Document:

Exhibit

EXHIBIT 10.3

INTELLECTUAL PROPERTY MATTERS AGREEMENT
This Intellectual Property Matters Agreement (together with the Attachments hereto, this “Agreement”), is made as of the 16th day of August 2016, by and between Lockheed Martin  Corporation, a Maryland corporation (“Parent”), and Abacus Innovations Technology, Inc., a Delaware corporation (“Abacus Technology”).  Each of Parent and Abacus Technology is sometimes referred to individually in this Agreement as a “Party” and collectively they are sometimes referred to as the “Parties.” 

W I T N E S S E T H:
WHEREAS, Parent and Abacus Innovations Corporation, a Delaware corporation and an Affiliate of Abacus Technology (“Spinco”) are parties to that certain Separation Agreement dated as of January 26, 2016 (the “Separation Agreement”), pursuant to which, among other things, Parent has agreed to transfer, or to cause the Affiliated Transferors to transfer, to Spinco and the other Spinco Companies, including Abacus Technology, certain of the assets held, owned or used by Parent and the Affiliated Transferors to conduct the Spinco Business, and to assign certain liabilities associated with the Spinco Business to Spinco and the other Spinco Companies, and Spinco and the other Spinco Companies have agreed to receive such assets and assume such liabilities;
WHEREAS, the Separation Agreement provides for the separation of the Spinco Business from the remaining business of Parent and its Subsidiaries to create two independent companies, on the terms and conditions set forth in the Separation Agreement and the other Transaction Documents;
WHEREAS, Parent, Spinco, Leidos Holdings, Inc., a Delaware corporation (“RMT Parent”), and Lion Merger Co., a Delaware corporation and wholly owned Subsidiary of RMT Parent (“Merger Sub” and, together with Parent, Spinco and RMT Parent, the “Merger Agreement Parties”) are parties to that certain Agreement and Plan of Merger dated as of January 26, 2016 (the “Merger Agreement”), pursuant to which, immediately following the Distribution, the Merger Agreement Parties will effect the merger of Merger Sub with and into Spinco, with Spinco continuing as the surviving corporation upon the terms and subject to the conditions of the Merger Agreement; and 
WHEREAS, Parent and Abacus Technology desire to enter into this Agreement in connection with the Separation Agreement to govern the rights and obligations of the Parties with respect to certain intellectual property and related matters in connection with the Contemplated Transactions;  
NOW, THEREFORE, in consideration of the foregoing and of the representations, warranties, covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE I 
DEFINITIONS
Section 1.01    Definitions.  Capitalized terms used in this Agreement but not defined herein shall have the meanings given to them in the Separation Agreement.  Each of the following terms is defined in the Section set forth opposite such term:
Term    Section
AAA    5.13(a)
Abacus Technology    Preamble
Abacus Technology Improvements    2.03(c)
Agreement    Preamble
Arbitral Tribunal    5.13(d)
Bankruptcy Code    4.01
Commercial Customer    2.03(e)
Customer Program Intellectual Property    Attachment I 
Delaware Courts    5.14
Dispute    5.13(a)
Documentation    2.06(c)
Excluded Intellectual Property    2.02
Exclusive Scope    2.03(e)
Exclusive Use Licensed Intellectual Property    2.03(e)
Field of Use    2.03(f)
Governmental Authority Customer    2.03(e)
Jointly Owned Intellectual Property    2.05
Licensed-Back Intellectual Property    2.04(a)
Licensed Intellectual Property    2.03(a)
LM BTS    2.01
LMC Marks    2.06(b)
LM Wisdom Improvements    2.03(c)
Merger Agreement    Recitals
Merger Agreement Parties    Recitals
Omitted Intellectual Property    2.09
Other International Licensed Intellectual Property    2.03(a)
Other International Transferred Intellectual Property    2.01
Merger Sub    Recitals
Parent    Preamble
Parent Improvements    2.04(b)
Parties    Preamble
Party    Preamble
Restricted Intellectual Property    2.03(f) 
RMT Parent    Recitals
Rules    5.13(a)
Separation Agreement    Recitals
Spinco    Recitals

2
 

Term    3.01
Transferred Intellectual Property    2.01
UK Licensed Intellectual Property    2.03(a)
UK Transferred Intellectual Property    2.01
Use    2.03(b)
US Licensed Intellectual Property    2.03(a)
US Transferred Intellectual Property    2.01

ARTICLE II
INTELLECTUAL PROPERTY MATTERS 
Section 2.01    Transferred Intellectual Property.  The Intellectual Property identified on Attachments I and IV hereto, including any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (and, with respect to Trademarks included therein, together with the goodwill connected with the use thereof and symbolized thereby), constitutes the “Transferred Intellectual Property” within the meaning of the Separation Agreement (and is referred to in this Agreement as the “Transferred Intellectual Property”).  The Intellectual Property identified in (a) Attachment I – Part A and Attachment IV hereto, including any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (and, with respect to Trademarks included therein, together with the goodwill connected with the use thereof and symbolized thereby) (collectively, the “US Transferred Intellectual Property”) shall be transferred to Abacus Technology, (b) Attachment I – Part B hereto, including any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (and, with respect to Trademarks included therein, together with the goodwill connected with the use thereof and symbolized thereby) (collectively, the “UK Transferred Intellectual Property”) shall be transferred to Lockheed Martin Business Technology Solutions Ltd., a company incorporated and registered under the laws of England and Wales (“LM BTS”) and (c) Attachment I – Part C hereto, including any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (and, with respect to Trademarks included therein, together with the goodwill connected with the use thereof and symbolized thereby) (collectively, the “Other International Transferred Intellectual Property”) shall be transferred to a Spinco Company (other than Abacus Technology or LM BTS), in each case as Transferred Assets on the terms and subject to the conditions set forth in the Separation Agreement.  Abacus Technology acknowledges and agrees that it shall hold all US Transferred Intellectual Property subject to (a) any rights of the U.S. Government in such US Transferred Intellectual Property, (b) any licenses and other rights with respect thereto granted under this Agreement, (c) any licenses of such US Transferred Intellectual Property granted prior to the date of this Agreement to any Person and (d) any rights of third parties in Intellectual Property embedded or included in such US Transferred Intellectual Property.  Subject to Section 2.03 of the Separation Agreement and solely to the extent not otherwise addressed by such Section of the Separation Agreement, Abacus Technology shall be responsible for obtaining, at its sole cost and expense, any license rights necessary to use any third party software or other Intellectual Property embedded or included in such US Transferred Intellectual Property.  

3
 

Section 2.02    Excluded Intellectual Property.  Abacus Technology acknowledges and agrees that the Intellectual Property identified on Attachment II hereto (the “Excluded Intellectual Property”) shall be retained by the Parent Companies and shall not be transferred or licensed to Abacus Technology or the other Spinco Companies pursuant to this Agreement, the Separation Agreement, or otherwise.  It is acknowledged and agreed that the Excluded Intellectual Property listed on Attachment II hereto is provided for the avoidance of doubt, and that the Excluded Intellectual Property does not purport to be an exhaustive list of all Parent Intellectual Property.   
Section 2.03    Licensed Intellectual Property.
(a)    The Intellectual Property identified on (i) Attachment III – Part A hereto, including any and all tangible and intangible materials embodying the same, and any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (the “US Licensed Intellectual Property”), (ii) Attachment III – Part B hereto, including any and all tangible and intangible materials embodying the same, and any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (the “UK Licensed Intellectual Property”) and (iii) Attachment III – Part C hereto, including any and all tangible and intangible materials embodying the same, and any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (the “Other International Licensed Intellectual Property”), collectively, constitutes the “Licensed Intellectual Property” within the meaning of the Separation Agreement (and is referred to in this Agreement as the “Licensed Intellectual Property”).  
(b)    Subject to the terms and conditions of this Agreement, Parent, on behalf of itself and its Affiliates, hereby grants to Abacus Technology effective as of immediately prior to the Distribution Effective Time, an irrevocable (subject to Section 2.03(h)), worldwide, perpetual, fully paid up, royalty-free, nontransferable (except as provided in Section 5.04), nonexclusive (subject to Section 2.03(e)) license, with the right to grant sublicenses only as set forth in Section 2.03(g), in and to the US Licensed Intellectual Property to Use (subject to Section 2.03(f)) such US Licensed Intellectual Property for any purpose in connection with the Spinco Business, including the businesses and operations of Abacus Technology and the Spinco Companies sublicensed pursuant to Section 2.03(g) relating to the Spinco Business; provided that the foregoing license does not include a license to or any other rights to use, and such license is subject in all cases to any rights of third parties in, any third party software or other Intellectual Property embedded or included in such US Licensed Intellectual Property.  Subject to Section 2.03 of the Separation Agreement and solely to the extent not otherwise addressed by such Section of the Separation Agreement, Abacus Technology shall be responsible for obtaining, at Abacus Technology’s sole cost and expense, any license rights necessary to use any such third party software or other Intellectual Property embedded or included in such US Licensed Intellectual Property; provided that if requested by Abacus Technology in writing to Parent, Parent agrees to cooperate and provide reasonable assistance to Abacus Technology in Abacus Technology’s efforts to obtain any applicable license rights from such third parties.  Subject to Section 2.03(e), Section 2.03(f), Section 2.03(g) and Section 2.03(j), the foregoing 

4
 

license includes the right of Abacus Technology, with respect to the US Licensed Intellectual Property, (i) to use, reproduce, distribute, display, make, have made, sell, offer for sale and import any products and services (including those that incorporate or otherwise use any such US Licensed Intellectual Property) for any purpose, (ii) to perform, have performed, sell, and offer for sale any services (including those that incorporate or otherwise use any such US Licensed Intellectual Property) for any purpose, and (iii) to otherwise use, make, have made, reproduce, modify, display, perform, have performed and otherwise exploit for any purpose such US Licensed Intellectual Property ((i), (ii) and (iii) collectively, and as applied to any Intellectual Property, as the case may be, “Use”, and “Uses”, “Using” and “Used” shall have their correlative meanings), in each case in connection with the Spinco Business.  
(c)    The license granted in Section 2.03(b) also includes the right of Abacus Technology to create improvements, enhancements, derivative works or modifications of any US Licensed Intellectual Property (collectively, “Abacus Technology Improvements”) and, except as provided in this Section 2.03(b) or as otherwise agreed in writing by the Parties, Parent will not have any rights in or to use such Abacus Technology Improvements.  Notwithstanding the foregoing, with respect to any Abacus Technology Improvements made by or on behalf of Abacus Technology to LM WISDOM® software and associated documentation, including without limitation LM WISDOM ITI and LM WISDOM OS after the date of this Agreement and until the one year anniversary of the date of this Agreement (collectively, the “LM Wisdom Improvements”), such LM Wisdom Improvements shall be licensed and delivered to Parent by Abacus Technology on a non-exclusive, unrestricted, paid-up, and royalty-free basis.   
(d)    For the avoidance of doubt, and notwithstanding anything in this Agreement to the contrary, the Intellectual Property licensed to Abacus Technology hereunder will include only the US Licensed Intellectual Property and will not include the UK Licensed Intellectual Property or any Intellectual Property conceived, developed, or otherwise acquired by or on behalf of Parent or its Affiliates after the date of this Agreement, nor will any improvements, enhancements, derivative works or other modifications made by or on behalf of Parent or its Affiliates to any US Licensed Intellectual Property after the date of this Agreement be licensed to Abacus Technology hereunder unless otherwise expressly agreed by the Parties.  
(e)    With respect to the US Licensed Intellectual Property that is identified in Attachment III – Part A hereto as licensed for “Exclusive Use” (the “Exclusive Use Licensed Intellectual Property”), the license rights granted under Section 2.03(b) with respect to such Exclusive Use Licensed Intellectual Property shall be an exclusive license to Abacus Technology (even as to the Parent Companies), but only to the extent that the Use of such Exclusive Use Licensed Intellectual Property is for the design, development, manufacture, sale and distribution of devices, systems, products and services to or for the benefit of Commercial Customers (the “Exclusive Scope”).  For purposes of this Agreement, the term “Commercial Customer” means any Person other than (i) any Governmental Authority (acting on its own behalf or on behalf of another Governmental Authority), (ii) any prime contractor of any Governmental Authority in connection with a Government Contract, or (iii) any subcontractor with respect to any contract of a type described in clauses (i) or (ii) above (each such Person described in clauses (i), (ii) or (iii), a “Governmental Authority Customer”).  For the avoidance of doubt, Abacus Technology shall 

