Document:

Master Supply Agreement - L-3 Communications (as Buyer) and Engility (as Seller)

 Exhibit 10.5 
 Confidential treatment has been requested with respect to the information contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the
Securities and Exchange Commission 
 MASTER SUPPLY AGREEMENT BETWEEN 

L-3 COMMUNICATIONS CORPORATION 
 AND ENGILITY CORPORATION 
 This MASTER SUPPLY AGREEMENT
(“Agreement”) is made by and between L-3 Communications Corporation, a Delaware corporation with its principal office located at 600 Third Avenue, New York, New York, 10016 (“Buyer”) and Engility Corporation, a Delaware
corporation with its principal office located at 3750 Centerview Drive, Chantilly, Virginia 20151 (“Seller”) (collectively the “Parties”). 
 WHEREAS, Buyer and Seller have entered into a Distribution Agreement, dated July 16, 2012 (“Distribution Agreement”), pursuant to which Buyer agrees to spinoff a portion of its
businesses to Seller; and 
 WHEREAS, Buyer and Seller desire to have Seller provide certain goods and services to Buyer
pursuant to the terms and conditions of this Agreement. 
 NOW THEREFORE, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the Parties hereby agree as follows: 
 1.0 DEFINITIONS 

a. Buyer – means L-3 Communications Corporation and its affiliates, as applicable. 
 b. Effective Date – means the date this Agreement becomes fully binding and enforceable and shall be the same as the Effective Time. 
 c. Existing Work – means agreements for the sale of goods and services between Buyer and Seller that exist as of the Effective Date and which are set forth in Appendix A hereto (including any
post-acceptance, contractual obligations/rights arising from such agreements). The agreements for Existing Work are in the form of L-3 inter-divisional work authorizations (“IDWA”), general ledger transfer arrangements, GSA schedule
orders, and purchase orders or subcontracts between Buyer and Seller. 
 d. Inter-Divisional Work Authorizations (“IDWA”)
– means an agreement between Buyer and Seller covering the sale of goods and/or services which, generally, details the scope, pricing and other terms and conditions of such agreement. 
 e. New Work – means any contemplated agreement for the sale of the goods and services between Buyer and Seller which is not a part of the Existing Work and which is a Teaming Commitment.

 f. Seller – means Engility Corporation and its affiliates, as applicable. 

g. Teaming Agreement – means the agreement, substantially in the form of Appendix D hereto, which provides, in part, a binding commitment
between Buyer and Seller to either, exclusively or non-exclusively, pursue the capture of certain programs contemplated to be awarded by Buyer’s customers. 
 h. Teaming Commitment – means each of the business pursuits expressly set forth in Appendix C hereto, wherein the parties have agreed to enter, or have entered into, either an exclusive or
non-exclusive teaming agreement (such exclusivity is as set forth within Appendix C) wherein the Parties have agreed to work together to capture a program/contract award from Buyer’s customer(s). 

2.0 GOODS AND SERVICES 
 2.1.
General. Subject to the terms and conditions of this Agreement, Buyer and Seller agree to the sale of goods and services for Existing Work and New Work and to enter into certain Teaming Commitments. 

 2.2. Terms and Conditions for Existing Work. 

a. Within 30 days after the Effective Date, or such other period of time as the Parties may otherwise agree in writing, Buyer shall issue to Seller a
purchase order, or an amendment thereto, for each of the Existing Work as set forth in Appendix A. The terms and conditions of such purchase order shall be based on: (i) the terms and conditions contained in the IDWA or other agreement for
Existing Work between the Parties as of the Effective Time, (ii) the terms and conditions required to be flowed down from Buyer’s prime contract, and (iii) this Agreement and any other terms and conditions mutually agreed to by the
Parties. In the event the Parties do not agree on such other terms and conditions referred to in clause (iii) of the preceding sentence, the terms and conditions contained in the General Terms and Conditions of Purchase attached as
Appendix B hereto will apply. The terms and conditions of Article 2.2 a (i) and 2.2 a (ii) above shall take precedence over the terms set forth in Appendix B. 
 b. In the event the U.S. Government is required to approve or consent to, and the U.S. Government does not approve or consent to, a second tier subcontract for Existing Work, there will be no further
liability to the Buyer with respect to the Existing Work covered by the Government decision. Should this occur, the Parties agree to provide, in good faith, any required support. 
 c. The pricing for Existing Work shall be in accordance with paragraph 2.2 (a) above, the Federal Acquisition Regulations and any other applicable laws or regulations. In addition, for Existing Work
set forth on Appendix E, which is Existing Work wherein, in respect of a particular order, Seller is performing all of the Existing Work and Buyer is not performing any of the Existing Work and, further, where Buyer is the selling party in the prime
contract for such Existing Work, the pricing for such Existing Work shall require Seller to reimburse Buyer for any and all M&S (Material and Subcontract Handling) and G&A (General and Administrative) costs incurred by the Buyer, solely to
the extent such costs cannot be passed along to the Buyer’s customer. For Existing Work set forth in Appendix E, which is Existing Work wherein, in respect of a particular order, both Buyer and Seller are jointly performing the work, Buyer and
Seller will share, in proportion to the profit negotiated for each party, respectively, any M&S and G&A costs which cannot be passed along to the Buyer’s customer and are in excess of those Buyer and Seller normally would bear, but for
the Distribution Agreement. Buyer and Seller shall have ninety (90) days from the Effective Date to complete Appendix E. 
 2.3. Terms
and Conditions for New Work. 
 a. Buyer shall issue to Seller a purchase order for any New Work. The terms and conditions for New Work will
be based on: (i) terms and conditions contained in a Teaming Agreement, if any, with respect to such New Work; (ii) the terms and conditions agreed to be flowed down from Buyer’s prime contracts; (iii) this Agreement and any
other terms and conditions mutually agreed to by the Parties; and (iv) in the event the Parties do not agree on such other terms and conditions referred to in Article 2.3 a (iii), the terms and conditions contained in the General Terms and
Conditions of Purchase, attached as Appendix B hereto. The terms and conditions pursuant to Articles 2.3 a (i) and 2.3 a (ii) above shall take precedence over the terms set forth in Appendix B. 

b. In the event the U.S. Government is required to approve and consent to, and the U.S. Government does not approve or consent to, a second tier
subcontract for New Work, there will be no liability to the Buyer with respect to the New Work covered by such Government decision. Should this occur, the Parties agree to provide any required good faith support. 

c. The pricing for New Work shall be in accordance with paragraph 2.3 (a) above, the Federal Acquisition Regulations and any other applicable laws
or regulations. 
 2.4. Terms and Condition for Teaming Commitments. 
 a. Where the Parties have entered into a Teaming Agreement for a Teaming Commitment, the terms and conditions of such agreement shall govern the Teaming Commitment. With respect to all other Teaming
Commitments, Buyer and Seller shall enter into a Teaming Agreement, substantially in the form of Appendix D within thirty (30) days of the Effective Date, or such other period of time as the Parties may otherwise agree in writing. Where a named
party under a Teaming Agreement is an unincorporated division or subsidiary of either Buyer or Seller, Buyer and/or Seller, respectively, shall also be a party to such Teaming Agreement. Such Teaming Agreements shall be either non-exclusive or
exclusive, as expressly set forth in Appendix C hereto provided, however, with respect to an exclusive teaming agreement, the exclusivity provision shall only apply to the named unincorporated division or subsidiary of each party. 

  
 - 2 -

 3.0 TERM AND TERMINATION 
 3.1. This Agreement shall commence as of the Effective Date, and shall continue to be in effect until terminated as follows: 
 a. With respect to any New Work or any Existing Work, upon completion of the Parties’ respective obligations arising under the applicable purchase order; 

b. With respect to a Teaming Agreement, in accordance with its terms; 
 c. With respect to the entire Agreement, on the last of the following to occur: 

(i) completion of all of the Existing Work, New Work, the expiration of all Teaming Agreements, or five (5) years from the Effective
Date. 
 3.2. This Agreement may be terminated in part for Cause with respect to any portion of the Existing Work, New Work, Teaming Commitment
or Teaming Agreement by either Party by written notice to the other Party. For purposes of this Article 3.2, “Cause” shall mean: 
 (i) A breach by the other party of any material covenant or agreement contained in this Agreement, and such breach is not remedied within thirty (30) days after written notice of such breach; or

 (ii) Any of the following: 
 (a) The filing of a voluntary petition in bankruptcy, insolvency, winding up, liquidation of, or other similar proceeding relating to the other Party; 

(b) The appointment of a trustee, liquidator, custodian or similar person in a proceeding referred to in 3.2 (ii) (a), which
appointment has not been set aside or stayed within sixty (60) days of such appointment; 
 (c) The making by a court having
jurisdiction of an order winding up or otherwise confirming the bankruptcy or insolvency of the other Party, which order has not been set aside or stayed within sixty (60) days; or 

(d) A breach by the other Party of any material provision contained in any purchase order or Teaming Agreement issued pursuant to this
Agreement, and such breach is not remedied within thirty (30) days after written notice of such breach. 
 4.0 CONFIDENTIALITY

 The Parties hereby incorporate by reference Section 11.03 of the Distribution Agreement and agree that any confidential information
of either Party used in connection with this Agreement shall be deemed to be Information under that Section 11.03, and shall be subject to the terms thereof. Seller and Buyer shall be bound by the terms of Section 11.03 to the same
extent as if those terms were set out herein in full. The Parties further agree to be bound by any additional non-disclosure or confidentiality agreements entered into between them in the future relating to purchase orders or agreements arising
under this Agreement, and agree that confidential information of either Party used in connection with this Agreement shall be subject to the terms thereof. 
 5.0 LIMITATION OF LIABILITY 
 EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE
DISTRIBUTION AGREEMENT OR WITH RESPECT TO A BREACH OF ARTICLE 4 CONFIDENTIALITY OF THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR SPECIAL (INCLUDING PUNITIVE), INDIRECT, RELIANCE, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, OR FOR LOSS OF
PROFITS OR LOSS OF USE DAMAGES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, ARISING OUT OF OR RELATED TO THE PERFORMANCE OR BREACH OF THIS AGREEMENT OR ANYTHING DONE IN
CONNECTION THEREWITH. THE FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF WHETHER THE PARTY AGAINST WHOM LIABILITY IS ASSERTED HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY. 

  
 - 3 -

 6.0 OUTSTANDING BIDS 
 In the event that, as of the Effective Date, the Seller has furnished any proposals to Buyer, Seller agrees that if such proposal is later accepted by Buyer, Seller will honor such proposal in accordance
with its terms and the terms of this Agreement. 
 7.0 COMMUNICATIONS 
 7.1. Management Team. The relationship between the Parties under this Agreement shall be monitored and reviewed by a management team of senior managers representing each Party who shall meet as
necessary at mutually agreed dates and times. The agenda for such meetings will address the following and other appropriate items: 
 a. Status
of ongoing production or service activities arising from this Agreement; 
 b. Seller capacity changes and plans in connection with its
obligations under this Agreement; 
 c. Seller technology developments and plans in connection with the Products supplied and Services performed
pursuant to this Agreement; and 
 d. Issues and action items. 
 7.2. Liaison. For and on behalf of each Party, the persons designated in Article 7.3 shall have respective liaison and general administration of the Agreement for such Party. 

