comply with
Order requirements; and, l) identification of optional material used, if
applicable.  A shipment containing hazardous and non-hazardous
materials must have separate packing sheets for the hazardous and non-hazardous
materials.  Items shipped on the same day will be consolidated on one
bill of lading or airbill, unless Boeing’s Procurement Representative authorizes
otherwise.  The shipping documents will describe the material
according to the applicable classification or tariff rating.  The
total number of shipping containers will be referenced on all shipping
documents.  Originals of all government bills of lading will be
surrendered to the origin carrier at the time of shipment.

     

    7.1.2                      Insurance

     

    Seller
will not insure any shipment designated origin, place of shipment, or applicable
Incoterm where Boeing is responsible for transportation unless authorized by
Boeing.

     

    7.1.3                      Shipping
Container Labels

     

    Seller
will label each shipping container with the Order number and the number that
each container represents of the total number being shipped (e.g., Box 1 of 2,
Box 2 of 2).

     

    7.1.4                      Carrier
Selection

     

    Boeing
will select the carrier and mode of transportation for all shipments where
freight costs will be charged to Boeing.

     

    7.1.5                      Invoices

     

    Seller
will include copies of documentation supporting prepaid freight charges (e.g.,
carrier invoices or shipping log/manifest), if any, with its
invoices.

     

    7.1.6                      Noncompliance

     

    If Seller
is unable to comply with the shipping instructions in an Order, Seller will
contact Boeing’s Supply Chain Logistics organization or Boeing’s Procurement
Representative.

     

     

    
      
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    7.1.7                   Reserved

     

     

    7.2                      Barcode
Marking and Shipping

     

     

    For
Orders from Boeing locations that have approved Seller to utilize barcode
labeling for shipping and packaging, Seller shall mark and package such
shipments in accordance with the applicable barcode requirements for that
location.  Where approved and pursuant to applicable Specifications,
Seller will utilize barcoding technology for part marking Products.

     

    8.0                      QUALITY ASSURANCE, INSPECTION, REJECTION, &
ACCEPTANCE

     

     

    8.1                      Controlling
Document

     

     

    The
controlling quality assurance document for Orders shall be as set forth in the
SBP.

     

    8.2                      Seller's
Inspection

     

     

    Seller
shall inspect or otherwise verify that all Products or Services, including those
components procured from or furnished by subcontractors or suppliers or Boeing,
comply with the requirements of the Order prior to shipment to Boeing or
Customer.  Seller shall be responsible for all tests and inspections
of the Product during receiving, manufacture and Seller's final inspection.
Seller agrees to furnish copies of test and/or control data upon request from
Boeing’s Procurement Representative.

     

    8.2.1                  Seller's
Disclosure

     

     

    Seller
shall provide written notification to Boeing within * when a nonconformance is
determined to exist, or is suspected to exist, on Product already delivered to
Boeing under any Order and the following is known:

     

    
      	
               
      

            	
              A.

            	
              Affected
      process or Product number and name;

            

    

     

    
      	
               
      

            	
              B.

            	
              Description
      of the problem (i.e., what it is and what it should
  be);

            

    

     

    
      	
               
      

            	
              C.

            	
              Quantity
      and dates delivered; and

            

    

     

    
      	
               
      

            	
              D.

            	
              Suspect/affected
      serial number(s) or date codes, when
applicable.

            

    

     

    The
Seller shall notify the Seller’s “ship-to” customer, Boeing’s Service Provider,
the Boeing Procurement Representative and the Boeing Procurement Quality
Assurance Field Representative for the Boeing location where the Product was
delivered.

     

    If the
nonconforming condition has been previously identified by Boeing, using a
Nonconformance Record or other equivalent means and requesting a corrective
action response, the Seller shall notify the Boeing investigator identified on
the corrective action request that additional Product is affected.

     

     

    
      
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    8.2.2                      Seller’s
Acceptance

     

    Seller
shall provide with all shipments the following evidence of acceptance by its
quality assurance department:  (a) certified physical and
metallurgical or mechanical test reports where required by controlling
Specifications, or (b) a signed, dated statement on the packing sheet certifying
that its quality assurance department has inspected the Products or Services and
they adhere to all applicable drawings and/or Specifications.

     

    8.3                      Boeing's
Inspection and Rejection

     

    Boeing
will accept the Products or Services or give Seller notice of rejection or
revocation of acceptance (“rejection” herein), notwithstanding any payment,
prior test or inspection, or passage of title.  No inspection, test
delay or failure to inspect or test or failure to discover any defect or other
nonconformance shall relieve Seller of any obligations under any Order or impair
any right or remedy of Boeing.

     

    If Seller
delivers non-conforming Products or Services, Boeing may at its option and at
Seller’s expense (i*; (ii) *; (iii) *; or, (iv) *.  These remedies
*.

     

    Seller
shall not redeliver corrected or rejected goods without disclosing to Boeing’s
Service Provider, the Boeing Procurement Representative and the Boeing
Procurement Quality Assurance Field Representative (and, upon request by
Boeing’s Quality Assurance Field Representative, the “ship-to” customer) the
former rejection or requirement for correction.  Seller shall disclose
any corrective action taken.  Repair, replacement and other correction
and redelivery shall be completed within the original delivery schedule or such
later time as Procurement Representatives of Boeing may reasonably
direct.

     

    *incurred
as a result of or in connection with nonconformance and repair, replacement or
other correction may be recovered from Seller by * or * to be applied against
amounts that may be owed to Seller under this Agreement or
otherwise.

     

    Acceptance
of any Product by Boeing following * pursuant to this Section 8.3 shall not
alter or affect the obligations of Seller or the rights of Boeing under the
Agreement.

     

     

    
      
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              8.4

            	
              Rights
      of Boeing’s Customers and Regulators to Perform Inspections, Surveillance,
      and Testing

            

    

     

    Boeing's
rights to perform inspections, surveillance and tests and to review procedures,
practices, processes and related documents related to quality assurance, quality
control, flight safety, and configuration control shall extend to the Customers
of Boeing that are departments, agencies or instrumentalities of the United
States Government and to the FAA and any successor agency or instrumentality of
the United States Government.  Boeing may also, at Boeing's option, by
prior written notice from Boeing’s Procurement Representative, extend such
rights to other Customers of Boeing and to agencies or instrumentalities of
other governments equivalent in purpose to the FAA.  Seller shall
cooperate with any such United States Government or Boeing directed inspection,
surveillance, test or review without additional charge to Boeing. Nothing in
this Agreement shall be interpreted to limit United States Government access to
Seller's facilities pursuant to law or regulation.

     

    Where
Seller is located in or subcontracts with a supplier or subcontractor located in
a country which does not have a bilateral airworthiness agreement with the
United States, Seller will obtain and maintain on file and require its affected
supplier(s) or subcontractor(s) to obtain and maintain on file, subject to
review by Boeing, or copies provided to Boeing upon request, a letter from the
applicable government where the Product or subcontracted element is to be
manufactured stating that Boeing and the FAA will be granted access to perform
inspections, surveillance and tests and to review procedures, practices,
processes and related documents related to quality assurance, quality control,
flight safety, and configuration control.

     

    8.5                      Retention
of Records

     

     

    For
Orders supporting BCA, Seller shall maintain, on file at Seller’s facility,
Quality records traceable to the conformance of product/part numbers delivered
to Boeing. Seller shall make such records available to regulatory authorities
and Boeing’s authorized representatives. Seller shall retain such records for a
period of not less than * from the date of shipment under each applicable Order
for all product/part numbers unless otherwise specified on the Order. Seller
shall maintain all records related to the current first article inspection (FAI)
for * past final delivery of the last Product covered by the FAI.

     

    At the
expiration of such period set forth above and prior to any disposal of records,
Seller will notify Boeing of records to be disposed of and Boeing reserves the
right to request delivery of such records. In the event Boeing chooses to
exercise this right, Seller shall promptly deliver such records to Boeing * on
media agreed to by both parties.

     

     

    
      
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    8.6                      Inspection

     

    *,
Products or Services or portions thereof, may be subject to inspection,
surveillance and test at reasonable times and places, including Seller’s
subcontractors’ or suppliers’ locations.  Boeing will perform
inspections, surveillance and tests so as not to unduly interfere with Seller’s
performance under an Order or the Agreement.  Seller shall maintain an
inspection system acceptable to Boeing for the Products or Services purchased
under any Order.  Access to Seller’s facilities shall be subject to
the regulations of any governmental agency regarding admissibility and movement
of personnel on the premises of Seller or any of its subcontractors or suppliers
and the normal workplace rules and regulations with respect to safety, security
and confidentiality.

     

    If Boeing
performs an inspection or test on the premises of Seller or its subcontractors
or suppliers, Seller shall furnish and require its subcontractors or suppliers
to furnish, *, reasonable facilities and assistance for the safe and convenient
performance of these duties.

     

    Seller's
documentation accompanying the shipment containing inspected Products or
Services, or portions thereof must reflect evidence of this
inspection.

     

    8.7                      Reserved

     

     

    8.8                      Regulatory
Approvals

     

    For
aircraft regulated by the FAA or non-U.S. equivalent agency, regulatory approval
may be required for Seller to make direct sales (does not include “direct ship”
sale through Boeing) of modification or replacement parts to owners/operators of
type-certificated aircraft.  Regulatory approval, such as Parts
Manufacturer Approval (PMA), is granted by the FAA or appropriate non-U.S.
equivalent regulatory agency. Seller agrees not to engage in any such direct
sales of Products or Services under this Agreement without regulatory
approval.  Any breach of this provision will be deemed a material
breach of this Agreement.  For Seller proprietary parts, Seller agrees
to notify Boeing of application for PMA or other applicable regulatory approval
and subsequent approval or denial of same.  Upon receipt of proof of
PMA or other applicable regulatory approval, Boeing may list Seller in the
illustrated parts catalog as seller of that part.

     

     

    
      
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    9.0                      EXAMINATION OF RECORDS

     

    Seller
shall maintain complete and accurate records showing the sales volume of all
Products or Services.  Such records shall support all services
performed, allowances claimed and costs incurred by Seller in the performance of
each Order, including but not limited to those factors which comprise or affect
direct labor hours, direct labor rates, material costs, burden rates and
subcontracts.  Such records and other data (except for cost or similar
information) shall be capable of verification through audit and analysis by
Boeing and be available to Boeing at Seller's facility for Boeing's examination,
reproduction, and audit at all reasonable times from the date of the applicable
Order until * after final payment under such Order.  If Seller
reasonably determines * directly to Boeing, Seller shall *.  Seller
shall provide assistance to interpret such data if requested by
Boeing.  Other than the limitation related to * set forth hereinabove,
such examination shall provide Boeing with complete information regarding * for
use in price negotiations with Seller relating to existing or future orders for
Products or Services, including but not limited to negotiation of equitable
adjustments for changes and termination/obsolescence claims pursuant to GTA
Section 10.0 and GTA Section 12.0.  Boeing shall treat all information
disclosed under this GTA Section as confidential, except as otherwise required
by U.S. Government contracting regulation(s).

     

    10.0                      CHANGES

     

    10.1                      Changes
Clause

     

    Boeing’s
Procurement Representative may, without notice to sureties, in writing direct
changes within the general scope of this Agreement or an Order in any of the
following: (i) technical requirements and descriptions, Specifications,
statement of work, drawings or designs; (ii) shipment or packing methods; (iii)
place of delivery, inspection or acceptance; (iv) reasonable adjustments in
quantities or delivery schedules or both; (v) amount of Boeing-furnished
property; and, if this Agreement includes services, (vi) description of services
to be performed; (vii) time of performance (i.e., hours of the day, days of the
week, etc.); and (viii) place of performance.  Seller shall comply
immediately with such direction.

     

    *.  Unless
otherwise agreed in writing, Seller must assert any claim for adjustment to
Boeing’s Procurement Representative in writing within * and deliver a fully
supported proposal to Boeing’s Procurement Representative within * after
Seller’s receipt of such direction.  Boeing shall modify the Order in
writing accordingly.  Boeing may, at its sole discretion, consider any
claim regardless of when asserted.  If Seller’s claim includes the
cost of property made obsolete or excess by the change, Boeing may direct the
disposition of the property.  Subject to the limitations set forth in
GTA Section 9.0, Boeing may examine Seller’s pertinent books and records
supporting Seller’s claim.  Subject to resolution through the
provisions of GTA Section 33, *.

     

    If Seller
considers that Boeing’s conduct constitutes a change, Seller shall notify
Boeing’s Procurement Representative immediately in writing as to the nature of
such conduct and its effect upon Seller’s performance.  Pending
direction from Boeing’s Procurement Representative, Seller shall take no action
to implement any such change.

     

     

    
      
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    11.0                      GENERAL & INTERNATIONAL REQUIREMENTS

     

    11.1                      Language

     

    The
Parties hereto have agreed that this Agreement be written in American English
only.  Where Seller resides in Quebec, Canada, les parties aux
presentes tes ont convenu de rediger ce contrat en Anglais
seulement.  All contractual documents and all correspondence,
invoices, notices and other documents shall be submitted in American
English.  Any necessary conversations shall be held in
English.  Boeing shall determine whether measurements will be in the
English or Metric system or a combination of the two systems.  When
furnishing documents to Boeing, Seller shall not convert measurements, which
Boeing has stated in an English measurement system into the Metric
system.

     

    11.2                      Currency

     

    Unless
specified elsewhere herein, all prices shall be stated in and all payments shall
be made in the currency of the United States of America (U.S.
Dollars).  No adjustments to any prices shall be made for changes to
or fluctuations in currency exchange rates.

     

    11.3                      Import/Export

     

    
      	
               
      

            	
              A.

            	
              In
      performing the obligations of this Agreement, both Parties will comply
      with all applicable export, import and sanctions laws, regulations,
      orders, and authorizations, as they may be amended from time to time,
      applicable to the export (including re-export) or import of goods,
      software, technology, or technical data (“Items”) or services, including
      without limitation the Export Administration Regulations (“EAR”),
      International Traffic in Arms Regulations (“ITAR”), and regulations and
      orders administered by the Treasury Department’s Office of Foreign Assets
      Control (collectively, “Export/Import
Laws”).

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      Party conducting the export or import shall obtain all export or import
      authorizations which are required under the Export/Import Laws for said
      party to execute their obligations under this Agreement.  Each
      Party shall reasonably cooperate and exercise reasonable efforts at its
      own expense to support the other Party in obtaining any necessary licenses
      or authorizations required to perform its obligations under this
      Agreement. Reasonable cooperation shall include providing reasonably
      necessary documentation, including import, end-user and retransfer
      certificates.

            

    

     

    
      	
               
      

            	
              C.

            	
              The
      Party providing Items or services under this Agreement shall, upon
      request, notify the other Party of the Items or services’ export
      classification (e.g. the Export Control Classification Numbers or U.S,
      Munitions List (USML) category and subcategory) as well as the export
      classification of any components or parts thereof if they are different
      from the export classification of the Item at issue.   The
      Parties acknowledge that this representation means that an official
      capable of binding the Party providing such Items or services knows or has
      otherwise determined the proper export classification.  Each
      Party agrees to reasonably cooperate with the other in providing, upon
      request of the other Party, documentation or other information that
      supports or confirms this
representation.

            

    

     

     

    
      
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    12.0                      TERMINATION FOR CONVENIENCE

     

    12.1                      Basis
for Termination; Notice

     

    Boeing
may, from time to time terminate all or part of any Order issued hereunder, by
written notice to Seller.  Any such written notice of termination
shall specify the effective date and the extent of any such
termination.

     

    12.2                      Termination
Instructions

     

    On
receipt of a written notice of termination of all or part of any Order under
this Agreement, unless otherwise directed by Boeing, Seller shall:

     

    
      	
               
      

            	
              A.

            	
              Immediately
      stop work as specified in the
notice;

            

    

     

    
      	
               
      

            	
              B.

            	
              Incur
      no further contractual obligations for materials, services or facilities,
      except as necessary to complete any continued portion of this Agreement or
      any Order issued hereunder.

            

    

     

    
      	
               
      

            	
              C.

            	
              Immediately
      terminate its subcontracts and purchase orders relating to work
      terminated;

            

    

     

    
      	
               
      

            	
              D.

            	
              Assign
      to Boeing, if directed by Boeing, all right, title, and interest of Seller
      under its subcontracts terminated, in which case Boeing shall have the
      right to settle or to pay any termination settlement proposal arising out
      of those terminations.

            

    

     

    
      	
               
      

            	
              E.

            	
              Settle
      any termination claims made by its subcontractors or suppliers; provided,
      that Boeing shall have approved the amount of such termination claims in
      writing prior to such settlement;

            

    

     

    
      	
               
      

            	
              F.

            	
              Preserve
      and protect all terminated inventory and Products in which Boeing has or
      may acquire an interest;

            

    

     

    
      	
               
      

            	
              G.

            	
              At
      Boeing's request, transfer title (to the extent not previously
      transferred) and deliver to Boeing or Boeing's designee all supplies and
      materials, work-in-process, Tooling and manufacturing drawings and data
      produced or acquired by Seller for the performance of this Agreement and
      any Order, all in accordance with the terms of such
    request;

            

    

     

     

    
      
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              H.

            	
              Be
      compensated for such items to the extent provided in GTA Section 12.3
      below;

            

    

     

    
      	
               
      

            	
              I.

            	
              Take
      all reasonable steps required to return, or at Boeing's option and with
      prior written approval to destroy, all Boeing Proprietary Information and
      Items, as set forth in GTA Section 20.0, in the possession, custody or
      control of Seller or any of its subcontractors or
    suppliers;

            

    

     

    
      	
               
      

            	
              J.

            	
              Take
      such other action as, in Boeing's reasonable opinion, may be necessary,
      and as Boeing shall direct in writing, to facilitate termination of the
      Order; and

            

    

     

    
      	
               
      

            	
              K.

            	
              Complete
      performance of the work not terminated in which Boeing has or may acquire
      an interest.

            

    

     

     

    
      
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    12.3                      Seller's
Claim

     

    If Boeing
terminates an Order in whole or in part under this Agreement, Seller shall have
the right to submit a written termination claim to Boeing in accordance with the
terms of this GTA Section 12.3.  Such termination claim shall be
asserted to Boeing within * and all documentation supporting said claim must be
asserted not later than * after Seller's receipt of the termination notice and
shall be in the form prescribed by Boeing.  Such claim must contain
sufficient detail describing the amount claimed, including detailed inventory
schedules, a detailed breakdown of all costs claimed separated into categories
(e.g., materials, purchased parts, finished components, labor, burden, general
and administrative), and documentation supporting the claim reasonably requested
by Boeing, including without limitation, invoices, proof of payment, etc., and
an explanation underlying the basis for allocation of any other
costs.  In no event shall claims for non-recurring engineering be
considered or paid by Boeing to Seller.  With regard to the amount
compensatable to Seller under a termination of all or part of an Order under
this Agreement, Seller shall be entitled to compensation in accordance with and
to the extent allowed under the terms of *.

     

    Notwithstanding
the other claim amounts that Seller may be entitled to include in a termination
claim hereunder, Boeing and Seller agree that termination charges for work in
process or completed Product shall be payable *with respect to each Product
covered by the termination notice as of the committed ship date, in relation to
the stage of manufacturing the affected Product is at upon the date of the
termination notice.

    

    
      	
              *

            	
              *

            
	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            
	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            
	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            
	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            
	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            
	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            	
              *

            

    

     

    Seller
shall indemnify Boeing and hold Boeing harmless from and against (i) any and all
claims, suits and proceedings against Boeing by any subcontractor or supplier of
Seller in respect of any such termination and (ii) any and all costs, expenses,
losses and damages incurred by Boeing in connection with any such claim, suit or
proceeding.

     

    12.4                      Failure
to Submit a Claim

     

    Notwithstanding
any other provision of this GTA Section 12.0, if Seller fails to submit a
termination claim within the time period set forth above, Seller shall be barred
from submitting a claim and Boeing shall have no obligation for payment to
Seller under this GTA Section 12.0 except for those Products or Services
previously delivered and accepted by Boeing.

     

     

    
      
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    12.5                      Partial
Termination

     

    Any
partial termination of an Order shall not alter or affect the terms and
conditions of the Order or any Order with respect to Products or Services not
terminated.

     

    12.6                      Product
Price

     

    Termination
of all or part of an Order under this GTA Section 12.0 shall not result in any
change to Prices (as defined in the applicable SBP) for Products or Services not
terminated.

     

    12.7                      Exclusions
or Deductions

     

    The
following items shall be excluded or deducted from any claim submitted by
Seller:

     

    *

     

    12.8                      Partial
Payment/Payment

     

    Payment,
if any, to be paid under this GTA Section 12.0 shall be made * after settlement
between the Parties or as otherwise agreed to between the
Parties.  Boeing may make partial payments and payments against costs
incurred by Seller for the terminated portion of the Order.  If the
total payments exceed the final amount determined to be due, Seller shall repay
the excess to Boeing upon demand.

    

    After
receipt of supporting documentation of the claim by Boeing from Seller, Boeing
shall have a *
“Exploration Period” to request additional documentation from
Seller.

    

    The
Parties shall reach agreement for determining undisputed payment amounts within
*
following the expiration of the Exploration Period.  Boeing may
continue to request of Seller additional information to support Seller’s claim
with respect to the amounts claimed by Seller to be due.  The Parties
shall cooperate in good faith to make and respond to all information requests in
timely fashion to ensure the matter can be resolved in the allotted time
frame.  The last day of the *
period shall be referred to as the “*”.

    

    
      	
              A.

            	
              Undisputed
      Amounts:

            

    

    

    “Undisputed
Amounts”, if any, owing to Seller under this GTA Section 12.0 shall be due and
payable no later than *
after the earlier to occur of (i) the *
or (ii) the date the Parties have agreed on Undisputed Amounts.

    

    
      	
              B.