5
 

also have a nonexclusive license to Use the Exclusive Use Licensed Intellectual Property in accordance with and subject to Section 2.03(b) outside of the Exclusive Scope, but subject to any restrictions with respect to Field of Use pursuant to Section 2.03(f).  Abacus Technology acknowledges and agrees that the Exclusive Use Licensed Intellectual Property is subject to (A) any rights of the U.S. Government in such Exclusive Use Licensed Intellectual Property, (B) any licenses and other rights with respect thereto granted under this Agreement, and (C) any licenses of such Exclusive Use Licensed Intellectual Property granted prior to the date of this Agreement to any Person.  
(f)    Notwithstanding the rights granted in, but without limiting the restrictions on use of, the US Licensed Intellectual Property set forth in Section 2.03(b) and 2.03(e), with respect to any US Licensed Intellectual Property identified in Attachment III – Part A hereto as restricted to a “Field of Use” (such US Licensed Intellectual Property, the “Restricted Intellectual Property”), the license and use rights granted under Section 2.03(b) with respect to such Restricted Intellectual Property shall be limited solely for Use in the field of use indicated for such Restricted Intellectual Property in Attachment III – Part A hereto (with respect to each Restricted Intellectual Property, the “Field of Use”).  For the avoidance of doubt, it is acknowledged and agreed that particular US Licensed Intellectual Property may be designated in Attachment III – Part A as both Exclusive Use Intellectual Property and Restricted Intellectual Property. 
(g)    Abacus Technology shall not have the right to grant sublicenses of its licensed rights under this Section 2.03 (including to Affiliates of Abacus Technology) without Parent’s prior written consent; provided that (x) Abacus Technology shall have the right to grant sublicenses with respect to its licensed rights to Spinco, Spinco Subsidiaries wholly owned by Spinco and any future wholly owned Subsidiaries of Spinco without Parent’s consent, (y) with respect to proposed sublicenses to other Affiliates of Abacus Technology, Parent’s consent shall not be unreasonably withheld or delayed, and (z) Abacus Technology shall have the right to grant sublicenses with respect to its licensed rights to providers of goods and services or other third parties for the benefit of the Spinco Business (but not for the independent benefit of such third parties).  With respect to any permitted sublicense entered into by Abacus Technology (or any permitted sublicensee of Abacus Technology), (i) each such sublicense shall be subject to and limited by the terms of this Agreement as if such sublicensee were a direct party to this Agreement, (ii) Abacus Technology shall procure the performance by each sublicensee of such sublicensee’s obligations under such sublicense and this Agreement, and Abacus Technology shall remain solely liable for any such sublicensee’s compliance with the terms of such sublicense and the terms of this Agreement, and (iii) each such sublicense to any Abacus Technology Affiliate, Spinco Subsidiary wholly owned by Spinco or future wholly owned Subsidiary of Spinco, in each case that is a sublicensee shall provide for its automatic termination upon such sublicensee ceasing to be an Affiliate of Abacus Technology or wholly owned Subsidiary of Spinco, as the case may be.  
(h)    Parent may terminate the license granted to Abacus Technology under this Section 2.03 solely with respect to any specific item of US Licensed Intellectual Property in the event of a material breach by Abacus Technology of the terms of this Section 2.03 with respect to 

6
 

such specific item of US Licensed Intellectual Property, where such breach is not cured by the breaching party within sixty (60) days of receiving written notice from Parent of the breach, or to the extent such breach cannot reasonably be cured within such time, Abacus Technology’s failure to exercise continuing reasonable best efforts to cure such breach within sixty (60) days of receiving written notice from Parent of the breach.  If a license to any specific item of US Licensed Intellectual Property is terminated pursuant to this Section 2.03(h), (i) Abacus Technology’s rights and license in respect of the terminated item of US Licensed Intellectual Property shall immediately terminate, and Abacus Technology shall immediately cease all use of such US Licensed Intellectual Property, (ii) Abacus Technology shall promptly return all of the terminated US Licensed Intellectual Property to Parent, including any and all Documentation and other tangible embodiments thereof, and (iii) for clarity, any such termination shall not affect any other licenses or rights granted by Parent hereunder, all of which shall survive such termination. 
(i)    For a period of one year after the Distribution Date, upon Abacus Technology’s reasonable written request, Parent shall use reasonable commercial efforts to provide Abacus Technology copies of tangible embodiments of the US Licensed Intellectual Property (or other Documentation) in Parent’s or its Affiliates’ possession or control as of the Distribution Date as reasonably necessary for the practice of the licenses granted herein to the US Licensed Intellectual Property.
(j)    Abacus Technology shall treat and hold as confidential all confidential US Licensed Intellectual Property (other than, for clarity, any Trademarks or other non-confidential US Licensed Intellectual Property) and will not disclose any US Licensed Intellectual Property to any other Person (other than Spinco Companies sublicensed pursuant to Section 2.03(g)) without the prior written consent of Parent or as otherwise expressly permitted herein, in each case for a period commencing on the date of this Agreement and continuing for so long as such US Licensed Intellectual Property constitutes confidential or proprietary information of any Parent Company.  Notwithstanding the foregoing, the provisions of this Section 2.03(j) shall not prohibit the disclosure of US Licensed Intellectual Property (or the exercise of the licenses and rights granted hereunder or under any other Transaction Documents) by Abacus Technology to the extent reasonably required (i) to prepare or complete any required Tax Returns or financial statements, (ii) in connection with audits or other proceedings by or on behalf of a Governmental Authority, (iii) in connection with any insurance or benefits claims, (iv) to comply with Applicable Law, (v) to provide services to any Parent Companies in accordance with the terms and conditions of any of the Transaction Documents, (vi) to perform any then-existing Contracts in the Spinco Business (provided that such disclosure is subject to reasonably appropriate confidentiality agreements or, with respect to U.S. Government Contracts, an obligation of confidentiality), or (vii) in connection with asserting any rights or remedies or performing any obligations under any of the Transaction Documents.  In the event Abacus Technology is requested or required (by oral or written request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand or similar process or by Applicable Law) to disclose any US Licensed Intellectual Property, Abacus Technology shall notify Parent promptly of the request or requirement so that Parent, at its expense, may seek an appropriate protective order or waive compliance with this Section 2.03(j).  If, in the absence of a protective order or receipt of a waiver hereunder, Abacus Technology is, on the advice of 

7
 

counsel, compelled to disclose such US Licensed Intellectual Property, Abacus Technology may so disclose such US Licensed Intellectual Property; provided that Abacus Technology shall use reasonable commercial efforts to obtain reliable assurance that confidential treatment will be accorded to such US Licensed Intellectual Property.  Notwithstanding the foregoing, the provisions of this Section 2.03(j) shall not apply to information that (A) is or becomes publicly available other than as a result of a disclosure by Abacus Technology, (B) is or becomes available to Abacus Technology on a non-confidential basis from a source that, to Abacus Technology’s knowledge, is not prohibited from disclosing such information by a legal, contractual or fiduciary obligation, (C) appears in issued patents, published patent applications or other publications that are generally available to the public, or (D) is or has been independently developed by or on behalf of Abacus Technology after the Distribution Date as evidenced by written documentation.  
(k)    Notwithstanding the provisions of Section 2.03(g) or Section 2.03(j) nothing in this Agreement shall prohibit, limit or restrict in any manner the ability of Abacus Technology to disclose and/or deliver to any Governmental Authority any US Licensed Intellectual Property (other than any Restricted Intellectual Property) or any physical embodiments or evidence thereof, to the extent such disclosure is necessary or appropriate, in Abacus Technology’s reasonable judgment, in connection with the performance of any Government Contract, the submission of any Government Bid or the acquisition of any work from any Governmental Authority or Governmental Authority Customer; provided, however, that Abacus Technology shall designate any US Licensed Intellectual Property or any physical embodiments or evidence thereof disclosed pursuant to this Section 2.03(k) as “proprietary” unless (i) Parent has granted prior to the date of this Agreement, or (ii) after the date of this Agreement Parent has granted, or Abacus Technology has granted with Parent’s prior written consent, to the U.S. Government, Government Purpose Rights or Unlimited Rights (as those terms are defined in the DFARS/FAR) in such specific item of US Licensed Intellectual Property as evidenced by written documentation; and provided further that notwithstanding the foregoing, with respect to a specific item of Restricted Intellectual Property, unless (i) Parent has granted prior to the date of this Agreement, or (ii) after the date of this Agreement Parent has granted, or Abacus Technology has granted with Parent’s prior written consent, to the U.S. Government, Government Purpose Rights or Unlimited Rights (as those terms are defined in the DFARS/FAR) in such specific item of Restricted Intellectual Property as evidenced by written documentation, Abacus Technology shall not disclose or deliver, or agree to disclose or deliver, any Restricted Intellectual Property to any Governmental Authority, without Parent’s prior written consent, which consent shall not be unreasonably withheld or delayed.
Section 2.04    Licensed-Back Intellectual Property.
(a)    Subject to the terms and conditions of this Agreement, Abacus Technology hereby grants to Parent, effective as of immediately prior to the Distribution Effective Time, an irrevocable (subject to Section 2.04(d)), worldwide, perpetual, fully paid up, royalty-free, nontransferable (except as provided in Section 5.04), nonexclusive license, with the right to grant sublicenses only as set forth in Section 2.04(c), in and to the US Transferred Intellectual Property identified on Attachment IV, including any and all tangible and intangible materials embodying 

8
 

the same, and any and all issuances, registrations or applications for registration or issuance thereof and any and all Intellectual Property in and to the foregoing (the “Licensed-Back Intellectual Property”) to Use such Licensed-Back Intellectual Property for any purpose in connection with the Parent Business; provided that the foregoing license does not include a license to or any other rights to use, and such license is subject in all cases to any rights of third parties in, any third party software or other Intellectual Property embedded or included in such Licensed-Back Intellectual Property.  Parent shall be responsible for obtaining, at Parent’s sole cost and expense, any license rights necessary to use any such third party software or other Intellectual Property embedded or included in such Licensed-Back Intellectual Property; provided that if requested by Parent in writing to Abacus Technology, Abacus Technology agrees to cooperate and provide reasonable assistance to Parent in Parent’s efforts to obtain any applicable license rights from such third parties.  Subject to Section 2.04(c), the foregoing license includes the right of Parent , with respect to the Licensed-Back Intellectual Property, (i) to use, reproduce, distribute, display, make, have made, sell, offer for sale and import products (including those that incorporate or otherwise use any such Licensed-Back Intellectual Property) for any purpose, (ii) to perform, have performed, sell, and offer for sale services (including those that incorporate or otherwise use any such Licensed-Back Intellectual Property) for any purpose and (iii) to otherwise use, make, have made, reproduce, modify, display, perform, have performed and otherwise exploit for any purpose such Licensed-Back Intellectual Property, in each case in connection with the Parent Business.  
(b)    The license granted in Section 2.04(a) also includes the right of Parent to create improvements, enhancements, derivative works or modifications of any US Licensed Intellectual Property (collectively, “Parent Improvements”) and, except as otherwise agreed in writing by the Parties, Abacus Technology will not have any rights in or to use such Parent Improvements.  For the avoidance of doubt, and notwithstanding anything in this Agreement to the contrary, but subject to Section 2.03(c), the Intellectual Property licensed to Parent hereunder will include only the Licensed-Back Intellectual Property and will not include any Intellectual Property conceived, developed, or otherwise acquired by or on behalf of Abacus Technology or its Affiliates after the date of this Agreement, nor will any improvements, enhancements, derivative works, or other modifications made by or on behalf of Abacus Technology or its Affiliates to any Licensed-Back Intellectual Property after the date of this Agreement be licensed to Parent hereunder unless otherwise expressly agreed by the Parties.  
(c)    Parent shall not have the right to grant sublicenses of its licensed rights under this Section 2.04 (including to Affiliates of Parent) without Abacus Technology’s prior written consent; provided that (x) Parent shall have the right to grant sublicenses with respect to its licensed rights to wholly owned Parent Companies and any future wholly owned Subsidiaries of Parent without Abacus Technology’s consent, (y) with respect to proposed sublicenses to other Affiliates of Parent, Abacus Technology’s consent shall not be unreasonably withheld or delayed, and (z) Parent shall have the right to grant sublicenses with respect to its licensed rights to providers of goods and services or other third parties for the benefit of the Parent Business (but not for the independent benefit of such third parties).  With respect to any permitted sublicense entered into by Parent (or any permitted sublicensee of Parent) (i) each such sublicense shall be subject to and limited by the terms of this Agreement as if such sublicensee were a direct party to 

9
 

this Agreement, (ii) Parent shall procure the performance by each sublicensee of such sublicensee’s obligations under such sublicense, and Parent shall remain solely liable for any such sublicensee’s compliance with the terms of such sublicense and the terms of this Agreement, and (iii) each such sublicense to any Affiliate, Parent Company or wholly owned Subsidiary sublicensee shall provide for its automatic termination upon such sublicensee ceasing to be an Affiliate or wholly owned Subsidiary of Parent, as the case may be.
(d)    Abacus Technology may terminate the license granted to Parent under this Section 2.04 solely with respect to any specific item of Licensed-Back Intellectual Property in the event of a material breach by Parent of the terms of this Section 2.04 with respect to such specific item of Licensed-Back Intellectual Property, where such breach is not cured by the breaching party within sixty (60) days of receiving written notice from Abacus Technology of the breach, or to the extent such breach cannot reasonably be cured within such time, Parent’s failure to exercise continuing reasonable best efforts to cure such breach within sixty (60) days of receiving written notice from Abacus Technology of the breach. If a license to any specific item of US Licensed Intellectual Property is terminated pursuant to this Section 2.04(d), (i) Parent’s rights and license in respect of the terminated Licensed-Back Intellectual Property shall immediately terminate, and Parent shall immediately cease all use of such item of Licensed-Back Intellectual Property, and (ii) Parent shall promptly return all of the terminated Licensed-Back Intellectual Property to Abacus Technology, including any and all Documentation and other tangible embodiments thereof, and (iii) for clarity, any such termination shall not affect any other licenses or rights granted by Abacus Technology hereunder, all of which shall survive such termination.
(e)    Parent shall treat and hold as confidential all confidential Licensed-Back Intellectual Property (other than, for clarity, any Trademarks or other non-confidential Licensed-Back Intellectual Property) and will not disclose any Licensed-Back Intellectual Property to any other Person (other than Parent Companies sublicensed pursuant to Section 2.04(c)) without the prior written consent of Abacus Technology or as otherwise expressly permitted herein, in each case for a period commencing on the date of this Agreement and continuing for so long as such Licensed-Back Intellectual Property constitutes confidential or proprietary information of any Spinco Company.  Notwithstanding the foregoing, the provisions of this Section 2.04(e) shall not prohibit the disclosure of Licensed-Back Intellectual Property (or the exercise of the licenses and rights granted hereunder or under any other Transaction Documents) by Parent to the extent reasonably required (i) to prepare or complete any required Tax Returns or financial statements, (ii) in connection with audits or other proceedings by or on behalf of a Governmental Authority, (iii) in connection with any insurance or benefits claims, (iv) to comply with Applicable Law, (v) to provide services to any Spinco Companies in accordance with the terms and conditions of any of the Transaction Documents, (vi) to perform any then-existing Contracts in the Parent Business (provided that such disclosure is subject to reasonably appropriate confidentiality agreements or, with respect to U.S. Government Contracts, an obligation of confidentiality), or (vii) in connection with asserting any rights or remedies or performing any obligations under any of the Transaction Documents.  In the event Parent is requested or required (by oral or written request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand or similar process or by Applicable Law) to disclose any Licensed-Back Intellectual 