7.3. Notices. All notices, requests, instructions or other documents to be given hereunder shall be in writing or by written telecommunication and
shall be deemed to have been duly given when received if in writing and delivered personally or by receipt confirmed overnight delivery service or certified mail or, to the extent that receipt is confirmed, when received by facsimile or other
electronic transmission as follows: 
 a. If to Buyer: 
 L-3 Communications Corporation 
 600 3rd Avenue 

New York, NY 10016 
 Attn: Steve Post 
 Senior Vice President General Counsel & Corporate
Secretary 
 b. If to Seller: 
 Engility Corporation 
 3750 Centerview Drive 

Chantilly, Virginia 20151 
 Attn: Tom Miiller 
 Senior Vice President, General Counsel, & Corporate
Secretary 
 8.0 GOVERNING LAW 
 This Agreement and any action related thereto shall be governed, controlled, interpreted and defined by and under the laws of the State of New York, without regard to the conflicts of laws provisions
thereof. The Parties specifically disclaim the UN Convention on Contracts for the International Sale of Goods and the Uniform Computer Information Transaction Act both of which are not applicable to this Agreement. The Parties agree that
the exclusive venue for any action related to the dispute or interpretation of this Agreement shall be in the State or Federal courts located in New York County (Manhattan), New York, and each party irrevocably submits to the exclusive jurisdiction
of each such court in any such action and waives any objection it may now or hereafter have to venue or personal jurisdiction in each such court. THE PARTIES HEREBY WAIVE TRIAL BY JURY WITH RESPECT TO ANY DISPUTE RELATING TO THIS AGREEMENT.

  
 - 4 -

 9.0 GENERAL PROVISIONS 
 9.1. Entire Agreement. This Agreement, including Appendices and the Distribution Agreement (including the other agreements attached as exhibits thereto) constitute the entire understanding between
the Parties relating to the subject matter hereof and supersede all previous communications, representations, or agreements, either oral or written, with respect to the subject matter hereof, and no representation or statements of any kind made by
any representative of Seller or Buyer which are not stated in this Agreement, shall be binding on Seller or Buyer. 
 9.2. Severability.
Any provision of this Agreement that is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement. To the extent any provision of this
Agreement is determined to be prohibited or unenforceable, Seller and Buyer agree to use reasonable commercial 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. 
 9.3. Independent Contractors. The Parties hereto shall act in all matters pertaining to
this Agreement as independent contractors and nothing contained herein and no action taken with respect to the provisions hereof shall constitute one Party to be the agent, partner or joint venturer of any other Party for any purpose whatsoever.

 9.4. Amendments. This Agreement shall be modified only by an instrument in writing executed by duly authorized representatives of the
Parties hereto. 
 9.5. Waivers. A waiver of breach, delay or failure to take action with respect to any previous default or failure by a
Party to fulfill its obligations under this Agreement shall not be deemed to constitute a waiver of any other or subsequent default or failure by such Party to fulfill such obligations and shall not constitute or be construed as a continuing waiver
and/or as a waiver of other subsequent defaults or breaches of the same or other (similar or otherwise) obligations or as a waiver of any remedy available. 
 9.6. Headings and Defined Terms. The article headings and section captions of this Agreement are inserted for convenience only, and shall not be deemed to constitute part thereof or to affect the
construction thereof. Capitalized terms not otherwise defined herein will have the meanings provided in the Distribution Agreement. 
 9.7.
Construction. The language used in this Agreement will be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction will be applied against any part. 

9.8. Survival. The terms and conditions of this Agreement which, when by their natural application operate after the termination or expiration
hereof, shall survive any such expiration or termination. 
 IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date written below. 
  

			
	L-3 COMMUNICATIONS CORPORATION
		
	By:	 	 /s/ Steven M. Post

	Name:	 	Steven M. Post
	Title:	 	Senior Vice President

 Dated: July 16, 2012 

 

			
	ENGILITY CORPORATION
		
	By:	 	 /s/ Thomas O. Miiller

	Name:	 	Thomas O. Miiller
	Title:	 	Senior Vice President and General Counsel

 Dated: July 16, 2012 

  
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 Appendix A 
 Confidential treatment has been requested with respect to the information contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the
Securities and Exchange Commission 
  

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/2012	 	  	ETC$	 	  	Target
Fee-
Profit%	 	  	Option
Periods
Included	 
	Link Simulation & Training (to C2S2)	  	Not assigned yet	  	OMNIBUS Contract (STOC II). This a Multiple Award vehicle with requirements released as required by the customer. We do not currently have any delivery orders under this IDIQ
contract where C2S2 is a subcontractor to us (IDWA).	  	10/1/2009	  	9/30/2018	  	Domestic	  	USA	  	PEO-STRI	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3/D.P. Associates Inc.(to C2S2)	  	5017-16	  	A/C Structures Training (Welding Instruction)	  	12/15/2008	  	12/15/2012	  	Domestic	  	US	  	NAVAIR	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	Link Simulation & Training (to GSES)	  	Not assigned yet	  	OMNIBUS Contract (STOC II). This a Multiple Award vehicle with requirements released as required by the customer. We do not currently have any delivery orders under this IDIQ
contract where GSES is a subcontractor to us (IDWA).	  	10/1/2009	  	9/30/2018	  	Domestic	  	USA	  	PEO-STRI	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	Link Simulation & Training (to MPRI)	  	Not assigned yet	  	OMNIBUS Contract (STOC II). This a Multiple Award vehicle with requirements released as required by the customer. We do not currently have any delivery orders under this IDIQ
contract where MPRI is a subcontractor to us (IDWA).	  	10/1/2009	  	9/30/2018	  	Domestic	  	USA	  	PEO-STRI	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
																	
	L-3 MID (To C2S2)	  	4200243824	  	FY11 E-18 Emergency Support	  	10/18/2011	  	28-Dec-11	  	Domestic	  	USA	  	USAF/AFMC	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 MID (To C2S2)	  	4500614153	  	Rivet Joint Datalink Modernization	  	3/16/2010	  	2-Jan-12	  	Domestic	  	USA	  	USAF/AFMC	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3/IS - PID (to C2S2)	  	4900041736	  	Compass Call	  	3/24/2011	  	3/23/2012	  	Domestic	  	USA	  	USAF	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3/IS - PID (to C2S2)	  	4900043436	  	Compass Call	  	6/2/2011	  	2/2/2012	  	Domestic	  	USA	  	USAF	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 1 of 5

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/2012	 	  	ETC$	 	  	Target
Fee-
Profit%	 	  	Option
Periods
Included	 
	L-3 TCS (to GSES)	  	Purchase Order #11SH0167 under Subcontract SL07065	  	505th Task (providing trainers to AFSOC)	  	11/26/2007	  	9/25/2012	  	Domestic	  	USA	  	USAF	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 Vertex Systems Field Support (To GSES)	  	L-3 Vertex P.O. # 4500431316	  	Contract Field Support (CFS)	  	8/15/2008	  	8/14/2013	  	Domestic	  	USA	  	ACC/A30, Ryan Center Occupants (Langley)	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 PID (to C2S2)	  	S7600-2-KONI2071310290	  	Compass Call on call software upgrades support	  	7/13/2012	  	7/13/2013	  	Domestic	  	USA	  	USAF	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
																	
	L-3 STRATIS (to C2S2)	  	2011-I-4-0011	  	Joint Deployable Intelligence Support Systems (JDISS) IV DO 12 - Engineering Technical Support (ETS)	  	12/1/2011	  	9/30/2012	  	Domestic	  	USA	  	Office of Naval Intelligence	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	2011-I-4-0007 TO 2	  	United States Air Force Europe- Advisory and Assistance Services (A&AS) II	  	7/2/2011	  	8/31/2014	  	International	  	Germany	  	United States Air Force Europe	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	2011-I-4-0006 TO 21	  	United States Air Force Europe- Advisory and Assistance Services (A&AS) II	  	7/2/2011	  	8/31/2014	  	International	  	Germany	  	United States Air Force Europe	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	ALLIANT1.005	  	Global Command and Control System (GCSS) Army	  	8/20/2010	  	8/19/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	Veteran Benefits Management System (VBMS) Phase 3 Development (ENCORE II)	  	5/22/2012	  	3/31/2014	  	Domestic	  	USA	  	SPAWAR	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	NASA HQ Logistics Support Services MOBIS Schedule GS-10F-0188M; TO # NNH08CD81D	  	8/18/2008	  	8/16/2013	  	Domestic	  	USA	  	NASA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	2011-SC-4-0203	  	USFS Network & Radio Infrastructure Support Services GSA IT Schedule GS-35F-5396H; DO N10PS40117	  	11/1/2011	  	7/31/2013	  	Domestic	  	USA	  	United States Forest Service	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	IT Property Management and Inventory Support GSA IT Schedule GS-35F-5396H; DO GS09Q08DN0171	  	9/29/2008	  	9/30/2013	  	Domestic	  	USA	  	Army	  	 	FFP	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 2 of 5

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/2012	 	  	ETC$	 	  	Target
Fee-
Profit%	 	  	Option
Periods
Included	 
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111211600	  	10/1/2011	  	2/10/2013	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111212886	  	1/1/2012	  	5/18/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111212887	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213139	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213157	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213158	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213160	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213161	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 3 of 5

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/2012	 	  	ETC$	 	  	Target
Fee-
Profit%	 	  	Option
Periods
Included	 
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213162	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	N/A	  	Coop Program Support, GSA Schedule GS-35F-5396H; DO N10PD40259	  	3/15/2010	  	3/14/2015	  	Domestic	  	USA	  	Dept of Interior	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	800949300.700.S3.42	  	Publication of JWIST Training Manuals per contract requirements	  	12/31/2010	  	6/30/2012	  	Domestic	  	USA	  	SPAWAR	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	00143080	  	ANSWER Langley AFB IT Services	  	4/1/2009	  	3/31/2014	  	Domestic	  	USA	  	Air Force	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	ALLIANT1.0001	  	US Army Software Integration Lab for SEC-LEE	  	5/15/2010	  	5/14/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	ALLIANT1.0002	  	Regional Automation Support Center (RASC)	  	7/4/2010	  	6/3/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	ALLIANT1.0004	  	Program Mgmt & Acquisition Mgmt for SEC-LEE	  	8/20/2010	  	8/19/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 GSS (to GSES)	  	PO # POMCE0006	  	Translation Services	  	5/31/2012	  	8/31/2012	  	International	  	Republic of Equatorial Guinea (EG)	  	L-3 GSS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	180731S	  	JRDC	  	8/27/2011	  	1/31/12 (extendable to 2016)	  	Domestic	  	USA	  	MDA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	980735S	  	JRDC	  	12/3/2009	  	1/31/12 (extendable to 2016)	  	Domestic	  	USA	  	MDA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 Comm UK (to C2S2)	  	L-3 UK #	  	MTWS	  	4/4/2011	  	3/31/2012	  	International	  	UK	  	SCS and MOD	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	080727s.ET. (PO#180707s)	  	BD & Mktg. Supt.	  	1/1/2011	  	12/31/2011	  	Domestic	  	USA	  	E&TS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	080728s.ET (PO#180707s)	  	Publications	  	1/1/2011	  	12/31/2011	  	Domestic	  	USA	  	E&TS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	ALLIANT1.006	  	Aeronautical Systems Center (ASC/XRA) - Simulation & Analysis Facility O&M And Event Support	  	2/1/2011	  	1/31/2012	  	Domestic	  	USA	  	GSA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 4 of 5

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																																			
	  	 
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/2012	 	  	ETC$	 	  	Target
Fee-
Profit%	 	  	Option
Periods
Included	 
	L-3 ESSCO	  	PO 120986	  	ERV	  	5/22/2012	  	9/22/2012	  	Domestic	  	USA	  	TCS is our customer, US Northcom is the end-user and materials are provided by L-3 C2S2	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 ESSCO	  	PO 120991	  	ERV	  	5/21/2012	  	9/22/2012	  	Domestic	  	USA	  	TCS is our customer, US Northcom is the end-user and materials are provided by L-3 C2S2	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 ESSCO	  	PO 12-0002626	  	ERV	  	5/31/2012	  	10/19/2012	  	Domestic	  	USA	  	Viatech is our customer, US Northcom is the end-user and materials are provided by L-3 C2S2	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 ESSCO	  	Pending	  	ERV	  	6/11/2012	  	12/11/2012	  	Domestic	  	USA	  	TCS is our customer, US Northcom is the end-user and materials are provided by L-3 C2S2	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 5 of 5

 Appendix B 
 GENERAL TERMS AND CONDITIONS 
 For Supply & Services Subcontracts

 This document, together with the attachments appended hereto constitutes the Terms and Conditions for the Subcontract between the
parties, and acceptance is strictly limited to the terms and conditions contained herein. Additional or differing terms, conditions or limitations of liability proposed by Seller, whether in a quote, acceptance or delivery document shall have no
effect unless accepted in writing by Buyer. Agreement by Seller to furnish the goods or services to these terms and conditions, or Seller’s commencement of such performance or acceptance of payment shall constitute acceptance by Seller of these
Terms and Conditions. 