            	
              Disputed
      Amounts:

            

    

     

     

    

      
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    If after
the *
(or any earlier date on which Boeing pays the Undisputed Amounts), there remain
disputed claim amounts, the Parties shall continue to negotiate the settlement
of these claims in good faith, for a period not to exceed *.  Within
*
after the date(s) the Parties have agreed (the “Agreement Date”), in whole or in
part, on the amounts that are owed by Boeing in respect of the disputed claim
amounts (“Resolved Amount”) or were overpaid by Boeing in respect of the
original claim amount, (“Overpayment Amount”), then either:  (a)
Boeing shall pay Seller (i) the Resolved Amount, if any, and (ii) an
uncompounded interest charge on the Resolved Amount computed over the period
from the *
until the Agreement Date using the *;
or (b) Seller shall reimburse Boeing (i) the Overpayment Amount, if any, and
(ii) an uncompounded interest charge on the Overpayment Amount computed over the
period from the *
until the Agreement Date using the *.

    

    If after
*
there remains a disputed claim amount, both Seller and Boeing agree to elevate
resolution of the dispute to management in their respective senior Finance
organizations.

    

    
      	
              C.

            	
              Late
      Payments:

            

    

    

    Amounts
determined to be due, either as a Resolved Amount or Overpayment Amount, by the
procedures outlined above by one Party to the other Party under this Article
12.8 that are not paid when due will also be subject to a late charge on the
amount due computed over the period *.

    

    D.      Interest
Calculation:

    

    Any
interest charge that may be due under GTA Sections 12.8 B. above shall be
calculated using the following formula:

    

    Interest
Charge = *

    

    Where:

    *

    Any
interest charge that may be due under GTA Sections 12.8 C. above shall be
calculated using the following formula:

    

    Interest
Charge = *

    

    Where:

    
      	
               
      

            	
              *

            

    

     

     

    
      
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    12.9                      Seller's
Accounting Practices

     

    Boeing
and Seller agree that Seller's "normal accounting practices" used in developing
the price of the Product(s) shall also be used in determining the allocable
costs at termination of all or part of an Order.  For purposes of this
GTA Section 12.9, Seller's "normal accounting practices" refers to Seller's
method of charging costs as either a direct charge, overhead expense, general
administrative expense, etc.

     

    12.10                      Records

     

    Unless
otherwise provided in this Agreement or by law, Seller shall maintain all
financial records and documents relating to the terminated portion of the Order
for * after final settlement of Seller's termination claim.

     

    13.0                      CANCELLATION FOR DEFAULT

     

    13.1                      Events
of Default

     

    The
occurrence of any one or more of the following events shall constitute an "Event
of Default".

     

    
      	
               
      

            	
              A.

            	
              Any
      failure by Seller to deliver, when and as required by this Agreement or
      any Order, any Product or any failure to achieve a milestone in any agreed
      milestone recovery plan entered into by the Parties pursuant to GTA
      Section 13.2(A)(2), except as either such failure is excusable provided in
      GTA Section 14.0; or

            

    

     

    
      	
               
      

            	
              B.

            	
              Any
      failure by Seller to provide an acceptable Assurance of Performance after
      the Parties have followed the procedures in GTA Section 17.0, or otherwise
      in accordance with applicable law;
or,

            

    

     

    
      	
               
      

            	
              C.

            	
              Any
      failure by Seller to perform or comply with any obligation set forth in
      GTA Section 20.0; or,

            

    

     

    
      	
               
      

            	
              D.

            	
              Seller
      is or has participated in the sale, purchase or manufacture of airplane
      parts without the required approval of the FAA or appropriate non-U.S.
      equivalent regulatory agency; or

            

    

     

    
      	
               
      

            	
              E.

            	
              Boeing
      revokes Seller’s Quality Assurance System approval, if applicable;
      or,

            

    

     

    
      	
               
      

            	
              F.

            	
              Any
      failure by Seller to perform or comply with any obligation (other than as
      described in the foregoing GTA Sections (13.1.A, 13.1.B, 13.1.C, 13.1.D
      and 13.1.E) set forth in this Agreement and such failure shall continue
      unremedied for a period of * or more following receipt by Seller of notice
      from Boeing specifying such failure;
or

            

    

     

     

    
      
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              G.

            	
              (1)
      the suspension, dissolution or winding-up of Seller's business, (2)
      Seller's insolvency, or its inability to pay debts, or its nonpayment of
      debts, as they become due, (3) the institution of reorganization,
      liquidation or other such proceedings by or against Seller or the
      appointment of a custodian, trustee, receiver or similar person for
      Seller's properties or business, (4) an assignment by Seller for the
      benefit of its creditors, or (5) any action of Seller for the purpose of
      effecting or facilitating any of the
foregoing.

            

    

     

    13.2                      Remedies

     

    If any
Event of Default shall occur:

     

    
      	
               
      

            	
              
                A.

              

            	
              Cancellation

            

    

     

    Boeing
may, by giving written notice to Seller, immediately cancel all or portion of
any Order, any SBP or the Agreement, in whole or in part subject to the
limitation described below, and Boeing shall not be required after such notice
to accept the tender by Seller of any Products or Services subject to the
cancellation.

    

    1.           Boeing’s
right to cancel this Agreement or the SBP due to any Event of Default under 13.1
A shall be limited
as follows:  Boeing may either (i) exercise its rights under Section
13.2(B) below * hereunder for the applicable Products; or (ii) exercise its
rights under Section 13.2(C).  In either case, and notwithstanding
Section 13.2(G) below, Boeing’s election under this GTA Section 13.2(A)(1) shall
be the sole and exclusive remedy for such Event of Default unless the conditions
in GTA Section 13.2(A)(2) below related to On-Time Delivery or Quality
Performance have been met.

    

    2.           If
Seller for any consecutive *,
either (i) has an On-Time Delivery rate less than *
or (ii) has a Seller’s Quality Performance rating less than *,
then, Boeing may pursue any and all of the remedies set forth in GTA Section
13.2, unless the Parties have agreed to a milestone recovery plan, in which case
so long as Seller complies with the obligations in such recovery plan, Boeing’s
remedies shall remain limited to those set forth in this GTA Section
13.1(A)(1).

    

     

    B. Cover

     

    Boeing
may manufacture, produce or provide, or may engage any other entity to
manufacture, produce or provide, any Products or Services in substitution for
the Products or Services to be delivered or provided by Seller.  In
addition to any other remedies or damages available to Boeing hereunder or at
law or in equity, *.

     

    C.
Re-schedule

     

    Re-schedule
Seller’s performance of any or all of the Services or Additional Services or the
delivery date for the Product(s).  For any shipment of a Product that
is not On-Time and is delivered *.

     

     

    
      
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    D. Rework or
Repair

     

    Where
allowed by the applicable regulatory authority, Boeing or its designee may
rework or repair any Product in accordance with GTA Section 8.3, or as may
otherwise be allowed under the Agreement;

     

    E.
Setoff

     

    Boeing
shall, at its option, have the right to *.

     

    F.      Tooling and other
Materials

     

    As
partial compensation for the additional costs which Boeing will incur as a
result of the transfer of production capabilities from Seller to Boeing or
Boeing's designee, Seller shall upon the request of Boeing, transfer and deliver
to Boeing or Boeing's designee title to any or all (1) Tooling, (2)
Boeing-furnished material, (3) raw materials, parts, work-in-process, incomplete
or completed assemblies, and all other Products or parts thereof in the
possession or under the effective control of Seller or any of its subcontractors
or suppliers (4) Proprietary Information of Boeing and Materials of Boeing
including without limitation planning data, drawings and other Proprietary
Information and Materials (as defined in GTA Section 20.0) relating to the
design, production, maintenance, repair and use of Tooling, in the possession or
under the effective control of Seller or any of its subcontractors or suppliers,
in each case free and clear of all liens, claims or other rights of any
person.

     

    Seller
shall be entitled to receive from Boeing reasonable compensation for any item
accepted by Boeing which has been transferred to Boeing pursuant to this GTA
Section 13.2.E (except for any item the price of which has been paid to Seller
prior to such transfer); provided, however, that such compensation shall not be
paid directly to Seller, but shall be setoff against any damages payable by
Seller to Boeing as a result of any Event of Default.

    G.           Remedies
Generally

    No
failure on the part of Boeing in exercising any right or remedy hereunder, or as
provided by law or in equity, shall impair, prejudice or constitute a waiver of
any such right or remedy, or shall be construed as a waiver of any Event of
Default or as acquiescence therein.  No single or partial exercise of
any such right or remedy shall preclude any other or further exercise thereof or
the exercise of any other right or remedy.  No acceptance of partial
payment or performance of any of Seller's obligations hereunder shall constitute
a waiver of any Event of Default or a waiver or release of payment or
performance in full by Seller of any such obligation.  All rights and
remedies of Boeing hereunder and at law and in equity shall be cumulative and
not mutually exclusive and the exercise of one shall not be deemed a waiver of
the right to exercise any other.  Nothing contained in this Agreement
shall be construed to limit any right or remedy of Boeing now or hereafter
existing at law or in equity.

     

     

    
      
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    14.0                      EXCUSABLE DELAY

     

    If
delivery of any Product is delayed by unforeseeable circumstances beyond the
control and without the fault or negligence of Seller or of its suppliers or
subcontractors (any such delay being hereinafter referred to as "Excusable
Delay"), the delivery of such Product shall be extended for a period to be
reasonably agreed by the parties but no longer than the period of such Excusable
Delay.  Excusable Delays may include, but are not limited to, acts of
God, war, terrorist acts, riots, acts of government, fires, floods, epidemics,
quarantine restrictions, freight embargoes, strikes, labor disputes or unusually
severe weather, but shall exclude Seller's noncompliance with any legal
requirement as required by GTA Section 21.0 “Compliance with
Laws”.  However, the above notwithstanding, Boeing expects Seller to
take all action, including, without limitation, pay overtime, expand shifts,
utilize outside converters, use other of Seller’s production plants in order to
mitigate the impact of any Excusable Delay, both during and after such Excusable
Delay in order to continue production and recover lost time and support a
schedule reasonably agreed by the parties.  Therefore, it is
understood and agreed that (1) delays of less than * duration shall not be
considered to be Excusable Delays unless such delays shall occur within *
preceding the scheduled delivery date of any Product and (2) *.  If
delivery of any Product is delayed by any Excusable Delay for more than *,
Boeing may, without any additional extension, by written notice to Seller,
cancel all or part of any Order with respect to the delayed Products or
Services, and exercise any of its remedies in accordance with GTA Section 13.2,
*.

     

     

    
      
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    15.0                      SUSPENSION OF WORK

     

    Boeing
may at any time, by written order to Seller, require Seller to stop all or any
part of the work called for by any Order for up to * days hereafter referred to
as a "Stop Work Order" issued pursuant to this GTA Section 15.0.  If
the circumstances that cause Boeing to provide Seller with a Stop Work Order
would constitute an Excusable Delay under Section 14.0 hereof, the period of the
Stop Work Order in that circumstance be increased from * to up to
*.  On receipt of a Stop Work Order, Seller shall promptly comply with
its terms and take all reasonable steps to minimize the occurrence of costs
arising from the work covered by the Stop Work Order during the period of work
stoppage.  Within the period covered by the Stop Work Order (including
any extension thereof) Boeing shall either (i) cancel the Stop Work Order or
(ii) terminate or cancel the work covered by the Stop Work Order in accordance
with the provisions of this Agreement, including without limitation, GTA Section
12.0 or 13.0.  .  Unless Boeing has canceled the Stop Work
Order within the permitted  thirty (30)  or * as the case
may be following its issuance, Seller will be entitled to treat the portion of
the given Order subject to the Stop Work Order as having been terminated in
accordance with the provisions of Section 12 above.  Provided,
however, that Boeing may elect to extend a Stop Work Order beyond the permitted
* or up to *, as applicable, * for an additional period of * provided that
Boeing pays Seller a monthly inventory carrying charge of * during the Stop Work
Order Period. In the event the Stop Work Order is canceled by Boeing or the
period of the Stop Work Order (including any extension thereof) expires, Seller
shall promptly resume work in accordance with the terms of the Agreement. The
applicable scheduled delivery date under such Order shall be deemed to have been
extended by the number of days elapsing from the date of Seller’s receipt of the
Stop Work Order until the date of its receipt of notice of cancellation of the
Stop Work Order, plus * days to allow for the material to be worked back into
the existing production schedule in an orderly fashion.

     

     

    
      	
              16.0

            	
              TERMINATION OR WRONGFUL
      CANCELLATION

            

    

     

     

    Boeing
shall not be liable for any loss or damage resulting from any termination of all
or a portion of an Order under this Agreement, except as expressly provided in
GTA Section 12.3 or any cancellation under GTA Section 13.0 except to the extent
that such cancellation shall have been determined to have been wrongful, in
which case such wrongful cancellation shall be deemed a termination of all or a
portion of an Order pursuant to GTA Section 12.1 and therefore, Boeing’s
liability shall be limited to the payment to Seller of the amount or amounts
identified in GTA Section 12.3 and any payments due under the applicable
SBP.

     

     

    
      
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    17.0                      ASSURANCE OF PERFORMANCE

     

    Seller to Provide
Assurance

     

    If Boeing
determines, at any time or from time to time, that it is not sufficiently
assured of Seller's full, timely and continuing performance hereunder, or if for
any other reason Boeing has reasonable grounds for insecurity, Boeing may
request, by written notice to Seller setting forth in reasonable detail and
providing objective criteria and data supporting its issues with Seller’s
performance, written assurance (hereafter an "Assurance of Performance") with
respect to any specific matters affecting Seller's performance hereunder, that
Seller is able to perform all of its respective obligations under any Order when
and as specified herein.  Each Assurance of Performance shall be
delivered by Seller to Boeing as promptly as possible, but in any event no later
than * following Boeing's request therefore and each Assurance of Performance
shall be accompanied by any information, reports or other materials, prepared by
Seller, as Boeing may reasonably request.  Except as to payment for
accepted goods, Boeing may suspend all or any part of Boeing's performance
hereunder until Boeing receives an Assurance of Performance from Seller
satisfactory in form and substance to Boeing.

     

    Meetings and
Information

     

    Prior to providing an
Assurance of Performance under Section 17.0(A), either party either Party
may request one or more meetings with senior management (at least, Director or
Vice President of Boeing and at least President of Seller) for the purpose of
discussing any request for Assurance of Performance or any Assurance of
Performance.  Such meeting will take place within ten days of such
request at a location reasonably selected by Boeing.  Seller shall
make such persons available to meet with representatives of Boeing, and Seller
shall make available to Boeing any additional information, reports or other
materials in connection therewith as Boeing may reasonably request.

     

    18.0                      RESPONSIBILITY FOR PROPERTY

     

     

    
      
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    Seller
shall clearly mark, maintain an inventory of, and keep segregated or
identifiable all of Boeing’s and Customer’s supplied property and all property
to which Boeing has acquired an interest.  Seller assumes all risk of
loss, deterioration, destruction or damage of such property and lost paperwork,
e.g. 8130, etc. while in Seller’s or its subcontractors’ or suppliers’
possession, custody or control. Deterioration does not include items
deteriorated due to the lapse of shelf-life or other inherent
deterioration.   Upon request, Seller shall provide Boeing with
adequate proof of insurance against such risk of loss.  Seller shall
not use such property other than in performance of an Order without prior
written consent from Boeing.  Seller shall promptly notify Boeing’s
Procurement Representative if Boeing’s property is lost, damaged or
destroyed.  As directed by Boeing, upon completion, termination or
cancellation of the Agreement or all or a portion of any Order, Seller shall
deliver such property, to the extent not incorporated in delivered end products,
to Boeing in good condition subject to ordinary wear and tear and normal
manufacturing losses.  Nothing in this GTA Section 18.0 limits
Seller’s use, in its direct contracts with the government, of property in which
the government has an interest.

     

    19.0                      LIMITATION OF SELLER'S RIGHT TO ENCUMBER ASSETS

     

    *, Seller
warrants to Boeing that it has good title to all inventory, work-in-process,
tooling and materials to be supplied by Seller in the performance of its
obligations under any Order.  Pursuant to the provisions of such
Order, Seller will transfer to Boeing good and marketable title to such
inventory, work-in-process, tooling and materials whether transferred separately
or as part of any Product delivered under the Order, free of any liens, charges,
encumbrances or rights of others.

     

    20.0                      PROPRIETARY INFORMATION AND ITEMS

     

    A.           Boeing
and Seller shall each keep confidential and protect from disclosure all (a)
confidential, proprietary, and/or trade secret information; (b) tangible items
containing, conveying, or embodying such information; and (c) tooling obtained
from and/or belonging to the other in connection with this Agreement or any
Order (collectively referred to as "Proprietary Information and
Materials").

     

     

    
      
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    B.           Boeing
and Seller shall each use Proprietary Information and Materials of the other
only in the performance of and for the purpose of this Agreement and/or any
Order.  Provided, however, that despite any other obligations or
restrictions imposed by this GTA Section 20.0, Boeing shall have the right to
use, disclose and copy Seller's Proprietary Information and Materials for the
purposes of testing, certification, use, sale, or support of any item delivered
under this Agreement, an Order, or any airplane including such an item; and any
such disclosure by Boeing shall, whenever appropriate, include a restrictive
legend suitable to the particular circumstances; provided that all such use,
disclosure, copying and the like shall be done in such a manner as to, and made
only to such persons who have also agreed to, maintain Seller’s Proprietary
Information and Materials as confidential and protect the same from disclosure
in accordance with the terms of this Agreement.  The restrictions on
disclosure or use of Proprietary Information and Materials by a receiving Party
shall apply to all materials derived by a Party or others from the disclosing
Party’s Proprietary Information and Materials.

     

    C.           Upon
the disclosing Party's request at any time, and in any event upon the
completion, termination or cancellation of this Agreement, the receiving Party
shall return all of the disclosing Party's Proprietary Information and
Materials, and all materials derived from the disclosing Party's Proprietary
Information and Materials to the disclosing Party unless specifically directed
otherwise in writing by disclosing Party.

     

    D.           Seller
shall not, without the prior written authorization of Boeing, sell or otherwise
dispose of (as scrap or otherwise) any parts or other materials containing,
conveying, embodying, or made in accordance with or by reference to any
Proprietary Information and Materials of Boeing.  Prior to disposing
of such parts or materials as scrap, Seller shall render them
unusable.  Boeing shall have the right to audit Seller's compliance
with this GTA Section 20.0. Seller may disclose Proprietary Information and
Materials of Boeing to its subcontractors or suppliers or Seller’s “ship-to”
customer as required for the performance of an Order, provided that each such
subcontractor first assumes, by written agreement, the same obligations imposed
upon Seller under this GTA Section 20.0 relating to Proprietary Information and
Materials; and Seller shall be liable to Boeing for any breach of such
obligation by such subcontractor or supplier.

     

    E.           Notwithstanding
anything in this Section 20 to the contrary, either Party may make disclosure of
the Agreement to (a) any of its accountants, auditors or lawyers having a need
to know such information provided such person agrees not to disclose the
information to any other person or outside of such firm, except as disclosure is
required by applicable law, regulation or court order and (b) any of its bankers
or credit rating agencies having a need to know such information, provided
persons at such companies agree in writing not to disclose the information to
any other person or outside of such company, except as disclosure is required by
applicable law, regulation or court order.  The foregoing shall not
apply to matters already public other than by reason of a breach of this Section
20.

     

     

    
      
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    Seller
may also file such reports (including, without limitation, Current Reports on
Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K)
regarding or containing information about the Agreement or any provisions
thereof that Seller shall deem necessary or prudent under applicable laws and
regulations after giving good faith consideration to the protection of Boeing
proprietary information.  Seller may also file a copy of the Agreement
as an exhibit to any such report filed by Seller, provided that Seller shall, in
good faith, give due consideration to redacting Boeing proprietary information
from these documents.  Seller shall also provide Boeing with a written
copy of these documents as redacted prior to their filing, with sufficient time
for Boeing to submit additional, suggested redactions.  Seller shall
give good faith consideration to inclusion of such Boeing suggested redactions
before filing the documents.  Seller may discuss matters pertaining to
the Agreement in investor calls to the extent such matters are specifically
reported in either Seller's press release or any other report publicly made by
Seller.  The Parties specifically intend that the filing of such
reports by Seller shall not be deemed a breach of this Section 20.0 or of
Seller’s obligations under the Agreement, provided that the provisions of this
Section 20.0 (E) are met.

     

    F.           If
the receiving Party or any of its representatives becomes legally compelled (by
deposition, interrogatory, request for documents, subpoena, civil investigative
demand or similar process) to disclose any of the Proprietary Information and
Materials of the disclosing Party, the receiving Party will advise and consult
with the disclosing Party prior to any such disclosure, so that the disclosing
Party may seek a protective order or other appropriate remedy and/or waive
compliance with the Agreement.  If such protective order or other
remedy is not obtained, or compliance with the Agreement is waived as above, the
receiving Party will disclose only that portion of the Proprietary Information
and Materials which the receiving Party is advised by counsel is legally
required and the receiving Party will exercise reasonable efforts to obtain
assurance that confidential treatment will be accorded such of the Proprietary
Information and Materials as is disclosed.  Any disclosure made in
accordance with the provisions of this Section 20.0 shall not be regarded as a
breach of the obligations of the receiving Party pursuant to the
Agreement.

     

    G.           Nothing
in this Section 20.0 shall be construed as granting or conveying to the
receiving Party any right or license to use Proprietary Information and
Materials of the disclosing Party (except for the purposes contemplated in the
Agreement) or to practice any inventions described and claimed in any pending
patent applications or issued patents which are owned or controlled by the
disclosing Party relating to such Proprietary Information and
Materials.

     

    H.           Each
of the Parties hereto acknowledges and agrees that the other Party could be
damaged irreparably in the event any of the provisions of this Section 20.0 are
not performed in accordance with their specific terms or otherwise are
breached.  Accordingly, each of the Parties agrees that the other
Party shall be entitled to seek an injunction or injunctions to prevent breaches
of the provisions of this Section 20.0 and to enforce specifically the terms of
this Section 20.0.