10
 

Property, Parent shall notify Abacus Technology promptly of the request or requirement so that Abacus Technology, at its expense, may seek an appropriate protective order or waive compliance with this Section 2.04(e).  If, in the absence of a protective order or receipt of a waiver hereunder, Parent is, on the advice of counsel, compelled to disclose such Licensed-Back Intellectual Property, Parent may so disclose such Licensed-Back Intellectual Property; provided that Parent shall use reasonable commercial efforts to obtain reliable assurance that confidential treatment will be accorded to such Licensed-Back Intellectual Property.  Notwithstanding the foregoing, the provisions of this Section 2.04(e) shall not apply to information that (A) is or becomes publicly available other than as a result of a disclosure by Parent , (B) is or becomes available to Parent on a non-confidential basis from a source that, to Parent’s knowledge, is not prohibited from disclosing such information by a legal, contractual or fiduciary obligation, (C) appears in issued patents, published patent applications or other publications that are generally available to the public, or (D) is or has been independently developed by or on behalf of Parent as evidenced by written documentation.
(f)    Notwithstanding the provisions of Section 2.04(c) or Section 2.04(e), nothing in this Agreement shall prohibit, limit or restrict in any manner the ability of Parent to disclose and/or deliver to any Governmental Authority any Licensed-Back Intellectual Property or any physical embodiments or evidence thereof, to the extent such disclosure is necessary or appropriate, in Parent’s reasonable judgment, in connection with the performance of any Government Contract, the submission of any Government Bid or the acquisition of any work from any Governmental Authority or Governmental Authority Customer; provided, however, that Parent shall designate any Licensed-Back Intellectual Property or any physical embodiments or evidence thereof disclosed pursuant to this Section 2.04(f) as “proprietary” unless (i) Parent has granted prior to the date of this Agreement, or (ii) after the date of this Agreement, Abacus Technology has granted, or Parent has granted with Abacus Technology’s prior written consent, to the U.S. Government, Government Purpose Rights or Unlimited Rights (as those terms are defined in the DFARS/FAR) in such specific item of Licensed-Back Intellectual Property as evidenced by written documentation.
Section 2.05    Jointly Owned Intellectual Property.  The Intellectual Property identified on Attachment V hereto (the “Jointly Owned Intellectual Property”) shall be deemed jointly owned by the Parties, with each Party owning an equal and undivided interest in such Jointly Owned Intellectual Property.  Each Party shall be entitled to freely use the Jointly Owned Intellectual Property outside of the scope of this Agreement without accounting between them.  Any improvements, updates and modifications made to such Jointly Owned Intellectual Property after the Distribution Effective Time shall be owned by the Party making such improvements, updates and modifications, subject to the provisions of Section 2.04(b).  
Section 2.06    Limited Use of Logos, Etc. 
(a)    Abacus Technology acknowledges and agrees that except as otherwise expressly set forth in the Transaction Documents, no Spinco Company is obtaining any rights in, or to use, any Intellectual Property owned, licensed or used by the Parent Companies.  

11
 

(b)    It is acknowledged and agreed that no Spinco Company is obtaining any rights in or licenses to use any trademarks, logos or trade names owned by Parent Companies as of the Distribution Effective Time, including the name “Lockheed Martin Corporation”, the Star logo or any derivative of either (collectively, the “LMC Marks”).  For the avoidance of doubt, the Trademarks identified on Attachment I (i.e., included in the Transferred Intellectual Property) and any trademarks, logos or trade names comprising the same, shall not in any event be deemed to constitute an LMC Mark. Abacus Technology further acknowledges and agrees that, except as expressly permitted pursuant to the Transaction Documents, the Spinco Companies shall not use any LMC Mark of Parent or any of its Affiliates or any trademarks, logos or trade names that are confusingly similar thereto or that are a translation or transliteration thereof into any language or alphabet.  As soon as reasonably practicable following the Distribution, but not later than 270 days after the Distribution Date (or such longer time to the extent required in connection with obtaining any necessary consents or approvals of any Governmental Authority therefor), the Spinco Companies shall remove and change signage, change and substitute promotional or advertising material in whatever medium, change stationery and packaging and take all such other steps as may be required or appropriate to cease use of all such LMC Marks not constituting a Transferred Asset or licensed to Abacus Technology under this Agreement.  Abacus Technology shall not be deemed to have violated this Section 2.06 by reason of (and the Spinco Companies shall be permitted to use the LMC Marks for the following purposes): (i) the appearance of any trademarks, logos or trade names of Parent or any of its Affiliates in or on (A) any manuals, work sheets, operating procedures, or other written or electronic materials constituting Transferred Assets that are used for internal purposes only in connection with the Spinco Business, or (B) during the 270-day period referenced in the preceding sentence, any stationary, invoices, packaging, marketing or promotional materials or any other such printed or electronic materials to the extent in existence on the Distribution Date that are utilized in connection with the Spinco Business consistent with past practice; provided, that Abacus Technology and the other Spinco Companies shall endeavor to remove such trademarks, logos or trade names in the ordinary course of the operation of the Spinco Business; and, provided, further that, except as prohibited by Applicable Law, all LMC Marks of Parent Companies appearing on such public-facing materials shall be removed therefrom, covered over or otherwise obliterated prior to the one year anniversary of the Distribution Date; (ii) the Spinco Companies’ retention of archived documentation or other tangible or electronic materials, including in archival, backup or similar systems, containing trademarks, logos or trade names used in connection with the Spinco Business; (iii) the Spinco Companies’ reference to the historical relationship of the Spinco Business with Parent, and any references to the LMC Marks in historical, Tax, and other similar internal records; provided that, in each case, such references would not cause confusion as to the origin of a good or service; or (iv) any other use to the extent required by Applicable Law.  Abacus Technology acknowledges and agrees that to the extent it or any Spinco Company uses any LMC Marks of Parent or its Affiliates, Parent shall retain exclusive ownership rights in such trademarks, logos or trade names, as the case may be, and all such uses shall inure to the benefit of Parent and shall be in accordance in all material respects with Parent’s quality control standards existing as of the Distribution Date. 
(c)    Notwithstanding any provision of this Section 2.06, Abacus Technology shall not, and shall cause the other Spinco Companies not to, remove or alter in any manner any 

12
 

confidential or proprietary marking or restrictive legend on any documentation or other information embodying or conveying Intellectual Property, whether in hard copy or electronic format, including plans, processes, procedures, drawings, designs, models, data (including technical data), specifications, reports, compilations, computer programs, computer software (including source code), images and photo and video materials (collectively, “Documentation”) that includes any Parent Company Proprietary Information.  With respect to any US Licensed Intellectual Property that is marked with a confidential or proprietary marking of any Parent Company, to the extent Abacus Technology changes, modifies, improves or creates a derivative work of such US Licensed Intellectual Property, Abacus Technology shall have the right to remove Parent’s confidential or proprietary marking from any Documentation that evidences such change, modification, improvement or derivative work; provided that Abacus Technology shall mark any such Documentation with Abacus Technology’s confidential or proprietary marking. With respect to any Licensed-Back Intellectual Property that is marked with a confidential or proprietary marking of any Spinco Business, to the extent Parent changes, modifies, improves or creates a derivative work of such Licensed-Back Intellectual Property, Parent shall have the right to remove Abacus Technology’s confidential or proprietary marking from any Documentation that evidences such change, modification, improvement or derivative work; provided that Parent shall mark any such Documentation with Parent’s confidential or proprietary marking.
(d)    Abacus Technology acknowledges and agrees that if any other Spinco Company takes any of the actions prohibited by this Section 2.06, or fails to take any of the actions required by this Section 2.06, such action or omission will be deemed to be a breach by Abacus Technology of this Section 2.06.
Section 2.07    Enforcement.    
(a)    Each Party agrees to notify the other Party in writing promptly upon becoming aware of any infringement or other violation of, or unfair competition with respect to, any material US Licensed Intellectual Property or material Licensed-Back Intellectual Property by any Person.  
(b)    With respect to any infringement or other violation of, or unfair competition with respect to, Exclusive Use Licensed Intellectual Property within the Field of Use therefor, Abacus Technology shall have the first option, but not the obligation, to initiate enforcement efforts against the third-party infringer and/or any third party defending such claim in Abacus Technology’s own name and to control, defend and/or settle any and all legal proceedings involving infringement or other violation of, or unfair competition with respect to, any such Exclusive Use Licensed Intellectual Property in the Field of Use therefor; provided, however, that Abacus Technology may not settle or consent to an entry of judgment in any such matter that limits or impairs any of the Parent Companies’ rights under any of the US Licensed Intellectual Property or the Parent Companies’ exercise of any such rights.  Parent shall, and shall cause its applicable Affiliates to, cooperate reasonably with Abacus Technology’s enforcement efforts, and shall join in any legal proceedings initiated by Abacus Technology in accordance herewith as a party plaintiff to the extent necessary, at Abacus Technology’s request and expense.  

13
 

Abacus Technology shall be entitled to retain any proceeds of such enforcement effort.  In the event that Abacus Technology elects not to take action against a third-party infringer within six months after written notification of such infringement or other violation by Parent or Abacus Technology, as the case may be, Parent shall have the option, but not the obligation, to initiate enforcement efforts against such third-party infringer and/or any third party defending such claim in Parent’s own name and to control, defend and/or settle any and all legal proceedings involving infringement or other violation of, or unfair competition with respect to, any Exclusive Use Licensed Intellectual Property; provided, however, that Parent may not settle or consent to an entry of judgment in any such matter that limits or impairs any of the rights granted to Abacus Technology in this Agreement or Abacus Technology’s exercise of such rights in accordance with this Agreement.  Parent shall be entitled to retain any proceeds of such enforcement effort.  Abacus Technology shall cooperate reasonably with Parent’s enforcement efforts, and shall join in any legal proceedings initiated by Parent in accordance herewith as a party plaintiff to the extent necessary, at Parent’s request and expense.
(c)    With respect to any infringement or other violation of, or unfair competition with respect to, any US Licensed Intellectual Property to the extent occurring outside the Field of Use therefor, Parent shall have the sole option, but not the obligation, to initiate enforcement efforts against the third-party infringer and/or any third party defending such infringement claim in Parent’s own name and to control, defend and/or settle any and all legal proceedings involving infringement of any such US Licensed Intellectual Property; provided, however, that Parent may not settle or consent to an entry of judgment in any such matter that limits or impairs any of rights granted to Abacus Technology in this Agreement or Abacus Technology’s exercise of any such rights.  Parent shall be entitled to retain any proceeds of such enforcement effort.  Abacus Technology shall cooperate reasonably with Parent’s enforcement efforts, and shall join in any legal proceedings initiated by Parent in accordance herewith as a party plaintiff to the extent necessary, at Parent’s request and expense. 
(d)    With respect to any infringement or other violation of, or unfair competition with respect to, any US Transferred Intellectual Property, Abacus Technology shall have the sole option, but not the obligation, to initiate enforcement efforts against the third-party infringer and/or any third party defending such infringement claim in Abacus Technology’s own name and to control, defend and/or settle any and all legal proceedings involving infringement of any such US Transferred Intellectual Property; provided, however, that, with respect to any Licensed-Back Intellectual Property, Abacus Technology may not settle or consent to an entry of judgment in any such matter that limits or impairs any of rights granted to Parent in this Agreement or Parent’s exercise of any such rights.  Abacus Technology shall be entitled to retain any proceeds of such enforcement effort. 
Section 2.08    Sufficiency of Assets.  In the event of any breach of the representation and warranty made by Parent and Spinco to RMT Parent and Merger Sub pursuant to Section 4.19(a) of the Merger Agreement (Sufficiency of Assets), to the extent such breach can be remedied by the license of additional, or additional rights to Use, Intellectual Property, then Parent shall provide a, or expand the, license to such Intellectual Property to Abacus Technology to the extent required to cure such breach on the same terms and conditions as comparable licenses under this 

14
 

Agreement, retroactive to the Distribution Date; provided that the remedy contemplated in this Section 2.08 shall be available only to the extent Spinco or Abacus Technology shall have provided notice in writing to Parent in respect of such alleged breach (or a written request in respect of such potential alleged breach) on or prior to the first anniversary of the Distribution Date.  The Parties shall negotiate in good faith to amend this Agreement to effect the foregoing.
Section 2.09    IP Claims.  Without limiting Section 2.08, Parent hereby covenants and agrees, on behalf of itself and its Affiliates and Representatives, that, with respect to the continued use in the Spinco Business following the Distribution Date of any Intellectual Property (in a manner consistent with the manner in which such Intellectual Property was used in the Spinco Business prior to the Distribution Date) owned by a Parent Company and used in the Spinco Business prior to the Distribution Date, but not included in the US Licensed Intellectual Property, Excluded Intellectual Property or US Transferred Intellectual Property (such Intellectual Property, “Omitted Intellectual Property”), Abacus Technology shall be afforded a reasonable opportunity to negotiate a license with Parent with respect to such use or, if no such agreement is reached by Abacus Technology and Parent, to phase-out and cease use of such Omitted Intellectual Property in a commercially reasonable manner. 
ARTICLE III
TERM AND TERMINATION
Section 3.01    Term.  The term of this Agreement (the “Term”) shall commence upon the date of this Agreement and shall remain in effect in perpetuity, other than those provisions herein that are contemplated to extend for a specific period, which shall terminate upon the expiration of such period.
Section 3.02    No Termination.  Subject to the express terms of Section 2.03(h) and Section 2.04(d), this Agreement may not be terminated by any Party (or its Affiliate), even in the event of material breach.  Each Party acknowledges and agrees that the foregoing limitation on remedies is a necessary inducement for the other Party to enter into this Agreement and the Separation Agreement and such limitation shall not cause this Agreement to, and no Party shall claim that this Agreement does, fail of its essential purpose for lack of remedy or otherwise.
ARTICLE IV
COVENANTS AND AGREEMENTS
Section 4.01    Bankruptcy.  All rights, licenses and releases granted by the Parties in Article II are, and shall otherwise be deemed to be, for the purpose of Section 365(n) of the United States Bankruptcy Code, as amended (the “Bankruptcy Code”), the licenses of rights to “intellectual property” as defined under Section 101 of the Bankruptcy Code.  The Parties agree that each Party, in its capacity as licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code.  The Parties further agree that, in the event that any proceeding shall be instituted by or against a Party seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking an entry of 