 

 1. Definitions 
 Words, as employed in this Agreement, shall have their normally accepted meanings. The following terms shall have the described meaning: 

 

	(a)	“Buyer” shall mean the party identified as the Buyer in this Subcontract. 

 

	(b)	“Subcontract” shall mean the Purchase Order, Subcontract, or Contract, these General Terms and Conditions, and any special conditions appended hereto or
documents incorporated herein. 

  

	(c)	“Goods” shall mean those Goods identified in this Subcontract, which may be changed, from time to time by the mutual written agreement of the parties.

  

	(d)	“Services” shall mean those Services identified in this Subcontract, which may be changed, from time to time by the mutual written agreement of the parties.

  

	(e)	“Seller” shall mean the party identified as the Seller in this Subcontract. 

 

	(f)	“Franchise Distributor” shall mean a Distributor with which the Original Component Manufacturer (OCM) or the Original Equipment Manufacturer (OEM) has a
contractual agreement to buy, stock, re-package, sell, and/or distribute its products lines. 

  

	(g)	“Independent Distributor (Broker)” shall mean a Distributor that purchases parts with the intention to sell or redistribute them. 

2. Price 
 The prices established by this
Subcontract are firm fixed prices unless otherwise stated in the Subcontract. 
 3. Schedule and Delivery; Notice of Delay 

Seller shall strictly adhere to all Subcontract schedules. Time is and shall remain of the essence in the performance of this Subcontract. Seller shall
notify Buyer in writing immediately of any actual or potential delay to the performance of this Subcontract. Such notice shall include a revised schedule and shall not constitute a waiver to Buyer’s rights and remedies hereunder. 

4. New Materials; Packaging and Shipping 

(a) All goods to be delivered hereunder shall consist of new materials; 
 (b) Seller shall prepare and package the goods to prevent damage or deterioration and shall use best commercial practice for packing and packaging of items to be delivered under this Subcontract, unless
otherwise specified in the Subcontract; 
 (c) Unless otherwise stated in the Subcontract, F.O.B. point shall be Destination (Incoterms 2010 DDP
for International transactions); 
 (d) For Subcontractors, Contract Manufacturers, OEM’s and Franchised Distributors
– Only new and authentic materials are to

 
be used in products delivered to Buyer. No counterfeit or suspect counterfeit parts (See 16b for a definition of Counterfeit Items) are to be contained within the delivered product. Parts
shall be purchased directly from the OCMs/OEMs, or through the OCM/OEMs Franchised Distributor. Documentation must be available that authenticates traceability to the applicable OCM/OEM. Independent Distributors (Brokers) shall not be used without
written consent from Buyer.  
 (e) For Independent Distributors – Independent Distributor’s procedures shall
meet the requirements of IDEA-STD-1010 & SAE AS5553 and have a Quality Management System certified to AS9120:2002. The original manufacturers Certificate of Conformance (C of C) and all traceability documentation shall be included with each
shipment of parts. It shall include the manufacturer’s name, part number, date codes, lot codes, serializations, and / or any other batch identifications. Seller is to contact Buyer in the event that the original OEM/OCM C of C and traceability
documentation is not available. Inspections and tests required are as noted on the Subcontract. All inspecting and testing shall be performed to the original manufacturer’s specifications and parameters. Recorded evidence of all testing
performed shall be included with each shipment. If suspect/counterfeit parts are furnished under this Subcontract and are found in any of the Goods delivered hereunder, such items will be impounded by Buyer. The Seller shall promptly replace such
suspect/counterfeit parts with parts acceptable to the Buyer and the Seller shall be liable for all costs relating to the removal and replacement of said parts as specified in the Subcontract requirements or Distributor’s insurance policies.
All occurrences of suspect and/or counterfeit parts will be immediately reported to the Buyer. Buyer reserves all contractual rights and remedies to address grievances and detrimental impacts caused by suspect/counterfeit parts.” 

5. Inspection and Acceptance 
 (a)
Buyer’s final acceptance of Goods or Services is subject to Buyer’s inspection within sixty (60) days after receipt at Buyer’s facility or such other place as may be designated by Buyer, notwithstanding any payment or prior test
or inspection. 
 (b) Seller and its suppliers shall establish and maintain a quality control and inspection program as specified in the
Subcontract. Subject to applicable national security regulations, Buyer and Buyer’s representatives shall have the right of access, on a non-interference basis, to any area of Seller’s or Seller’s supply chain sub-tier premises where
any part of the work is being performed. Seller shall flow this requirement down to its sub tier supply chain suppliers as a condition of this Subcontract. Seller shall, without additional costs to Buyer, provide all reasonable in-plant
accommodations, facilities, and assistance for the safety and convenience of the Buyer and the Buyer’s representatives in the performance of their duties. 
 (c) Seller shall keep and maintain inspection, test and related records, which shall be available to Buyer or Buyer’s representative. Seller shall allow copies to be made and shall furnish all
information required by the Buyer or Buyer’s representative. 

 

  

	
	Page 1 of 7

 GENERAL TERMS AND CONDITIONS 

For Supply & Services Subcontracts 
  

 6. Rejection 
 If Seller delivers non-conforming Goods or Services, Buyer may, at its option and Seller’s expense: (i) return the Goods for refund or credit; (ii) require Seller to promptly correct or
replace the Goods or Services; (iii) correct the nonconformance; or (iv) obtain conforming Goods or Services from another source. Buyer shall specify the reason for any return or rejection of nonconforming Goods or Services and/or shall
describe the action taken. Seller shall be liable for any increase in costs, including procurement costs attributable to Buyer’s rejection of the non-conforming Goods or Services. If Buyer determines or has reason to believe that Goods provided
contain suspect and/or counterfeit parts, Buyer shall provide Seller the appropriate notice, impound the suspect/counterfeit parts, and report all occurrences to ERAI and GIDEP. 
 7. Invoices 
 (a) Invoices may be mailed when Goods are shipped, but the time for payment
shall not commence until Buyer’s actual or scheduled receipt, whichever is later, of items at their destination or upon satisfactory completion of Services. 
 (b) Buyer shall promptly pay Seller the amount due within 45 days, except if identified elsewhere in the Subcontract, unless the invoiced amount is in dispute. Buyer may withhold payment for shortages
and/or non-conforming Goods or Services. Buyer may entertain discounts on Goods for expedited payments. 
 8. Changes 

(a) By written order, Buyer may from time to time direct changes for: (i) technical requirements; (ii) shipment or packing methods;
(iii) place of delivery, inspection or acceptance; (iv) reasonable adjustments in quantities, delivery schedules or both; (v) amount of Buyer–furnished property; (vi) time of performance; (vii) place of performance;
and, (viii) terms and conditions of this contract required to meet Buyer’s obligations under Government prime contract or subcontract. 
 (b) If any such change causes an increase or decrease in the price or in the time required for its performance, Seller shall promptly notify Buyer thereof and assert its claim for equitable adjustment
within thirty (30) days after the change is ordered, and an equitable adjustment shall be made. However, nothing in this provision shall excuse Seller from proceeding immediately with the directed change(s). Changes shall not be binding upon
Buyer except when specifically confirmed in a written Subcontract or Change Order. 
 9. Force Majeure 

The following events, and only the following events, shall constitute force majeure under this Subcontract: (a) acts of God or of a public enemy;
(b) acts of Government; (c) fires; (d) floods; (e) epidemics; (f) quarantine restrictions; (g) strikes; (h) freight embargoes; and, (i) unusually severe weather. In each case, the failure to perform must be
entirely beyond the control and without the fault or negligence of the Seller. Each party shall give the other immediate notice of any event that such party claims is a Force Majeure Condition that would prevent the party from performing its
obligations hereunder, and of the cessation of the condition. A party’s notice under this Section shall include the party’s good faith estimate of the likely duration of the Force Majeure Condition. 

10. Termination for Convenience 
 (a)
Buyer may, by notice in writing, direct Seller to terminate work under this Subcontract , solely to the extend such work is terminated by Buyer’s customer, and such termination shall not constitute

 
default. In such event, Buyer shall have all rights and obligations accruing to it either at law or in equity, including Buyer’s rights to title and possession of the goods and materials
paid for. Buyer may take immediate possession of all work so performed upon notice of termination. 
 (b) Seller shall immediately stop work and
limit costs incurred on the terminated work. 
 (c) If such termination is for the convenience of the Buyer, Buyer, after deducting any
amount(s) previously paid, shall reimburse Seller for the actual, reasonable, substantiated and allowable costs with the total amount to be paid by the Buyer being determined by negotiation. 
 11. Termination for Default 
 (a) Buyer may, by written Notice of Default to Seller,
terminate this Subcontract in whole or in part if the Seller fails to: (i) deliver the Goods or to perform the Services within the time specified in this Subcontract or any extension; (ii) make progress, so as to endanger performance of
this Subcontract; or, (iii) perform any of the other material provisions of this Subcontract, provided, however, in the event of either (ii) or (iii) Buyer has provided Seller with prior written notice of the failure and a reasonable
opportunity to cure. 
 (b) Buyer may require Seller to transfer title and deliver to Buyer, in the manner and to the extent directed by Buyer,
any partially completed Goods and raw material, parts, tools, dies, jigs, fixtures, plans, drawings, Services, information and contract rights (Materials) as Seller has produced or acquired for the performance of this Subcontract, including the
assignment to Buyer of Seller’s subcontracts. Seller further agrees to protect and preserve property in the possession of Seller in which Buyer has an interest. Payment for completed Goods delivered to and accepted by Buyer shall be at the
Subcontract price. Payment for unfinished Goods or Services, which have been delivered to and accepted by Buyer and for the protection and preservation of property, shall be at a price determined in the same manner as provided in the Termination for
Convenience provision hereof except that Seller shall not be entitled to profit. Buyer may withhold from Seller monies otherwise due Seller for completed Goods and/or Materials in such amounts as Buyer determines necessary to protect Buyer against
loss due to outstanding liens or claims against said Goods and Materials. 
 (c) Seller shall promptly notify Buyer if Seller is the subject of
any petition in bankruptcy. In the event of Seller’s bankruptcy, Buyer may require Seller to post such financial assurance, as Buyer, in its sole discretion, deems necessary. Failure to post such financial assurance upon ten (10) days
written notice shall constitute a default under this Subcontract. The rights and remedies of Buyer in this clause are in addition to any other rights and remedies provided by law or under this Subcontract.