     

     

     

    
      
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    21.0                      COMPLIANCE

     

    21.1                      Compliance
with Laws

     

    Seller
shall be responsible for complying with all legal requirements, including, but
not limited to the provisions of any statute, ordinance, rule, regulation,
judgment, decree, order,  permit, approval, license or registration
applicable to its performance under this Agreement. Seller shall notify Boeing
of any aspect of Seller’s performance that is prohibited under any legal
requirements, at the earliest opportunity, but in all events sufficiently in
advance of Seller’s performance of such obligation, so as to identify and
implement alternative methods of performance.  Seller shall notify
Boeing in writing at the earliest possible opportunity of any aspect of its
performance, which becomes subject to any additional legal requirement after the
date of execution of this Agreement or which Seller reasonably believes will
become subject to additional regulation during the term of this
Agreement.  Seller agrees to indemnify and to hold harmless Boeing
from any failure by Seller to comply with any legal requirement.

     

     

     

     

     

     

    

      
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    21.2                      Government
Requirements

     

    If any of
the work to be performed under this Agreement is performed in the United States,
Seller shall, via invoice or other form satisfactory to Boeing, certify that the
Products or Services covered by the Order were produced in compliance with
Sections 6, 7, and 12 of the Fair Labor Standards Act (29 U.S.C. 201-291), as
amended, and the regulations and orders of the U.S. Department of Labor issued
there under.  In addition, the following FARs are incorporated herein
by this reference except "Contractor" shall mean "Seller": Other Government
clauses, if any, are incorporated herein either by attachment to this document
or by some other means of reference.

     

    FAR
52.222-26                                "Equal
Opportunity"

    
      	
               
      

            	
              FAR
      52.222-35

            	
              "Affirmative
      Action for Disabled Veterans and Veterans of the Vietnam
    Era”

            

    

    FAR
52.222-36                                "Affirmative
Action for Workers with Disabilities”

    
      	
               
      

            	
              FAR
      52.247-64

            	
              “Preference
      for Privately Owned U.S.-Flagged Commercial
  Vessels”

            

    

    
      	
               
      

            	
              FAR 52.222-39

            	
              “Notification
      of Employee Rights Concerning Payment of Union Dues or
    Fees”

            

    

     

    21.3                      Ethics
and Code of Conduct

     

     

    Boeing is
committed to conducting its business fairly, impartially, and in an ethical and
proper manner.  Boeing expectation is that Seller will also conduct
its business fairly, impartially and in an ethical and proper manner. Boeing
further expects that Seller will have (or will develop) and adhere to a code of
ethical standards.  If Seller has cause to believe that Boeing or any
employee or agent of Boeing has behaved improperly or unethically under this
Agreement, Seller shall report such conduct to The Boeing Company Ethics
hotline.  Copies of The Boeing Company Code of Conduct and contacts
for such reports are available on www.boeing.com
under "Ethics and Business Conduct."  Although Boeing will not use the
failure to report improper or unethical behavior as a basis for claiming breach
of contract by Seller under this Agreement, Seller is encouraged to exert
reasonable efforts to report such behavior when warranted.

     

     

     

    
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    21.4                      Code
of Basic Working Conditions and Human Rights

     

    Boeing is
committed to providing a safe and secure working environment and the protection
and advancement of basic human rights in its worldwide operations. In
furtherance of this commitment, Boeing has adopted a Code of Basic Working
Conditions and Human Rights setting out in detail the measures it takes to
ensure this commitment is fulfilled. The Boeing Code may be downloaded at
http://www.boeing.com/employment/culture/code.html. Boeing strongly encourages
Seller to adopt and enforce concepts similar to those embodied in the Boeing
Code, including conducting Seller’s operations in a manner that is fully
compliant with all applicable laws and regulations pertaining to fair wages and
treatment, freedom of association, personal privacy, collective bargaining,
workplace safety and environmental protection. Seller will promptly cooperate
with and assist Boeing in implementation of and adherence to the Boeing
Code.

     

    Any
material breach of this Section 21.4 by Seller may be considered an Event of
Default under this Agreement for which Boeing may elect to cancel any open
Orders between Boeing and the Seller, for cause, in accordance with the
provisions of this Agreement, or exercise any other right of Boeing for an Event
of Default under this Agreement.

     

    22.0                      INTEGRITY IN PROCUREMENT

     

    Seller
warrants that neither it nor any of its employees, agents or representatives
have offered or given, or will offer or give any gratuities to Boeing’s
employees, agents or representatives for the purpose of securing any Order or
securing favorable treatment under any Order.

     

    23.0                      UTILIZATION OF SMALL BUSINESS CONCERNS

     

    Seller
agrees to actively seek out and provide the maximum practicable opportunities
for small businesses, small disadvantaged businesses, women-owned small
businesses, minority business enterprises, historically black colleges and
universities and minority institutions, historically underutilized business zone
small business concerns and U.S. veteran and service-disabled veteran owned
small business concerns to participate in the subcontracts Seller awards to the
fullest extent consistent with the efficient performance of this
Agreement.

     

    
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              24.0

            	
              BOEING'S RIGHTS IN SELLER'S PATENTS, COPYRIGHTS, TRADE
      SECRETS, AND TOOLING

            

    

     

    Seller
hereby grants to Boeing *, but Boeing hereby covenants not to * and if one or
more of the following situations occur:

     

    
      	
               
      

            	
              A.

            	
              Seller
      discontinues or suspends business operations or the production of any or
      all of the *;

            

    

     

    
      	
               
      

            	
              B.

            	
              Seller
      is acquired by or transfers any or all of its rights to manufacture any
      Product to any third party, whether or not related, without Boeing’s prior
      written concurrence;

            

    

     

    
      	
               
      

            	
              C.

            	
              Boeing
      cancels this Agreement or any Order for cause pursuant to GTA Section 13.0
      herein;

            

    

     

    
      	
               
      

            	
              D.

            	
              In
      Boeing's judgment it becomes necessary, in order for Seller to comply with
      the terms of this Agreement or any Order, for Boeing to provide support to
      Seller (in the form of design, manufacturing, or on-site personnel
      assistance) substantially in excess of that which Boeing normally provides
      to its suppliers;

            

    

     

    
      	
               
      

            	
              E.

            	
              Seller's
      trustee in bankruptcy (or Seller as debtor in possession) fails to assume
      this Agreement and all Orders by formal entry of an order in the
      bankruptcy court within * after entry of an order for relief in a
      bankruptcy case of the Seller, or Boeing elects to retain its rights to *
      under the bankruptcy laws;

            

    

     

    
      	
               
      

            	
              F.

            	
              Seller
      is at any time insolvent (whether measured under a balance sheet test or
      by the failure to pay debts as they come due) or the subject of any
      insolvency, receivership or assignment for the benefit of creditors
      proceeding under state or non-bankruptcy law;
or

            

    

     

    
      	
               
      

            	
              G.

            	
              Seller
      voluntarily becomes a debtor in any case under bankruptcy law or, in the
      event an involuntary bankruptcy petition is filed against Seller, such
      petition is not dismissed within *.

            

    

     

    As a part
of the * granted under this GTA Section 24.0, Seller shall, at the written
request of Boeing and at no additional cost to Boeing, promptly deliver to
Boeing any and all * considered by Boeing to be necessary to satisfy Boeing's
requirements for * and their substitutes.

     

    
      
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    25.0                      TERMINATION OF AIRPLANE PROGRAM

     

    25.1                      Program
Termination

     

    The
parties acknowledge and agree that Boeing may, in its sole discretion, terminate
all or part of this Agreement, including any Order issued hereunder, by written
notice to Seller, if Boeing decides not to initiate or continue production of
the program which the Product supports, by reason of Boeing’s determination that
there is insufficient business basis for proceeding with such
program.  In the event of such a termination, Boeing shall have no
liability to Seller except as expressly provided in GTA Section 25.2
below.

     

    25.2                      Termination
Liability

     

    In the
event of a termination of the program as described in 25.1 above, Boeing shall
have no liability whatsoever to Seller, except to the extent of (i) any
guaranteed minimum purchase, if any, as set forth in SBP Section 10.0, and (ii)
any Orders issued prior to the date of the written notice to Seller identified
in 25.1 above.  Termination of such Orders shall be governed by GTA
Section 12.0 herein.

     

    26.0                      PUBLICITY

     

    Without
Boeing’s prior written approval, Seller shall not, and shall require that its
subcontractors or suppliers shall not, release any publicity, advertisement,
news release or denial or confirmation of the same, regarding any Order or
Products or Services, or the program to which they may
pertain.  Seller shall be liable to Boeing for any breach of such
obligation by any subcontractor or supplier.

     

    
      
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    27.0                      PROPERTY INSURANCE

     

    27.1                      Insurance

     

    Seller
shall obtain and maintain continuously in effect a property insurance policy
covering loss or destruction of or damage to all property in which Boeing does
or could have an insurable interest pursuant to this Agreement, including but
not limited to Tooling, Boeing-furnished property, raw materials, parts,
work-in-process, incomplete or completed assemblies and all other Products or
Services or parts thereof, and all drawings, Specifications, data and other
materials relating to any of the foregoing in each case to the extent in the
possession or under the effective care, custody or control of Seller or any
agent, employee, affiliate, subcontractor or supplier of Seller, in the amount
of full replacement value thereof providing protection against all perils
normally covered in an "all risk" property insurance policy (including without
limitation fire, windstorm, explosion, riot, civil commotion, aircraft,
earthquake, flood or other acts of God).  Any such policy shall be
with insurers reasonably acceptable to Boeing and shall (a) provide for payment
of loss thereunder to Boeing, as loss payee, as its interests may appear and (b)
contain a waiver of any rights of subrogation against Boeing, its subsidiaries,
and their respective directors, officers, employees and agents.

     

    27.2                      Certificate
of Insurance

     

    Upon
written request from Boeing, Seller shall provide to Boeing's Procurement
Representative certificates of insurance reflecting full compliance with the
requirements set forth in GTA Section 27.1.  Such certificates shall
be kept current and in compliance throughout the period of this Agreement and
shall provide for * advanced written notice to Boeing's Procurement
Representative in the event of cancellation, non-renewal or material change
adversely affecting the interests of Boeing.

     

    27.3                      Notice
of Damage or Loss

     

    Seller
shall give prompt written notice to Boeing's Procurement Representative of the
occurrence of any damage or loss to any property required to be insured
herein.  If any such property shall be damaged or destroyed, in whole
or in part, by an insured peril or otherwise, and if no Event of Default shall
have occurred and be continuing, then Seller may, upon written notice to Boeing,
settle, adjust, or compromise any and all such loss or damage not in excess of *
in any one occurrence and * in the aggregate.  Seller may settle,
adjust or compromise any other claim by Seller only after Boeing has given
written approval, which approval shall not be unreasonably
withheld.

     

    
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    28.0                      RESPONSIBILITY FOR PERFORMANCE

     

    Seller
shall be responsible for performance of its obligations under this
Agreement.  Seller shall bear all risks of providing adequate
facilities and equipment to perform each Order in accordance with the terms
thereof. If any use of any facilities or equipment contemplated by Seller for
use in performing Orders will not be available for any reason, Seller shall be
responsible for arranging for similar facilities and equipment at no cost to
Boeing, and any failure to do so shall not relieve Seller from its
obligations.

     

    Seller
shall notify and Boeing prior to moving work to be performed under this
Agreement between Seller’s various facilities, and Seller shall be responsible
for all additional costs or charges (including, without limitation, additional
shipping costs, duties, taxes and the like) that result from Seller’s election
to supply any Products from from such of Seller’s facilities as have not been
among the traditional supply facilities for such Products.

     

    28.1                      Subcontracting

     

    Seller
shall maintain complete and accurate records regarding all subcontracted items
and/or processes.  Seller’s use of subcontractors or suppliers shall
comply with Seller’s quality assurance system approval for said subcontractors
or suppliers.  Unless Boeing’s prior written authorization or approval
is obtained, Seller may not purchase completed or substantially completed
Products or Services.  For purposes of this GTA Section and this GTA
Section only, completed or substantially completed Products or Services shall
not include components of assemblies or subassemblies.  No
subcontracting by Seller shall relieve Seller of its obligation under the
applicable Order. Utilization of a Boeing-approved source does not constitute a
waiver of Seller's responsibility to meet all specification
requirements.

     

    Seller
shall include as part of its subcontracts those elements of the Agreement that
protect Boeing's rights including but not limited to right of entry provisions,
proprietary information and rights provisions and quality control
provisions.  In addition, Seller shall provide to its subcontractor's
sufficient information to document clearly that the work being performed by
Seller's subcontractor is to facilitate performance under this Agreement or any
Order.  Sufficient information may include but is not limited to Order
number, GTA number or the name of Boeing's Procurement
Representative.

     

    28.2                      Reliance

     

    Seller
will not deny any responsibility or obligation hereunder to Boeing on the
grounds that Boeing provided recommendations or assistance in any phase of the
work involved in producing or supporting the Products or Services, including but
not limited to Boeing's acceptance of Specifications, test data or the Products
or Services.

     

     

    
      
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    28.3                      Assignment

     

    Except as
provided in GTA Section 28.1, Seller shall not assign any of its rights or
interest in this Agreement or any Order, or subcontract all or substantially all
of its performance of this Agreement or any Order, without Boeing’s prior
written consent.  Seller shall not delegate any of its duties or
obligations under this Agreement. Seller may assign its right to monies due or
to become due. No assignment, delegation or subcontracting by Seller, with or
without Boeing’s consent, shall relieve Seller of any of its obligations under
this Agreement or prejudice any rights of Boeing against Seller whether arising
before or after the date of any assignment.  This article does not
limit Seller’s ability to purchase standard commercial supplies or raw
materials.

     

    The
prohibition set forth in this GTA Section 28.3 includes, without limitation (and
the following shall be deemed to be "assignments"):  *.

     

     

    29.0                      NON-WAIVER/PARTIAL INVALIDITY

     

    Any
failures, delays or forbearances of Boeing in insisting upon or enforcing any
provisions of any Order, or in exercising any rights or remedies under this
Agreement, shall not be construed as a waiver or relinquishment of any such
provisions, rights or remedies; rather, the same shall remain in full force and
effect.  If any provision of any Order is or becomes void or
unenforceable by law, the remainder shall be valid and enforceable.

     

    30.0                      HEADINGS

     

     Section
headings used in this Agreement are for convenient reference only and do not
affect the interpretation of the Agreement.

     

    31.0                      LICENSING

     

    Seller
agrees that the use of Boeing Proprietary Information and Materials as defined
in GTA Section 20.0 beyond that authorized by this Agreement shall be subject to
a license agreement or other written instrument as determined by the Boeing
Commercial Airplane Intellectual Property Management organization (BCA IPM) of
Boeing.

    
 

    
      
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    32.0                      RESERVED

     

    33.0                      DISPUTES

     

     

    Boeing
and Seller shall use their best reasonable efforts to resolve any and all
disputes, controversies, claims or differences between Boeing and Seller,
arising out of or relating in any way to the Agreement or a Party’s performance
thereunder, including, but not limited to, any questions regarding the
existence, validity or termination hereof ("Disputes"), through
negotiation.  If a Dispute cannot be resolved by the functional
representatives of Boeing and Seller, it shall be referred up through management
channels of the Parties or their respective designees, for further
negotiation.

     

    Any
dispute that arises under or is related to this Agreement that cannot be settled
by mutual agreement of the parties shall be resolved only as provided in SBP
Section 5.  Pending final resolution of any dispute, Seller shall
proceed with performance of this Agreement according to Boeing’s instructions so
long as Boeing continues to pay amounts not in dispute.

     

    34.0                      RESERVED

     

    35.0                      TAXES

     

    35.1                      Inclusion
of Taxes in Price

     

    Unless
this Agreement, specifies otherwise, *.  Prices shall not include any
taxes, impositions, charges or exactions for which Boeing has furnished a valid
exemption certificate or other evidence of exemption.  With regard to
value added taxes (VAT) imposed on or measured by this Agreement, Seller and
Boeing also agree to work together to administer VAT so that it can be reclaimed
if legally possible; provided that Boeing shall assign Orders to “ship-to”
customers.  If VAT cannot be reclaimed via reasonable business means,
Boeing will be responsible for that instance of VAT only if the VAT charge is
directly related to the unilateral selection of title transfer and delivery
location by Boeing.  *  Prices shall not include any taxes,
impositions, charges or exactions for which Boeing has furnished a valid
exemption certificate or other evidence of exemption.

    
      
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    35.2                      Litigation

     

    In the
event that any taxing authority has claimed or does claim payment for sales
taxes, Seller shall promptly notify Boeing, and Seller shall take such action as
Boeing may direct to pay or protest such taxes or to defend against such
claim.  The actual and direct expenses, without the addition of profit
and overhead, of such defense and the amount of such taxes as ultimately
determined as due and payable shall be paid directly by Boeing or reimbursed to
Seller.  If Seller or Boeing is successful in defending such claim,
the amount of such taxes recovered by Seller, which had previously been paid by
Seller and reimbursed by Boeing or paid directly by Boeing, shall be immediately
refunded to Boeing.

     

    35.3                      Rebates

     

    If any
taxes paid by Boeing are subject to rebate or reimbursement, Seller shall take
the necessary actions to secure such rebates or reimbursement and shall promptly
refund to Boeing any amount recovered

     

    36.0                      INDUSTRIAL PARTICIPATION

     

    To the
exclusion of all others, Boeing or its assignee shall be entitled to all
industrial benefits or offset credits which might result from this Agreement or
Order.  Seller shall provide documentation or information, which
Boeing or its assignee may reasonably request to substantiate claims for
industrial benefits or offset credits.  Seller agrees to use
reasonable efforts to identify the foreign content of goods, which Seller either
produces itself or procures from other companies for work directly related to
this Agreement.  Promptly after selection of a non-U.S. subcontractor
or supplier for work under this Agreement, Seller shall notify Boeing of the
name, address, subcontract point of contact (including telephone number) and
dollar value of the subcontract.

     

    EXECUTED
in duplicate as of the date and year first set forth above by the duly
authorized representatives of the Parties.

     

    

    BOEING                                                                                                                                                   
SELLER

    

    THE
BOEING
COMPANY                                                                                                                    
TITANIUM METALS CORPORATION

    

    
      	
              Signature:
      /s/ Jeffry L. Melville

            	
              Signature:
      /s/James M. Buch

            
	
              Printed
      Name: Jeffrey L. Melville

            	
              Printed
      Name: James Buch

            
	
              Title:
      Procurement Agent

            	
              Title:
      Vice President – Commercial

            
	
              Date:
      11/09/09

            	
              Date:
      November 12, 2009

            

    

     

    

      
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        44exhibit_10-27.htm

    EXHIBIT 10.27

       

      Portions
of this Exhibit 10.27 have been omitted based upon a request for confidential
treatment. This Exhibit 10.27, including the non-public information, has been
filed separately with the Securities and Exchange Commission “*” designates
portions of this document that have been redacted pursuant to the request for
confidential treatment filed with the Securities and Exchange
Commission.