15
 

an order for relief or the appointment of a receiver, trustee or other similar official for it or any substantial part of its property or it shall take any action to authorize any of the foregoing actions, the other Party shall have the right to retain and enforce its rights in and to the US Licensed Intellectual Property or the Licensed-Back Intellectual Property, as the case may be, under this License Agreement in accordance with Section 365(n) of the Bankruptcy Code. 
Section 4.02    Disclaimer; No Representations or Warranties.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY OF THE OTHER TRANSACTION DOCUMENTS, EACH PARTY ON BEHALF OF ITSELF AND EACH OF ITS AFFILIATES UNDERSTANDS AND AGREES THAT NEITHER PARTY NOR ANY OF ITS AFFILIATES IS MAKING ANY REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, TO THE OTHER PARTY OR ANY OF ITS AFFILIATES OR TO ANY OTHER PERSON IN RESPECT OF THE US LICENSED INTELLECTUAL PROPERTY OR LICENSED-BACK INTELLECTUAL PROPERTY (AS APPLICABLE), AND THAT ALL SUCH INTELLECTUAL PROPERTY IS BEING LICENSED ON AN “AS IS,” “WHERE IS” BASIS.
Section 4.03    Abacus Technology Covenant Not to Sue. Abacus Technology hereby covenants and agrees, on behalf of itself and its Affiliates and Representatives, that it shall not, directly or indirectly, (x) assert, authorize, pursue or induce any third party to assert or pursue, or assist or cooperate with any third party in asserting or pursuing (unless, in each case, compelled by a court or by contractual obligation), (y) seek to obtain any recovery with respect to any legal or equitable cause of action, suit, claim, defense, offset, counterclaim, cross-claim or pleading or other proceeding, or participate in any proceeding or action, or (z) make any allegations against Parent or its Affiliates or Representatives, licensees or sublicensees, in each case asserting infringement or other violation of, or unfair competition with respect to, any Licensed-Back Intellectual Property arising out of or resulting from the making or having made, use, sale, offer for sale, lease, rent or other provision to third parties, import, export or distribution of any product that incorporates, practices or performs a Parent Improvement covered by such Licensed-Back Intellectual Property.
Section 4.04    Parent Covenant Not to Sue.  Parent hereby covenants and agrees, on behalf of itself and its Affiliates and Representatives, that it shall not, directly or indirectly, (x) assert, authorize, pursue or induce any third party to assert or pursue, or assist or cooperate with any third party in asserting or pursuing (unless, in each case, compelled by a court or by contractual obligation), (y) seek to obtain any recovery with respect to any legal or equitable cause of action, suit, claim, defense, offset, counterclaim, cross-claim or pleading or other proceeding, or participate in any proceeding or action, or (z) make any allegations against Abacus Technology or its Affiliates, Representatives, licensees or sublicensees, in each case asserting infringement or other violation of, or unfair competition with respect to, any US Licensed Intellectual Property arising out of or resulting from the making or having made, use, sale, offer for sale, lease, rent or other provision to third parties, import, export or distribution of any product that incorporates, practices or performs an Abacus Technology Improvement covered by such US Licensed Intellectual Property. 

16
 

ARTICLE V 
MISCELLANEOUS
Section 5.01    Notices.  All notices, requests and other communications to any Party hereunder shall be in writing (including telecopy or similar writing) and shall be given,
if to Parent:

Lockheed Martin Corporation
6801 Rockledge Drive         
Bethesda, Maryland 20817        
Attention:  Senior Vice President, General Counsel and Corporate Secretary
Telecopy:  (301) 897-6013

with a copy (which shall not constitute notice) to:

Hogan Lovells US LLP
Harbor East
100 International Drive
Suite 2000
Baltimore, Maryland  21202
Attention:  Glenn C. Campbell
Telecopy:  (410) 659-2701

if to Abacus Technology:

Abacus Innovations Technology, Inc.
700 N. Frederick Avenue
Gaithersburg, Maryland  20879
Attention: President
Telecopy: (301) 240-6748

with a copy (which shall not constitute notice) to:

Skadden, Arps, Slate, Meagher & Flom LLP
One Rodney Square
920 N. King Street
Wilmington, DE 19801
Attention:  Robert B. Pincus, Esq.
Telecopy:  (302) 434-3090

or to such other address or telecopy number and with such other copies, as such Party may hereafter specify for that purpose by notice to the other Party.  Each such notice, request or other communication shall be effective (a) on the day delivered (or if that day is not a Business Day, on the first following day that is a Business Day) when (i) delivered personally against receipt or 

17
 

(ii) sent by overnight courier, (b) on the day when transmittal confirmation is received if sent by telecopy (or if that day is not a Business Day, on the first following day that is a Business Day), and (c) if given by any other means, upon delivery or refusal of delivery at the address specified in this Section 5.01.

Section 5.02    Amendments; Waivers.
(a)    Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by each Party, or in the case of a waiver, by the Party against whom the waiver is to be effective.  
(b)    No failure or delay by either Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  Except as otherwise provided herein, no action taken pursuant to this Agreement, including any investigation by or on behalf of any Party, shall be deemed to constitute a waiver by the Party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement.  Any term, covenant or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but only by a written notice signed by such Party expressly waiving such term or condition.  The waiver by any Party of a breach of any provision hereunder shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereunder.
Section 5.03    Expenses.  Except as otherwise provided in this Agreement or any other Transaction Document, all costs and expenses incurred in connection with the preparation and negotiation of this Agreement and the Contemplated Transactions shall be paid by the Party incurring such cost or expense.
Section 5.04    Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.  Neither Party may assign, delegate or otherwise transfer, directly or indirectly, in whole or in part, any of its rights or obligations under this Agreement without the prior written consent of the other Party, except that, without the consent of the other Party, either Party may assign this Agreement in connection with the sale or transfer of all or substantially all of the stock, assets or business of such Party to which this Agreement relates (including by way of merger, sale or transfer of assets or stock, operation of law or otherwise) without the consent of the other Party; provided that the assignee of this Agreement shall confirm in writing its agreement to comply with all covenants and agreements and assume all liabilities and obligations of the assignor hereunder.  Notwithstanding the foregoing, no assignment, delegation or other transfer of rights under this Agreement shall relieve the assignor of any liability or obligation hereunder.  Any attempted assignment, delegation or transfer in violation of this Section 5.04 shall be null and void.
Section 5.05    Construction.  As used in this Agreement, any reference to the masculine, feminine or neuter gender shall include all genders, the plural shall include the singular, and the 

18
 

singular shall include the plural.  References in this Agreement to a Party or other Person include their respective successors and assigns.  The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase “without limitation” unless such phrase otherwise appears.  Unless the context otherwise requires, references in this Agreement to Articles, Sections and Exhibits shall be deemed references to Articles and Sections of, and Exhibits to, this Agreement.  Unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision hereof.  Except when used together with the word “either” or otherwise for the purpose of identifying mutually exclusive alternatives, the term “or” has the inclusive meaning represented by the phrase “and/or”.  With regard to each and every term and condition of this Agreement, the Parties understand and agree that the same have or has been mutually negotiated, prepared and drafted, and that if at any time the Parties desire or are required to interpret or construe any such term or condition or any agreement or instrument subject thereto, no consideration shall be given to the issue of which Party actually prepared, drafted or requested any term or condition of this Agreement.  Any period of time hereunder ending on a day that is not a Business Day shall be extended to the next Business Day.
Section 5.06    Entire Agreement.
(a)    This Agreement, the other Transaction Documents and any other agreements contemplated hereby or thereby constitute the entire agreement between the Parties or their Affiliates with respect to the subject matter hereof and supersede all prior agreements, understandings and negotiations, both written and oral, between the Parties and their Affiliates with respect to the subject matter hereof.  
(b)    THE PARTIES ACKNOWLEDGE AND AGREE THAT NO REPRESENTATION, WARRANTY, PROMISE, INDUCEMENT, UNDERSTANDING, COVENANT OR AGREEMENT HAS BEEN MADE OR RELIED UPON BY ANY PARTY IN RELATION TO THE SUBJECT MATTER HEREOF, OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT AND IN THE OTHER TRANSACTION DOCUMENTS.  WITHOUT LIMITING THE GENERALITY OF THE DISCLAIMER SET FORTH IN THE PRECEDING SENTENCE, NEITHER PARENT NOR ANY OF ITS AFFILIATES HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATIONS OR WARRANTIES IN ANY PRESENTATION OR WRITTEN INFORMATION RELATING TO THE SPINCO BUSINESS GIVEN OR TO BE GIVEN IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS OR IN ANY FILING MADE OR TO BE MADE BY OR ON BEHALF OF PARENT OR ANY OF ITS AFFILIATES WITH ANY GOVERNMENTAL AUTHORITY, AND NO STATEMENT MADE IN ANY SUCH PRESENTATION OR WRITTEN MATERIALS, MADE IN ANY SUCH FILING OR CONTAINED IN ANY SUCH OTHER INFORMATION SHALL BE DEEMED A REPRESENTATION OR WARRANTY HEREUNDER OR OTHERWISE, OTHER THAN AS EXPRESSLY SET FORTH IN A TRANSACTION DOCUMENT.  ABACUS TECHNOLOGY ACKNOWLEDGES THAT PARENT HAS INFORMED IT THAT NO PERSON HAS BEEN AUTHORIZED BY PARENT OR ANY OF ITS AFFILIATES TO MAKE ANY REPRESENTATION OR WARRANTY IN RESPECT OF 

19
 

THE SPINCO BUSINESS OR IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS, UNLESS IN WRITING AND CONTAINED IN THIS AGREEMENT OR IN ANY OF THE OTHER TRANSACTION DOCUMENTS TO WHICH THEY ARE A PARTY.
Section 5.07    Governing Law.  This Agreement shall be construed in accordance with and governed by the law of the State of Delaware (without regard to the choice of law provisions thereof).
Section 5.08    Counterparts; Effectiveness.  This Agreement may be signed in any number of counterparts (including by facsimile or PDF), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective when each Party shall have received a counterpart hereof signed by the other Party.
Section 5.09    Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  The application of such invalid or unenforceable provision to Persons or circumstances other than those as to which it is held invalid or unenforceable shall be valid and be enforced to the fullest extent permitted by Applicable Law.  To the extent any provision of this Agreement is determined to be prohibited or unenforceable in any jurisdiction, Parent and Abacus Technology agree to use commercially reasonable efforts to substitute one or more valid, legal and enforceable provisions that, insofar as practicable, implement the purposes and intent of the prohibited or unenforceable provision.
Section 5.10    Captions.  The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.
Section 5.11    Third Party Beneficiaries.  Except as expressly provided herein, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any Person other than the Parties, and their successors or permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, or result in such Person being deemed a third party beneficiary of this Agreement.
Section 5.12    Disclaimer of Agency.  Nothing in this Agreement shall be deemed in any way or for any purpose to constitute either Party an agent of the other Party in the conduct of such Party’s business or to create a partnership or joint venture between the Parties.
Section 5.13    Dispute Resolution.
(a)    Any dispute, controversy or claim arising from, connected to or related, in any manner, to this Agreement, including any breach, termination, expiration or invalidation of this Agreement, or in respect of any aspect of the Parties’ relationship arising from this Agreement, including their respective rights, duties and obligations to each other, whether 

20
 

fiduciary or otherwise, and whether based on contract, tort, statute or otherwise (a “Dispute”) that is not, for any reason, resolved in writing amicably by the Parties within 30 days after the date of delivery of a request by a Party to the other Parties to the dispute for such amicable settlement, shall be resolved and decided by final and binding arbitration, pursuant to the Commercial Arbitration Rules (“Rules”) as administered by the American Arbitration Association (the “AAA”) in force as at the date of this Agreement, except as modified herein.  In the event of any conflict between the Rules and any provisions of this Agreement, this Agreement shall govern.
(b)    The legal seat of the arbitration shall be Wilmington, Delaware.  Without prejudice to the legal seat of arbitration, and for the convenience of the Parties, the arbitral hearings and other proceedings shall be held in Washington, D.C., or at such other location upon which the Parties to the arbitration may agree in writing.
(c)    The arbitration shall be conducted in the English language.  
(d)    The arbitral tribunal (“Arbitral Tribunal”) shall consist of three arbitrators.  The claimant(s) and respondent(s), respectively, shall each appoint one arbitrator within 30 days of the date of delivery of the demand of arbitration, and the third arbitrator shall be appointed by the two Party-appointed arbitrators within 30 days of the date of appointment of the second arbitrator.  Any arbitrator not timely appointed as provided herein shall be appointed by the AAA.  For the avoidance of doubt, each of the claimant and the respondent in the arbitration shall be permitted to consult with its respective appointed arbitrator in connection with such arbitrators’ selection of the third arbitrator.
(e)    The Arbitral Tribunal shall have the exclusive right to determine the arbitrability of any Disputes.
(f)    The Parties shall share equally the arbitration administrative fees, the panel member fees and costs, and any other costs associated with the arbitration.  Each Party shall bear its own costs and attorneys’ fees. The Arbitral Tribunal shall have no authority to award damages in excess of any limitations set forth in this Agreement.
(g)    The Arbitral Tribunal shall be required to apply the substantive laws of the State of Delaware (without regard to the choice of law provisions thereof that would compel the laws of another jurisdiction) in ruling upon any Dispute.
(h)    The Parties agree that the dispute resolution procedures specified in this Section 5.13 shall be the sole and exclusive procedures for the resolution of Disputes, including all documents made a part thereof; provided, however, that any Party may seek a preliminary injunction or other preliminary judicial relief in aid of arbitration before any court of competent jurisdiction if such action is necessary to avoid irreparable damage.  Despite such action, the Parties shall continue to participate in good faith in the procedures specified in this Section 5.13.
(i)    Any decision or award of the Arbitral Tribunal shall be reasoned and in writing, and shall be final and binding upon the Parties to the arbitration proceeding.  The Parties 