 

  

	
	Page 2 of 7

 GENERAL TERMS AND CONDITIONS 

For Supply & Services Subcontracts 
  

 12. Compliance with Laws 
 (a) The parties shall comply with all applicable provisions of Federal, state, and local laws; ordinances and all lawful orders; rules, regulations. FAA, DOT and other transportation regulations and
Hazard Communication Standards promulgated pursuant to the Occupational Health and Safety Act. 
 (b) The parties shall control the
dissemination of and access to technical data, information and other items received under this Subcontract in accordance with U.S. export control laws and regulations. 
 (c) Export Control and Compliance. 
 If this order involves the delivery of products, software,
technical data or services (which includes design, assembly, testing, repair, maintenance or modification to Buyer products or technologies) subject to United States export control laws and regulations Seller shall comply with all applicable U.S.
export and re-export control laws and regulations and any local government export regulations. 
  

	(1)	ITAR Control and Compliance – Companies engaged in exporting or manufacturing (whether exporting or not) of defense articles or furnishing defense services are
required to register with the Department of State, Directorate of Defense Trade Controls (“DDTC”) in accordance with ITAR 22 C.F.R. 122. Seller, by its offer and/or acceptance of this order, represents that it is registered with the DDTC.
Proof of such registration will be promptly provided to Buyer upon request. 

  

	(2)	Non-U.S. Companies – Non-U.S. companies shall be registered as required under its local government export regulations. Canadian companies must be registered by the
Canadian Federal or Provincial government authorities. 

  

	(3)	Seller shall maintain it’s registration throughout the complete period of performance of this order, including any warranty period, and shall immediately notify
Buyer in the event that any such registration and/or other required authorization is revoked, expired or invalidated for any reason. 

  

	(4)	Seller’s failure to comply with the entirety of this Article shall be cause for default. 

 (d) Seller shall: (i) comply with the requirements of the Foreign Corrupt Practices Act, as amended, (FCPA) (15 U.S.C. §§78dd-1, et. seq.), regardless of whether Seller is within the
jurisdiction of the United States; (ii) neither directly nor indirectly, pay, offer, give, or promise to pay or give, any portion of monies or anything of value received from Buyer to a non-U.S. public official or any person in violation of the
FCPA and/or in violation of any applicable country laws relating to anti-corruption or anti-bribery; and, (iii) Seller hereby agrees not to interact with any government official, political party or public international organization on behalf of
Buyer without the prior written permission of the Buyer’s Procurement Representative. 
 13. Standards of Business Ethics and Conduct

 The Parties will conduct its business fairly, impartially, and in an ethical and proper manner. The Parties shall not engage in any
personal, business or investment activity that may be defined as a conflict of interest, whether real or perceived. If a Party has cause to believe that the other Party or any employee or agent of the Party has behaved improperly or unethically
under this contract, the Party is encouraged to exert reasonable effort to report such behavior when warranted.

 14. Intellectual Property 
 (a) If this Subcontract is issued to support a prime contract between the Buyer and an agency of the United States Government and wherein said prime contract includes either FAR 52.227-13 or DFAR
252.227-7038 (hereinafter, “Government Prime Contract”), then: 
  

	(1)	Buyer and Seller agree that the resulting order will comply with the policies and procedures established by FAR 27.304-3(c) and agree that the resulting order shall
include provisions consistent with the above referenced FAR or DFAR provisions relating to patent rights in inventions. Both parties further agree to comply with all other applicable government procurement regulations dealing with subcontractor
rights in technical data, subject inventions, copyrights, software, and other intellectual property, including DFARS 252.227-7013 and DFARS 252.227-7014. Seller agrees to convey rights in software and data to the U.S. Government consistent with such
applicable government procurement regulations; and 

  

	(2)	Seller agrees to grant to Buyer and to Buyer’s subcontractors and customers a limited, non-exclusive, non-transferable, paid-up worldwide license to use any and
all intellectual property (whether domestic or foreign), including patents, copyrights, industrial designs and/or mask works owned or controlled by Seller at any time or licensed to Seller, provided such a sublicense does not conflict with any
provisions of the license to the Seller (hereinafter, the “Seller’s Intellectual Property”) for the sole purpose of fulfilling Buyer’s obligations under the Government Prime Contract. 

(b) If this Subcontract is issued for any purpose other than to support a Government Prime Contract, then: 

 

	(1)	Any work, writing, idea, discovery, improvement, invention (whether patentable or not) trade secret or intellectual property of any kind first made or conceived by
Seller in the performance of this Subcontract or which is derived from the use of information supplied by Buyer (hereinafter, the “Foreground Intellectual Property”) shall be the property of the Buyer. Seller shall disclose promptly all
such Foreground Intellectual Property to Buyer, and shall execute all necessary documents to perfect Buyer’s title thereto and to obtain and maintain effective protection thereof. Any work produced under this Subcontract is to be deemed a
work-for-hire to the extent permitted by law, and, to the extent not so permitted, shall be assigned to, and shall be, the exclusive property of, the Buyer; and 

 

	(2)	Seller hereby grants to Buyer, and to Buyer’s subcontractors and customers, in connection with the use, offer for sale, or sale of products provided to or work
being performed for Buyer, an irrevocable, non-exclusive, paid-up, worldwide license under any and all Seller’s Intellectual Property; and 

  

	(3)	Seller hereby grants to Buyer, and to Buyer’s subcontractors and customers, a perpetual, non-exclusive, paid-up, worldwide license to reproduce, distribute copies
of, perform publicly, display publicly, or make derivative works from any software included in or provided with Goods or Services under this Subcontract (hereinafter, the “Software Documentation”) as reasonably required by Buyer in
connection with Buyer’s testing or use of the Good or Service; and 

  

	(4)	 Notwithstanding anything in the foregoing to the contrary, Seller shall in no way be restricted with regard to the use or disclosure of any
information, designs or data which originated with Seller and Seller shall have the right (including necessary rights under any patents or copyrights assigned to Buyer) to use, disclose

 

  
 Page 3 of 7

 GENERAL TERMS AND CONDITIONS 

For Supply & Services Subcontracts 
  

	 	
and authorize others to use and disclose any such information, designs, and data which originated with it provided that no Proprietary Information received from Buyer is used or disclosed.

 15. Proprietary Information and Rights 
 (a) Subject to 15(d) and Article 14, Intellectual Property, the Parties shall only share Proprietary Information under a particular Purchase Order pursuant to an existing Proprietary Information Agreement
(PIA) [Ref: Insert PIA#]; 
 (b) Unless otherwise agreed to in a subsequent writing or expressly set forth in this Subcontract and subject to
Article 15d, all specifications, information, data, drawings, software and other items supplied to Buyer shall be disclosed to Buyer without any restrictive rights on a non-proprietary basis; 
 (c) Unless otherwise agreed to in a subsequent writing or expressly set forth in this Subcontract and subject to Article 15d, all specifications, information, data, drawings, software and other items
which are: (i) supplied to Seller by Buyer; or, (ii) paid for by Buyer during the performance of this Subcontract shall be treated as proprietary to Buyer and shall not be disclosed to any third party without Buyer’s express written
consent. Seller agrees not to use any such furnished information except to perform this Subcontract; and, 
 (d) Applicable U.S. Government
Procurement Regulations incorporated into this Subcontract shall take precedence over any conflicting provision of this Article 15 to the extent that such Regulations so require. The incorporation by reference of such U.S. Government Regulations
dealing with Seller’s rights in Technical Data, subject inventions, copyrights, software and similar intellectual property are not intended to, and shall not, unless otherwise required by applicable law, obviate or modify any greater rights
which Seller may have previously granted to Buyer pursuant to prior agreements between the parties. 
 16. Goods Warranty 

(a) Seller warrants the Goods delivered pursuant to this Subcontract, unless specifically stated otherwise in this Subcontract, shall (i) be new;
(ii) be and only contain materials obtained directly from the OEM or an authorized OEM reseller or distributor (Note – Independent Distributors (Brokers) shall not be used by Seller without written consent from Buyer); (iii) not be or
contain Counterfeit Items; (iv) contain only authentic, unaltered OEM labels and other markings; (v) have documentation made available upon request that authenticates traceability to the applicable OEM; and (vi) be free from defects
in workmanship, materials, and design and be in accordance with all the requirements of this Subcontract. Seller further warrants that the performance of work and services shall conform with the requirements of this Subcontract. These warranties
shall survive inspection, test, final acceptance and payment of Goods and Services; 
 (b) For purposes of this Section 16 Warranty, and
Article 6 – Rejection, a “Counterfeit Item” is defined to include, but is not limited to, (i) an item that is an illegal or unauthorized copy or substitute of an OEM item; (ii) an item that does not contain the proper
external or internal materials or components required by the OEM or that is not constructed in accordance with OEM specification; (iii) an item or component thereof that is used, refurbished or reclaimed but the Seller represents as being a new
item; (iv) an item that has not successfully passed all OEM required testing, verification, screening and quality control but that Seller represents as having met or passed such requirements; or (v) an item with a label or other

 
marking intended, or reasonably likely, to mislead a reasonable person into believing a non-OEM item is a genuine OEM item when it is not; 

(c) Seller warrants that any hardware, software, and firmware Goods delivered under this Subcontract to the extent reasonably possible: (i) do not
contain any viruses, malicious code, Trojan horse, worm, time bomb, self-help code, back door, or other software code or routine designed to (a) damage, destroy, or alter any software or hardware; (b) reveal, damage, destroy, or alter any
data; (c) disable any computer program automatically; or (d) permit unauthorized access to any software or hardware; and (ii) do not contain any 3rd party software (including software that may be considered free software or open
source software) that (a) may require any software to be published, accessed or otherwise made available without the consent of Buyer or (b) may require distribution, copying or modification of any software free of charge; 

(d) This warranty shall cover a period 12 months following delivery; and, 
 (e) Remedies shall be at Buyer’s election, including those specified in Article 6 herein. 

17. Services Warranty 
 Unless stated
otherwise in the documents accompanying these terms and conditions, Seller shall warrant all Services against defects in performance for a period of one year following delivery. If this Subcontract includes the provision of Services, Seller warrants
that it has and will maintain sufficient trained personnel to promptly and efficiently execute the Services contemplated under this Subcontract. Seller further warrants that the Services shall be performed to at least the standard of performance
reasonably expected of similar service providers in Buyer’s geographic region. 
 18. International Transactions 

(a) Payment will be in United States dollars unless otherwise agreed to by specific reference in this Subcontract. 