       

      

      SPECIAL
BUSINESS PROVISIONS

      

      between

      

      THE
BOEING COMPANY

      

      and

      

      TITANIUM
METALS CORPORATION

      

      

      

      

      

      SBP
– * dated 01-01-2011

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

          
             

          

        

      

      TABLE OF
CONTENTS

      

      TITLE
PAGE

      TABLE OF
CONTENTS

      AMENDMENT
PAGE

      RECITAL
PAGE

       

      
        	
                1.0

              	
                DEFINITIONS

              	
                8

              

      

       

      
        	
                2.0

              	
                CONTRACT FORMATION

              	
                
                  9

                

              

      

      
        	
                 
      

              	
                2.1

              	
                Order

              	
                
                  9

                

              

      

      
        	
                 
      

              	
                2.2

              	
                Entire
      Agreement

              	
                
                  9

                

              

      

      
        	
                 
      

              	
                2.3

              	
                Incorporated
      by Reference

              	
                
                  9

                

              

      

      
        	
                 
      

              	
                2.4

              	
                Order
      of Precedence

              	
                
                  10

                

              

      

      
        	
                 
      

              	
                2.5

              	
                Survival

              	
                10

              

      

      
        	
                 
      

              	
                2.6

              	
                Electronic
      Commerce (“E-Comm”)

              	
                10

              

      

       

      
        	
                3.0

              	
                PERIOD OF PERFORMANCE AND PRICES

              	
                10

              

      

      
        	
                 
      

              	
                3.1

              	
                Performance

              	
                10

              

      

      
        	
                 
      

              	
                3.1.1

              	
                Period
      of Performance

              	
                10

              

      

      
        	
                 
      

              	
                3.1.2

              	
                Option
      to Extend

              	
                11

              

      

      
        	
                 
      

              	
                3.2

              	
                Pricing

              	
                
                  11

                

              

      

      
        	
                 
      

              	
                3.2.1

              	
                Product
      Pricing

              	
                
                  11

                

              

      

      
        	
                 
      

              	
                3.2.2

              	
                Manufacturing
      Configuration

              	
                
                  11

                

              

      

      
        	
                 
      

              	
                3.2.3

              	
                Packaging

              	
                12

              

      

      
        	
                 
      

              	
                3.2.4

              	
                Local
      Transportation Devices

              	
                
                  12

                

              

      

      
        	
                 
      

              	
                3.3

              	
                Subject
      Matter of Sale

              	
                
                  12

                

              

      

      
        	
                 
      

              	
                3.4

              	
                Type
      Design and Type Certification Data Development and
      Protection 

              	
                12

              

      

      
        	
                 
      

              	
                3.5

              	
                Reserved

              	
                
                  13

                

              

      

      
        	
                 
      

              	
                3.6

              	
                Export
      Compliance

              	
                
                  13

                

              

      

      
        	
                 
      

              	
                3.6.1

              	
                Commercial/Defense
      Item Representation

              	
                
                  13

                

              

      

      
        	
                 
      

              	
                3.6.2

              	
                Other
      Military Program Requirements

              	
                
                  13

                

              

      

       

      
        	
                4.0

              	
                GOVERNING QUALITY ASSURANCE
    REQUIREMENTS

              	
                14

              

      

       

      
        	
                5.0

              	
                APPLICABLE LAW

              	
                
                  15

                

              

      

       

      
        	
                6.0

              	
                PRODUCT SUPPORT AND ASSURANCE

              	
                
                  15

                

              

      

      
        	
                 
      

              	
                6.1

              	
                Warranty

              	
                15

              

      

      
        	
                 
      

              	
                6.2

              	
                Integrated
      Materials Management (IMM) Program

              	
                
                  16

                

              

      

       

      
        	
                7.0

              	
                PAYMENT

              	
                16

              

      

      
        	
                 
      

              	
                7.1

              	
                Recurring
      Price

              	
                16

              

      

      
        	
                 
      

              	
                7.2

              	
                Nonrecurring
      Price/Special Charges

              	
                17

              

      

      
        	
                 
      

              	
                7.3

              	
                Payment
      Method

              	
                17

              

      

      
        	
                 
      

              	
                7.4

              	
                Payment
      Errors

              	
                17

              

      

      
        	
                 
      

              	
                7.5

              	
                Spare
      Parts

              	
                17

              

      

       

      
        
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          2

          
            

          

        

        
          
          

        

      

      
        	
                8.0

              	
                SCHEDULE ACCELERATION/DECELERATION

              	
                17

              

      

       

      
        	
                9.0

              	
                NOTICES

              	
                17

              

      

      
        	
                 
      

              	
                9.1

              	
                Addresses

              	
                17

              

      

       

      
        	
                10.0

              	
                OBLIGATION TO PURCHASE AND SELL

              	
                18

              

      

       

      
        	
                11.0

              	
                COST AND PERFORMANCE VISIBILITY

              	
                18

              

      

       

      
        	
                12.0

              	
                CHANGE PROVISIONS

              	
                19

              

      

      
        	
                 
      

              	
                12.1

              	
                Reserved

              	
                19

              

      

      
        	
                 
      

              	
                12.2

              	
                Computation
      of Equitable Adjustment

              	
                
                  19

                

              

      

      
        	
                 
      

              	
                12.3

              	
                Obsolescence

              	
                
                  19

                

              

      

      
        	
                 
      

              	
                12.4

              	
                Change
      Absorption (Nonrecurring/Recurring)

              	
                19

              

      

      
        	
                 
      

              	
                12.5

              	
                Planning
      Schedule

              	
                
                  19

                

              

      

      
        	
                 
      

              	
                12.6

              	
                Total
      Cost Management

              	
                
                  19

                

              

      

      
        	
                 
      

              	
                12.6.1          Boeing
      Generated Technical and Cost Improvement

              	
                
                  
                    
                      20

                    

                  

                

              

      

      
        	
                 
      

              	
                12.7

              	
                Reserved

              	
                
                  20

                

              

      

      
        	
                 
      

              	
                12.8

              	
                Critical
      Manufacturing Reorder Lead-Time

              	
                
                  20

                

              

      

      
        	
                 
      

              	
                12.9

              	
                Derivative
      Aircraft

              	
                
                  20

                

              

      

       

      
        	
                13.0

              	
                SPARES AND OTHER PRICING

              	
                
                  20

                

              

      

      
        	
                 
      

              	
                13.1

              	
                Spares

              	
                
                  20

                

              

      

      
        	
                 
      

              	
                13.1.1

              	
                Spares
      Support

              	
                
                  21

                

              

      

      
        	
                 
      

              	
                13.1.2

              	
                Reclassification
      or Re-exercises

              	
                
                  22

                

              

      

      
        	
                 
      

              	
                13.1.3

              	
                Spare
      Pricing

              	
                
                  22

                

              

      

      
        	
                                               
      13.1.3.1

              	
                Aircraft
      on Ground (AOG) and Purchased On Assembly (POA)
      Requirement 

              	
                
                  
                    22

                  

                

              

      

      
        	
                                                13.1.3.2

              	
                Seller’s
      Less Than Lead-time Spare 

              	
                
                  
                    22

                  

                

              

      

      
        	
                 
      

              	
                13.2

              	
                Expedite
      of Production Requirements

              	
                
                  22

                

              

      

      
        	
                 
      

              	
                13.3

              	
                Tooling

              	
                
                  22

                

              

      

      
        	
                 
      

              	
                13.3.1

              	
                Responsible
      Party

              	
                
                  22

                

              

      

      
        	
                 
      

              	
                13.3.2

              	
                Boeing
      Furnished Tooling

              	
                23

              

      

      
        	
                                               
      13.3.3.1

              	
                Title
      to Tooling 

              	
                
                  23

                

              

      

      
        	
                                               
      13.3.3.2

              	
                Use
      and Disposition of Tooling 

              	
                
                  
                    23

                  

                

              

      

      
        	
                                               
      13.3.3.3

              	
                Accountability
      for Tooling 

              	
                
                  23

                

              

      

      
        	
                                               
      13.3.3.4

              	
                Certified
      Tool Lists 

              	
                
                  23

                

              

      

      
        	
                 
      

              	
                13.4

              	
                Pricing
      of Boeing's Supporting Requirements

              	
                
                  23

                

              

      

      
        	
                 
      

              	
                13.5

              	
                Pricing
      of Requirements for Modification or Retrofit

              	
                
                  23

                

              

      

      
        	
                 
      

              	
                13.5.1

              	
                Boeing
      Responsibility or Regulatory Requirement

              	
                
                  23

                

              

      

      
        	
                 
      

              	
                13.5.2

              	
                
                  Contract
      Aftermarket Modification or Retrofit Work Performed by
      Boeing                                             
       

                

              	
                23

              

      

      
        	
                 
      

              	
                13.6

              	
                Pricing
      of Similar Products

              	
                24

              

      

       

      
        	
                14.0

              	
                STATUS REPORTS/REVIEWS

              	
                
                  24

                

              

      

      
        	
                 
      

              	
                14.1

              	
                General
      Reports / Reviews

              	
                
                  24

                

              

      

      
        	
                 
      

              	
                14.2

              	
                Diversity
      Reporting

              	
                
                  
                    24

                  

                

              

      

       

      
        
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          3

          
            

          

        

        
          
          

        

      

      
        	
                 
      

              	
                14.3

              	
                Program
      Manager 

              	
                
                  
                    25

                  

                

              

      

      
        	
                 
      

              	
                14.4

              	
                Certified
      Tool List

              	
                
                  25

                

              

      

      
        	
                 
      

              	
                14.5

              	
                Problem
      Reports

              	
                
                  25

                

              

      

      
        	
                 
      

              	
                14.6

              	
                Reserved

              	
                26

              

      

       

      
        	
                15.0

              	
                INDUSTRIAL PARTICIPATION

              	
                
                  26

                

              

      

      
        	
                 
      

              	
                15.1

              	
                Market
      Access and Sales Support

              	
                
                  26

                

              

      

      
        	
                 
      

              	
                15.2

              	
                Offset
      Assistance

              	
                
                  26

                

              

      

      
        	
                 
      

              	
                15.3

              	
                Credit
      against Aircraft Sales

              	
                
                  27

                

              

      

       

      
        	
                16.0

              	
                BOEING FURNISHED MATERIAL/SUPPLIER BANKED
      MATERIAL 

              	
                
                  27

                

              

      

      
        	
                 
      

              	
                16.1

              	
                Boeing
      Furnished Material

              	
                
                  27

                

              

      

       

      
        	
                17.0

              	
                PARTICIPATION

              	
                
                  27

                

              

      

      
        	
                 
      

              	
                17.1

              	
                Other
      Boeing Entities and Licensees

              	
                
                  27

                

              

      

      
        	
                 
      

              	
                17.2

              	
                Boeing
      Subcontractors/Suppliers

              	
                
                  27

                

              

      

      
        	
                 
      

              	
                17.3

              	
                Notification
      of Contract

              	
                
                  27

                

              

      

      
        	
                 
      

              	
                17.4

              	
                Notification
      of Price Reductions

              	
                
                  27

                

              

      

       

      
        	
                18.0

              	
                INVENTORY AT CONTRACT COMPLETION

              	
                
                  27

                

              

      

       

      
        	
                19.0

              	
                OWNERSHIP OF INTELLECTUAL PROPERTY

              	
                
                  28

                

              

      

       

      
        	
                20.0

              	
                ADMINISTRATIVE AGREEMENTS

              	
                
                  28

                

              

      

       

      
        	
                21.0

              	
                GUARANTEED WEIGHT REQUIREMENTS

              	
                
                  28

                

              

      

       

      
        	
                22.0

              	
                SELLER DATA REQUIREMENTS

              	
                
                  28

                

              

      

       

      
        	
                23.0

              	
                DEFERRED PAYMENT

              	
                
                  28

                

              

      

       

      
        	
                24.0

              	
                SOFTWARE PROPRIETARY INFORMATION
    RIGHTS

              	
                
                  28

                

              

      

       

      
        	
                25.0

              	
                CONFIGURATION CONTROL

              	
                
                  28

                

              

      

       

      
        	
                26.0

              	
                INFRINGEMENT

              	
                
                  28

                

              

      

       

      
        	
                27.0

              	
                RAW MATERIAL PROGRAM

              	
                
                  29

                

              

      

      
        	
                 
      

              	
                27.1

              	
                Boeing
      Raw Material Strategy

              	
                
                  29

                

              

      

       

      
        	
                28.0

              	
                DIGITIZATION OF PROPRIETARY INFORMATION AND
      MATERIALS 

              	
                
                  29

                

              

      

       

      
        	
                29.0

              	
                INSURANCE

              	
                
                  29

                

              

      

      
        	
                 
      

              	
                29.1

              	
                Indemnification
      Negligence of Seller or subcontractor

              	
                
                  29

                

              

      

      
        	
                 
      

              	
                29.2

              	
                Commercial
      General Liability

              	
                
                  29

                

              

      

      
        	
                 
      

              	
                29.3

              	
                Automobile
      Liability

              	
                
                  29

                

              

      

      
        	
                 
      

              	
                29.4

              	
                Workers’
      Compensation

              	
                
                  29

                

              

      

      
        	
                 
      

              	
                29.5

              	
                Certificates
      of Insurance

              	
                
                  30

                

              

      

      
        	
                 
      

              	
                29.6

              	
                Self-Assumption

              	
                
                  
                    30

                  

                

              

      

      
        	
                 
      

              	
                29.7

              	
                Protection
      of Property

              	
                
                  
                    30

                  

                

              

      

       

      
        
          Table of Contents

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                30.0

              	
                BOEING TECHNICAL / MANUFACTURING ASSISTANCE REGARDING
      SELLER’S NONPERFORMANCE 

              	
                
                  30

                

              

      

       

      
        	
                31.0

              	
                INTERNATIONAL CONTRACT
PROVISIONS

              	
                
                  30

                

              

      

      
        	
                 
      

              	
                31.1

              	
                Packing,
      Shipping and Transportation Requirements

              	
                
                  30

                

              

      

      
        	
                 
      

              	
                31.2

              	
                U.
      S. Customs Invoice Requirements

              	
                
                  30

                

              

      

      
        	
                 
      

              	
                31.3

              	
                Duty
      Free /Special Tariff Programs / Free Trade
Agreements 

              	
                
                  31

                

              

      

      
        	
                 
      

              	
                31.4

              	
                No
      Contributions, Fees and Commissions

              	
                
                  31

                

              

      

      
        	
                 
      

              	
                31.5

              	
                Gifts,
      Gift Foods, Promotional Items, Unsolicited Items and Personal
      Effects 

              	
                
                  32

                

              

      

       

      
        	
                32.0

              	
                STRATEGIC ALIGNMENT

              	
                
                  32

                

              

      

       

      
        	
                33.0

              	
                UNITED STATES CUSTOMS AND BORDER PROTECTION’S CUSTOMS-TRADE
      PARTNERSHIP AGAINST TERRORISM (C-TPAT) 

              	
                
                  32

                

              

      

       

      
        	
                34.0

              	
                SAFETY, HEALTH AND ENVIRONMENTAL
AFFAIRS

              	
                
                  33

                

              

      

      
        	
                 
      

              	
                34.1

              	
                Environmental
      Management Systems and Health Safety Management
    Systems 

              	
                
                  33

                

              

      

      
        	
                 
      

              	
                34.2

              	
                Compliance
      with Boeing On-Site Requirements

              	
                
                  33

                

              

      

      
        	
                 
      

              	
                34.3

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                35.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                36.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                37.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                38.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                39.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                40.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                41.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                42.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                43.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                44.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                45.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                47.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        
          Table of Contents

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                48.0

              	
                Reserved

              	
                
                  34

                

              

      

       

      
        	
                49.0

              	
                ELECTRONIC COMMUNICATIONS

              	
                
                  34

                

              

      

      

       

      
        	
                50.0

              	
                RESTRICTIONS ON LOBBYING

              	
                
                  35

                

              

      

      
        	
                 
      

              	
                50.1

              	
                Applicability

              	
                35

              

      

      
        	
                 
      

              	
                50.2

              	
                Certificate

              	
                35

              

      

      
        	
                 
      

              	
                50.3

              	
                Flow
      Down

              	
                35

              

      

      

       

      Signature
Page

      

      Attachment
1                                 Work
Statement and Pricing

      Attachment
1A                              Uniquely
Military Requirements

      Attachment
1B                               Component
Spares Requirements

      Attachment
2                                  Non-U.S.
Procurement Report

      Attachment
3                                  Rates
and Factors

      Attachment
4                                  Boeing
Electronic Commerce

      Attachment
5                                  Packing,
Shipping and Transportation

      Attachment
6                                  Seller
Data Submittals

      Attachment
7                                  Supplier
Data Requirements List Customers / Engineering

      Attachment
8                                  Reserved

      Attachment
9                                  Cost
and Performance Reviews

      Attachment
10                                Quality
Assurance Requirements

      Attachment
11                                Second
Tier Support Report

      Attachment
12                                Commercial
Invoice Requirements (Customs Invoice)

      Attachment
13                                On-Site
Terms & Conditions Supplement

      Attachment
14                                Production
Article Delivery Schedule

      Attachment
15                                Production
Article Definition & Contract Change Notices

      Attachment
16                                Non-Recurring
and Recurring Price Status and Summary Tables

      Attachment
17                                Value
Engineering Methodology

      Attachment
18                                Indentured
Priced Parts List and Spares Pricing

      Attachment
19                                Incremental
Release Plan and Lead Times

      Attachment
20                                Schedule
Change Examples

      Attachment
21                                Seller’s
Standard Stocked Items

      Attachment
22                                Sellers
Traditional Shipping Location

      Attachment
23                                Anti-Lobbying
Certificate

      Attachment
24                                Price
Lists

      

      Exhibit
A                                        
Raw Material Participation Agreement

      
        
          
             

          

          Table of Contents

        

        
          6

          
            

          

        

        
          
          

          
             

          

        

      

      AMENDMENTS

      

      
        	
                Amend

                Number

              	
                Description

              	
                Date

              	
                Approval

              
	
                 
      

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

              	 
      	 
      	 
      

      

      
        
          
             

          

          Table of Contents

        

        
          7

          
            

          

        

        
          
          

          
             

          

        

      

      SPECIAL
BUSINESS PROVISIONS

      

      RELATING
TO

      

      BOEING
PRODUCTS

       

      THIS
SPECIAL BUSINESS PROVISIONS (SBP) is entered into as of enter date of SBP, by and
between Titanium Metals
Corporation, a Delaware corporation, with
its principal office in Dallas, Texas (“Seller”), and
The Boeing Company, a Delaware Corporation with an office in Seattle, Washington
("Boeing").  Hereinafter, the Seller and Boeing may be referred to
individually as a Party or jointly as “Parties” hereto.

       

      Now, therefore, in
consideration of the mutual covenants set forth herein, the Parties agree as
follows:

       

      AGREEMENTS

       

      1.0                      DEFINITIONS

       

       

      All
defined terms not defined herein shall have the meaning assigned in the General
Terms Agreement GTA-65310-2006 dated 01-01-2011 (“GTA”).  In
addition, the following terms are defined as follows:

       

      

       

      
        	
                 
      

              	
                A.

              	
                "Drawing"
      means an electronic or manual depiction of graphics or technical
      information representing a Product or any part thereof and which includes
      the parts list and Specifications relating
  thereto.

              

      

       

      
        	
                 
      

              	
                B.

              	
                "End
      Item Assembly" means any Product which is described by a single part
      number and which is comprised of more than one component
    part.

              

      

       

      
        	
                 
      

              	
                C.

              	
                "Shipset"
      means the total set of Production Articles provided by Seller hereunder
      necessary for production of one Program Airplane or
      Derivative.

              

      

       

      
        	
                 
      

              	
                D.

              	
                "Spare
      Parts" or “Spares” means Production Articles or components thereof, and
      materials, assemblies and items of equipment relating thereto, which are
      intended for Boeing's use or sale as spare parts or production
      replacements. The term "Spare Parts" includes, but is not limited to,
      Boeing Proprietary Spare Parts.

              

      

       

      
        	
                 
      

              	
                E.

              	
                “Specifications”
      means chemical, physical and other specifications (which may include
      processing, procedures and inspecting and testing criteria) for
      Products.

              

      

       

      
        
          Table of Contents

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                2.0

              	
                CONTRACT
FORMATION

              

      

       

       

      2.1                      
Order

       

       

      Any Order
to which this SBP applies will include a statement incorporating this SBP by
reference unless otherwise specifically agreed in to in writing by the
Parties.

       

      Each such
Order will be governed by and be deemed to include the provisions of the
Agreement.

       

      Notwithstanding
anything to the contrary in the GTA Section 2.2, Seller is permitted to reject
any Order which (i) is not for a Product represented on Attchment 1 to this SBP,
(ii) is in excess of maximum volumes that Boeing is permitted to order under
Section 2.0(C) of Attachment 1 to this SBP or (iii) requests a delivery date
earlier than the lead times established expressly in accordance with this SBP;
provided Seller follows the procedure of reviewing less than lead time orders
under this SBP prior to rejection of such less than lead time
Order.

       

       2.2                      Entire Agreement

       

       

      This
Agreement sets forth the entire agreement, and supersedes any and all other
prior agreements understandings and communications between Boeing and Seller
related to the subject matter of an Order.  The rights and remedies
afforded to Boeing or Customers pursuant to any provisions of an Order are in
addition to any other rights and remedies afforded by any other provisions of
the Order, the General Terms Agreement (GTA) or the SBP, by law or
otherwise.

       

      2.3                      Incorporated
by Reference

       

       

      General
Terms Agreement (“GTA”) * dated
01/01/2011 is incorporated in and made a part of this SBP by this
reference.

       

      In
addition to any other documents incorporated elsewhere in this SBP or GTA by
reference, the following documents are incorporated in and made a part of this
SBP by reference with full force and effect, as if set out in full
text.  It is the Seller’s responsibility to comply with the latest
revision of these documents.

       

      PUGET
SOUND

       

      *

       

      LONG
BEACH

       

      *

       

      
        
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          9

          
            

          

        

        
          
          

        

      

       

      2.4                      Order
of Precedence

       

      In the
event of a conflict or inconsistency between any of the terms of the following
documents, the following order of precedence shall control:

       

      *

       

      In
resolving any such conflicts, these documents shall be read as a whole and in a
manner most likely to accomplish their purposes.

       

      Either
Party shall promptly report to the other Party in writing any inconsistencies
discovered in these documents, even if the inconsistency is resolvable using the
above rules.

       

      2.5                      Survival

       

      Without
limiting any other survival provision contained herein and notwithstanding any
other provision of this SBP or the GTA to the contrary, the representations,
covenants, agreements and obligations of the Parties set forth in GTA Section
12.3 “Seller’s Claim”, GTA Section 16.0 “Termination or Wrongful Cancellation”,
GTA Section 18.0 “Responsibility for Property”, GTA Section 20.0 ‘ Proprietary
Information and Items”, GTA Section 24.0 “Boeing’s Rights in Seller’s Patents,
Copyrights, Trade Secrets and Tooling”, GTA Section 27.0 “Property Insurance”,
GTA Section 29.0 “Non-Waiver/Partial Invalidity”, this SBP Section 2.5
“Survival”, SBP Section 3.4 “ Type Design and Type Certification Data
Development and Protection” (if applicable), SBP Section 5.0 “Applicable Law”,
SBP Section 29.0 “Insurance”(if applicable), and SBP Section 43.0 “Supplements
and Modifications”(if applicable), shall survive any cancellation, termination
or expiration of this SBP, any assignment of this SBP or any payment and
performance of any or all of the other obligations of the Parties
hereunder.  Termination or cancellation of any part of this SBP shall
not alter or affect any other part of this SBP, which has not been terminated or
cancelled.

       

      2.6                      Electronic
Commerce (“E-Comm”)

       

      During
the period of performance of this Agreement, Seller shall maintain an electronic
trading account with Exostar (www.Exostar.com).

       

      3.0                      PERIOD OF PERFORMANCE AND PRICES

       

      3.1                      Performance

       

      3.1.1                   Period
of Performance

       

      The
period of performance for this SBP shall include initial manufacturing
activities required to support delivery of Products beginning on * and ending on *.

       

      
        
          Table of Contents

        

        
          10

          
            

          

        

        
          
          

        

      

       

      3.1.2                   Option
to Extend

       

      Seller
and Boeing may extend the period of performance of this SBP by mutual written
agreement of both parties.  Boeing and Seller shall endeavor to reach
any such agreement no later than *.

       

      Notwithstanding
the option set forth herein, each Party reserves the right to commence new
negotiations with the other Party concerning pricing and other terms for
additional quantities of Products.

       

      3.2                      Pricing

       

      3.2.1                   Product
Pricing

       

      The
prices of Products ordered under this SBP are set forth in SBP Attachment
1.  Except as otherwise agreed to in writing by the Parties, pricing
as set forth in Attachment 1 shall be the price in effect at the time of the
Product(s) scheduled delivery dates. Prices are in United States
Dollars.