21
 

agree not to invoke or exercise any rights to appeal, review, vacate or impugn such decision or award by the Arbitral Tribunal, except as provided in the Federal Arbitration Act (including Chapters 2 and 3 thereof) or the New York Convention, as applicable.  The Parties also agree that judgment upon the arbitral decision or award may be entered and enforced in any court where the Parties to the arbitration proceeding or their assets may be found (to whose jurisdiction the Parties consent for the purpose of entering and enforcing judgment on the arbitral decision and award) as well as any other court having jurisdiction thereof.
(j)    If any prevailing party is required to retain counsel to enforce the arbitral decision or award in a court of competent jurisdiction, the Party against whom the decision or award is made shall reimburse the prevailing party for all reasonable fees and expenses incurred and paid to said counsel for such service.  
(k)    The Parties agree and understand that, except as may be required by Applicable Law or any national or international stock exchange regulations applicable to a Party, or is required to protect or pursue a legal right, every aspect concerning the process of arbitration shall be treated with the utmost confidentiality and that the arbitration procedure itself shall be confidential.
(l)    The Parties agree that notifications of any proceedings, reports, communications, orders, arbitral decisions, arbitral awards, arbitral award enforcement petitions, and any other document shall be sent as set forth in Section 5.01.
(m)    The Parties consent that any pending or contemplated arbitration hereunder may be consolidated with any prior arbitration arising under this Agreement or any other Transaction Document (other than the Merger Agreement or the Tax Matters Agreement) for the purposes of efficiency and to avoid the possibility of inconsistent awards.  An application for such consolidation may be made by any Party to this Agreement or such other Transaction Documents to the tribunal for the prior arbitration.  The tribunal to the prior arbitration shall, after providing all interested parties the opportunity to comment on such application, order that any such pending or contemplated arbitration be consolidated into a prior arbitration if it determines that (i) the issues in the arbitrations involve common questions of law or fact, (ii) no Party to either arbitration shall be prejudiced, whether by delay or otherwise, by the consolidation, (iii) any Party to the pending or contemplated arbitration which did not join an application for consolidation, or does not consent to such an application, is sufficiently related to the Parties in the prior arbitration that their interests were sufficiently represented in the appointment of the tribunal for the prior arbitral tribunal, and (iv) consolidation would be more efficient that separate arbitral proceedings.
Section 5.14    Consent to Jurisdiction.  Any Proceeding seeking to obtain a pre-arbitral injunction, pre-arbitral attachment or other order in aid of arbitration in connection with this Agreement shall and may be brought in the Delaware Court of Chancery, or, where such court does not have jurisdiction, any state or federal court within the State of Delaware (“Delaware Courts”), and each of the Parties hereby irrevocably and unconditionally consents to the exclusive jurisdiction of the Delaware Courts (and of the appropriate appellate courts thereto) in any such Proceeding and irrevocably and unconditionally waives any objection to venue laid 

22
 

therein, any objection on the grounds of forum non conveniens, or any objection based on or on account of its place of incorporation or domicile, which it may now or hereafter have to the bringing of any such Proceeding in any Delaware Court (and of the appropriate appellate courts thereto).  Each party hereby irrevocably and unconditionally consents and agrees that service or process in any such Proceeding may be served on any party anywhere in the world, whether within or without the State of Delaware, in any manner permitted by applicable law or, without limiting the foregoing, in the manner provided for notices in Section 5.01.
[SIGNATURE PAGE FOLLOWS]

23
 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized representatives on the day and year first above written.

LOCKHEED MARTIN CORPORATION

By: /s/ Stephen M. Piper                                
Name:    Stephen M. Piper    
Title:    Vice President and Associate General 
Counsel

ABACUS INNOVATIONS TECHNOLOGY, INC.

By: /s/ Benjamin A. Winter                            
Name:    Benjamin A. Winter 
Title:    Vice President and Assistant Secretary     

  [SIGNATURE PAGE TO INTELLECTUAL PROPERTY MATTERS AGREEMENT]Exhibit

EXHIBIT 10.4

SHARED CONTRACTS AGREEMENT
SHARED CONTRACTS (PARENT COMPANIES)

This Shared Contracts Agreement – Shared Contracts (Parent Companies) (together with the Exhibits hereto, this “Agreement”) is made as of the 16th day of August 2016, by and between Lockheed Martin Corporation, a Maryland corporation (“Parent”), and Abacus Innovations Corporation, a Delaware corporation (“Spinco”).  Each of Parent and Spinco is sometimes referred to individually in this Agreement as a “Party” and collectively they are sometimes referred to as the “Parties.”
W I T N E S S E T H:

WHEREAS, Parent and Spinco are parties to that certain Separation Agreement dated as of January 26, 2016 (the “Separation Agreement”), pursuant to which, among other things, Parent has agreed to transfer, or to cause the Affiliated Transferors to transfer, to Spinco and the other Spinco Companies certain of the assets held, owned or used by Parent and the Affiliated Transferors to conduct the Spinco Business, and to assign certain liabilities associated with the Spinco Business to Spinco and the other Spinco Companies, and Spinco and the other Spinco Companies have agreed to receive such assets and assume such liabilities;
WHEREAS, the Separation Agreement provides for the separation of the Spinco Business from the remaining business of Parent and its Subsidiaries to create two independent companies, on the terms and conditions set forth in the Separation Agreement and the other Transaction Documents;
WHEREAS, Parent, Spinco, Leidos Holdings, Inc., a Delaware corporation (“RMT Parent”), and Lion Merger Co., a Delaware corporation and wholly owned Subsidiary of RMT Parent (“Merger Sub” and, together with Parent, Spinco and RMT Parent, the “Merger Agreement Parties”) are parties to that certain Agreement and Plan of Merger dated as of January 26, 2016 (the “Merger Agreement”), pursuant to which, immediately following the Distribution, the Merger Agreement Parties will effect the merger of Merger Sub with and into Spinco, with Spinco continuing as the surviving corporation upon the terms and subject to the conditions of the Merger Agreement;
WHEREAS, the Shared Contracts identified on Exhibit A hereto (the “Shared Contracts (Parent Companies)”) shall be retained by the Parent Companies as Excluded Assets, subject to and in accordance with the terms and conditions of the Separation Agreement; 
WHEREAS, the Spinco Business currently performs certain work under task orders, delivery orders, work orders and other similar arrangements (collectively, “Orders”) pursuant to the Shared Contracts (Parent Companies) and may desire to submit certain proposals for prospective Orders under such Shared Contracts (Parent Companies) in the future;
WHEREAS, the Parties desire to enter into this Agreement to provide for the continuation of work under Orders currently in existence under the Shared Contracts (Parent Companies) and under Bids currently submitted by the Spinco Business under the Shared 

   
 
 

Contracts (Parent Companies), and to allocate between the Parties the right to submit proposals under each of the Shared Contracts (Parent Companies) from and after the date of this Agreement, and to set forth the procedures for the foregoing and the Parties’ related rights and obligations; and
WHEREAS, Parent and Spinco desire to enter into this Agreement in connection with the Distribution and the Contemplated Transactions; 
NOW, THEREFORE, in consideration of the foregoing and of the representations, warranties, covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
Section 1.Definitions.  Capitalized terms used in this Agreement but not defined herein shall have the meanings given to them in the Separation Agreement.  Each of the following terms is defined in the Section set forth opposite such term:
Term                                         Section

AAA    18(a)
Agreement    Preamble
Arbitral Tribunal    18(d)
Cost Principles    2(d)
Covered Spinco POs    Exhibit E
Delaware Courts    19
Dispute    18(a)
Existing Spinco Orders    2(a)
Existing Spinco POs    2(a)
Merger Agreement    Recitals
Merger Agreement Parties    Recitals
Merger Sub    Recitals
New Spinco Order    2(d)
New Spinco PO    2(d)
OCI    Exhibit D
Orders    Recitals
Originating Party    6(a)
Parent    Preamble
Parent Bid    2(c)
Parties    Preamble
Party    Preamble
Proprietary Information    6(a)
Receiving Party    6(a)
Reserved Business Area    2(c)
RMT Parent    Recitals
Rules    18(a)

2
 

Separation Agreement    Recitals
Shared Contracts (Parent Companies)     Recitals
Spinco    Preamble
Spinco Bid Order    2(b)
Spinco Bid PO    2(b)
Spinco Bids    2(b)
Spinco Orders    2(d)
Spinco POs    2(d)
Standard Terms and Conditions    2(e)
TO RFP    2(c)

Section 2.    Treatment of Shared Contracts (Parent Companies).  The Shared Contracts (Parent Companies) shall be retained by the Parent Companies as Excluded Assets, pursuant to the terms and conditions of the Separation Agreement and the other Transaction Documents.  The Parties hereby mutually covenant and agree that, to the extent permitted by the terms and conditions of the Shared Contracts (Parent Companies) and Applicable Law:
(a)    Existing Spinco Orders.  With respect to any Orders under the Shared Contracts (Parent Companies) outstanding as of the date of this Agreement that are being performed, in whole or in part, by the Spinco Business (the “Existing Spinco Orders”), whether pursuant to a purchase order, subcontract, Intra-Lockheed Martin Work Transfer Agreement or other inter-division or Intra-Lockheed Martin agreement or arrangement, program directive, intra-division work order or otherwise (collectively, the “Existing Spinco POs”), then, subject to the terms and conditions of this Agreement, the Spinco Business shall supply to the Parent Companies, and the Parent Companies shall purchase from the Spinco Business, the work that would have been provided under such Existing Spinco POs pursuant to the Shared Contracts (Parent Companies) and the Existing Spinco Orders, as applicable.  The Existing Spinco POs covered by this Agreement are listed on Exhibit B hereto.
    
(b)    Existing Bids by the Spinco Business.  Prior to the date of this Agreement, the Spinco Business has submitted quotations, bids or proposals for work under the Shared Contracts (Parent Companies) (“Spinco Bids”).  In the event that Parent or Spinco or a Subsidiary of Parent or Spinco is awarded an Order under a Shared Contract (Parent Companies) as a result of a Spinco Bid (either before or after the effective date of this Agreement) (each, a “Spinco Bid Order”), and to the extent no Existing Spinco PO in respect of such Spinco Bid Order exists on the effective date of this Agreement, then Parent and Spinco shall enter into a purchase order, subcontract, work order or similar agreement (each, a “Spinco Bid PO”) consistent with the price or cost estimate supplied by the Spinco Business for such Spinco Bid prior to the effective date of this Agreement and the Spinco Bid Order related thereto, and, subject to the terms and conditions of this Agreement, on the same terms, conditions and provisions and at the same prices set forth herein applicable to Existing Spinco POs that would have applied if an Existing Spinco PO with respect to the work that results from the Spinco Bid had been entered into by the Parent Business and the Spinco Business prior to the date of this Agreement.  The Spinco Bids covered by this Agreement include those listed on Exhibit C hereto.  Upon request by Spinco, Parent shall, and shall cause all Parent Companies to, file, 

3
 

prosecute and intervene in all bid protest actions on behalf of Spinco, subject to Parent’s exercise of reasonable discretion (after consulting with outside counsel) that it has satisfied its obligations under Applicable Law prior to the filing, prosecution or intervention in such bid protests.  
(c)    Future Bids.  With respect to the Shared Contracts (Parent Companies), from and after the date of this Agreement and during the term of such Shared Contracts (Parent Companies), Parent shall provide Spinco, in writing, the following:  (i) any draft task order request for proposal (“TO RFP”), (ii) any customer-announced intent to release a draft TO RFP, (iii) any draft TO RFP release dates and (iv) any final TO RFP under such Shared Contracts (Parent Companies).  Each of the foregoing shall be provided to Spinco simultaneously with Parent’s internal distribution of the same, but in no event later than two (2) Business Days after release (or, with respect to release dates, Parent becoming aware thereof), as applicable, and in each case without regard to whether such opportunities fall within or outside of the Reserved Business Area (as defined below). With respect to each Shared Contract (Parent Companies), the following terms and conditions shall apply: 
(i)    Parent shall have the right in its sole discretion to submit, or to cause its Subsidiaries to submit, on Parent’s behalf or on behalf of any of its Subsidiaries, any quotations, bids or proposals under the Shared Contracts (Parent Companies) (a “Parent Bid”), other than quotations, bids or proposals for prospective Orders within the reserved business areas described on Exhibit D (such reserved business areas, the “Reserved Business Area”).

(ii)    Parent shall have the first right, in its sole discretion, to submit, or to cause its Subsidiaries to submit, on Parent’s behalf or on behalf of any of its Subsidiaries, any Parent Bid under the Shared Contracts (Parent Companies) in the Reserved Business Area.  Parent shall provide notice to Spinco of whether Parent intends to submit a Parent Bid for a prospective Order in the Reserved Business Area no later than the earlier of (A) seven (7) days after release of the applicable TO RFP, or (B) if such TO RFP requires notification of intent to bid by a specified date, two (2) Business Days prior to such date. 