(b) When Buyer has identified an offset obligation directly related to the performance of this Subcontract in its solicitation or in relation to any
properly enacted modification, and Seller’s performance of this Subcontract generates offset credits which Buyer could use to satisfy that identified offset obligation, then Buyer shall have the right to such Seller offset credits. The Buyer
shall have no rights to any other offset credits that may be generated by the Seller in connection with this Subcontract. The Seller agrees to provide all reasonably necessary information in such form as may be required to enable Buyer to obtain the
aforementioned offset credits. 
 19. Indemnification 
 (a) Seller agrees to indemnify and save Buyer harmless from any loss, cost or expense claimed by third parties for property damage and bodily injury, including death, caused solely by the negligence or
willful misconduct of Seller, its agents, employees or Seller’s affiliates in connection with Seller’s work under this Contract. 
 Buyer agrees to indemnify and save Seller harmless from any loss, cost or expense claimed by third parties for property damage and bodily injury, including death, caused solely by the negligence or
willful misconduct of Buyer, its agents or employees in connection with Seller’s work under this Contract. 

 

  

	
	Page 4 of 7

 GENERAL TERMS AND CONDITIONS 

For Supply & Services Subcontracts 
  

 If the negligence or willful misconduct of both Seller and Buyer (or a person identified
above for whom each is liable) is the sole cause of such damage or injury, the loss, cost or expenses shall be shared between Seller and Buyer in proportion to their relative degrees of negligence or willful misconduct and the right of indemnity
shall apply for such proportion. 
 (b) Should Buyer’s use, or use by its distributors, subcontractors or customers, of any Goods or
Services purchased from Seller be enjoined, be threatened by injunction, or be the subject of any legal proceeding, Seller shall, at its sole cost and expense, either: (i) substitute fully equivalent non-infringing Goods or Services;
(ii) modify the Goods or Services so that they no longer infringe but remain fully equivalent in functionality; (iii) obtain for Buyer, its distributors, subcontractors or customers the right to continue using the Goods or Services; or,
(iv) if none of the foregoing is possible, refund all amounts paid for the infringing Goods or Services. 
 (c) Seller shall without
limitation as to time, defend, indemnify and hold Buyer harmless from all liens which may be asserted against property covered hereunder, including without limitation mechanic’s liens or claims arising under Worker’s Compensation or
Occupational Disease laws and from all claims for injury to persons or property arising out of or related to such property unless the same are caused solely and directly by Buyer’s negligence. 

20. Buyer’s Property 
 (a) All
drawings, tools jigs, dies, fixtures, materials, and other property supplied or paid for by Buyer shall be and remain the property of Buyer; and if Seller fails to return such property upon Buyer’s demand, Buyer shall have the right, upon
reasonable notice, to enter Seller’s premises and remove any such property at any time without being liable for trespasses or damages of any sort. 
 (b) All such items shall be used only in the performance of work under this Subcontract unless Buyer consents otherwise in writing. 
 (c) Seller shall have the obligation to maintain any and all property furnished by Buyer to Seller and all property to which Buyer acquires an interest by this Subcontract and shall be responsible for all
loss or damage to said property except for normal wear and tear. 
 (d) Upon request, Seller shall provide Buyer with adequate proof of
insurance against such risk of loss or damage. 
 (e) Seller shall clearly mark, maintain an inventory, and keep segregated or identifiable all
of Buyer’s property. 
 21. Insurance 
 If this Subcontract is for the performance of Services on Buyer’s premises, or, Seller utilizes their own vehicles to deliver Goods to Buyer’s facility, Seller shall maintain the following
insurance in at least the minimum amounts stated herein. 
 Seller shall also maintain, and Seller shall cause its subcontractors to maintain,
such general liability, property damage, employers’ liability, and worker’s compensation insurance, professional errors and omissions insurance, motor vehicle liability (personal injury and property damage) insurance and aviation liability
as are maintained in their normal and ordinary course of business. Upon request by the Buyer, Seller shall provided certificates of insurance evidencing limits of not less than the following: 

 

	1.	Commercial General Liability $5,000,000 combined single limit per occurrence (including products/completed operations and contractual liability coverage)

	2.	Workers’ Compensation Statutory for the jurisdiction where the work is to be performed, including Federal Acts if applicable Employers’ Liability, $1,000,000
each person/accident. In states where Workers’ Compensation insurance is a monopolistic state-run system (e.g., Ohio, Washington, North Dakota, and Wyoming), Seller shall add Stop Gap Employers Liability with limits not less than $500,000 each
accident or disease. To the extent that any work to be performed is subject to the Jones Act, the Longshore and Harbor Workers Compensation Act, or the Defense Base Act, the Workers’ Compensation policy must be endorsed to cover such liability
under such Act. 

  

	3.	Automobile Liability $5,000,000 combined single limit per accident 

 Some or all of the following additional insurance coverages may be required, depending upon the nature of the work to be performed by the Subcontractor. Final determinations of insurance coverage
requirements will be made based on the Subcontract’s statement of work. 
 If Applicable: 

 

	 	A.	Professional Liability $5,000,000 per claim 

  

	 	1.	Internet Liability and Network Protection (Cyberrisk) insurance with limits of at least $2,500,000 each claim or wrongful act. 

 

	 	2.	Media Liability insurance with limits of at least $2,500,000 each claim or wrongful act. 

 

	 	B.	Aviation Liability including products $50,000,000 per occurrence (including aircraft products and completed operations and War, Hijacking and other perils (AVN 52D)

  

	 	C.	Hangarkeepers’ Liability $50,000,000 per occurrence 

  

	 	D.	All Risk Property Insurance Replacement Value (covering property of Buyer or Buyer’s customer in the care, custody or control of Seller and include Buyer as Loss
Payee. 

  

	 	E.	Fidelity or Crime insurance covering employee dishonesty, including but not limited to dishonest acts of Seller , its employees, agents, subcontractors and anyone under
Seller’s supervision or control. The Seller shall be liable for money, securities or other property of Buyer. Seller shall include a client coverage endorsement written for limits of at least $1,000,000 and shall include Buyer as Loss Payee.

  

	 	F.	Environmental Insurance (Contractor’s Pollution Liability) with limits of at least $5,000,000 each occurrence, claim, or wrongful act and $10,000,000 aggregate.
The policy must include Buyer, its Affiliates, and their directors, officers, and employees as Additional Named Insureds. Seller shall provide a copy of the Additional Insured endorsement to Buyer. If required within the scope of Seller’s work
to be performed, the insurance required herein cannot exclude coverage for bodily injury, property damage, pollution or environmental harm resulting from or arising out of the work to be performed, asbestos, lead or silica-related claims, claims
arising out of microbial matter or bacteria, testing, monitoring, measuring operations or laboratory analyses, or liability arising out of the operation of a treatment facility. The policy must contain a separation of insureds clause. If a motor
vehicle is used in connection with the work to be performed, the Business Automobile Liability policy will include coverage at least as broad as Insurance Services Office (ISO) CA 99 48 and be endorsed to include Motor Carrier Act endorsement MCS
90. 

 

  
 Page 5 of 7

 GENERAL TERMS AND CONDITIONS 

For Supply & Services Subcontracts 
  

	 	G.	Pollution Legal Liability with limits of at least $3,000,000 each occurrence, claim, or wrongful act and $6,000,000 aggregate 

The above limits may be satisfied by any combination of both primary and excess limits. Seller shall arrange a waiver of subrogation for the above and
with the exception of 2., B., C.,. shall name Buyer as an additional insured under each of the above policies and shall provide to Buyer, within fifteen (15) days of Buyer issuance of this subcontract, a Certificate of Insurance evidencing
compliance with this section. 
 22. Release Of Information 
 Seller shall not publish any information developed under this Subcontract, nor disclose, confirm, or deny any details about the existence or subject matter of this Subcontract, or use Buyer’s name in
connection with Seller’s sales promotion or publicity without prior written approval of the Buyer. 
 23. Disputes 

The provisions of this Subcontract shall be interpreted in accordance with the laws of the State of New York without resort to said state’s Conflict
of Law rule, and in accordance with its fair meaning and not strictly against either party. Pending final resolution of a dispute hereunder, Seller shall proceed diligently with the performance of this Subcontract and in accordance with all the
Terms and Conditions contained herein and with the Buyer’s direction thereof. Buyer and Seller shall each bear its own costs of processing any dispute hereunder. In no event shall the Seller acquire any direct claim or direct course of action
against the United States Government. 
 24. Assignments and Subcontracting 
 (a) Neither this Subcontract nor any interest herein nor claim hereunder may be transferred, novated, assigned or delegated by Seller; nor may all or substantially all of this Subcontract be further
subcontracted by Seller without the prior written consent of Buyer. Lack of consent shall not be deemed as a waiver or otherwise relieve Seller of its obligations to comply fully with the requirements hereof. 

(b) Notwithstanding the above, Seller may, without Buyer’s consent, assign moneys due or to become due hereunder provided Buyer continues to have
the right to exercise any and all of its rights hereunder, settle any and all claims arising out of, and enter into amendments to the Subcontract without notice to or consent of the assignee. Buyer shall be given prompt notice of any assignment.
Amounts so assigned shall continue to be subject to any of Buyer’s rights to set-off or recoupment under this Subcontract or at law. 
 (c)
Either Party may assign this Subcontract to any successor in interest. 
 25. Government Contracts 

For each Subcontract awarded in support of and charged to a U.S. Government Contract, Supplement 1 – U.S. Government Contract Provisions from the
Federal Acquisition Regulation (FAR) [Buyer’s Form CC009] and Supplement 2 – U.S. Government Contract Provisions from the Defense Federal Acquisition Regulation [Buyer’s Form CC010] shall apply along with any other applicable
flow-downs required by the Federal Acquisition Regulation (FAR) or the Defense Federal Acquisition Regulation Supplement (DFARS) or any other Federally published Supplement. All such appended FAR, DFARS, or other clauses are incorporated by
reference as if set forth at length herein. The Seller shall ensure that all such applicable flow-down

 
clauses are included in each lower tier subcontract with Seller’s suppliers. 

26. Order of Precedence 
 In the event of
a conflict between these Terms and Conditions and other portions of the Subcontract, the order of precedence shall be: (a) any typed provisions on the face of Buyer’s Subcontract specifically modifying the terms of this Subcontract;
(b) the terms and conditions set forth in that certain Master Supply Agreement executed between Buyer and Seller; (c) these Terms and Conditions; and, (d) any other provisions set forth in the Buyer’s Subcontracts including any
terms and conditions stated or referenced therein. 
 27. Independent Contractor Status 

Seller is, and shall remain, an independent contractor during the performance of this Subcontract. 

28. Communication with Buyer’s Customer 
 Buyer shall be solely responsible for any and all communication with Buyer’s customer regarding this or any related Subcontract. 
 29. Survivability 
 All of the provisions of this Subcontract shall survive the termination
(whether for convenience or default), suspension or completion of this Subcontract unless they are clearly intended to apply only during the term of this Subcontract. 
 30. Audit Rights 
 Buyer reserves the right, to the extent required by applicable law or
regulation to have U.S. Government representative audit Seller’s records to assure compliance with the terms of this Subcontract. Seller shall make available all data reasonably requested by Buyer. 

31. Taxes 
 Unless this Subcontract
specifies otherwise, the price of this Subcontract includes, and Seller is liable for and shall pay, all taxes, impositions, charges and exactions imposed on or measured by this Subcontract except for applicable sales and use taxes that are
separately stated on Seller’s invoice. Prices shall not include any taxes, impositions, charges or exactions for which Buyer has furnished a valid exemption certificate or other evidence of exemption. 

32. Electronic Transmissions 
 (a) The
parties agree that if this Subcontract is transmitted electronically, neither party shall contest its validity, or any acknowledgment thereof, on the basis that this Subcontract or acknowledgment contains an electronic signature. 