       

      *

       

      The
following shipping term as defined Incoterms 2000, published by the
International Chamber of Commerce, shall govern this contract.

       

      *

       

      In
addition, when the Products will be imported into the United States by way of
aircraft, the Seller has the responsibility of requiring, and ensuring, that the
forwarder/carrier provide, via email, a pre-alert and confirmed on board
notification to Boeing's contracted broker no less than * prior to the shipment
leaving the port of export.  The pre-alert must include a copy of the
completed commercial invoice, the airway bill, flight details, and confirmed on
board information. For identification of Boeing’s contracted broker contact
Boeing Supply Chain Logistics at http://www.boeing.com/companyoffices/doingbiz/flash.html.

       

      3.2.2                      Manufacturing
Configuration

       

      Unit
pricing for each Product or part number shown in SBP Attachment 1 is based on
the latest revisions of the engineering drawings or Specifications at the time
of the signing of this SBP and any amendments thereof.

       

      
        
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          11

          
            

          

        

        
          
          

        

      

       

      3.2.3                    Packaging

       

      The
prices shown in SBP Attachment 1 include all packaging costs that are in
accordance with GTA Section 7.0, “Packing and Shipping”, and Boeing shall pay
charges, if any, for such special instructions or for any amendment to Boeing
Document D37522-6, “Supplier Packaging,” that increases the packaging cost to
Seller. Upon Boeing’s request, Seller will provide discrete packaging costs.
Seller shall package Product in accordance with the requirements of Boeing
Document D37522-6 “Supplier Packaging” as well as the applicable requirements
set forth in the documents referred to in SBP Section 2.3 for the location
issuing the Order.  In the case of shipments of Products in support of
spare requirements,  A.T.A. Specification 300 "Specification for
Packaging of Airline Supplies" shall apply unless otherwise directed by
Boeing.

       

      Seller
shall comply with carrier tariffs.  Unless the Order specifies
otherwise, the price for Products or Services sold are: (i) FOB Seller’s
facility for domestic shipments or (ii) Ex Works Seller’s facility for
international shipments.

       

      3.2.4                   Local
Transportation Devices

       

      Not
Applicable.

       

      3.3                      Subject
Matter of Sale

       

      Subject
to the provisions of this SBP, Seller shall sell to Boeing and Boeing shall
purchase from Seller certain Products as set forth in SBP Attachment
1.

       

      3.4                      Type
Design and Type Certification Data Development and Protection

       

      Not
Applicable.

       

      
        
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          12

          
            

          

        

        
          
          

        

      

       

      3.5                      Reserved

       

       

      3.6                      Export
Compliance

       

       

      3.6.1                  Commercial/Defense
Item Representation

       

       

      With the
exception of those Products specifically identified in SBP Attachment 1A, if
applicable, each Party represents that (i) the Products and the parts and
components thereof, it is providing under this Agreement are not “defense
articles” as that term is defined in 22 C.F.R. § 120.6 of the ITAR and (ii)
the services it is providing under this Agreement are not “defense services” as
that term is defined in 22 C.F.R. § 120.9 of the ITAR.  The
Parties acknowledge that this representation means that an official capable of
binding the Party providing such Items knows or has otherwise determined that
such Items, and the parts and components thereof, are not on the ITAR’s
Munitions List at 22 C.F.R. §121.1.  Each Party agrees to reasonably
cooperate with the other in providing, upon request of the other Party,
documentation or other information that supports or confirms this
representation.  To the extent that such Products, or any parts or
components thereof, were specifically designed or modified for a military end
use or end user, the Party responsible for design of such Items shall notify the
other Party of this fact and shall also provide the other Party with written
confirmation from the United States Department of State that such Products, and
all such parts or components thereof, are not subject to the jurisdiction of the
ITAR.

       

      For those
Products specifically identified in SBP Attachment 1A, each party represents
that such Products are “defense articles” as that term is defined in 22 C.F.R.
§ 120.6 of the ITAR. and (ii) the services it is providing under this SBP
as it relates to those Products set forth in SBP Attachment 1A are “defense
services” as that term is defined in 22 C.F.R. § 120.9 of the
ITAR.  The Parties acknowledge that this representation means that an
official capable of binding the Party providing such Items knows or has
otherwise determined that such Items, and the parts and components thereof, are
on the ITAR’s Munitions List at 22 C.F.R. §121.1.  Each Party agrees
to reasonably cooperate with the other in providing, upon request of the other
Party, documentation or other information that supports or confirms this
representation.

       

      If Seller
is a U.S. company or is subcontracting to a U.S. company for ITAR controlled
work, Seller and/or its subcontractor shall be registered with the U.S.
Department of State in accordance with 22 C.F.R. §122.

       

      3.6.2                  Other
Military Program Requirements

       

       

      To the
extent applicable, for the Product(s) set forth in SBP Attachment 1A, Seller
shall be responsible for complying with the “Offshore Procurement” export
license under 22 C.F.R. § 124.13 included but not limited to the
following:

       

      
        	
                 
      

              	
                A.

              	
                Seller
      shall limit the use of the technical data to the manufacture of the
      defense articles required by this SBP or Order
  only;

              

      

       

      
        
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                B.

              	
                Seller
      shall limit the disclosure of the ITAR controlled data to subcontractors
      within the same country or to subcontractors in other countries as
      specifically authorized under the
license;

              

      

       

      
        	
                 
      

              	
                C.

              	
                Prohibit
      the acquisition of any rights in the data by any foreign
      person;

              

      

       

      
        	
                 
      

              	
                D.

              	
                Require
      the Seller and its suppliers and subcontractor to destroy or return to
      Boeing all of the technical data exported pursuant to this SBP or Order
      upon fulfillment of their terms;

              

      

       

      
        	
                 
      

              	
                E.

              	
                Require
      delivery of the defense articles only to Boeing in the United States (or
      to Seller in case of lower tier
subcontracts);

              

      

       

      
        	
                 
      

              	
                F.

              	
                Identify
      the Product to be produced under the export
  license;

              

      

       

      
        	
                 
      

              	
                G.

              	
                Identify
      the export license number under which the ITAR controlled technical data
      is exported; and,

              

      

       

      
        	
                 
      

              	
                H.

              	
                Seller
      will include the relevant above contract language in their lower tier
      subcontracts if those subcontractors will be receiving the ITAR controlled
      technical data provided by Boeing.

              

      

       

      The
Export Administrator must provide a copy of the relevant portions of the
contract, Order or subcontract to the US Government’s Office of Defense Trade
Controls upon contract award/amendment.  Accordingly upon contract
award or amendment the Procurement Administrator, as defined in the applicable
legislation, must provide the sections of the supplier contract that contain the
above language along with the contract cover page and signature page to the
Export Administrator to be forwarded to the Government.

       

      4.0                      GOVERNING QUALITY ASSURANCE REQUIREMENTS

       

      In
addition to those general quality assurance requirements set forth in the GTA,
the work performed under this SBP shall be in accordance with the requirements
set forth in SBP Attachment 10.

       

      
        
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      5.0                      APPLICABLE LAW

       

      This
Agreement shall be governed by the laws of the State of Washington without
reference to the choice of laws provision thereof  This Agreement
excludes the application of the 1980 United Nations Convention on Contracts for
the International Sale of Goods.  Seller hereby irrevocably consents
to and submits itself exclusively to the jurisdiction of the applicable courts
of King County Washington and the federal courts of Washington State for the
purpose of any suit, action or other judicial proceeding arising out of or
connected with any Order or the performance or subject matter
thereof.  Seller hereby waives and agrees not to assert by way of
motion, as a defense, or otherwise, in any such suit, action or proceeding, any
claim that (a) Seller is not personally subject to the jurisdiction of the
above-named courts, (b) the suit, action or proceeding is brought in an
inconvenient forum or (c) the venue of the suit, action or proceeding is
improper.

       

      6.0                      PRODUCT SUPPORT AND ASSURANCE

       

      6.1                      Warranty

       

      Seller
acknowledges that Boeing and Customers must be able to rely on each Product
performing as specified.  Accordingly, the following provisions,
including documents, if any, set forth below are incorporated herein and made a
part hereof:

       

      *.  Boeing
may, at its option, either * in the same manner and to the same extent as
Products originally delivered under this SBP, but only as to the *
thereof.  Even if the Parties disagree about the existence of a breach
of this warranty, Seller shall promptly comply with Boeing’s direction to:
*  If the Parties later determine that Seller did not breach this
warranty, the Parties shall equitably adjust the Price.  Any claim
against Seller for breach of the foregoing warranty shall be made in writing no
later than * after delivery of such Product by Seller, and after which time any
such claim shall be deemed waived and barred.  Boeing may extend the
warranty period by an additional period of * with written notice to TIMET in the
event Boeing’s titanium inventories are in excess of *.

      

      Notwithstanding
the foregoing, Boeing shall retain the right to seek contribution or indemnity
from Seller, to the extent provided by applicable law, in respect of its payment
for any product liability claim made by Boeing's customers or other third
parties relating to Product purchased by Boeing under the
Agreement.

       

      *

       

      Boeing
may choose initially not to extend the Seller's full warranty of Product to
Customers.  This action shall in no way relieve Seller of any
obligation set forth in the warranty stated above.  Boeing, at its
sole discretion, may extend Seller's full warranty of Product to its Customers
at any time.  Furthermore, Seller agrees to support the Product as
long as any aircraft using or supported by the Product remains in
service.

      

      
        
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      6.2                      Integrated
Materials Management (IMM) Program

       

       

      If
requested by Boeing, Seller shall participate in and support Boeing's Integrated
Materials Management (IMM) Program pursuant to terms and conditions mutually
determined by the Parties that will achieve an efficient and low cost supply
chain infrastructure pursuant to the goals and strategies of the IMM Program as
set forth below:

       

      
        	
                 
      

              	
                A.

              	
                Provide
      a Boeing integrated solution for Customers’ material management
      operations;

              

      

       

      
        	
                 
      

              	
                B.

              	
                Provide
      guaranteed service levels to Customers’ maintenance
      operations;

              

      

       

      
        	
                 
      

              	
                C.

              	
                Reduce
      inventory and process costs with better service levels to
      customers;

              

      

       

      
        	
                 
      

              	
                D.

              	
                Enable
      supply chain and Customers to reduce costs and share
    benefits.

              

      

       

      IMM
on-site functions may be located at Customers’ facilities and may include,
demand planning, inventory management, repair and overhaul services and
replenishment management.  IMM global functions may include, planning
and collaboration, global operations, systems integration, network supplier
management, global logistics management, quality assurance, human resources,
parts/services engineering, finance and accounting, communications, product
development.

       

      

       

      7.0                      PAYMENT

       

       

      7.1                      Recurring
Price

       

       

      Unless
otherwise provided in the applicable Order or written agreement between the
Parties, payment shall be *.

       

      Except as
otherwise provided in the applicable Order identifying pay-from receipt, payment
due dates, including discount periods, shall be computed from (a) the date of
receipt of the Product, (b) the date of receipt of a correct (proper) invoice or
(c) the scheduled delivery date of such Product, whichever is
later.  Unless freight and other charges are itemized, any discount
shall be taken on the full amount of the invoice.  All payments are
subject to adjustment for shortages, credits and rejections.

       

      
        
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      7.2                      Nonrecurring
Price/Special Charges

       

      Unless
otherwise provided in the applicable Order, any Nonrecurring price payable by
Boeing under SBP Attachment 1 will be paid * after receipt by Boeing of both
acceptable Products and a correct invoice and where required, a completed
certified tool list (CTL).

       

      7.3                      Payment
Method

       

      All
payments hereunder shall be made by Automated Clearing House (ACH) electronic
funds transfer payable to the order of Seller.

       

      7.4                      Payment
Errors

       

      If an
error in payment (over payment or under payment) is discovered by Boeing or
Seller, a written notification will be submitted to the other Party and
resolution of the error will occur in a timely manner after discovery of such
error.

       

      7.5                      Spare
Parts

       

       

      Not
Applicable.

       

      8.0                      SCHEDULE ACCELERATION/DECELERATION

       

       

      Notwithstanding
GTA Section 10.0, Boeing may revise the delivery schedule and/or firing order
without additional cost or change to the unit price stated in the applicable
Order if (a) the delivery date of the Product under such Order is on or prior to
the end date of this SBP, if applicable, and (b) Boeing provides Seller with
written notice of such changes.

       

      Upon
receipt of written notice of the change, Seller shall make its best effort to
implement the change as soon as possible, but in no event shall the change be
implemented later than * after notification of schedule acceleration or * after
notification of a schedule deceleration.

       

      

       

      9.0                      NOTICES

       

       

      9.1                      Addresses

       

       

      For all
matters requiring the approval or consent of either Party, such approval or
consent shall be requested in writing and is not effective until given in
writing. Notices and other communications shall be given in writing by personal
delivery, United States mail, express delivery, facsimile, or electronic
transmission addressed to the respective party as follows:

       

      
        
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      To
Boeing:            Attention:
Jeffry L
Melville                                                                Mail
Code: 05-03

                                                                     
Boeing Commercial Airplanes

      P.O. Box 3707

      Seattle,
Washington  98124-2207

       

      

       

      
        	
                 
      

              	
                To
      Seller:

              	
                Titanium
      Metals Corporation

              

      

      
        	
                 
      

              	
                Attn:
      Boeing Account Manager

              

      

      
        	
                 
      

              	
                14281
      Franklin Ave

              

      

      
        	
                 
      

              	
                Tustin,
      CA 92780

              

      

      

      
        	
                 
      

              	
                cc:

              	
                Titanium
      Metals Corporation

              

      

      
        	
                 
      

              	
                Attn:
      V.P. & General Counsel

              

      

      
        	
                 
      

              	
                3
      Lincoln Cntre

              

      

      5430 LBJ Freeway, Suite
1700

      
        	
                 
      

              	
                Dallas,
      Texas 75240-2697

              

      

       

      

       

      10.0                      OBLIGATION TO PURCHASE AND SELL

       

       

      Boeing
and Seller agree that in consideration of the prices set forth under Section 1.0
of SBP Attachment 1, Boeing shall issue Orders for Products from time to time to
Seller, and Boeing shall purchase, and Seller shall sell, in each calendar year
*.  Such Products shall be shipped at any scheduled rate of delivery,
as determined by Boeing, and Seller shall sell to Boeing Boeing's requirements
of such Products, provided that, without limitation on Boeing's right to
determine its requirements, Boeing shall not be obligated to issue any Orders in
excess of *:

       

      *

      

       

      For
purposes of this SBP Section 10.0, Boeing is defined as those organizations,
divisions, groups or entities set forth specifically in SBP Attachment
1.

       

      Seller
represents and warrants to Boeing that *.

       

      11.0                      COST AND PERFORMANCE VISIBILITY

       

       

      Subject
to the limitations set forth in GTA Section 9.0, Examination of Records, when
requested by Boeing, Seller shall provide * at the Seller's facility in support
of cost and performance reviews performed by the Parties pursuant to cost
reduction initiatives as set forth in SBP Section 12.6.  Such data,
where applicable may be submitted in the format set forth in Boeing Form X30674,
“Supplier Price Reduction Proposal (SPRP)”.

       

      
        
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      The Cost
and Performance Review (CPR) process is the tool, which the Parties will use to
measure Seller’s performance to the goals and objectives of Boeing as set forth
in SBP Section 12.6.  Boeing and Seller shall implement a structured
process called CPR to review and identify areas, processes and strategies to
improve, reduce or eliminate costs and/or improving cycle times for the
Product(s) set forth in this SBP.  The CPR process will address those
activities, which are a direct result of both Parties
involvement.  Seller will provide the resources and data sufficient to
support the CPR process in accordance with the structure set forth in SBP
Attachment 9.

       

      12.0                      CHANGE PROVISIONS

       

      12.1                      Reserved

       

      12.2                      Computation
of Equitable Adjustment

       

      The Rates
and Factors set forth in SBP Attachment 3, which by this reference is
incorporated herein, shall be used to determine the equitable adjustment, if
any, (including equitable adjustments, if any, in the prices of Products to be
incorporated in Derivative Aircraft), to be paid by Boeing pursuant GTA Section
10.0 for each individual change.

       

      12.3                      Obsolescence

       

      Seller
may not submit a claim for obsolete material or Product in its possession
resulting from an individual change order or termination that has a total claim
value of * or less.

       

      12.4                      Change
Absorption (Nonrecurring/Recurring)

       

      Not
Applicable

       

      12.5                      Planning
Schedule

       

      No later
than *, (forecast dates) of each year, Boeing will provide Seller with
*  In accordance with the current practice between the Parties, *,
Seller will provide Boeing with the * which report shall contain * are subject
to adjustment or change as required by Seller’s
business.  *.

       

      12.6                      Total
Cost Management

       

      Boeing
and Seller shall engage in a process herein known as Total Cost Management
(TCM).  Boeing and Seller shall each identify cost reduction
opportunities and work together for implementation.  Boeing and Seller
shall review TCM opportunities on a periodic basis, which shall include the
establishment of targets and implementation plans.  Where Boeing and
Seller identify TCM cost improvements, beyond those previously anticipated,
identified and documented in the price, the Parties will determine the amount of
savings that will result from the improvements and share the
savings.  Notwithstanding any other provision(s) elsewhere in this
SBP, where a savings is identified as part of TCM, the Parties agree to reduce
the price accordingly including any related Spares work statement priced
pursuant to this SBP.  Seller suggestions disapproved by Boeing may be
given consideration in achievement of TCM targets.

       

      
        
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      12.6.1                   Boeing
Generated Technical and Cost Improvement

       

      At any
time during the Seller's performance under this SBP, Boeing may offer specific
recommendations to Seller for the incorporation of any new technologies and
process improvements intended to reduce Seller's costs or improve Product
performance.  These recommendations may include, but are not limited
to, Boeing Proprietary Information and Materials and Boeing owned
patents.  Notwithstanding any other provision(s) elsewhere in this
Agreement, where a savings is identified and documented, the Parties agree to
reduce the price accordingly.  Such recommendations by Boeing shall
not relieve Seller of its obligation to perform under this
Agreement.

       

      12.7                      Reserved

       

      12.8                      Critical
Manufacturing Reorder Lead-Time

       

      Not
Applicable.

       

      12.9                      Derivative
Aircraft

       

      Boeing
may, but is not obligated to direct Seller within the scope of the applicable
Order and in accordance with the provisions of GTA Section 10.0 to supply
Boeing's requirements for Products for Derivative aircraft which correspond to
those Products being produced under the applicable Order.  For
purposes of this SBP Section, Derivative Aircraft means any model airplane
designated by Boeing as a derivative of an existing model airplane and which:
(1) has the same number of engines as the existing model airplane; (2) utilizes
essentially the same aerodynamic and propulsion design, major assembly
components, and systems as the existing model airplane; (3) achieves other
payload/range combinations by changes in body length, engine thrust, or
variations in certified gross weight; (4) has the same body cross-section as the
subject model aircraft; and (5) is designated as a Derivative to the FAA by
Boeing. A Derivative does not include any subject model aircraft, which has been
or was currently in production as of the date of execution of this SBP.
Furthermore, Boeing reserves the right to extend application of the above
Products and prices to other aircraft models as required.

       

      13.0                      SPARES AND OTHER PRICING

       

      13.1                      Spares

       

      For
purposes of this SBP Section, the following requirements and definitions shall
apply:

       

      
        	
                 
      

              	
                A.

              	
                AIRCRAFT
      ON GROUND (AOG) - means the highest Spares priority.  Seller
      will expend best efforts to provide the earliest possible shipment of any
      Spare designated AOG by Boeing.  Such effort includes but is not
      limited to working twenty-four (24) hours a day, seven days a week and use
      of premium transportation.  Seller shall specify the delivery
      date of any such AOG Spare within * of receipt of an AOG Spare
      request.

              

      

       

      
        
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                B.

              	
                DEMAND
      DATE – means the date provided to Seller by Boeing as to when Boeing wants
      the Product(s) on-dock.  Seller will provide a commitment to
      Boeing no later than * from notification of demand
  date.

              

      

       

      
        	
                 
      

              	
                C.

              	
                SELLER’S
      FULL LEADTIME SPARE - means a Spare in which the Demand Date is equal to
      or greater than Seller’s normal lead-time or the Demand Date is less than
      Seller’s normal lead-time but Seller’s best effort commitment is Seller’s
      normal lead-time.

              

      

       

      
        	
                 
      

              	
                D.

              	
                SELLER’S
      LESS THAN FULL LEADTIME SPARE - means a Spare in which the Demand Date is
      less than Seller’s normal lead-time and Seller’s best effort commitment to
      meet the Demand Date is less than Seller’s normal
  lead-time

              

      

       

      
        	
                 
      

              	
                E.

              	
                PURCHASED
      ON ASSEMBLY REQUIREMENT (POA) - means any detail component needed to
      replace a component on an End Item Assembly currently in Boeing's assembly
      line process.  Seller shall expend best efforts to provide the
      earliest possible delivery of any Spare designated as POA by
      Boeing.  Such effort includes but is not limited to working
      twenty-four (24) hours a day, seven days a week and use of premium
      transportation.  Seller shall specify the delivery date of any
      such POA within * of a POA request.

              

      

       

      
        	
                 
      

              	
                F.

              	
                IN-PRODUCTION
      SPARE - means any Spare which is in the current engineering configuration
      for the Product and is used on a model aircraft currently being
      manufactured by Boeing at the time of the
Order.

              

      

       

      
        	
                 
      

              	
                G.

              	
                NON-PRODUCTION
      SPARE - means any Spare which is used on model aircraft no longer being
      manufactured by Boeing (Post Production) or is in a non-current
      engineering configuration for the Product (Out of
    Production).

              

      

       

      
        	
                 
      

              	
                H.

              	
                BOEING
      PROPRIETARY SPARE - means any Spare, which is manufactured (i) by Boeing,
      or (ii) to Boeing's detailed designs with Boeing's authorization or (iii)
      in whole or in part using Boeing's Proprietary Information and
      Materials.