(iii)    If Parent shall decide in its sole discretion not to submit a Parent Bid for a prospective Order under Section 2(c)(ii) above then,  subject to the terms and conditions of this Agreement, Spinco shall have the right to request, within three (3) Business Days after receipt of the applicable TO RFP from Parent (or, if later, within three (3) Business Days after Parent’s delivery of the notice contemplated in Section 2(c)(ii)), that Parent submit, or cause its applicable Subsidiary to submit, on behalf of the Spinco Business, any quotations, bids or proposals for work under the Shared Contracts (Parent Companies) within the Reserved Business Area, on the terms and conditions proposed by the Spinco Business, and Parent agrees to, or to cause its applicable Subsidiary to, submit such quotations, bids or proposals in connection with any procurement within the Reserved Business Area, except to the extent Parent determines, after consultation with counsel, (A) that the terms and conditions proposed by Spinco reasonably could be interpreted to violate Applicable Law, the applicable Shared Contract (Parent Companies), the terms of this Agreement, or the terms of any other agreement to which a Parent Company is bound as of the date hereof, or (B) the scope of the work proposed in the quotation, bid or proposal would create an organizational conflict of interest for RMT Parent or 

4
 

Spinco.  Spinco shall submit any such quotations, bids or proposals along with all necessary accompanying information to Parent or its applicable Subsidiary at least five (5) Business Days (or such other period as shall be consistent with the applicable proposal cycle time) prior to the date that the proposal is due to be submitted.  Upon request by Spinco, Parent shall, and shall cause all Parent Companies to, file, prosecute or intervene in all bid protest actions on behalf of Spinco, subject to Parent’s exercise of reasonable discretion (after consulting with outside counsel) that it has satisfied its obligations under Applicable Law prior to the filing, prosecution or intervention in such bid protests.  

(iv)    For the avoidance of doubt, the Parent Companies shall not be required to submit on behalf of the Spinco Business any quotations, bids, or proposals under the Shared Contracts (Parent Companies) either (A) outside of the Reserved Business Area, or (B) if Parent or the applicable Parent subsidiary intends to submit a quotation, bid or proposal for that prospective Order on its own account.

(v)    No later than forty-five (45) days after the Distribution Date, the Parties shall (A) hold a pipeline review meeting and establish a regular cadence for meetings to conduct the pipeline review, (B) identify their respective points of contact with respect to the Shared Contracts (Spinco Companies) and (C) discuss, and if mutually agreeable, prepare a concept of operations (CONOPS) protocol addressing the procedures to be utilized by the Parties with respect to future bids.

(d)    Spinco POs.  In the event the quotation, bid or proposal of the Spinco Business is successful and an Order is awarded (a “New Spinco Order” and, collectively with the Existing Spinco Orders and the Spinco Bid Orders, the “Spinco Orders”), Parent and Spinco (or their applicable Subsidiaries) shall enter into a purchase order, subcontract, work order or similar agreement, consistent with the price or cost estimate and other terms and conditions of the proposal previously supplied by the Spinco Business and on such other terms and conditions as shall be reasonably acceptable to the Parties (a “New Spinco PO” and, collectively with the Existing Spinco POs and the Spinco Bid POs, the “Spinco POs”), pursuant to which Spinco or its applicable Subsidiary shall perform the work under the New Spinco Order that was awarded in response to such proposal. 

(i)    Spinco POs shall include provisions for cost recovery in favor of Parent or its applicable Subsidiary in the nature of arms-length subcontract management, material handling and/or other actual costs that appropriately and reasonably (consistent with past practice) take into account Applicable Law and the work to be performed by Parent or its applicable Subsidiary pursuant to and during the term of such Spinco POs, but no provision for Parent fee or profit.  Further, Spinco POs shall be administered as addressed in Exhibit E (the “Cost Principles”).  

(ii)    In the event that Spinco or any other Spinco Company breaches the covenants set forth in this Agreement or the requirements, provisions or terms of a Spinco Order, which results in Damages suffered by Parent, then Spinco or such Spinco Company shall be liable for all Damages to the extent arising from such breach, and Spinco or such Spinco 

5
 

Company agrees to indemnify and hold harmless Parent (or its applicable Subsidiary) from and against any Damages arising from any third-party claim asserted against or sought to be collected from Parent (or its applicable Subsidiary) resulting from Spinco’s or such Spinco Company’s breach; provided that the aggregate liability of Spinco and the Spinco Companies with respect to any Spinco Order, whether arising in contract, tort (including negligence) or restitution, or for breach of statutory duty or misrepresentation, or otherwise, shall be limited to the value of such Spinco Order.
(iii)    Except as otherwise provided in this Agreement, contacts with the customer with respect to the Shared Contracts (Parent Companies) shall be the responsibility of Parent (or its applicable Subsidiary).  Notwithstanding the foregoing, Parent shall, and shall cause the other Parent Companies to, (A) take such timely action as is reasonably necessary to allow the Spinco Companies to perform each Spinco PO and to protect any rights that may exist or accrue to Spinco Companies under the Shared Contracts (Parent Companies) and any Orders issued thereunder, including permitting Spinco Companies to communicate directly with customers under Spinco POs to the maximum extent permitted by the customer, (B) enforce, at Spinco’s cost and at the reasonable request of and for the benefit of the Spinco Companies, any and all claims, rights and benefits of Spinco Companies against the U.S. Government or any third party arising from or relating to any such Shared Contracts (Parent Companies) or any Orders issued thereunder, and (C) transfer applicable payments to the Spinco Companies in full, within fifteen (15) business days of the invoice date.  
(e)    Terms and Conditions.  Spinco shall cause the applicable Spinco Companies to perform each Spinco PO in accordance with the respective specifications or scope of work set forth, or to be set forth, as the case may be, in the applicable Spinco Order under the Shared Contract (Parent Companies) with respect thereto and in accordance with the terms and conditions and at the same prices applicable to such Spinco PO.  The terms and conditions applicable to each Spinco PO are as set forth in items (i) through (v) below.   Such terms and conditions are listed in the order they are to be given precedence in the event of a conflict: 
(i)the terms and conditions expressly set forth in this Agreement;

(ii)the terms and conditions of the Spinco PO, not including clauses (other than warranty clauses, mandatory FAR and DFARS flow-down clauses, and other provisions required for compliance purposes) that are incorporated therein and shall continue in effect from the Shared Contract (Parent Companies) or any prime contract or higher tier subcontract that have been incorporated therein; 

(iii)the terms and conditions of any higher tier Spinco Order corresponding to Spinco PO, as the case may be, not including clauses (other than warranty clauses, mandatory FAR and DFARS flow-down clauses, and other provisions required for compliance purposes) that are incorporated therein and shall continue in effect from the Shared Contract (Parent Companies) or any prime contract or higher tier subcontract that have been incorporated in such Spinco Order; 

6
 

(iv)all clauses, modified as necessary to reflect the changed parties, now existing or incorporated after the date hereof in the applicable Shared Contract (Parent Companies) or any prime contract or higher tier subcontract under which any Spinco PO, or the Spinco Order corresponding thereto, was or is issued that are required by such Shared Contract (Parent Companies), prime contract or higher tier subcontract to be incorporated into Orders or other subcontracts issued thereunder, when the requirement is expressly set forth in such clause, or when Parent Companies must impose the clause in order to comply with the terms of such Shared Contract (Parent Companies), prime contract or higher tier subcontract, and any warranty terms in the Shared Contract (Parent Companies), prime contracts or higher tier subcontracts; and  

(v)the terms and conditions of the standard terms and conditions attached hereto as Exhibit F (the “Standard Terms and Conditions”), other than the reference to the state law governing the agreement identified in Section 2(a) included in such Standard Terms and Conditions, which shall be disregarded, it being understood that Spinco shall be the “Performing Company” and Parent shall be the “Requesting Company” under the Standard Terms and Conditions.

(f)    Notice of Termination, Amendment or Modification.  Parent shall provide Spinco with prompt written notice of any termination, amendment or modification of any Shared Contract (Parent Companies) or any related Orders under which work is being performed by the Spinco Business that affects Spinco’s rights and obligations hereunder in any material respect.  For the avoidance of doubt, neither Parent nor any Parent Company may take any action to terminate, amend or modify any Spinco subcontracts at any tier under a Spinco PO.
(g)    Efforts to Transfer Spinco POs.  At Spinco’s request, Parent shall, and cause all Parent Companies to, use reasonable best efforts in cooperation with Spinco and Spinco Companies to transfer or obtain re-awards of the Spinco POs to or under other suitable contract vehicles held by Spinco or Spinco Companies, and to obtain all novation or other consents and approvals of Government Authorities for such transfers or re-awards.
(h)    Limited License.  To the extent required for Spinco or the applicable Spinco Companies to perform the Spinco POs in accordance with the terms and conditions of this Agreement, Parent hereby grants and licenses to Spinco and its applicable Affiliates the right to possess, access, and use any Intellectual Property that was developed by the Spinco Business prior to the Distribution Date in connection with the Spinco Business’s performance of work pursuant to any Shared Contracts (Parent Companies) prior to the Distribution Date, solely to the extent required to perform the Spinco POs in accordance with this Agreement.
Section 3.    Failure to Obtain Consent to Subcontract.  The Parties acknowledge that certain Shared Contracts (Parent Companies) require Parent (or its applicable Subsidiaries) to obtain the consent of a Governmental Authority to subcontract a portion of the work.  If such Governmental Authority decides not to grant its consent to a subcontract entered into pursuant to this Agreement, Parent shall promptly present to the Governmental Authority any grounds for reversal of such decision provided by Spinco, and Spinco shall provide all necessary assistance 

7
 

in connection with such presentation.  If the Governmental Authority refuses to reverse its decision, the Parties shall promptly meet to discuss alternative means to allow the Parties to fulfill their respective obligations under such Shared Contract (Parent Companies).  
Section 4.    Term.  This Agreement is effective as of the date first above written and shall continue in effect with respect to each Shared Contract (Parent Companies) until the earlier to occur of (a) the expiration or termination, as the case may be, of such Shared Contract (Parent Companies), and (b) the award to Spinco or any of its Subsidiaries of a substitute or successor contract vehicle to such Shared Contract (Parent Companies); provided, however, that the provisions of this Section 4 (Term) and Sections 5 (Use of Intellectual Property), 6 (Proprietary Information), 10 (Construction), 11 (Entire Agreement), 12 (Governing Law), 16 (Third Party Beneficiaries) and 18 (Dispute Resolution), as well as the terms and conditions described in this Agreement, the Cost Principles and the Standard Terms and Conditions that are applicable to Orders that by their terms survive the termination of the applicable Shared Contract (Parent Companies), shall survive any such expiration.  

Section 5.    Use of Intellectual Property.  Except as expressly provided in this Agreement, nothing in this Agreement amends or modifies the provisions of the Intellectual Property Matters Agreement.  To the extent any Intellectual Property is developed by Spinco or its Subsidiaries in connection with Spinco’s performance of work pursuant to any Shared Contracts (Parent Companies), the Parties shall cooperate in good faith to allocate ownership and use of such Intellectual Property based upon the intended use and application of such Intellectual Property in the Spinco Business and/or the Parent Business, as the case may be, based upon the following key principles: (i) Intellectual Property with exclusive application to the Spinco Business shall be retained by the Spinco Companies with no grant of rights to the Parent Companies, (ii) Intellectual Property with exclusive application to the Parent Business shall be transferred to the Parent Companies with no grant of rights to the Spinco Companies, and (iii) Intellectual Property with application to both the Spinco Business and the Parent Business shall be retained by the Spinco Companies and licensed to Parent on a nonexclusive basis, in each case based on terms and conditions consistent with the similar provisions of the Separation Agreement and the Intellectual Property Matters Agreement with respect to Transferred Intellectual Property, Excluded Intellectual Property, Licensed Intellectual Property and Licensed-Back Intellectual Property, as the case may be. To the extent that, under the terms of any Shared Contracts (Parent Companies) or Orders, rights in Intellectual Property are required to be granted to or otherwise made available to the U.S. Government, the Parties shall use reasonable best efforts to provide such rights under the terms and conditions of customary license or other agreements.
Section 6.    Proprietary Information.  
(a)    Definitions.  The term “Proprietary Information” means all proprietary, confidential and/or trade secret information that relates to and is disclosed by one Party or its Affiliates (the “Originating Party”) to the other Party or its Affiliates (the “Receiving Party”) under or in connection with this Agreement; provided that Proprietary Information shall not include Transferred Intellectual Property, Licensed Intellectual Property, Licensed-Back 

8
 

Intellectual Property or Spinco Business Proprietary Information, it being understood that such confidential information and data shall be protected and preserved by the Parties in accordance with the terms and conditions of the Separation Agreement and the other Transaction Documents.  Without limiting the foregoing, the term “Proprietary Information” shall include all pricing data and information disclosed by any Party, including any such data or information disclosed in connection with a Shared Contract (Parent Companies) under this Agreement.
(b)    Disclosure and Use.  The Receiving Party (i) shall (and shall cause its Representatives and Affiliates to) treat and hold as confidential all Proprietary Information received from the Originating Party, and (ii) shall not (and shall cause its Representatives and Affiliates not to) disclose to any Person, publish or make publicly available any Proprietary Information received from the Originating Party.  The Receiving Party shall use Proprietary Information received from the Originating Party solely during the term of this Agreement and solely in connection with the performance of its obligations under this Agreement.  Without limiting the foregoing, the Receiving Party shall not use or disclose any pricing data or information of an Originating Party in any Bid or proposal, other than in connection with proposals submitted under a Shared Contract (Parent Companies) in accordance with this Agreement.
(c)    Exceptions.  This Agreement shall not restrict disclosure or use of Proprietary Information that:
(i)    appears in issued patents, published patent applications or other publications that are generally available to the public; 
(ii)    is or becomes publicly available other than as a result of an unauthorized disclosure by the Receiving Party or its Representatives or Affiliates;
(iii)    is or becomes available to the Receiving Party on a non-confidential basis from a source that, to such Receiving Party’s knowledge, is not prohibited from disclosing such information by a legal, contractual or fiduciary obligation; or 
(iv)    is or has been independently developed by the Receiving Party as evidenced by written documentation; 
 
provided that information shall not be deemed to be within the foregoing exceptions merely because such information is embraced by more general information in the public domain, unless the information itself is in the public domain.  
(d)    Disclosures Required by Applicable Law.  In addition to the foregoing exceptions, in the event the Receiving Party is requested or required (by oral or written request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand or similar process or by Applicable Law) to disclose any Proprietary Information, then the Receiving Party shall notify the Originating Party promptly of the request or requirement so that the Originating Party, at its expense, may seek an appropriate protective order or waive compliance with this Section 6.  If, in the absence of a protective order or receipt of a waiver 