(b) Seller shall, at Buyer’s request and Seller’s expense, send and receive business transactions by electronic means using Web-based
technologies. Such Web-based technologies for electronic transmissions may include a) email and (b) the Internet directly between Buyer and Seller. 
 33. Standards on Slavery and Human Trafficking in the Supply Chain 
  

	 	(a)	Suppliers – Pursuant to the California Transparency in Supply Chains Act and consistent with our commitment to excellence and corporate social responsibility,
Buyer supports the eradication of human trafficking and slavery in supply chains around the world, including in our own. Buyer sets forth the following Company Standards that its suppliers must meet in order to do business with Buyer:

  

	 	•	 	 Suppliers that provide goods or services to Buyer shall operate in full compliance with the laws of their respective countries and with all other
applicable laws, rules and regulations. 

 

  
  

					
		 	Page 6 of 7	 	

 GENERAL TERMS AND CONDITIONS 

For Supply & Services Subcontracts 
  

	 	•	 	 Suppliers shall employ only workers who meet the applicable minimum legal age requirement for employment in the country or countries in which they are
doing business. 

  

	 	•	 	 Suppliers shall not employ any prison, indentured or forced labor. 

 

	 	•	 	 Suppliers must comply with all applicable laws, regulations and industry standards on working hours and working conditions.

  

	 	•	 	 Suppliers must certify that materials incorporated into goods provided to Buyer comply with the laws regarding slavery and human trafficking of the
country or countries in which they are doing business. 

  

	(b)	As a condition of doing business with Buyer, our suppliers must comply with these Company Standards. Buyer will continue to develop monitoring systems to assess and
ensure compliance. If Buyer determines that a supplier has violated these Standards, Buyer may, in its discretion, either terminate the business relationship and/or require the supplier to implement a corrective action plan as a condition of future
business. 

 34. LIMITATION OF LIABILITY 
 IN NO EVENT SHALL SELLER BE LIABLE FOR INDIRECT, SPECIAL, CONSEQUENTIAL, MULTIPLE OR PUNITIVE DAMAGES, OR ANY DAMAGE DEEMED TO BE OF AN INDIRECT OR CONSEQUENTIAL NATURE ARISING OUT OF OR RELATED TO ITS
PERFORMANCE UNDER THE CONTRACT, WHETHER BASED UPON BREACH OF CONTRACT, WARRANTY, NEGLIGENCE AND WHETHER GROUNDED IN TORT, CONTRACT, CIVIL LAW OR OTHER THEORIES OF LIABILITY, INCLUDING STRICT LIABILITY. TO THE EXTENT THAT THIS LIMITATION OF LIABILITY
CONFLICTS WITH ANY OTHER PROVISION(S) OF THIS CONTRACT, SAID PROVISION(S) SHALL BE REGARDED AS AMENDED TO WHATEVER EXTENT REQUIRED TO MAKE SUCH PROVISION(S) CONSISTENT WITH THIS PROVISION. IN NO EVENT SHALL THE TOTAL CUMULATIVE LIABILITY OF SELLER
OR ITS SUBCONTRACTORS OR SUPPLIERS OF ANY TIER WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE FOR THE PERFORMANCE OR BREACH OF THE CONTRACT OR ANYTHING DONE IN CONNECTION THEREWITH EXCEED THE CONTRACT
PRICE. NOTWITHSTANDING ANYTHING ELSE IN THE CONTRACT TO THE CONTRARY, THE STATED MONETARY LIMITATION HEREINABOVE IS THE MAXIMUM LIABILITY SELLER HAS TO THE BUYER.

 
 

  
  

					
		 	Page 7 of 7	 	

 Appendix C 
 Confidential treatment has been requested with respect to the information contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the
Securities and Exchange Commission 
  

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start
Date	  	End Date	  	Internat’l/
Domestic	 	Country	 	Customer	  	Contract
Category
(New/
Follow-on)	 	 	Sole
Source /
Comp	 	 	Prime
/ Sub	 	 	Exclusivity	 	 	Exh A	 
	L-3 Space & Navigation (to LOTSD)	  	IPADS Training, Support, Spare Parts	  	Provide Field Service support, Spares and Translated Training Materials	  	11/1/2012	  	10/30/2015	  	Domestic -
(International
in terms
of end
user)	 	US
FMS
(customer
=
Iraq)	 	Raytheon
Thales	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 Applied Technologies (to MPRI)	  	DTRA Cooperative Threat Reduction Integration Support Services (CTRIC-II)	  	DTRA Integration Support Services	  	TBD	  	TBD	  	Domestic	 	USA	 	Bechtel	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 Interstate Electronics (to GSES)	  	Weapons Security for Navy Strategic Programs	  	Integrating security systems and process for on-shore weapons storage	  	TBD	  	TBD	  	Domestic	 	USA	 	USN	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 Link Simulation & Training (to C2S2, GSES and MPRI)	  	OMNIBUS Contract (STOC II). This a Multiple Award vehicle with requirements released as required by the customer.	  	Army rotary craft training and simulation	  	10/1/2009	  	9/30/2018	  	Domestic	 	USA	 	PEO-STRI	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
													
	L-3/IS - PID (to C2S2)	  	Compass Call	  	Software development in support of Big Safari Program	  	3/24/2011	  	3/23/2012	  	Domestic	 	USA	 	USAF	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
													
	L-3 STRATIS (to C2S2)	  	Rapid Operational Multi-INT Omnibus (ROMO)	  	Provide C4ISR capabilities and software services to the NRO / Mission Support Directorate (MSD) / Systems Acquisition Office (SAO) for the DSGS-FoS, IC, DoD, and mission
partners.	  	12/7/2011	  	TBD	  	Domestic	 	USA	 	NRO	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to C2S2)	  	Global Tactical Advanced Communications Systems (GTACS)	  	Provide turn-key tactical integrated communications systems that support both commercial and global military operations.	  	6/2/2011	  	TBD	  	International	 	Various	 	Army	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 

  
 Page 1 of 7

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start
Date	  	End
Date	  	Internat’l/
Domestic	  	Country	  	Customer	  	Contract
Category
(New/
Follow-on)	 	 	Sole
Source /
Comp	 	 	Prime
/ Sub	 	 	Exclusivity	 	 	Exh A	 
	L-3 STRATIS (to LOTSD)	  	INSCOM Global Intelligence Services (GIS)	  	Provide qualifed “fire-walled” personnel for both capture and execution of program	  	1/18/2012	  	TBD	  	Domestic	  	USA	  	Army	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS / ASA (to C2S2)	  	Ballistic Missile Defense System (BMDS)	  	Provide hardware, software, technical support, training, and sustainment associated with ACCS TMD-1 IOC Phase 2 Increment 1	  	6/19/2012	  	TBD	  	International	  	United
Kingdom	  	Thales
Raytheon	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to Engility)	  	VOLPE Transportation Information Project Support (V-TRIPS)	  	Provide Traffic Flow Management and Information Assurance support	  	3/31/2010	  	TBD	  	Domestic	  	USA	  	DOT	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to MPRI)	  	INSCOM Global Intelligence Services (GIS)	  	Provide force management, force training, and mission support training excluding cyptologic language training	  	TBD	  	TBD	  	Domestic	  	USA	  	Army	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to C2S2)	  	INSCOM Global Intelligence Services (GIS)	  	Provide Intelligence Security & Cyber Operations	  	5/25/2012	  	TBD	  	Domestic	  	USA	  	Army	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to C2S2)	  	Communications and Transmissions Systems (CTS)	  	Provide an integrated approach that considers the life cycle of any given communications and/or transmissions system and its relationship with other communications and/or
transmissions systems.	  	4/27/2012	  	TBD	  	International	  	Various	  	Army	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 

  
 Page 2 of 7

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start
Date	  	End
Date	  	Internat’l/
Domestic	  	Country	  	Customer	  	Contract
Category
(New/
Follow-on)	 	 	Sole
Source /
Comp	 	 	Prime
/ Sub	 	 	Exclusivity	 	 	Exh A	 
	L-3 STRATIS (to C2S2 )	  	Agile Cyber Technologies (ACT)	  	Provide rapid cyber capability to include fielding and deployment to Air Force, Cyber Command, DOD, IC, DHS	  	9/21/2011	  	TBD	  	Domestic	  	USA	  	Air
Force	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to GSES)	  	Agile Cyber Technologies (ACT)	  	Provide rapid cyber capability to include fielding and deployment to Air Force, Cyber Command, DOD, IC, DHS	  	9/21/2011	  	TBD	  	Domestic	  	USA	  	Air
Force	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to C2S2)	  	NETCENTS II - NET OPS	  	Network Operations (NetOps), Infrastructure, and Service Oriented Architecture (SOA) implementation and transformation services and solutions to the United States AF (USAF) and
Department of Defense (DoD) agencies at locations inside the contiguous United States (CONUS), outside the contiguous United States (OCONUS) and in war zone areas.	  	1/21/2009	  	TBD	  	International	  	Various	  	Air
Force	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 

  
 Page 3 of 7

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start
Date	  	End
Date	  	Internat’l/
Domestic	  	Country	  	Customer	  	Contract
Category
(New/
Follow-on)	 	 	Sole
Source /
Comp	 	 	Prime
/ Sub	 	 	Exclusivity	 	 	Exh A	 
	L-3 STRATIS (to MPRI)	  	NETCENTS II - NET OPS	  	Network Operations (NetOps), Infrastructure, and Service Oriented Architecture (SOA) implementation and transformation services and solutions to the United States AF (USAF) and
Department of Defense (DoD) agencies at locations inside the contiguous United States (CONUS), outside the contiguous United States (OCONUS) and in war zone areas.	  	2/15/2008	  	TBD	  	International	  	Various	  	Air
Force	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 
	L-3 STRATIS (to GSES)	  	NETCENTS II - NET OPS	  	Network Operations (NetOps), Infrastructure, and Service Oriented Architecture (SOA) implementation and transformation services and solutions to the United States AF (USAF) and
Department of Defense (DoD) agencies at locations inside the contiguous United States (CONUS), outside the contiguous United States (OCONUS) and in war zone areas.	  	2/13/2008	  	TBD	  	International	  	Various	  	Air
Force	  	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 	 	 	*	* 

  
 Page 4 of 7

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start
Date	  	End
Date	  	Internat’l/
Domestic	  	Country	  	Customer	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Exclusivity	 	  	Exh A	 
	L-3 STRATIS (to C2S2)	  	NETCENTS II - Application Services	  	The NETCENTS-2 Application Services acquisition provides a vehicle for customers to access a wide range of services such as sustainment, migration, integration, training, help desk
support, testing and operational support. Other services include, but are not limited to, exposing data from Authoritative Data Sources (ADS) to support web-services or Service Oriented Architecture (SOA) constructs in AF enterprise
environments.	  	1/21/2009	  	TBD	  	International	  	Various	  	Air
Force	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	NETCENTS II - Application Services	  	The NETCENTS-2 Application Services acquisition provides a vehicle for customers to access a wide range of services such as sustainment, migration, integration, training, help desk
support, testing and operational support. Other services include, but are not limited to, exposing data from Authoritative Data Sources (ADS) to support web-services or Service Oriented Architecture (SOA) constructs in AF enterprise
environments.	  	2/15/2008	  	TBD	  	International	  	Various	  	Air
Force	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 5 of 7