              

      

       

      13.1.1                                Spares
Support

       

      Seller
shall provide Boeing with a written Spares support plan describing Seller's
process for supporting AOG commitments and manufacturing support.  The
plan must provide Boeing with the name and number of a twenty-four (24) hour
contact for coordination of AOG requirements.

       

      Seller
shall notify Boeing as soon as possible via fax, telecom, or as otherwise agreed
to by the Parties of each AOG requirement shipment. Such notification shall
include time and date shipped, Order, method of transportation and air bill if
applicable.  Seller shall also notify Boeing immediately upon the
discovery of any delays in shipment of any requirement and identify the earliest
revised delivery dates possible.

       

      
        
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      13.1.2                                Reclassification
or Re-exercises

       

      Boeing
may instruct Seller to re-prioritize or reclassify an existing requirement in
order to improve or otherwise change the established shipping
schedule.  Seller shall expend the effort required to meet the revised
requirement as set forth above in the definitions of the
requirements.  Seller's commitment of a delivery schedule shall be
given in accordance with that set forth above for the applicable classification
but in no case shall it exceed * from notification by Boeing.

       

      13.1.3                                Spare
Pricing

       

      Except as
set forth in subsections 13.1.3.1 and 13.1.3.2 below, the price for Boeing
Spare(s) shall be the same as the production price for the Products as listed on
SBP Attachment 1, in effect at the time the Spare(s) are ordered, subject to
Boeing’s responsibility for all additional costs, if any, resulting from a Spare
request.

       

      13.1.3.1                        Aircraft on Ground (AOG) and
Purchased On Assembly (POA) Requirement

       

      The price
for AOG and POA requirements shall be the price for such Products listed on SBP
Attachment 1 in effect when such Spares are scheduled for delivery, subject to
Boeing’s responsibility for all additional costs, if any, resulting from such
AOG and POA Spare request.

       

      13.1.3.2                           
Seller’s Less Than Lead-time Spare

       

      The price for Seller’s Less Than
Lead-time Spare shall be the price for such Products listed on SBP Attachment 1
in effect when such Spares are scheduled for delivery, subject to Boeing’s
responsibility for all additional costs, if any, resulting from such less than
Lead-time Spare request. 

       

      13.2                                  
Expedite of Production Requirements

       

      Any
expedite charges to be paid for short flow production requirements shall be
pre-approved by the Procurement Representative.  Seller shall provide
data to verify expedite charges. If Seller fails to meet their committed
delivery, Boeing shall not be obligated to pay the agreed upon
amount.

       

      13.3                                  
Tooling

       

       

      13.3.1                                Responsible
Party

       

      Not
Applicable.

       

       

      
        
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      13.3.2                                Boeing
Furnished Tooling

       

       

      Not
Applicable.

       

      13.3.3                                Additional
Tooling Requirement

       

      Not
Applicable.

       

      13.3.3.1                             Title
to Tooling

       

       

      Not
Applicable.

       

      13.3.3.2                             Use
and Disposition of Tooling

       

       

      Not
Applicable.

       

      13.3.3.3                             Accountability
for Tooling

       

       

      Not
Applicable.

       

      13.3.3.4                            
Certified Tool Lists

       

       

      Not
Applicable.

       

      13.4                                   
Pricing of Boeing's Supporting Requirements

       

       

      Any
Products required to assist Boeing's supporting requirements, including but not
limited to requirements for test requirements, factory support, and Spares will
be provided for not more than the applicable price as set forth in SBP
Attachment 1.

       

      13.5                                   
Pricing of Requirements for Modification or Retrofit

       

       

      13.5.1                                Boeing
Responsibility or Regulatory Requirement

       

       

      Any
Products required by Boeing to support a modification or retrofit program which
results from a regulatory requirement or which Boeing may be liable for the cost
associated with such program shall be provided to Boeing at a price not more
than the applicable price as set forth in SBP Attachment 1.

       

      13.5.2                               Contract
Aftermarket Modification or Retrofit Work Performed by Boeing

       

       

      Any
Products required by Boeing to support modification or retrofit programs, which
Boeing performs under contract, shall be provided for not more than the
applicable price as set forth in SBP Attachment 1.

       

      
        
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      13.6                      Pricing
of Similar Products

       

       

      New
Products ordered by Boeing that are similar to or within Product families of
Products currently being manufactured by Seller shall be priced using the same
methodology or basis as that used to price the existing Product(s).

       

      

       

      
        	
                14.0

              	
                STATUS
REPORTS/REVIEWS

              

      

       

      14.1                      General
Reports / Reviews

       

      When
requested by Boeing, Seller shall update and submit, as a minimum, monthly
status reports or data requested by Boeing using a method mutually agreed upon
by Boeing and Seller. Boeing has the right to impose more frequent reporting on
Seller to achieve program objectives.

       

      When
requested by Boeing, Seller shall provide to Boeing a manufacturing milestone
chart identifying the major purchasing, planning and manufacturing operations
for the applicable Product(s).

       

      Program
reviews will be held at Seller’s facility or Boeing’s facilities as requested by
Boeing.  The topics of these reviews may include, but not be limited
to, raw material and component part status, manufacturing status, production
status, Seller’s current and future capacity assessments, Boeing supplied
components, inventory, Boeing’s requirements, changes, forecasts and other
issues pertinent to Seller’s performance under this SBP.  Reviews will
allow formal presentations and discussion of status reports as set forth
above.

       

      Formal
management reviews shall be held periodically by Boeing and Seller to evaluate
total cost performance (including overhead, man-hours (production and
support)).  Subject to GTA Section 9.0, Examination of Records, during
these reviews, Seller shall present and provide actual cost performance data
with respect to this SBP.

       

      

       

      14.2                      Diversity
Reporting

       

      Seller
shall report to Boeing on a quarterly basis, starting from the effective date of
this Special Business Provision (SBP) or amendment, all payments made to one or
more of the following business categories:

       

      Small
Businesses (which includes small disadvantaged businesses (SDB) small minority
business enterprises and small women business enterprises),

       

      Minority
Business Enterprises (MBE) (which includes small/large minority business
enterprises and small/large disadvantaged businesses),

       

      
        
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      Women
Business Enterprises (WBE) (which includes small/large women business
enterprises)

       

      Report
the dollars and the percentage of the contract price paid Seller to date on the
form identified in SBP Attachment 11.  The Seller will download the
form from The Boeing Company website and email the completed form to:
SMPdiversitystrategy@boeing.com and copy the procurement agent.

       

      Directions
to the Boeing Commercial Airplanes (BCA) Second Tier Report form:

       

      
        	
                 
      

              	
                A.

              	
                Click
      on the following link:  http://www.boeing.com/companyoffices/doingbiz/esd/links.html

              

      

       

      
        	
                 
      

              	
                B.

              	
                Find
      "Boeing Commercial Airplanes Supplier Diversity and click on and download
      the Second Tier Report (Form X32993)"   Instruct Seller to
      put "Second Tier Reporting form" in the email's subject
    line.

              

      

       

      Where a
2nd tier
supplier of Seller meets the requirements of a particular business category it
is permissible for the Seller to report that supplier under more than one
business category.   For example: a woman business enterprise may
also be reported under a small business concern.  Or a small business
may also meet the requirements of small minority business, small disadvantage
business and small woman business.  If you have questions contact your
Supplier Diversity Specialist.

       

      
        	
                14.3

              	
                Program
      Manager

              

      

       

      Seller
will assign a program manager whose responsibility will be to oversee and manage
Seller's performance hereunder.  The assignment of such program
manager will be subject to Boeing's prior approval of such Person's
resume.

       

      14.4                      Certified
Tool List

       

      Not
Applicable.

       

      14.5                      Problem
Reports

       

      Seller
shall provide a detailed report, notifying Boeing of program problems/issues
that could impact Seller’s ability to deliver Products on time and otherwise in
conformance with the terms of the Agreement.  The report shall contain
a detailed description of the problem, impact on the program or affected tasks,
and corrective/remedial action, with a recovery schedule.  Submittal
of a report in no way relieves Seller of any obligations under the Agreement nor
does it constitute a waiver of any rights and remedies Boeing may have with
respect to any default.

       

      
        
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      Problem
reports shall be submitted to the Procurement Representative within * of known
problem to Seller. Where problems arise prior to a normal status reporting date,
Seller shall report said events *.  Status reports shall include, but
are not limited to, the following topics:

       

      
        	
                 
      

              	
                A.

              	
                Delivery
      schedule updates, schedule impact issues and corrective
      action;

              

      

       

      
        	
                 
      

              	
                B.

              	
                Technical/manufacturing
      progress since the previous report period, including significant
      accomplishments, breakthroughs, problems and
  solutions;

              

      

       

      
        	
                 
      

              	
                C.

              	
                Identification
      of changes to key manpower or staffing
levels;

              

      

       

      
        	
                 
      

              	
                D.

              	
                Identification
      of the critical events/activities expected within the next month and a
      discussion of potential risk
factors;

              

      

       

      
        	
                 
      

              	
                E.

              	
                Progress
      on open Action Items, including closure
dates;

              

      

       

      
        	
                 
      

              	
                F.

              	
                Purchased
      components and raw material status;

              

      

       

      
        	
                 
      

              	
                G.

              	
                Identification
      of Quality issues and resolutions;

              

      

       

      
        	
                 
      

              	
                H.

              	
                Manufacturing
      and Quality inspection progress of First Article
  products;

              

      

       

      
        	
                 
      

              	
                I.

              	
                Status
      on tool design and fabrication, as applicable, until
      completion;

              

      

       

      
        	
                 
      

              	
                J.

              	
                Inventory
      status of castings and forgings procured by Seller (if
      applicable).

              

      

       

      14.6                      Reserved

       

      
        	
                15.0

              	
                INDUSTRIAL
      PARTICIPATION 

              

      

       

      15.1                      Market
Access and Sales Support

       

      Seller
agrees to work with Boeing *.  Boeing and Seller agree
*.  With respect to work covered by this SBP, and if directed by
Boeing, Seller agrees *.  Such direction may occur at any time during
the performance of this SBP.  Although not required to do so, Seller
may *.  If Seller is directed by Boeing *. Boeing shall respond within
* on whether Seller is to proceed.

       

      15.2                      Offset
Assistance

       

      Seller
shall cooperate with Boeing *.  In the event that Seller is either
directed by Boeing, or on its own *.  Seller shall take
*.  Seller shall document on SBP Attachment 2 *.  Seller
shall provide to Boeing an updated copy of SBP Attachment 2 for the
*.  The reports shall be submitted on the *. If Seller is directed by
*.

       

      
        
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      15.3                      Credit
against Aircraft Sales

       

       

      Not
Applicable

       

      16.0                      BOEING FURNISHED MATERIAL/SUPPLIER BANKED MATERIAL

       

       

      16.1           Boeing
Furnished Material

       

       

      Material,
including but not limited to raw material, standards, detail components and
assemblies, furnished to Seller by Boeing shall be administered in accordance
with a Bonded Stores Agreement between Boeing and Seller.

       

      Seller
shall provide Boeing with required on-dock dates for all
material.  Seller's notice shall provide Boeing with sufficient time
to competitively acquire the material if, in its sole and absolute discretion,
it desires to do so.

       

      

       

      *

       

      17.0                      PARTICIPATION

       

      17.1                      Other
Boeing Entities and Licensees

       

      Seller
agrees that *.  Seller agrees that *.  Seller shall notify
the Boeing Procurement Representative named in SBP Section 9.0 of
*.

       

      17.2                      Boeing
Subcontractors/Suppliers

       

      Seller
agrees that *.  Seller agrees * used under this SBP.  Boeing
*.  Seller agrees that *.  Seller may request
*.  Seller shall periodically inform the Procurement Representative of
*.

       

      17.3                      Notification
of Contract

       

      In the
event a purchaser known by Seller to be a * covered by this SBP but *, Seller
shall notify Boeing’s Procurement Representative of * from the Boeing
Procurement Representative regarding the manner in which * shall be
handled.

       

      17.4                      Notification
of Price Reductions

       

      If Seller
is * that results in *, Seller agrees to notify the Boeing Procurement
Representative immediately of * and shall extend * to this SBP.

       

      18.0                      INVENTORY AT CONTRACT COMPLETION

       

      
        
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      Not
Applicable.

       

      19.0                      OWNERSHIP OF INTELLECTUAL PROPERTY 

       

       

      Not
Applicable.

       

       
 

       

      20.0                      ADMINISTRATIVE AGREEMENTS

       

      Administrative
Agreements are used for administrative matters not specifically addressed
elsewhere and set forth-certain obligations of the Parties relating to the
administration of each Order.  The Administrative Agreements, if any,
are identified and incorporated in SBP Section 2.3.

       

      21.0                      GUARANTEED WEIGHT REQUIREMENTS

       

       Not
Applicable.

       

      22.0                      SELLER DATA REQUIREMENTS

       

       Not
Applicable.

       

      23.0                      DEFERRED PAYMENT

       

       Not
Applicable.

       

      24.0                      SOFTWARE PROPRIETARY INFORMATION RIGHTS

       

       Not
Applicable.

       

      25.0                      CONFIGURATION CONTROL

       

       Not
Applicable.

       

      26.0                      INFRINGEMENT

       

      Seller
will indemnify, defend, and hold harmless Boeing and its Customers from all
claims, suits, actions, awards (including, but not limited to, awards based on
intentional infringement of patents known at the time of such infringement,
exceeding actual damages, and/or including attorneys' fees and/or costs),
liabilities, damages, costs and attorneys' fees related to the actual or alleged
infringement of any United States or foreign intellectual property right
(including, but not limited to, any right in a patent, copyright, industrial
design or semiconductor mask work, or based on misappropriation or wrongful use
of information or documents) and arising out of the manufacture, sale or use of
Products by either Boeing or its Customers.  Boeing and/or its
Customers will duly notify Seller of any such claim, suit or action; and Seller
will, at its own expense, fully defend such claim, suit or action on behalf of
Boeing and/or its Customers.  Seller shall have no obligation under
this SBP Section 26.0 with regard to any infringement arising from: (i) Seller's
compliance with formal specifications, other than specifications which reflect
one or more industry standards in which event this exception (i) shall not
apply, issued by Boeing where infringement could not be avoided in complying
with such specifications or (ii) use or sale of Products for other than their
intended application.  For purposes of this SBP Section 26.0 only, the
term Customer shall not include the United States Government; and the term
Boeing shall include The Boeing Company and all Boeing subsidiaries and all
officers, agents, and employees of Boeing or any Boeing subsidiary. *.

       

      

      
        
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      27.0                      RAW MATERIAL PROGRAM

       

      27.1                      Boeing
Raw Material Strategy

       

       

      Not Applicable.

       

      

       

      28.0                      DIGITIZATION OF PROPRIETARY INFORMATION AND
MATERIALS

       

      Each
Party grants to the other Party, a license under Seller’s copyrights for the
purpose of converting Proprietary Information and Materials to a digital format
(“Digital Materials”) and make such Digital Materials available to its employees
for company internal use through a computer data base
system.   Except as otherwise specifically agreed to in writing
by the Parties, said license set forth hereunder shall survive termination or
cancellation of this SBP relative to Digital Materials included in Boeing’s
computer data base system prior to receipt of such notice of termination or
cancellation.

       

      
        	
                29.0

              	
                INSURANCE

              

      

       

       

      29.1                      Indemnification
Negligence of Seller or subcontractor

       

      Not
Applicable.

       

      29.2                      Commercial
General Liability

       

      Not
Applicable.

       

      29.3                      Automobile
Liability

       

      Not
Applicable.

       

      29.4                      Workers’
Compensation

       

      Not
Applicable.

       

      
        
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      29.5                      Certificates
of Insurance

       

      Not
Applicable.

       

      29.6                      Self-Assumption

       

      Not
Applicable.

       

      29.7                      Protection
of Property

       

      Not
Applicable.

       

      
        	
                30.0

              	
                BOEING TECHNICAL / MANUFACTURING ASSISTANCE REGARDING
      SELLER’S NONPERFORMANCE

              

      

       

      Seller
shall reimburse Boeing for all Boeing resources expended in providing Seller
and/or Seller’s subcontractors or supplier’s technical or manufacturing
assistance in resolving Seller nonperformance issues at the established Boeing
internal wage rate, which shall include fringe benefits, multiplied by the
estimated hours recorded by Boeing, plus the estimated Material costs associated
with providing such assistance. In addition, Seller shall, at Boeing's request,
pay for normal and customary expenses relating to salaries, living expenses,
travel and any other reasonable expenses related to the provision of technical
or manufacturing services.  Such reimbursement may be offset against
any pending Seller invoice, regardless of Boeing model or
program.  Boeing’s rights under this clause are in addition to those
available to Boeing for Seller’s nonperformance issues, including those where a
demand for an Adequate Assurance of Performance may be made under GTA Section
17.0.

       

      31.0                      INTERNATIONAL CONTRACT PROVISIONS

       

      31.1                      Packing,
Shipping and Transportation Requirements

       

      In
addition to the provisions set forth in GTA Section 7.0 and SBP Section 2.3,
Seller shall comply with the requirements set forth in Attachment
5.

       

      31.2                      U.
S. Customs Invoice Requirements

       

      Customs
and Border Protection (CBP) requires a commercial invoice for all imports into
the U.S.  A commercial invoice is one prepared by the Seller or
Shipper of the Products and contains sufficient information for Customs to
determine the value, tariff classification, and admissibility of an import
shipment.

       

      A
commercial invoice is normally a document accompanying the import shipment. In
many instances, it is a copy of the same financial invoice being used by Boeing
to pay the Seller. The invoice can be a commercial or invoice generated
specifically for the purpose of declaring the import shipment to Customs,
particularly in the case of non-purchased goods.

       

      Each
commercial invoice of imported merchandise shall set forth the information
identified in Attachment 12 to this SBP.

       

      
        
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      31.3                      Duty
Free /Special Tariff Programs / Free Trade Agreements

       

      In
addition to the required commercial invoice, packing list and bill of lading,
Seller shall provide the following documentation to support any duty free,
special tariff programs or free trade agreements as applicable prior to shipping
to the United States.

       

      
        	
                 
      

              	
                A.

              	
                North
      American Free Trade Act – Original or Blanket NAFTA Certificate
      of      Origin

              

      

       

      
        	
                 
      

              	
                B.

              	
                Civil
      Aircraft Agreement – Qualification statement,
  affidavit

              

      

       

      
        	
                 
      

              	
                C.

              	
                Generalized
      System of Preferences – GSP
declaration

              

      

       

      
        	
                 
      

              	
                D.

              	
                Israeli
      Free Trade Act – Form A

              

      

       

      
        	
                 
      

              	
                E.

              	
                Caribbean
      Basin Economic Recovery Act – CBI
declaration

              

      

       

      
        	
                 
      

              	
                F.

              	
                Caribbean
      Basin Trade Sellership Act – CBI
declaration

              

      

       

      
        	
                 
      

              	
                G.

              	
                African
      Growth Opportunity Act Qualification statements,
  affidavits

              

      

       

      
        	
                 
      

              	
                H.

              	
                Chilean
      Free Trade Act – CFTA declaration

              

      

       

      
        	
                 
      

              	
                I.

              	
                Jordan
      Free Trade Act – JFTA declaration

              

      

       

      
        	
                 
      

              	
                J.

              	
                Singapore
      Free Trade Act – SFTA declaration

              

      

       

      
        	
                 
      

              	
                K.

              	
                Australian
      Free Trade Act – AFTA declaration

              

      

       

      The facts
contained in the documentation shall be verified by the Seller and originally
signed by the verifying official who has direct knowledge of the facts contained
in the documentation.

       

      If a
blanket certificate is issued, the information shall be revised accordingly
whenever changes occur and the document shall be verified on an annual basis by
the Seller and resubmitted to the Boeing on an annual basis during the life of
the agreement.

       

      31.4                      No
Contributions, Fees and Commissions

       

      Seller
will not directly or indirectly authorize, promise, offer or make any payment,
gift or contribution to any person, organization, government, government
representative, political party or organization that would constitute or appear
to constitute a bribe, kickback, or other illegal payment under any applicable
law, including the U.S. Foreign Corrupt Practices Act, either during or after
termination of the Agreement.  In addition, Seller will not directly
or indirectly authorize, promise, offer or make any political contributions as
defined in 22 CFR 130.6 or any fees or commissions as defined in 22 CFR
130.5.

       

      
        
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                31.5

              	
                Gifts,
      Gift Foods, Promotional Items, Unsolicited Items and Personal
      Effects

              

      

       

       

      Seller
shall not include any gifts, gift foods, promotional items, (i.e. pens,
t-shirts, souvenirs, posters, magazines, recorded music and movies, etc.,)
unsolicited items or any other personal effects inside the packages or
containers of any procured item.  Only items properly procured on the
purchase contract shall be shipped to Boeing.  Unmanifested or
uninvoiced items which are not properly documented may cause delays in customs
clearance. Certain commodities may require additional customs, other government
agency forms and filing requirements.

       

      32.0                      STRATEGIC ALIGNMENT

       

      Not
Applicable.

       

      
        	
                33.0

              	
                UNITED STATES CUSTOMS AND BORDER PROTECTION’S CUSTOMS-TRADE
      PARTNERSHIP AGAINST TERRORISM
(C-TPAT)

              

      

       

      
        	
                 
      

              	
                 

              

      

      C-TPAT is
an initiative between business and government to protect global commerce from
terrorism and increase the efficiencies of global transportation.  The
program calls for importers, carriers and brokers to establish policies to
enhance their own security practices and those of their business partners
involved in their supply chain.  Such practices may include but are
not limited to the following:

       

      Procedural
Security –Procedures in place to protect against unmanifested material being
introduced into the supply chain–

       

      Physical
Security –Buildings constructed to resist intrusion, perimeter fences, locking
devices, and adequate lighting;

       

      Access
Controls –Positive identification of all employees, visitors and
suppliers;

       

      Personnel
Security –Employment screening, background checks and application
verifications;

       

      Education
and Training Awareness –Security awareness training, incentives for
participation in security controls;

       

      Seller
agrees to work with Boeing and appropriate industry and governmental agencies,
as necessary, to develop and implement policies and processes consistent with
the C-TPAT initiative to ensure the safe and secure transport of Products under
this SBP.