9
 

hereunder, the Receiving Party is, on the advice of counsel, required to disclose such Proprietary Information, the Receiving Party may so disclose the information; provided that the Receiving Party shall use commercially reasonable efforts to obtain reliable assurance that confidential treatment shall be accorded to such information.
(e)    No Other Rights Granted.  Proprietary Information shall remain the property of the Originating Party.  Neither this Agreement nor disclosure of Proprietary Information hereunder shall be construed as granting any right or license under any trade secrets, copyrights, inventions, patents or other Intellectual Property now or hereafter owned or controlled by either Party.  
(f)    Non-Exclusive.  The rights and obligations of the Parties set forth in this Section 6 are in addition and subject to any additional or supplemental agreements with respect to confidentiality or protection of proprietary information that may be agreed between the Parties.
Section 7.    Notices.  All notices, requests and other communications to any Party hereunder shall be in writing (including telecopy or similar writing) and shall be given,
if to Parent:

Lockheed Martin Corporation
6801 Rockledge Drive         
Bethesda, Maryland 20817        
Attention:  Senior Vice President, General Counsel and Corporate Secretary
Telecopy:  (301) 897-6013

with a copy (which shall not constitute notice) to:

Hogan Lovells US LLP
Harbor East
100 International Drive
Suite 2000
Baltimore, Maryland  21202
Attention:  Glenn C. Campbell
Telecopy:  (410) 659-2701
  
if to Spinco:   

Abacus Innovations Corporation
700 N. Frederick Avenue
Gaithersburg, MD  20879
Attention: President
Telecopy: (301) 240-6748

10
 

with a copy (which shall not constitute notice) to:

Skadden, Arps, Slate, Meagher & Flom LLP
One Rodney Square
920 N. King Street
Wilmington, DE 19801
Attention:  Robert B. Pincus, Esq.
Telecopy:  (302) 434-3090

or to such other address or telecopy number and with such other copies, as such Party may hereafter specify for that purpose by notice to the other Party.  Each such notice, request or other communication shall be effective (a) on the day delivered (or if that day is not a Business Day, on the first following day that is a Business Day) when (i) delivered personally against receipt or (ii) sent by overnight courier, (b) on the day when transmittal confirmation is received if sent by telecopy (or if that day is not a Business Day, on the first following day that is a Business Day), and (c) if given by any other means, upon delivery or refusal of delivery at the address specified in this Section 7.
Section 8.    Amendments; Waivers; Waiver of Liability.
(a)    Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by each Party, or in the case of a waiver, by the Party against whom the waiver is to be effective.
(b)    No failure or delay by either Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  Except as otherwise provided herein, no action taken pursuant to this Agreement, including any investigation by or on behalf of any Party, shall be deemed to constitute a waiver by the Party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement.  Any term, covenant or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but only by a written notice signed by such Party expressly waiving such term or condition.  The waiver by any Party of a breach of any provision hereunder shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereunder.
(c)    EXCEPT TO THE EXTENT OTHERWISE PROVIDED IN THE SEPARATION AGREEMENT,  AS OTHERWISE REQUIRED BY APPLICABLE LAW OR ARISING OUT OF, OR RELATING TO, THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF PARENT OR ANY OF ITS SUBSIDIARIES, SPINCO AGREES THAT PARENT AND ITS SUBSIDIARIES WILL NOT BE RESPONSIBLE FOR THE PERFORMANCE BY SPINCO IN ANY RESPECT OF THE SPINCO ORDERS OR TO ANY SPINCO COMPANY FOR ANY LOSS OR DAMAGE ARISING OUT OF OR IN 

11
 

CONNECTION WITH THE SPINCO ORDERS AFTER THE EFFECTIVE DATE OF THIS AGREEMENT.  

Section 9.    Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided that, except as a result of the Contemplated Transactions, neither Party may assign, delegate or otherwise transfer, directly or indirectly, in whole or in part, any of its rights or obligations under this Agreement without the prior written consent of the other Party.  Any attempted assignment, delegation or transfer in violation of this Section 9 shall be null and void.
Section 10.    Construction.  As used in this Agreement, any reference to the masculine, feminine or neuter gender shall include all genders, the plural shall include the singular, and the singular shall include the plural.  References in this Agreement to a Party or other Person include their respective successors and assigns.  The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase “without limitation” unless such phrase otherwise appears.  Unless the context otherwise requires, references in this Agreement to Sections and Exhibits shall be deemed references to Sections of and Exhibits to this Agreement.  Unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Section or provision hereof.  Except when used together with the word “either” or otherwise for the purpose of identifying mutually exclusive alternatives, the term “or” has the inclusive meaning represented by the phrase “and/or”.  With regard to each and every term and condition of this Agreement, the Parties understand and agree that the same have or has been mutually negotiated, prepared and drafted, and that if at any time the Parties desire or are required to interpret or construe any such term or condition or any agreement or instrument subject thereto, no consideration shall be given to the issue of which Party actually prepared, drafted or requested any term or condition of this Agreement.  All references in this Agreement to “dollars” or “$” shall mean United States dollars.  Any period of time hereunder ending on a day that is not a Business Day shall be extended to the next Business Day.

Section 11.    Entire Agreement.
(a)    This Agreement, the other Transaction Documents and any other agreements contemplated hereby or thereby constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior agreements, understandings and negotiations, both written and oral, between the Parties with respect to the subject matter hereof. 
(b)    THE PARTIES ACKNOWLEDGE AND AGREE THAT NO REPRESENTATION, WARRANTY, PROMISE, INDUCEMENT, UNDERSTANDING, COVENANT OR AGREEMENT HAS BEEN MADE OR RELIED UPON BY ANY PARTY OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT AND IN THE OTHER TRANSACTION DOCUMENTS.  SPINCO ACKNOWLEDGES THAT PARENT HAS INFORMED IT THAT NO PERSON HAS BEEN AUTHORIZED BY PARENT OR ANY OF ITS AFFILIATES TO MAKE ANY REPRESENTATION OR WARRANTY IN RESPECT OF 

12
 

THE SPINCO BUSINESS OR IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS, UNLESS IN WRITING AND CONTAINED IN THIS AGREEMENT OR IN ANY OF THE OTHER TRANSACTION DOCUMENTS TO WHICH THEY ARE A PARTY.
Section 12.    Governing Law.  Except to the extent required to be governed by the provisions of the federal law of the United States, including the provisions of the FAR, this Agreement shall be construed in accordance with and governed by the law of the State of Delaware (without regard to the choice of law provisions thereof).
Section 13.    Counterparts; Effectiveness.   This Agreement may be signed in any number of counterparts (including by facsimile or PDF), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective when each Party shall have received a counterpart hereof signed by the other Party.
Section 14.    Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  The application of such invalid or unenforceable provision to Persons or circumstances other than those as to which it is held invalid or unenforceable shall be valid and be enforced to the fullest extent permitted by Applicable Law.  To the extent any provision of this Agreement is determined to be prohibited or unenforceable in any jurisdiction, or determined to be impermissible (as evidenced in writing) by any Governmental Authority, Spinco and Parent agree to use reasonable best efforts to substitute one or more valid, legal and enforceable provisions that, insofar as practicable, implement the purposes and intent of the prohibited unenforceable, or impermissible provision.
Section 15.    Captions.  The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.
Section 16.    Third Party Beneficiaries.  Except as expressly provided herein, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any Person, other than the Parties and their successors or permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, or result in such Person being deemed a third party beneficiary of this Agreement.
Section 17.    Disclaimer of Agency.  Nothing in this Agreement shall be deemed in any way or for any purpose to constitute either Party an agent of the other Party in the conduct of such Party’s business or to create a partnership or joint venture between the Parties.
Section 18.    Dispute Resolution.

13
 

(a)    Any dispute, controversy or claim arising from, connected to or related, in any manner, to this Agreement, including any breach, termination, expiration or invalidation of this Agreement, or in respect of any aspect of the Parties’ relationship arising from this Agreement, including their respective rights, duties and obligations to each other, whether fiduciary or otherwise, and whether based on contract, tort, statute or otherwise, (a “Dispute”) that is not, for any reason, resolved in writing amicably by the Parties within 30 days after the date of delivery of a request by a Party to the other Parties to the dispute for such amicable settlement, shall be resolved and decided by final and binding arbitration, pursuant to the Commercial Arbitration Rules (“Rules”) as administered by the American Arbitration Association (the “AAA”) in force as at the date of this Agreement, except as modified herein.  In the event of any conflict between the Rules and any provisions of this Agreement, this Agreement shall govern.
(b)    The legal seat of the arbitration shall be Wilmington, Delaware.  Without prejudice to the legal seat of arbitration, and for the convenience of the parties, the arbitral hearings and other proceedings shall be held in Washington, D.C., or at such other location upon which the parties to the arbitration may agree in writing.
(c)    The arbitration shall be conducted in the English language.  
(d)    The arbitral tribunal (“Arbitral Tribunal”) shall consist of three arbitrators.  The claimant(s) and respondent(s), respectively, shall each appoint one arbitrator within 30 days of the date of delivery of the demand of arbitration, and the third arbitrator shall be appointed by the two Party-appointed arbitrators within 30 days of the date of appointment of the second arbitrator.  Any arbitrator not timely appointed as provided herein shall be appointed by the AAA.  For the avoidance of doubt, each of the claimant and the respondent in the arbitration shall be permitted to consult with its respective appointed arbitrator in connection with such arbitrators’ selection of the third arbitrator.
(e)    The Arbitral Tribunal shall have the exclusive right to determine the arbitrability of any Disputes.
(f)    The parties shall share equally the arbitration administrative fees, the panel member fees and costs, and any other costs associated with the arbitration.  Each party shall bear its own costs and attorneys’ fees. The Arbitral Tribunal shall have no authority to award damages in excess of any limitations set forth in this Agreement.
(g)    The Arbitral Tribunal shall be required to apply the substantive laws of the State of Delaware (without regard to the choice of law provisions thereof that would compel the laws of another jurisdiction) in ruling upon any Dispute.
(h)    The Parties agree that the dispute resolution procedures specified in this Section 18 shall be the sole and exclusive procedures for the resolution of Disputes, including all documents made a part thereof; provided, however, that any Party may seek a preliminary injunction or other preliminary judicial relief in aid of arbitration before any court of competent jurisdiction if such action is necessary to avoid irreparable damage.  Despite such action, the Parties shall continue to participate in good faith in the procedures specified in this Section 18.

14
 

(i)    Any decision or award of the Arbitral Tribunal shall be reasoned and in writing, and shall be final and binding upon the parties to the arbitration proceeding.  The Parties agree not to invoke or exercise any rights to appeal, review, vacate or impugn such decision or award by the Arbitral Tribunal, except as provided in the Federal Arbitration Act (including Chapters 2 and 3 thereof) or the New York Convention, as applicable.  The Parties also agree that judgment upon the arbitral decision or award may be entered and enforced against the parties to the arbitration proceeding or their assets wherever they may be found (to whose jurisdiction the parties consent for the purpose of entering and enforcing judgment on the arbitral decision and award) as well as any other court having jurisdiction thereof.
(j)    If any prevailing party is required to retain counsel to enforce the arbitral decision or award in a court of competent jurisdiction, the Party against whom the decision or award is made shall reimburse the prevailing party for all reasonable fees and expenses incurred and paid to said counsel for such service.  
(k)    The Parties agree and understand that, except as may be required by Applicable Law or any national or international stock exchange regulations applicable to a Party, or is required to protect or pursue a legal right, every aspect concerning the process of arbitration shall be treated with the utmost confidentiality and that the arbitration procedure itself shall be confidential. 
(l)    The Parties agree that notifications of any proceedings, reports, communications, orders, arbitral decisions, arbitral awards, arbitral award enforcement petitions, and any other document shall be sent as set forth in Section 7. 
(m)    The parties consent that any pending or contemplated arbitration hereunder may be consolidated with any prior arbitration arising under this Agreement or any other Transaction Document (other than the Merger Agreement or the Tax Matters Agreement) for the purposes of efficiency and to avoid the possibility of inconsistent awards.  An application for such consolidation may be made by any party to this Agreement or such other Transaction Documents to the tribunal for the prior arbitration.  The tribunal to the prior arbitration shall, after providing all interested parties the opportunity to comment on such application, order that any such pending or contemplated arbitration be consolidated into a prior arbitration if it determines that (i) the issues in the arbitrations involve common questions of law or fact, (ii) no party to either arbitration shall be prejudiced, whether by delay or otherwise, by the consolidation, (iii) any party to the pending or contemplated arbitration which did not join an application for consolidation, or does not consent to such an application, is sufficiently related to the parties in the prior arbitration that their interests were sufficiently represented in the appointment of the tribunal for the prior arbitral tribunal, and (iv) consolidation would be more efficient that separate arbitral proceedings.
Section 19.    Consent to Jurisdiction.  Any Proceeding seeking to obtain a pre-arbitral injunction, pre-arbitral attachment or other order in aid of arbitration in connection with this Agreement shall and may be brought in the Delaware Court of Chancery, or, where such court does not have jurisdiction, any state or federal court within the State of Delaware (“Delaware Courts”), and each of the Parties hereby irrevocably and unconditionally consents to the exclusive jurisdiction of the Delaware Courts (and of the appropriate appellate courts thereto) in 

15
 

any such Proceeding and irrevocably and unconditionally waives any objection to venue laid therein, any objection on the grounds of forum non conveniens, or any objection based on or on account of its place of incorporation or domicile, which it may now or hereafter have to the bringing of any such Proceeding in any Delaware Court (and of the appropriate appellate courts thereto).  Each party hereby irrevocably and unconditionally consents and agrees that service or process in any such Proceeding may be served on any party anywhere in the world, whether within or without the State of Delaware, in any manner permitted by applicable law or, without limiting the foregoing, in the manner provided for notices in Section 7.
[SIGNATURE PAGE FOLLOWS]

16
 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized representatives on the day and year first above written.