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start Date	  	End
Date	  	Internat’l/
Domestic	  	Country	  	Customer	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Exclusivity	 	  	Exh A	 
	L-3 STRATIS (to GSES)	  	NETCENTS II - Application Services	  	The NETCENTS-2 Application Services acquisition provides a vehicle for customers to access a wide range of services such as sustainment, migration, integration, training, help desk
support, testing and operational support. Other services include, but are not limited to, exposing data from Authoritative Data Sources (ADS) to support web-services or Service Oriented Architecture (SOA) constructs in AF enterprise
environments.	  	2/13/2008	  	TBD	  	International	  	Various	  	Air
Force	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	Enterprise Acquisition Gateway for Leading Edge (EAGLE) Solutions II	  	Provide the full range of IT services, technical and management expertise, and solution-related enabling products in one or more of the FCs to meet the mission needs of the
DHS.	  	5/5/2010	  	TBD	  	Domestic	  	USA	  	DHS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	MultiLingual Solutions (MLS) for SOCOM Language Training	  	Provide language training to Southern Combantant Command Special Operations at US & interational military sites	  	12/20/2010	  	TBD	  	Domestic /
International	  	Various	  	SOCOM	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to LOTSD)	  	MultiLingual Solutions (MLS) for SOCOM Language Training	  	Provide language training to Southern Combantant Command Special Operations at US & interational military sites	  	12/20/2010	  	TBD	  	Domestic /
International	  	Various	  	MLS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	Reserve Component Automation System (RCAS)	  	Provide s/w and integrated systems services, maintenance of the RCAS	  	4/25/2012	  	TBD	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	Software, Networks, Information, Modeling, & Simulation (SNIM)	  	Systems acqusition, information assurance, IT	  	3/22/2011	  	TBD	  	Domestic	  	USA	  	DITEC,
DoD	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 6 of 7

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																			
	 L-3 Division
	  	 Program Name
	  	 Proposed Scope
	  	Start
Date	  	End
Date	  	Internat’l/
Domestic	  	Country	  	Customer	  	Contract
Category
(New/
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Exclusivity	 	  	Exh A	 
	L-3 STRATIS (to MPRI)	  	Software, Networks, Information, Modeling, & Simulation (SNIM)	  	Modeling & Simulation	  	9/15/2010	  	TBD	  	Domestic	  	USA	  	DITEC,
DoD	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	CIO-SP 3	  	Provide health and biomedical-related IT services	  	2/22/2012	  	TBD	  	Domestic	  	USA	  	NIH	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	CIO-SP 3	  	Provide health and biomedical-related IT services	  	4/12/2010	  	TBD	  	Domestic	  	USA	  	NIH	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	Defense Intelligence Agency Solutions for Intelligence Analysis ( DIA SIA) II	  	Provide worldwide coverage for intelligence analysis support services	  	8/26/2011	  	TBD	  	Domestic	  	USA	  	DIA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to LOTSD)	  	Defense Intelligence Agency Solutions for Intelligence Analysis ( DIA SIA) II	  	Provide worldwide coverage for intelligence analysis support services	  	7/21/2011	  	TBD	  	Domestic	  	USA	  	DIA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 GSS (to C2S2)	  	SPAWAR Infrastructure Protection Solutions (IPS)	  	Installation physical security solutions	  	2/22/2012	  	TBD	  	Domestic	  	USA	  	SPAWAR	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 GSS (to GSES)	  	Royal Saudi Air Force (RSAF) Air Operations Center (AOC)	  	Coursework development, training, exercises for weapons school training and safety programs	  	TBD	  	TBD	  	International	  	Saudi
Arabia	  	RSAF	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 7 of 7

 Appendix D 
 TEAMING AGREEMENT 
 BETWEEN 

 

					
	[DIVISION NAME] a Division of L-3	 		 	[COMPANY NAME]
			
	[DIVISION ADDRESS]	 	AND	 	[ADDRESS]
	[City, State     Zip]	 		 	[City State, Zip]

 This “Agreement” is made and entered into this      day
of        , 2012 by and between [DIVISION NAME]                     (“Prime Contractor”) and
[COMPANY NAME]             (“Subcontractor”). Prime Contractor and Subcontractor are sometimes hereinafter referred to as “Team Member(s).” 

RECITALS 

WHEREAS, the
                                        
(“Customer”) will issue or has issued a solicitation or requirement under which the Customer will request proposals for the provision of certain supplies and/or services to support the
                                        
Note – Program needs to be clearly defined especially when a Program is either an IDIQ or a Base Subcontract with Options (“Program”); 
 WHEREAS, Prime Contractor intends to submit a proposal or proposals for the Program pursuant to this Agreement (hereinafter “Proposal”); 

WHEREAS, Subcontractor’s products or services complement, supplement, or support the products or services of Prime
Contractor’s planned Proposal for the Program; 
 WHEREAS, Subcontractor shall provide the products and/or services
stated in Exhibit A and Prime Contractor and/or its subcontractors shall be responsible for its products, services, and the remainder of the Program, including overall Program management; 

WHEREAS, the Team Members, consistent with Federal and State laws governing restraint of trade and competition, believe that a
cooperative and necessarily complementary effort between the two will result in an offer to the Customer that is the most advantageous combination of technical, managerial, and cost solutions, that is fully compliant with all laws, and that
increases competition for the Program; and 
 WHEREAS, the Team Members, to this end, desire to enter into this Agreement
to provide for the joint preparation of a Proposal in response to the Program. 
 NOW THEREFORE, in consideration of the
premises, as well as the mutual obligations herein made and undertaken, the Team Members, intending to be legally bound, hereby covenant and agree as follows: 
 Section 1. 
 ALLOCATION OF RESPONSIBILITY; SUBMISSION OF PROPOSAL

 1.1. The Prime Contractor shall take principal charge of preparing and submitting the Proposal in response to the Program
and performing the work entailed in the resulting prime contract (“Prime Contract”). Subcontractor shall provide appropriate and high quality personnel and use its best efforts to prepare those technical portions of the Proposal relating
to, and perform the work entailed in, the areas described in Exhibit A, subject to the direction of the Prime Contractor. Subcontractor shall assist in such additional responsibilities assigned by Prime Contractor by mutual agreement between the
parties. In addition, the Subcontractor agrees to provide the products and services necessary for successfully supporting any benchmark, test, or other demonstration of its products or services called for by the Program. 

  
 -Page 1 of 9-

 1.2. The Subcontractor shall also prepare and submit a cost proposal for the work entailed
in the areas described in Exhibit A. The cost or pricing data contained therein shall be broken down and provided in the time and manner prescribed by the Prime Contractor so as to enable it to comply fully with the evaluation and reporting
requirements in the Program. The Proposal shall contain or be accompanied by accurate, current and complete pricing information in sufficient detail to permit costing of the Prime Contract and negotiation of the subcontract for the Exhibit A work.
Nothing contained herein shall be construed to require the disclosure of proprietary cost or pricing data to the Prime Contractor. However, the Subcontractor does agree to make said proprietary data available to the Customer’s auditors in
accordance with applicable regulations. 
 1.3. The Team Members shall jointly develop cost targets for those portions of the
Program to be performed by the Subcontractor so as to maximize the competitiveness of the Proposal. The Subcontractor agrees to propose costs that meet the agreed-upon targets. 

1.4. The Subcontractor agrees to meet all deadlines reasonably imposed to meet the Proposal submission deadlines, or any amendments
thereto, set forth in the Program. 
 1.5. The Prime Contractor will keep the Subcontractor fully advised of any change that may
affect the Subcontractor’s area of responsibility. The Prime Contractor, however, shall have the right to determine the final contents of the Proposal. If requested by the Prime Contractor, the Subcontractor will ensure the availability of
appropriate high quality management and technical personnel to assist the Prime Contractor in any discussions and negotiations with the Customer. However, except as otherwise directed by the Prime Contractor, all communications with the Customer
concerning the Program shall be through Prime Contractor. 
 1.6. The Proposal submitted to the Customer shall contain and
identify the Subcontractor’s contribution to the Proposal for the work identified as the Subcontractor’s responsibility in Exhibit A hereto. 
 1.7. Team Members shall perform such additional effort subsequent to the submission of the Proposal as appears reasonable to obtain the Prime Contract. 

1.8. Subcontractor hereby authorizes Prime Contractor to use Subcontractor’s logos and trademarks to prepare the Proposal and to
market Subcontractor’s products or services under the Prime Contract. Prime Contractor agrees to use the logos and trademarks in accordance with any written policies or directions provided by Subcontractor to Prime Contractor. 

Section 2. 
 PARTICIPATION IN COMPETITIVE PROPOSALS 
 2.1. Select one of the clauses
below in the alternative and delete the Gray text: 
 EXCLUSIVE: During the effective term of this Agreement, each Team Member
agrees that it will not, directly or indirectly, in any manner, participate in any activity that is competitive to this Agreement, and that it will not compete independently, including the independent submission of a proposal to the Customer for the
Program. However, this Agreement shall not preclude either party from bidding or contracting independently from the other on any other Government or industry program that may develop or arise in the general area of business related to this
Agreement. 
 NON-EXCLUSIVE: Both Team Members may respond to the Program independently of the effort anticipated by this
Agreement, including in combination with third parties. However, Team Members shall not use any data or information collected or received under this Agreement to further said efforts. In order to protect Proprietary Information, each party agrees to
inform the other party where it elects or 

  
 -Page 2 of 9-

 
earnestly contemplates working on the Program outside the scope of this Agreement. This Agreement shall not preclude either party from bidding or contracting independently from the other on any
Government or industry program that may develop or arise in the general area of business related to this Agreement. Nor shall this Agreement preclude either Team Member from offering to sell, or selling, to others any supplies or services that it
may regularly offer for sale, even though such supplies or services may be included in the Proposal. 
 Section 3.

 AWARD OF SUBCONTRACT 
 3.1. In the event that the Prime Contractor is awarded the Prime Contract for this Program, each Team Member agrees to negotiate in good faith and proceed in a timely manner to execute a mutually
acceptable subcontract for the work to be performed by the Subcontractor and identified in Exhibit A. Subcontractor acknowledges that unless otherwise agreed in Exhibit A, Prime Contractor may itself provide or may use other subcontractors to
provide under the Program services or products that are similar to or compete with Subcontractor’s product or services in Exhibit A. 
 3.2. The Team Members acknowledge that the subcontract, and any modifications thereto, may be subject to the consent or approval of the Customer. The Prime Contractor agrees to use all reasonable efforts
to secure such consent or approval. 
 3.3. The subcontract shall include terms and conditions that are required to be flowed
down by law, regulation or the Program, such other provisions as the Prime Contractor may reasonably require for the performance of its obligations under the Prime Contract, including but not limited to a termination for convenience and a changes
clauses. The subcontract shall also include such other provisions upon which mutual agreement is reached. 
 3.4. The award of
the subcontract contemplated under this Agreement is subject to all the following conditions: 
  

	 	3.4.1.	Award of a Prime Contract to Prime Contractor; 

  

	 	3.4.2.	Inclusion in the Prime Contract of subcontract requirements that are substantially similar to those proposed under this Agreement and the Program;

  

	 	3.4.3.	Furnishing by the Subcontractor to Prime Contractor all certifications, representations, and cost and pricing data or basis for exemptions as required by applicable law
or regulation, by the Program, or by the Prime Contract; 

  

	 	3.4.4.	Customer’s specific approval of Subcontractor as a subcontractor, if required, which approval Prime Contractor shall make a good faith effort to obtain; and

  

	 	3.4.5.	Mutual agreement of the parties to the statement of work, financial terms, and contractual provisions. 

3.5. Unless otherwise mutually agreed, the Team Members agree to negotiate in good faith a subcontract for the Prime Contract, with the
understanding that any such subcontract shall be subject to changes based on Prime Contractor’s final definitized Prime Contract. 
 Section 4. 
 LIMITATION OF RIGHT TO REIMBURSEMENT, PAYMENT, OR
COMPENSATION 
 4.1. Each party to this Agreement will bear the respective costs, risks, and liabilities incurred by it as a
result of its obligations and efforts under this Agreement. Therefore, neither the Prime Contractor nor the Subcontractor shall have any right to reimbursement, payment, or compensation of any kind from the other during the period prior to the
execution of any resulting subcontract, between the Prime Contractor and the Subcontractor for the work described in this Agreement. Each party shall be responsible for its respective taxes, duties, tariffs, fees, imports, and other charges.