      
 

      
        
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                34.0

              	
                SAFETY, HEALTH AND ENVIRONMENTAL
  AFFAIRS

              

      

       

      
        	
                34.1

              	
                Environmental
      Management Systems and Health Safety Management
  Systems

              

      

       

      Seller
shall implement an environmental management system (“EMS”) meeting the
requirements of International Standards Organization (ISO) 14001 with respect to
its performance under this SBP.  The EMS shall be certified and
registered by an independent auditing body, and a copy of the certification
shall be provided to Boeing.  Seller shall promptly notify Boeing of
any change to its EMS’s certification or registration status.  Seller
shall include these requirements in each of its subcontractor and supplier
contracts in support of the performance of Seller’s obligations under this
Agreement, as well as the requirements of GTA Section 21.1 (Compliance with
Laws).

       

      Seller
shall implement a health and safety management system (“HSMS”) with respect to
its performance under this SBP.  Seller shall include this requirement
in any of its subcontractor and supplier contracts in support of the performance
of Seller’s obligations under this Agreement, as well as the requirements of GTA
Section 21.1 (Compliance with Laws).

       

      In no
event, shall this SBP section 34.1 be construed to grant Boeing the power to
direct or cause the direction of the management or policies of Seller, or any of
its subcontractors or suppliers.

       

      34.2                      Compliance
with Boeing On-Site Requirements

       

      In the
event Seller or Seller’s subcontractor(s) or supplier(s) perform any aspect of
Seller’s work under this Agreement involving activities potentially creating
environmental or safety issues, including but not limited to manufacturing
activities, on property owned, operated, leased, or controlled by Boeing
(hereinafter "On-Site Work"), Seller shall comply with Attachment 13 "Safety
Health and Environmental Terms and Conditions Supplement for Work At or Within
the Vicinity of a Boeing Facility," with respect to that work.  This
requirement shall not apply to work performed on property owned or leased by
Boeing and leased or subleased by Boeing to Seller or a subcontractor or
supplier of Seller, except to the extent that Boeing employs are, or are
expected to be, regularly or repeatedly involved in conjunction with employees
of Seller, its subcontractor(s) or supplier(s) in activities potentially
creating environmental or safety issues, including but not limited to
manufacturing activities, at such leased property.  Seller shall
include these requirements in each of its subcontractor and supplier contracts
in support of the performance of Seller’s obligations under this Agreement, as
well as the requirements of GTA Section 21.1 (Compliance with
Laws).

       

      In the
event that Seller or Seller’s Subcontractor(s) or supplier(s) perform any aspect
of Seller’s work under this Agreement involving activities potentially creating
environmental or safety issues, including but not limited to manufacturing
activities, within 20 miles of any property owned, operated, leased, or
controlled by Boeing, Seller shall comply with the provisions of section 4
(Compliance and Cooperation Regarding Orders, Permits and Approvals and
Applicable Laws) of Attachment 13 "Safety, Health and Environmental Terms and
Conditions Supplement for Work At or Within the Vicinity of a Boeing Facility,"
with respect to that work.

       

      
        
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      34.3                      Reserved

       

      35.0                      Reserved

       

      36.0                      Reserved

      
 

       

      37.0                      Reserved

       

       

       

      38.0                      Reserved

       

      39.0                      Reserved

       

      40.0                      Reserved

       

      40.2                      Reserved

       

      41.0                      Reserved

       

      42.0                      Reserved

       

      43.0                      Reserved

       

      44.0                      Reserved

       

      45.0                      Reserved

       

      46.0                      Reserved

       

      47.0                      Reserved

       

      48.0                      Reserved

       

      49.0                      ELECTRONIC COMMUNICATIONS

       

      Any
electronic communications and data exchange via telecommunications between the
parties shall be pursuant to the Administrative Agreement.  Provided,
that any amendments to the SBP, change authorizations and any other matter
requiring written authorization shall be communicated in writing and not solely
by electronic communication.

       

      Any
electronic access to Boeing by Seller shall be pursuant to an electronic access
or similar agreement.

       

      

      
        
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      50.0                      RESTRICTIONS ON LOBBYING

      

      50.1                      Applicability

      

      SBP
Section 50.0 applies to all Sellers, domestic and foreign if:

      

      Seller’s
Product is sold by Boeing, individually or incorporated into another product
such as an Aircraft, to  a Customer who finances the purchase of the
Product or product with a direct loan from the Export-Import Bank of the United
States (“Direct Loan”), and

      

      The
shipset price of the Product, combined with the shipset prices of any other
items sold to Boeing by Seller which are incorporated into the product sold to
the Customer, exceeds $100,000 U.S.

      

      50.2                      Certification

      

      Boeing
will notify Seller in writing if it believes the conditions of 50.1 are met and
the below described certificate and disclosure form are required.  If
applicable, Boeing will also identify the Aircraft being financed.

      

      Upon
receipt of such notice, Seller will execute an “Anti-Lobbying Certificate”
substantially in the form of Attachment Y to this SBP and, if applicable,
Standard Form-LLL, “Disclosure Form to Report Lobbying.”  (a copy of
the form can be found at
http://www.ahrq.gov/downloads/pub/rfp010003/lobbying.pdf)

      

      Seller
will provide the executed certificate to the Boeing Procurement
Representative.  Also, Seller will forward to the Boeing Procurement
Representative any originals of the Standard Form-LLL received by Seller from
its subcontractors of any tier promptly upon Seller’s receipt.

      

      50.3                      Flow
Down

      

      With
respect to any Direct Loan, the substance of this SBP 50 shall apply to all of
Seller’s suppliers of any tier who supply items with a shipset price exceeding
$100,000 U.S.  Seller agrees to incorporate the substance of SBP 50,
including this subsection 50.3, in all applicable subcontracts.

      
        
          
             

          

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      EXECUTED
in duplicate as of the date and year first set forth above by the duly
authorized representatives of the Parties.

       

      

       

      

      BOEING                                                                                                                                                   
SELLER

      

      

      THE
BOEING
COMPANY                                                                                                                    
TITANIUM METALS CORPORATION

      

      
        	
                Signature:
      /s/ Jeffry L Melville

              	
                Signature:/s/
      James Buch

              
	
                Printed
      Name: Jeffry L Melville

              	
                Printed
      Name: James Buch

              
	
                Title:
      Procurement Agent

              	
                Title:
      Vice President – Commercial

              
	
                Date:  November
      12, 2009

              	
                Date:
      November 12, 2009

              

      

      

      
        
          
             

          

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      SBP
ATTACHMENT 1 TO

      SPECIAL
BUSINESS PROVISIONS

      

      WORK STATEMENT AND
PRICING

      (Reference SBP Section
3.0)

      

      FOR
PURPOSES OF SBP Section 10.0, Boeing shall be deemed to refer to and include the
following organizations, divisions, groups or entities:

      

      Boeing
Commercial Aircraft, a division ofThe Boeing Company, Chicago, IL

      

                                                                      *                    

      

      

      

      

      

      

      

      

      

      

      
        
          
                                                                                          

          

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      SBP
ATTACHMENT 1A TO

      SPECIAL
BUSINESS PROVISIONS

      

      

      Reserved

       

       

       

       

      
        
          
             

          

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      SBP
ATTACHMENT 2 TO

      SPECIAL
BUSINESS PROVISIONS

      

      NON-U.S. PROCUREMENT REPORT
FORM

      (Seller
to Submit)

      (Reference
SBP Section 15.2)

      

      
        	
                Seller
      Name

              	
                Country

              	
                Commodity/

                Nomenclature

              	
                Bid

                Dollars

              	
                Contracted

                Dollars

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

      

      
        
          
             

          

          Table of Contents

        

        
          39

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 3 TO

      SPECIAL
BUSINESS PROVISIONS

      

      RATES AND
FACTORS

      (Reference
SBP Section 12.2)

      Not
Applicable.

       

       

       

      
        
          
             

          

          Table of Contents

        

        
          40

          
            

          

        

        
          
          

          
             

          

        

      

      

      SBP
ATTACHMENT 4 TO

      SPECIAL
BUSINESS PROVISIONS

      

      BOEING AOG
COVERAGE

      (Reference SBP Section
13.1.1)

      

      
        	
                1⁄4

              	
                NORMAL
      HOURS BOEING’S PROCUREMENT
REPRESENTATIVE

              

      

      Approximately 5:30 a.m. - 6:00
p.m.

      

      
        	
                 
      

              	
                þ

              	
                Performs
      all functions of procurement
process.

              

      

      
        	
                 
      

              	
                þ

              	
                Manages
      formal communication with Seller.

              

      

      

      
        	
                1

              	
                SECOND
      SHIFT - AOG PROCUREMENT SUPPORT

              

      

      3:00 p.m. - 11:00 p.m.

      

      
        	
                 
      

              	
                þ

              	
                May
      place order and assist with commitment and shipping information, working
      with several suppliers on a priority
basis.

              

      

      

      
        	
                 
      

              	
                þ

              	
                Provides
      a communication link between Seller and
Boeing.

              

      

      

      
        	
                )

              	
                24
      HOUR AOG SERVICE - AOG CUSTOMER REPRESENTATIVE (CUSTOMER SERVICE DIVISION)
      (206) 662-7200

              

      

      

      
        	
                 
      

              	
                þ

              	
                Support
      commitment information particularly with urgent
  orders.

              

      

      

      
        	
                 
      

              	
                þ

              	
                Customer
      Service Representative needs (if
available):

              

      

      

      
        	
                 
      

              	
                1.

              	
                Part
      Number

              

      

      
        	
                 
      

              	
                2.

              	
                Boeing
      Purchase Order

              

      

      
        	
                 
      

              	
                3.

              	
                Airline
      Customer & customer purchase order
number

              

      

      
        	
                 
      

              	
                4.

              	
                Boeing
      S.I.S. #

              

      

      

      If Seller
is unable to contact any of the above, please provide AOG shipping information
notification via FAX using Boeing AOG shipping notification form (SBP Attachment
5).

      

       

      
        
          Table of Contents

        

        
          41

          
            

          

        

        
          
          

        

      

       

       

      SBP
ATTACHMENT 5 TO

      SPECIAL
BUSINESS PROVISIONS

      

      

      BOEING

      AOG SHIPPING
NOTIFICATION

      (Reference SBP Section
13.1.1)

      

      

      
        	
                To:  FAX:

              	
                (206)
      662-7145

              	
                Phone:

              	
                (206)
      662-7200

              
	
                Procurement
      Rep. Name:

              	 
      	
                Phone:

              	 
      
	
                From:

                 

              	 
      	
                Today’s
      Date:

              	 
      
	 
      	 
      	 
      	 
      
	
                Part
      Number:

              	 
      	
                Customer
      P.O.:

              	 
      
	
                Customer:

                 

              	 
      	
                Ship
      Date:

              	 
      
	
                Qty
      Shipped:

                 

              	 
      	
                *SIS
      Number:

              	 
      
	
                Boeing
      P.O.:

              	 
      	
                Pack
      Sheet:

                 

              	 
      
	
                *Airway
      Bill:

              	 
      	
                or
      Invoice:

                 

              	 
      
	
                Carrier:

              	 
      	
                *Flight
      #:

                 

              	 
      
	
                Freight
      Forwarder:

              	 
      	 
      	 
      

      

      

      *If
Applicable

      

      

      SHIPPED
TO:

      
        	
                þ

              	
                (check
      one)

              

      

      

      
        	
                o

              	
                Boeing

              

      

      

      
        	
                o

              	
                Direct
      Ship to Customer

              

      

      

      
        	
                o

              	
                Direct
      Ship to Seller

              

      

      

      Remarks:

      

      

      

      

      

      

      If unable
to contact Procurement Representative, Please use this form to fax shipping
information.

      

      
        
          
            
               

            

          

          Table of Contents

        

        
          42

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 6 TO

      SPECIAL
BUSINESS PROVISIONS

      

      SELLER
DATA SUBMITTALS

      

      Diversity
Reports

      Not
Applicable.

      

      Problem
Reports (as required)

      Seller’s
written notification to Boeing of program problems, potential program impact and
corrective action.  Refer to SBP Section 14.5 for
details.

      

      AOG Spares Support
Plan

      Not
Applicable.

      

      Non-U.S.
Procurement Reporting (as required)

      A report,
submitted in February and August annually, to document the Seller's contracts
and solicitations with non-U.S. subcontractors or suppliers, relating to the
work covered by this SBP.  Refer to SBP Section 15.2 for
details.

      

      Certified Tool
List

      Not
Applicable.

       
 

      General
Reports (as requested by Boeing)

      General
reports may include, but not be limited to, Seller’s program progress reports,
highlighting significant accomplishments and critical program issues, Seller’s
manufacturing schedule depicting key milestone events to support program
requirements.   Refer to SBP Section 14.1 for
details.

      

      

      
        
          
             

          

          Table of Contents

        

        
          43

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 7 TO

      SPECIAL
BUSINESS PROVISIONS

      

      

      

      SUPPLIER DATA REQUIREMENTS
LIST (“SDRL”)

      CUSTOMER AND
ENGINEERING

      (Reference
SBP Section 22.0)

      

      

      Not
Applicable.

       

       

       

      
        
          
             

          

          Table of Contents

        

        
          44

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 8 TO

      SPECIAL
BUSINESS PROVISIONS

      

      

      

      COMMODITY LISTING AND TERMS
OF SALE

      (Reference
SBP Section 27.0)

      

      COMMODITY
LISTING

      

      

      Titanium
–

      

      All
titanium mill products for which pricing is provided in Attachment 1 to the SBP
including *.

       

       

       

      
        
          
             

          

          Table of Contents

        

        
          45

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 8 TO

      SPECIAL
BUSINESS PROVISIONS

      CONTINUED

       

      TERMS OF
SALE

      (Reference SBP Section
27.0)

       

      Not
Applicable.

       

       

       

      
        
          
             

          

          Table of Contents

        

        
          46

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 9 TO

      SPECIAL
BUSINESS PROVISIONS

      

      (use this SBP Attachment if
11.0 optional paragraph is used)

      COST PERFORMANCE
REVIEWS

      (Reference
SBP Section 11.0)

       

      (OPTION
A)

       

      Cost
Performance Reviews (CPR’s) will occur on as needed basis (alternating between
Seller and Boeing locations unless otherwise agreed) at a mutually agreeable
time.   The detail of the CPR’s will be defined at a later date
by mutual agreement between Boeing and Seller.   When they are
defined, this SBP Attachment 9 will be updated.

       

       

       

      
        
          
             

          

          Table of Contents

        

        
          47

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 10 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

       

      QUALITY
ASSURANCE REQUIREMENTS

       

      A10.1                      Quality
System

       

      All work
performed under this SBP shall be in accordance with the following:

       

      
        	
                 
      

              	
                A.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                B.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                C.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                D.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                E.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                F.

              	
                Document
      D6-82479, "Boeing Quality Management System Requirements for Suppliers -
      Appendix A - Quality Management System" as amended from time to time,
      which is incorporated herein and made a part hereof by this
      reference.

              

      

       

      
        	
                 
      

              	
                G.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                H.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                I.

              	
                Not
      Applicable

              

      

       

      
        	
                 
      

              	
                J.

              	
                Not
      Applicable

              

      

       

      
        	
                A10.2

              	
                Common
      Quality Purchasing Data and Business
  Requirements

              

      

       

      A10.2.1                      *

       

      A10.2.2                      Change
in Quality Management Representative

       

      The
Seller shall promptly notify Boeing of any changes in the management
representative with assigned responsibility and authority for the quality
system

       

      A10.2.3                      English
Language

       

      When
specifically requested by Boeing, Seller shall make specified quality data
and/or approved design data available in the English language.

       

      The
Seller shall maintain an English language translation of (1) its quality manual,
and (2) an index of all other Seller procedures that contain quality
requirements.  Boeing may require the Seller to translate additional
documentation.

       

      
        
          Table of Contents

        

        
          48

          
            

          

        

        
          
          

        

      

       

      A10.2.4                      Changes
to Quality System

       

      The
Seller shall immediately notify Boeing in writing of any change to the quality
control system that may affect the inspection, conformity or airworthiness of
the Product.  After the issue of initial Boeing quality system
approval, each change to the quality control system is subject to review by
Boeing.

       

      A10.2.5                      Change
in Manufacturing Facility

       

      The
Seller shall immediately notify Boeing in writing of any change to the
manufacturing facility location of the contracted part number or
assembly.

       

      A10.2.6                      Excess
Inventory

       

      The
Seller shall strictly control all inventory of Boeing proprietary product that
is in excess of contract quantity in order to prevent product from being sold or
provided to any third party without prior written authorization from
Boeing.

       

      A10.2.7
Aerospace Quality Management System (AQMS) Certification

       

      Boeing
recognition of Seller’s AQMS certification/registration does not affect the
right of Boeing to conduct audits and issue findings at the Seller’s
facility.  Boeing reserves the right to provide Boeing-identified
quality system findings, associated quality system data, and quality performance
data to the Seller’s Certification /Registration Body (CRB).

       

      
        	
                 
      

              	
                Seller
      shall ensure the following relative to AQMS
  certification:

              

      

       

      
        	
                A10.2.7.1

              	
                Accreditation
      of Certification/Registration Body

              

      

       

      The
certification/registration body (CRB) is accredited to perform aerospace quality
management system (AQMS) assessments.  The CRB must use approved
auditors and operate in accordance with the corresponding International
Aerospace Quality Group (IAQG) certification/registration scheme.

       

      
        	
                NOTE:

              	
                IAQG
      sanctioned certification/registration schemes include but are not limited
      to AIR 5359, SJAC 9010, TS157, etc.  Reference IAQG website for
      listing of accredited CRBs:  http://www.iaqg.sae.org/servlets/index?PORTAL_CODE=IAQG

              

      

       

      
        	
                A10.2.7.2

              	
                Records
      of Certification/Registration

              

      

       

      
        
          Table of Contents

        

        
          49

          
            

          

        

        
          
          

        

      

       

      The
seller maintains objective evidence of CRB certification/registration on file at
Seller’s facility.  Objective evidence shall include:

       

      
        	
                 
      

              	
                A.

              	
                The
      accredited AQMS certificate(s) of
registration;

              

      

       

      
        	
                 
      

              	
                B.

              	
                The
      audit report(s), including all information pertaining to the audit results
      in accordance with the applicable certification/registration
      scheme;

              

      

       

      
        	
                 
      

              	
                C.

              	
                Copies
      of all CRB finding(s), objective evidence of acceptance of corrective
      action(s), and closure of the
finding(s).

              

      

       

      
        	
                 
      

              	
                NOTE:

              	
                Certification
      records shall be maintained in accordance with Boeing specified
      contractual quality record retention
  requirements.

              

      

       

      A10.2.7.3                 Right
of Access to CRB

       

      The CRB
services agreement provides for “right of access” to all CRB records by Boeing,
applicable accreditation body, applicable Registrar Management Committee (RMC)
and other regulatory or government bodies for the purpose of verifying CRB
certification/registration criteria and methods are in accordance with the
applicable IAQG certification/registration scheme.

       

      A10.2.7.4                Audit
Results/Data Reporting to IAQG

       

      The CRB
has Seller’s written permission to provide audit results/data to IAQG membership
as required by the applicable IAQG certification/registration
scheme.

       

      
        	
                A10.2.7.5

              	
                Notification
      to Boeing of Change in Status

              

      

       

      Boeing is
immediately notified in writing should the Seller’s certification/registration
be suspended or withdrawn, or accreditation status of Seller’s CRB is
withdrawn.  Send email notification to grpcrboversightrep@boeing.com
..

       

      
        	
                A10.2.7.6

              	
                Provision
      of Boeing Quality Data to CRB

              

      

       

      Boeing-identified
findings and Seller’s quality performance data is provided to the CRB during
certification/registration and surveillance activity.

       

      
        	
                A10.2.7.7

              	
                CRB
      Access to Proprietary Data

              

      

       

      CRB shall
be provided access to applicable proprietary data (including Boeing proprietary
data) to the extent necessary to assess Seller’s compliance to AQMS
requirements.  CRB shall agree to keep confidential and protect Boeing
proprietary information under terms no less stringent than Seller’s contractual
agreement with Boeing. Seller will assure that such information is conspicuously
marked “BOEING PROPRIETARY”.

       

      
        
          Table of Contents

        

        
          50

          
            

          

        

        
          
          

        

      

       

      
        	
                A10.2.7.8

              	
                Seller
      Compliance with CRB Requirements

              

      

       

      Seller
complies with all CRB requirements imposed to issue and maintain
certification/registration.

       

      
        	
                A10.2.8

              	
                Verification
      of Corrective Action

              

      

       

      When
Boeing notifies Seller of a detected nonconformance, Seller shall immediately
take action to eliminate the nonconformance on all products in Seller’s
control.  Seller shall also maintain on file verification that root
cause corrective action has occurred and has resolved the subject
condition.  At the specific request of Boeing, this verification shall
occur for the next * shipments after implementation of the corrective action to
ensure detected nonconformance has been eliminated.  Boeing reserves
the right to review the verification data at Seller’s facility or have the data
submitted to Boeing.

       

      A10.2.9                      Corrective
Action Report

       

      Where
Seller is requested to submit a corrective action report, Seller will submit its
response within * of receipt of such request unless an extension is otherwise
provided by Boeing. Any corrective action report submitted to Boeing shall be in
the format specified by Boeing. If after submittal to Boeing, Seller determines
need for revision, Seller shall immediately notify Boeing of such
revision   In the event Seller is unable to respond within the
allotted ten day time frame, Seller shall submit a request for extension which
shall include the reason for the extension request and the time need to complete
the corrective action report.