LOCKHEED MARTIN CORPORATION

By: /s/ Stephen M. Piper                                 
Name:    Stephen M. Piper
Title: Vice President and Associate General
          Counsel    

ABACUS INNOVATIONS CORPORATION

By: /s/ F. Barry Hennegan                              
Name:    F. Barry Hennegan
Title: Vice President and Secretary    

[SIGNATURE PAGE TO SHARED CONTRACTS AGREEMENT – SHARED CONTRACTS (PARENT COMPANIES)] 
 

EXHIBIT A

LIST OF SHARED CONTRACTS (PARENT COMPANIES)

	
						
	Short Name
	Contract Name
	Contract Number
	Customer
	POP Start Date
	POP End Date

	Seaport-e
	Navy Seaport Enhanced
	N00178-04-D-4079
	US Navy NSWC - Dahlgren
	4/5/2004
	4/4/2019

	F2AST
	FUTURE FLEX ACQUISITION & SUSTAINMENT TOOL (F2AST)
	FA8530-08-D-0008
	US Air Force - Warner Robins AFB
	7/21/2008
	7/20/2018

	GSA OASIS
	GSA OASIS
	GS00Q14OADU123
	GSA
	7/29/2014
	7/29/2024

	INSCOM GI
	INSCOM Global Intelligence IDIQ
	W911W4-14-D-0006
	Army
	4/10/2015
	4/9/2020

	SSES NexGen
	Software and System Engineering Next Generation IDIQ (Army)
	W15P7T-12-D-E004
	Army
	9/28/2012
	9/27/2016

	DESP III
	Design and Engineering Support Program
	FA8222-12-D-0014
	Air Force – Hill Air Force Base
	01/01/2012
	1/1/2019

     
 

EXHIBIT B

EXISTING SPINCO POs

	
								
	Prime Contract Number
	DO
	Contract Title
	Prime Contractor / Business Unit
	IDIQ Relationship
	Status
	ECS Contract / IWTA Period of Performance Start
	ECS Contract / IWTA Period of Performance End

	FA8530-08-D-0008
	21
	LOT VII TH-1H
	MST (LMIS Aero)
	F2AST
	Open
	09/30/2011
	09/28/2016

	FA8530-08-D-0008
	BS01
	CONTRACTOR LOGISTICS SUPPORT (CLS) IN AFGHANISTAN
	MST (LMIS Aero)
	F2AST
	Open
	09/01/2014
	08/31/2016

	FA8530-08-D-0008
	FA8630-16-F-5058
	RSAF ON-CALL SUPPORT
	MST
	F2AST
	Open
	07/22/2016
	07/21/2017

	N00178-04-D-4079
	16
	COMBAT SYSTEMS ACTIVATION, OPER, MAINT. & ADMIN
	MST
	Seaport-e
	Open
	08/01/2010
	10/31/2016

	N00178-04-D-4079
	18
	AEGIS DM SUPPORT RECOMPETE
	MST
	Seaport-e
	Open
	09/01/2010
	08/31/2016

	N00178-04-D-4079
	N417
	TOWED SYSTEMS IMA
	MST
	Seaport-e
	Open
	11/09/2015
	11/08/2016

	N00178-04-D-4079
	N418
	SUBLAN/CANES
	MST
	Seaport-e
	Open
	07/01/2016
	06/30/2021

	N00178-04-D-4079
	EH04
	MK 48 TORPEDO INTERMEDIATE MAINTENANCE ACTIVITY
	MST
	Seaport-e
	Open
	04/22/2013
	02/23/2017

	W15P7T-12-D-E004
	KX01
	GROUND STATION BRANCH
	MST
	SSES NEXGEN
	Open
	08/19/2013
	08/29/2016

	W15P7T-12-D-E004
	KX02
	SENSORS BRANCH SOFTWARE SUPPORT
	MST
	SSES NEXGEN
	Open
	07/31/2014
	10/30/2016

	GS00Q14OADU123
	W9124L-16-0014
	OASIS THAAD ITB
	MST
	GSA OASIS
	Open
	07/15/2016
	01/15/2017

     
 

EXHIBIT C

SPINCO BIDS

		
	•
	Seaport-E: N00024-15-R-3288 (Wallops) - $109M 

		
	•
	SSES NexGen: SSESR-2055 (Worldwide Systems Field Software Support) - $200M

		
	•
	Inscom GI: G3 Training Spt recompete - $88M

     
 

EXHIBIT D

RESERVED BUSINESS AREA

		
	(I)
	Reserved Business Area:  The “Reserved Business Area” for purposes of this Agreement means all prospective Orders that are not within the “Parent Scope” referenced below.  

		
	(A)
	Parent Scope:

		
	(1)
	Prospective Orders where, as of the Distribution Effective Time, Parent (including the portions of the former IS&GS business area that are not part of the Spinco Business, but excluding the Spinco Business) (“LM Remainco”) is an incumbent.

		
	(2)
	Prospective Orders where the predominant work under the Order is of the type that, as of the Distribution Effective Time, is more within the “core competencies” of LM Remainco than the “core competencies” of the Spinco Business.

For purposes of determining the foregoing, the “core competencies” of LM Remainco and the Spinco Business will be based on which Party has the most relevant past performance, including the currency and relevance of the information, source of the information, context of the data (including whether LM Remainco is or was the OEM), and general trends in the contractor’s performance, in a good faith effort to classify the scope as being primarily within the scope of one party or the other party. Reference is made to FAR 15.305, Proposal Evaluation, for factors relevant to this determination.

Parent may not submit a quotation, bid or proposal for a prospective Order if the submission of such quotation, bid or proposal to the U.S. Government would violate Applicable Law, breach any Contract of Spinco as of the Distribution Effective Time or would create an Organizational Conflict of Interest (“OCI”) issue for RMT Parent or Spinco, it being understood and agreed that the Parties will consider good faith modifications to the quotation, bid or proposal or the role of the Parties in submitting the quotation, bid or proposal for the purposes of avoiding any such violation of Applicable Law, breach or OCI issue.

No prospective Order shall be within the Parent Scope to the extent that
(a)    the Spinco Business is the incumbent, or
(b)    the prospective Order or competition that is the subject of the prospective Order was in the Spinco Business’s long range plan as of December 3, 2015.

     
 

		
	(B)
	Spinco Scope:

All prospective Orders that are not within the Parent Scope referenced above.

* * * * 
		
	(II)
	Future Actions

Upon the expiration of each Shared Contract (Parent Companies), either Party may bid on any replacement vehicle or recompete procurement.

		
	(III)
	Dispute Resolution Process: 

Notwithstanding anything to the contrary in Section 18 of the Agreement, disputes between the Parties regarding whether a particular prospective Order falls within or outside of the Reserved Business Area shall be resolved as follows:
		
	(a)
	All disputes shall be escalated promptly to senior management of Parent and Spinco.  

Senior management shall have 48 hours to resolve any dispute from the time such conflict is identified to both Parties.  In the case of Parent, senior management shall mean:
Stephen (Steve) F. O’Bryane 
    stephen.f.obryan@lmco.com 
    202-863-3447 (office) 
    817-296-6333 (cell)
and
Kay Sears 
kay.sears@lmco.com 
303-977-2203 (office) 
202-968-4412 (cell)
and, in the case of Spinco, senior management shall mean:
Gerard (Gerry) A. Fasano 
gerard.a.fasano@lmco.com
610-531-5420 (office)
610-513-4412 (cell)

     
 

and 

Kim D. Denver
kim.d.denver@leidos.com
571-526-7051 (office)
407-765-1926 (cell)

or, in each case, such other individual(s) as a Party may designate in advance to the other. 
		
	(b)
	If no agreement is reached in accordance with paragraph (a), then the dispute shall be referred to an outside expert (an “Expert”) agreed upon by the Parties, which Expert shall be promptly engaged by the Parties.  Such Expert (i) must have expertise in government contracting, IDIQ vehicles and GSA schedules, (ii) must not have a conflict of interest (unless such conflict is waived in the sole discretion of the relevant Party and any relevant third parties) and (iii) may or may not be an attorney.  

The Parties must provide a copy of the prospective Order request, request for quote or similar document provided by the procuring agency, along with all position papers and other relevant documentation to such Expert(s) immediately upon engagement, and shall cooperate to facilitate the Expert(s)’s review of the dispute.  The Expert(s) shall have five Business Days from the time of engagement to resolve the dispute, or such longer period as may be agreed by the Parties; provided, that if the applicable quotation, bid or proposal  is due within a period of less than 30 days from the time of engagement, then the Expert shall have no more than three Business Days from the time of engagement to resolve the dispute.
If Parent is not an incumbent and the Expert(s) cannot make a determination that the task order is more within the “core competencies” of Parent than the “core competencies” of the Spinco Business (effectively, a tie), then Parent shall have the sole right to submit or cause its Subsidiaries to submit a Parent Bid on the opportunity.
		
	(c)
	Any dispute resolved in accordance with this dispute resolution process shall be final and binding upon the Parties.

* * * *

     
 

EXHIBIT E

COST PRINCIPLES

		
	1.
	With respect to each Shared Contract (Parent Companies), Parent will, or will cause the applicable Parent Subsidiary to, take reasonable best efforts to maintain each Spinco PO within a cost segment that is generally compatible with the work being performed and the competitive environment of such Spinco PO, broadly consistent with Parent’s general business practices.

		
	2.
	With respect to any Existing Spinco PO, any Spinco Bid PO, or any New Spinco PO resulting from any quotation, bid or proposal for any Order made by the Spinco Business under the Shared Contracts (Parent Companies) (a “Spinco Future Bid”) that is fully and finally submitted (it being understood that revisions may occur in connection with customer requests and negotiations following final proposal submission)within ninety (90) days after the Distribution Effective Time (together, “Covered Spinco POs”), in each case, in the event and to the extent it becomes impracticable due to customer reaction or otherwise in Parent’s reasonable good faith determination to maintain both (a) the pricing applicable to such Covered Spinco PO, and (b) recovery by Parent or the applicable Parent Subsidiary of arms-length subcontract management, material handling and/or other actual costs included in such Covered Spinco PO in accordance with Section 2(d)(i), then (b) shall be reduced accordingly.

		
	3.
	With respect to any Spinco PO resulting from a Spinco Future Bid that is fully and finally submitted (it being understood that revisions may occur in connection with customer requests and negotiations following final proposal submission)more than ninety (90) days after the Distribution Effective Time, in the event and to the extent it becomes impracticable due to customer reaction  or otherwise in Parent’s reasonable good faith determination to maintain both (a) the pricing applicable to such Spinco PO, and (b) recovery by Parent or the applicable Parent Subsidiary of arms-length subcontract management, material handling and/or other actual costs included in such Spinco PO in accordance with Section 2(d)(i), then (b) shall be reduced accordingly and any resulting reduction in (b) shall be deemed to be Damages to Parent or the applicable Parent Subsidiary, and Spinco shall promptly indemnify and hold harmless Parent or the applicable Parent Subsidiary from and against any such Damages.

		
	4.
	With respect to any Covered Spinco PO, in the event and to the extent Parent or the applicable Parent Subsidiary incurs any penalty or price, cost recovery, or fee reduction due to a customer finding of excessive subcontracting pass-through resulting from consummation of the undertakings contemplated by the Transaction Documents, then Spinco shall have no liability to Parent or the applicable Parent Subsidiary.

     
 

		
	5.
	With respect to any Spinco PO resulting from a Spinco Future Bid that is fully and finally submitted (it being understood that revisions may occur in connection with customer requests and negotiations following final proposal submission) more than ninety (90) days after the Distribution Effective Time, in the event and to the extent Parent or the applicable Parent Subsidiary incurs any penalty or price, cost recovery, or fee reduction due to a customer finding of excessive subcontracting pass-through resulting from consummation of the undertakings contemplated by the Transaction Documents, then any such penalty or reduction  shall be deemed to be Damages to Parent or the applicable Parent Subsidiary, and Spinco shall promptly indemnify and hold harmless Parent or the applicable Parent Subsidiary from and against any such Damages. 

		
	6.
	Parent shall (and Spinco will cooperate with Parent to) use reasonable efforts to convince the applicable customers that provisions for recovery by Parent or the applicable Subsidiary of arms-length subcontract management, material handling and/or other actual costs included in Spinco POs in accordance with Section 2(d)(i) are related to the performance of subcontract management functions that constitute “Added Value” (as such term is defined in Section 52.215-23 of the Federal Acquisition Regulations (October 2009)).

		
	7.
	For the avoidance of doubt, but subject to the hold harmless and indemnification provisions in Cost Principles Paragraphs 3 and 5 above, nothing in this Agreement shall preclude Spinco from submitting any Spinco Future Bids for 100% of the scope of a prospective Order by reason of a limitation on excessive subcontracting pass-through charges or any actual or anticipated impracticality of maintaining both the (a) pricing applicable to such Order or the associated Spinco PO and (b) recovery by Parent or the applicable Parent Subsidiary of arms-length subcontract management, material handling and/or other actual costs in accordance with Section 2(d)(i).

     
 

EXHIBIT F

STANDARD TERMS AND CONDITIONS

(see attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00263-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00263-of-00352.parquet"}]]