       

      
        	
                A10.2.10

              	
                Relocation/Subcontract
      Notification (Puget Sound only)

              

      

       

      The
Seller shall not relocate or subcontract any Category I or II work outside the
U.S. (unless such relocation is to another entity or facility owned or
controlled by Seller that is approved by Boeing’s Quality System) without
written Boeing acceptance. Notification to Boeing should be made to the
Procurement Agent who manages the Seller's contract and shall contain the
subcontractor name, address, telephone number, QA manager name, applicable part
numbers, and part descriptions.  Category I and II work is defined in
FAA Order 8120.2, Appendix 4.

       

      
        	
                A10.2.11

              	
                Quality
      Metrics & Reporting

              

      

       

      When
requested by Boeing, Seller agrees to work with Boeing to develop and implement
processes designed at improving Seller’s quality performance.  Process
will include sufficient detail to allow Boeing to evaluate Seller’s
progress

       

      A10.3                      Site
Unique Quality Purchasing Data Requirements

       

      A10.3.1                      Acceptance/Rejection
of Seller’s Root Cause/Corrective Action

       

      
        
          Table of Contents

        

        
          51

          
            

          

        

        
          
          

        

      

      
 

      Boeing
reserves the right to reject any root cause and/or corrective action
determination provided by the Seller, and may request subsequent investigation
and/or corrective action to either Boeing or Seller-initiated corrective action
requests.  If the Seller is late in responding to corrective action
requests by Boeing, or if Boeing requires subsequent corrective action, Boeing
reserves the right to withhold acceptance of shipments either at source or
destination until Seller corrective action is submitted to Boeing’s
satisfaction

      

      A10.3.2                   Seller
Inspection Responsibilities For Delegated Inspection Authority

       

      If Seller
fails to achieve and maintain * on the terms required by the contract between
Seller and Boeing, which is a prerequisite for delegated inspection authority
awarded at Boeing’s discretion, the Seller shall be responsible for one or more
of the following as directed by Boeing:

       

      
        	
                 
      

              	
                A.

              	
                Obtaining
      source inspection from a Boeing-qualified contractor at Seller’s own
      expense;

              

      

       

      
        	
                 
      

              	
                B.

              	
                Reimbursing
      Boeing for reasonable Boeing costs incurred at the point of manufacture
      (i.e. Seller’s site) to verify product
  conformance;

              

      

       

      
        	
                 
      

              	
                C.

              	
                Reimburse
      Boeing for reasonable Boeing costs incurred at the point of receipt to
      verify product conformance.

              

      

       

      
        	
                
                  *

                

              	
                 

              

      

       

      
        	
                A10.3.3

              	
                Not
      Applicable

              

      

       

      
        	
                A.10.4

              	
                Incorporated
      by Reference

              

      

       

      In
addition to any other documents incorporated elsewhere in this SBP or GTA by
reference, Seller is required to maintain compliance with the following
documents as may be revised from time to time, and incorporated herein, and made
a part of this SBP by reference with full force and effect, as if set out in
full text:

       

      
        	
                A10.4.1

              	
                Document
      AS/EN/SJAC 9102, “Aerospace First Article Inspection (FAI)
      Requirement”

              

      

       

      Seller
shall perform First Article Inspections (FAIs) in accordance with AS/EN/SJAC
9102.

       

      
        	
                A10.4.2

              	
                Boeing
      Document D1-8007, “Approval Guide for Supplier Statistical Sampling
      Plans”

              

      

       

      A Seller
that performs acceptance sampling shall meet the requirements of document
D1-8007 or other mutually agreed sampling plan.  Boeing approval of
Seller’s acceptance sampling plan is required prior to performing acceptance
sampling when it is used for in-process or final inspection, and employs
continuous sampling or repetitive lot sampling.  Subsequent revisions
to approved sampling plans require Boeing approval prior to
implementation.  Prior Boeing approval of a sampling plan is not
required if it is used exclusively for receiving inspection, or employs only
isolated lot sampling during in-process or final inspection.

       

      
        
          Table of Contents

        

        
          52

          
            

          

        

        
          
          

        

      

       

      When
statistical process control is used as an option for either in-process or final
inspection, Seller shall satisfy the requirements of document AS/EN/SJAC 9103,
Variation Management of Key Characteristics.

       

      In all
cases, inspection requirements identified by engineering drawing or
specification take precedence over the inspection requirements defined
herein.

       

      
        	
                A10.4.3

              	
                Boeing
      Document D6-51991, “Quality Assurance Standard for Digital Product
      Definition (DPD) at Boeing
Suppliers”

              

      

       

      

      Boeing
document D6-51991, "Quality Assurance Standard for Digital Product Definition at
Boeing Suppliers".  When Type Design Digital Product Definition (DPD)
data is utilized in manufacturing, inspection and subtier flowdown of product
definition, Seller shall have a quality system to control Type Design DPD data
to the extent necessary to fulfill program requirements.  Seller must
obtain Boeing DPD capability approval.

       

      A10.4.4                      Boeing
Document D1-4426, "Approved Process Sources"

       

      This
document defines the approved sources for special processing, composite raw
materials, composite products, aircraft bearings, designated fasteners, and
metallic raw materials.

       

      
        	
                A10.4.5

              	
                Boeing
      Document D-13709-4, “Requirements for Obtaining MRB Authority by Boeing
      Suppliers”

              

      

       

      Seller
shall not use dispositions of use-as-is or repair on Boeing-designed product
unless current revision of Seller’s Material Review Board (MRB) plan complies
with D-13709-4 and has been approved by Boeing.

      

       

      A10.4.6                      Not
Applicable

       

      
        	
                A10.4.7

              	
                Not
      Applicable

              

      

       

      A10.4.8                      Not
Applicable

      
For
complete text of notes, access via Boeing Partners Network (BPN) or contact
Procurement Representative.

      
 

      
        
          
             

          

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      SBP
ATTACHMENT 11 TO

       

      SPECIAL
BUSINESS PROVISIONS

      When
Required.

      Boeing
Commercial Airplanes (BCA) SECOND TIER SUPPORT REPORT (Reference SBP Section
14.2)

      
        	
                Seller
      Name:

              	
                  Date:

              
	
                Seller
      Contact:                                                                                                         Phone:

              
	
                BCA
      Procurement Representative
      Contact:                                                                           Phone:

              
	
                BCA
      Purchase Contract #:

              
	
                Reporting
      Period
      *              Jan
      – Mar           Apr
      – Jun          July -
      Sept               Oct
      – Dec

              	
                Year:

              
	
                Definitions
      **

              
	
                Small
      Business (SB)

              	
                The
      term "small business" shall mean a small business as defined pursuant to
      section 3 of the Small Business Act (15 U.S.C.A. 632) and relevant
      regulations issued pursuant thereto.  Generally, this means a
      small business organized for profit, it is independently owned and
      operated, is not dominant in the field of operations in which it is
      bidding, and meets the size standards as prescribed in Government
      regulations.  (Includes SDBs, SMBEs and
WOSBs)

              
	
                Small
      Disadvantaged business (SDB)

              	
                A
      small business certified by the U.S. Small Business Administration as a
      socially and economically small disadvantaged business for consideration
      of Government set-a-side contracting opportunities and business
      development.  (Inc. SDBs who are women-owned)

              
	
                Small
      Minority Business Enterprise (SMBE)

              	
                A
      small business that is at least 51 percent owned, operated and controlled
      by a minority group member (Asian, Black, Hispanic, and Native Americans);
      or, in the case of a publicly-owned business, at least 51% of the stock is
      owned by one or more minority group members and such individuals control
      the management and daily operations.  (Includes
      SDBs)

              
	
                Women-owned
      Small Business (WOSB)

              	
                A
      small business concern that is at least 51 percent owned by one or more
      women; or, in the case of any publicly owned business, at least 51 percent
      of the stock is owned by one or more women; and whose management and daily
      business operations are controlled by one or more
      women.  (Includes WOSBs who are also SDBs)

              
	
                Contract
      Dollars Received by Seller

              
	
                A.

              	
                Boeing
      Commercial Airplanes contract dollars received by seller for the above
      reporting period* (report in whole numbers):        $________________________________

              
	
                Value
      of Subcontract 2nd
      Tier Dollars Awarded

                (for
      Boeing Commercial Airplanes Purchase Contracts ONLY)

              
	
                Diversity
      Category

              	
                Reporting
      Period (see above*)

              
	
                Dollars

                (report
      in whole numbers)

              	
                Percent
      of

                Seller
      Dollars

              
	
                B.

              	
                Small
      Business (SB)

              	 
      	
                (B
      ÷ A)

              
	
                C.

              	
                Small
      Minority Business Enterprise (SMBE)

              	 
      	
                (C
      ÷ A)

              
	
                D.

              	
                Women-owned
      Small Business (WOSB)

              	 
      	
                (D
      ÷ A)

              

      

       

      
        
          Table of Contents

        

        
          54

          
            

          

        

        
          
          

        

      

       

      
      

      
        	
                Authorized
      Company Representative (Print):

              	
                Authorized
      Company Representative
      (Signature):           Date:

              

      

       

      SBP
ATTACHMENT 12 TO

      SPECIAL
BUSINESS PROVISIONS

      (Reference
SBP Section 31.0)

      
        For
Imports into the United States

      

       

      
        	
                 
      

              	
                a.

              	
                Record
      the United States Port of
      Entry where merchandise is to be cleared by
  CBP

              

      

       

      
        	
                 
      

              	
                b.

              	
                Quantities,
      weights and measures

              

      

       

      
        	
                 
      

              	
                i.

              	
                Record
      the quantity of each item in the
shipment

              

      

       

      
        	
                 
      

              	
                ii.

              	
                If
      not separately noted on packing sheet(s) include on invoice
    :

              

      

       

      
        	
                 
      

              	
                ·

              	
                Total
      quantity of parts being shipped

              

      

       

      
        	
                 
      

              	
                ·

              	
                Provide
      net weight of each part number and gross weight of entire
      shipment

              

      

       

      
        	
                 
      

              	
                ·

              	
                Specify
      unit of measure being used

              

      

       

      
        	
                 
      

              	
                ·

              	
                Specify
      the total number of boxes included per packing
  sheet.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Textiles
      must specify the net gross weights and the length, width and total square
      meters of material.

              

      

       

      

       

      
        	
                 
      

              	
                c.

              	
                Provide
      a detailed description of each item being shipped to ensure proper product
      classification per the Harmonized Tariff Schedule (HTS) and must include
      at a minimum:

              

      

       

      
        	
                 
      

              	
                i.

              	
                The
      full name by which each item is
known

              

      

       

      
        	
                 
      

              	
                ii.

              	
                Part
      Number as appears on Purchase Order/Contract.  If the item is a
      raw material, provide the material grade, class and
      dimensions.

              

      

       

      Notes:

       

      
        	
                 
      

              	
                ·

              	
                Generic
      descriptions, abbreviations, acronyms, and Stock Keeping Unit (SKU)
      numbers are not acceptable.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Boeing
      may request additional description information for items that do not have
      a Boeing part number and or design.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Seller
      will provide material class, grade, dimensions and assembly components if
      part is manufactured by Seller’s own manufacturing
    drawings.

              

      

      
        
          
             

          

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      SBP
ATTACHMENT 12 TO

      SPECIAL
BUSINESS PROVISIONS

      CONTINUED

      
        Commercial
Invoice Requirements (Customs Invoice)

        For
Imports into the United States

      

       

      
        	
                 
      

              	
                d.

              	
                Country
      of Origin: indicate the country of manufacture of each
    item.

              

      

       

      
        	
                 
      

              	
                e.

              	
                Terms
      of Sale: Specify the International Commercial Terms of Sale (Incoterms) as
      agreed to per the Boeing Contract on the invoice or Boeing Work
      Authorization.

              

      

       

      
        	
                 
      

              	
                f.

              	
                Specify
      “Related Party to the Boeing Company” status (Yes or No) on the
      invoice.

              

      

       

      
        	
                 
      

              	
                g.

              	
                Commercial
      Invoice Number (Seller’s option)

              

      

       

      
        	
                 
      

              	
                h.

              	
                Page
      numbers are required for each invoice (example: ____ of ____
      pages).

              

      

       

       

      
        	
                 
      

              	
                2.

              	
                Commercial
      Invoice Valuation Requirements

              

      

       

      
        	
                 
      

              	
                a.

              	
                Must
      be complete and accurate, including the unit cost of each part and the
      total value of the entire shipment.

              

      

       

      
        	
                 
      

              	
                b.

              	
                Currency
      on all invoices must reflect the actual currency of the purchase contract
      and the transaction of money between the buyer and the
    seller.

              

      

       

      
        	
                 
      

              	
                c.

              	
                List
      separately any Assists and/or additional costs used for manufacturing each
      part.  For example:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Assists:
      Any components, materials, dies molds and tools that are supplied by
      Boeing free of charge or at a reduced cost to the Seller, and used in the
      production of imported goods.  This includes any Boeing paid
      transportation costs associated with the assist.  These
      transportation costs will be provided by the procurement focal responsible
      for this merchandise.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Engineering
      and Design work – Work that is performed outside the U.S. by non-U.S.
      employees, and is not included in the unit price of the merchandise being
      imported.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Packing
      Costs – Costs for packing that are incurred by the Boeing and have not
      been included in the unit cost.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Non-recurring
      charges – One time charges, incurred by the Boeing, for such items as,
      expedite fees and transportation costs, which have not been included in
      the unit cost.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Selling
      Commissions – Commissions incurred by Boeing that have not been included
      in the unit cost.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Royalties
      – Fees the Boeing is required to pay as a condition of
    sale.

              

      

      
        
          
             

          

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      SBP
ATTACHMENT 12 TO

      SPECIAL
BUSINESS PROVISIONS

      CONTINUED

      
        Commercial
Invoice Requirements (Customs Invoice)

        For
Imports into the United States

      

       

      
        	
                 
      

              	
                d.

              	
                List
      all discounts that have been agreed to, or may be allowed, that apply to
      the purchase price or value, but have not been included in the unit price
      (Terms of Payment).

              

      

       

      
        	
                 
      

              	
                e.

              	
                Repaired
      or modified parts – separately enter the value of the item and the value
      of the repair on the invoice.  For “no charge” repair show the
      value of the repair on invoice.

              

      

       

      
        	
                 
      

              	
                f.

              	
                If
      Seller receives any rebates, drawbacks or bounties, as a result of
      exportation, please itemize and provide
  description.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Packing
      Sheet\slip (if used by supplier)

              

      

       

      
        	
                 
      

              	
                a.

              	
                Include
      packing sheet\slip number(s) on
invoice

              

      

       

      
        	
                 
      

              	 

      

       

      
        	
                 
      

              	
                4.

              	
                US
      Government Programs Only (Regardless of Business
  Units)

              

      

       

      
        	
                 
      

              	
                a.

              	
                If
      a government contract applies, the prime contract number must be noted on
      the commercial invoice.  Additionally, the following government
      contract statement needs to be shown as follows for Military
      Programs.

              

      

       

       

      
        	
                 
      “Uni

              	
                ted
      States Dept. of Defense Duty-Free Entry to be claimed pursuant to Section
      XXII, Chapter 98, Sub-chapter VIII, item 9808.00.3000 of the Harmonized
      Tariff Schedules to The United States. Upon arrival of shipment at the
      port of entry, District Director of Customs, please release shipment under
      Section 19 CFR Part 142 and notify Commander, Defense Contract Management
      Area Operations (DCMAO) New York, for execution of customs forms and any
      required duty free entry
certificates.”

              

      

       

      
        	
                 
      

              	
                b.

              	
                Commercial Invoice must show that
      the shipment is consigned to a U.S. Government Agency (i.e.: U.S.
      Department of Defense) in “care of Boeing”, if shipment has a prime
      contract number.

              

      

       

      
        	
                 
      

              	
                c.

              	
                If
      items were exported on a license or exemption upon importation, that
      license or exemption information should be notated as
    follows:

              

      

       

      
        	
                 
      

              	
                Example: “Originally exported
      under DSP-XX license number XXXXXX” or  “Imported under
      22 CFR XXXXX”

              

      

      

      
        
          
             

          

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      SBP
ATTACHMENT 13 TO

      SPECIAL
BUSINESS PROVISIONS

      

      On Site
Terms and Conditions Supplement

      (Reference
SBP Section 29.8)

      

      Not
Applicable.

       

      
        
          
             

          

          Table of Contents

        

        
          58

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 14 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

      

      PRODUCTION
ARTICLE DELIVERY SCHEDULE

      (Reference
SBP Section 2.1, GTA Sections 4.0 & 7.0)

       

      

      

      Not
Applicable                                                      

      

      
        
          
             

          

          Table of Contents

        

        
          59

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 15 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

      PRODUCTION
ARTICLE DEFINITION AND CONTRACT CHANGE NOTICES

      (Reference
SBP Section 3.3.2.1)

       

      

      

      

      Not Applicable

      
        
          
             

          

          Table of Contents

        

        
          60

          
            

          

        

        
          
          

          
             

          

        

      

      

        SBP
ATTACHMENT 16 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

      

      NON-RECURRING AND RECURRING PRICE STATUS AND
SUMMARY TABLES

      (Reference
SBP Section 12.2)

       

      

       

       Not
Applicable

       

       

      
        
          
             

          

          Table of Contents

        

        
          61

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 17 TO

      SPECIAL
BUSINESS PROVISIONS

      

       

      Reserved

      
        
          
             

          

          Table of Contents

        

        
          62

          
            

          

        

        
          
          

          
             

          

        

      

       

      SBP
ATTACHMENT 18 TO

       

      SPECIAL
BUSINESS PROVISIONS

       

      

       

      INDENTURED
PRICED PARTS LIST AND SPARES PRICING

       

      

      Not
Applicable

       

      
        
          
             

          

          Table of Contents

        

        
          63

          
            

          

        

        
          
          

          
             

          

        

      

      

      SBP
ATTACHMENT 19 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

      INCREMENTAL
RELEASE PLAN AND LEAD TIMES

      (Reference
SBP Section 44.0)

      

      

      Not
Applicable

      

      

      
        
          
             

          

          Table of Contents

        

        
          64

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 20 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

      

      Reserved

      

      
        
          
             

          

          Table of Contents

        

        
          65

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 21 TO

      SPECIAL
BUSINESS PROVISIONS

       

      

      

      Seller’s
Standard Stocked Items

      (Reference
SBP Section 10.0.Q)

      

      
        	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              	
                *

              

      

      

      

      

      *

      
        
          
             

          

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          66

          
            

          

        

        
          
          

          
             

          

        

      

      SBP
ATTACHMENT 22 TO

      SPECIAL
BUSINESS PROVISIONS

      

      Seller’s
Traditional Shipping Locations

      (Reference
SBP Section 3.2.1)

      

      
        	
                *

              	
                *

              	
                *

              
	
                *

                *

                *

                *

              	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

                *

                *

                *

              	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

                *

                *

                *

              	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

                *

                *

              	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

                *

                *

              	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              
	
                *

              	
                *

              	
                *

              
	
                *

                *

              	
                *

              	
                *

              
	
                *

              	
                *

              

      

      

      
        
          
             

          

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      SBP
ATTACHMENT 23 TO

      SPECIAL
BUSINESS PROVISIONS

      

      

      ANTI-LOBBYING
CERTIFICATE

      

       ________,
20__

      

      

      Export-Import
Bank of the United States

      811
Vermont Avenue, N.W.

      Washington,
D.C.  20571

      Attention:  Operations
& Data Quality Division

      

      

      
        	
                 
      

              	
                Subject:

              	
                Ex-Im
      Bank Credit No. _______ - [Name of
Country]

              

      

      [Name of Borrower]
("Borrower")

      Anti-Lobbying Certificate

      

      Ladies
and Gentlemen:

      

      The undersigned certifies, to the best
of his or her knowledge and belief, that:

      

      (1)           No
Federal appropriated funds have been paid or will be paid, by or on behalf of
the undersigned, to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or employee
of Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal contract, the making of any Federal grant, the making of
any Federal loan, the entering into of any cooperative agreement and the
extension, continuation, renewal, amendment or modification of any Federal
contract, grant, loan or cooperative agreement.

      

      (2)           If
any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of Congress or an
employee of a Member of Congress in connection with this Federal contract,
grant, loan or cooperative agreement, the undersigned shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying" in accordance with its
instructions.

      

      (3)           The
undersigned shall require that the language of this certification be included in
the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans and cooperative agreements) and
that all subrecipients shall certify and disclose accordingly.

       

      
        
          Table of Contents

        

        
          68

          
            

          

        

        
          
          

        

      

      
 

      This certification is a material
representation of fact upon which reliance was placed when this transaction was
made or entered into.  Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section
1352, Title 31, U.S. Code.  Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.

      

      Titanium Metals
Corporation

      

      

      By:_______________________________________

       (Signature of Authorized
Representative)1

      

      

      Name:_____________________________________

      (Print)

      

      

      Title:____________________________________

      (Print)

      

      

      Address2_________________________________

               _________________________________

      

      

      

       

      
        	 	 

      

       

        
        1This
Certificate must be signed by the President, Chief Executive Officer (if
different) and/or Chief Financial Officer, and/or by any other authorized
officer(s) of the undersigned.  Execution of this certificate
constitutes a representation that the signer(s) are fully authorized to do so on
behalf of the undersigned.  Any person who makes a false
representation to Ex-Im Bank may be subject to fine and/or imprisonment pursuant
to 18 U.S.C. §1001.  The undersigned agrees that, upon request, it
will provide Ex-Im Bank with evidence of authority with respect to the person(s)
signing this certificate.

      

      
         

        2Include
Zip Code of company facility that produced the Item.

         

        

      

      
        
          
             

          

          Table of Contents

        

        
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      SBP
ATTACHMENT 24 TO

      SPECIAL
BUSINESS PROVISIONS

      

      

      PRICE
LISTS

      

      

      *

      

      
        
          
             

          

          Table of Contents

        

        
          70

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