  
 -Page 3 of 9-

 Section 5. 

PROPRIETARY INFORMATION AND TECHNICAL DATA 
 5.1. Each Team Member agrees to handle the proprietary data (“Proprietary Information”) of the other in accordance with the terms and conditions of the Proprietary Information Agreement (PIA)
attached hereto as Exhibit B, and incorporated herein. Where the term of the PIA attached hereto will expire prior to the expiration of this Agreement, the Team Members agree that by incorporation herein, the term of the PIA shall extend until the
termination of this Agreement, notwithstanding any earlier termination date set forth in the PIA. 
 5.2. Both Team Members
confirm and agree that neither their consultants nor their employees shall be requested or otherwise encouraged to obtain or provide information of the Customer or any third party, which may not be legally disclosed, whether by reason of security
classification or other legal restriction. Furthermore, each Team Member agrees not to knowingly accept or use any such information in any proposal developed under the Program. 

5.3. Technical data exchanged hereunder may be subject to United States Export Control laws and regulations as currently enacted, or as
subsequently modified. Accordingly, the parties shall strictly abide by all applicable U.S. Export Control laws and regulations governing the transfer, export, or re-export of technical data. Proprietary Information exchanged under this
agreement may contain technical data that is categorized on either: 
  

	 	5.3.1.	The United States Munitions List and, as such, subject to the International Traffic in Arms Regulations (ITAR, 22 C.F.R. §§120-130); or

  

	 	5.3.2.	The Commerce Control List, and as such, subject of the Export Administration Regulations (EAR, 15 C.F.R. §§730-774).

Accordingly, each party represents and warrants that it shall not transfer the other party’s technical data directly or indirectly to any
individual, employee, company, or other entity without first complying with all requirements of the ITAR, the EAR, and any other applicable export restrictions, including the requirement for obtaining any export license, if applicable. Further,
any such disclosure shall not be without an express written notification to the originating party. Technical data that is controlled by the ITAR, EAR, or other applicable export restrictions shall not be released to foreign nationals, including
foreign national employees, employees’ companies, or other entities without first obtaining the appropriate export license or other approval from the U.S. Government. Where the U.S. Government amends the applicable rules, regulations, or
laws controlling the export of technical data, Subcontractor agrees to comply with the rules, regulations, or laws as amended. 

5.4. Notwithstanding anything to the contrary herein, Prime Contractor may use data furnished by Subcontractor hereunder in performing
its obligations under this Agreement or the subcontract and may include the data in the Proposal. Where Subcontractor requests in writing that such data contain a restrictive legend, Prime Contractor shall mark such data with the restrictive legend
provided in writing by Subcontractor but only to the extent U.S. Government regulations or laws permit the restrictive legend. 

Section 6. 
 SOLICITATION OF EMPLOYEES 
 6.1. Each Team Member agrees that, during the
period of this Agreement, the term of any resultant subcontract, and for six (6) months thereafter, each party agrees not to directly or indirectly solicit or hire the employees of the other party assigned to work in connection with this
Agreement and the Program without the prior written approval of the other party. The parties further agree to include a 

  
 -Page 4 of 9-

 
non-solicitation provision, similar to this provision, in any subcontract that results from this Agreement. However, neither party will be precluded from hiring any employee of the other party
who responds to any public notice or advertisement of an employment opportunity unrelated to the Program. 
 Section 7.

 ACCESS TO CLASSIFIED OR RESTRICTED INFORMATION 

7.1. Notwithstanding anything to the contrary herein, access to or use of any information that is classified, limited access information,
For Official Use Only information, or any other type of restricted access information shall be governed by the relevant regulations, laws, and agreements promulgated by the U.S. Government. 

Section 8. 
 LIMITATIONS ON THE NATURE OF THE AGREEMENT 
 8.1. This Agreement does not
constitute or create a joint venture, pooling arrangement, partnership, or formal business organization of any kind, other than a contractor team arrangement as set forth in FAR §9.601, and the rights and obligations of the parties shall be
only those expressly set forth herein. Neither Team Member shall have authority to bind the other except to the extent authorized herein. Nothing herein shall be construed as providing for the sharing of profits or losses arising out of the effort
of either of the Team Members. This Agreement only binds the parties named hereto. It is not intended and does not bind any other entity owned in whole or in part by of L-3 Communications Corporation, including, but not limited to subsidiaries,
affiliated companies, joint ventures, or corporations. 
 Section 9. 

RIGHTS IN INTELLECTUAL PROPERTY 
 9.1. Intellectual property shall remain the property of the originating party, and except as set specifically forth in this Agreement, nothing in this Agreement shall be interpreted as granting any right
or license. In the event of joint inventions, discoveries, or development, the Team Members shall establish their respective rights by good faith negotiations between them taking into consideration their respective contributions. In this regard, it
is recognized and agreed that the Team Members may be required to, and shall, grant licenses or other rights to the Customer to inventions, data, and information under such standard provisions which may be contained in the Prime Contract
contemplated by this Agreement or required by law; provided, however, such licenses or other rights shall not exceed those required by the Prime Contract or by law. Neither Team Member shall take any action, or fail to take any required action,
which prejudices the rights of the other Team Member in joint inventions, discoveries, or developments. 
 Section 10.

 PUBLICITY 
 10.1. Any news release, public announcement, advertisement, or other publicity proposed for release by Subcontractor concerning the Program, either Team Member’s efforts in connection with the
Proposal, or any resulting Prime Contract or subcontract, will be subject to the good faith review and written approval of Prime Contractor prior to release. 
 Section 11. 
 DESIGNATION OF RESPONSIBLE INDIVIDUALS AND NOTICE

 11.1. All notices, certificates, acknowledgments, and other reports hereunder, shall be in writing and shall be mailed by
registered or certified mail, postage prepaid, sent by confirmed facsimile or telecopy, or otherwise delivered by hand, overnight courier or by messenger, addressed to the parties at the address set forth below in §11.2 or at such other address
as a party shall have furnished to the other 

  
 -Page 5 of 9-

 
party in writing. Each such notice or other communication shall be treated as effective or having been given when delivered if delivered personally, if sent by mail, at the earlier of its receipt
or 96 hours after the same has been deposited in a regularly maintained receptacle for the deposit of mail, addressed and mailed as set forth above, or if by Email, upon sender receipt of electronic confirmation that recipient is in receipt of the
email. 
 11.2. All communications relating to this Agreement shall be directed to the specific person designated to represent
the Prime Contractor and the Subcontractor on this Program, as set forth below. Each Team Member shall appoint one Program and one contractual representative. These appointments shall be kept current during the period of this Agreement.
Communications, which are not properly directed to the persons designated to represent the Prime Contractor and the Subcontractor, shall not be binding upon the Prime Contractor or the Subcontractor. 

 

	 	11.2.1.	For Prime Contractor: 

  

					
	  	 	 CONTRACTUAL
	 	 PROGRAM

	Name:	 		 	
	Title:	 		 	
	Email:	 		 	
	Phone:	 		 	
	Fax:	 		 	
	Address:	 		 	
	City, State, Zip:	 		 	

  

	 	11.2.2.	For Subcontractor: 

  

					
	  	 	 CONTRACTUAL
	 	 PROGRAM

	Name:	 		 	
	Title:	 		 	
	Email:	 		 	
	Phone:	 		 	
	Fax:	 		 	
	Address:	 		 	
	City, State, Zip:	 		 	

 Section 12. 
 TERMINATION 
 12.1. This Agreement shall automatically terminate effective
upon the date of the happening or occurrence of any one of the following events or conditions: 
  

	 	12.1.1.	Official Customer announcement or notice of the cancellation of the Program; 

 

	 	12.1.2.	The receipt of written notice from the Customer that it will not award a contract for this Program to the Prime Contractor; 

 

	 	12.1.3.	The receipt of official Customer notice that either the proposed Subcontractor or subcontract will not be approved under the Prime Contract, that substantial areas of
the Subcontractor’s proposed responsibility have been eliminated from the requirements, or that Prime Contractor must competitively procure Subcontractor’s products or services and Subcontractor does not offer the best value pursuant to
said competition; 

  

	 	12.1.4.	Award of a subcontract by the Prime Contractor to the Subcontractor. 

12.1.4.1 However, if a subcontract is awarded to the Subcontractor for a Program which contemplates multiple awards by
way of delivery orders, task orders, etc., or any options, this Agreement shall remain in effect until all such future orders or options for 

  
 -Page 6 of 9-

 
the Program have been awarded, unless this Agreement is otherwise terminated in its entirety upon the happening or occurrence of any one of the other events or conditions set forth in this
§12.1; 
  

	 	12.1.5.	Mutual agreement of the parties to terminate the Agreement; 

  

	 	12.1.6.	[Optional Period – fill in]             (#) year[s]] after the effective date of this Agreement,
provided, however, if the Proposal has been submitted and is under evaluation by the Customer at the expiration of such period, this Agreement shall remain in effect unless this Agreement is otherwise terminated in its entirety upon the happening or
occurrence of any one of the other events or conditions set forth in this §12.1; 

  

	 	12.1.7.	A material breach by either Team Member of any of the provisions contained herein; 

 

	 	12.1.8.	The filing by or against either Team Member in any court of competent jurisdiction of a petition in bankruptcy or insolvency, or for reorganization, or for the
appointment of a receiver or trustee; or the making of an assignment for the benefit of creditors; 

  

	 	12.1.9.	Prime Contractor elects in its sole discretion not to submit a Proposal in response to the Program; 

 

	 	12.1.10.	Notification by the Customer or a good faith determination by Prime Contractor, that Subcontractor’s involvement creates an organizational conflict of interest
(“OCI”), and Prime Contractor’s good faith determination that Subcontractor cannot sufficiently mitigate such OCI; 

  

	 	12.1.11.	The Customer debars or suspends either party from contracting; 

  

	 	12.1.12.	Failure of the parties to reach agreement on a subcontract within a reasonable time after the award of a Prime Contract; or 

 

	 	12.1.13.	Delivery of past performance or evaluation data from Subcontractor that Prime Contractor reasonably determines to jeopardize the likelihood of an award of the Prime
Contract. 

 12.2. Notwithstanding anything to the contrary in §12.1, where there is a protest against the
award of a contract or the institution of any type of action or legal proceeding designed to challenge Customer’s award of a contract in this Program, this Agreement will not terminate until after there is a final decision, which has not been
appealed, or cannot be appealed, on the protest or other legal action or proceeding. 
 12.3. If the Customer materially changes
the Program’s content by adding or deleting work elements (e.g., adding the work being performed on one or more other programs) after the parties enter into this Agreement, the parties shall enter into good faith negotiations to modify this
Agreement in light of such changes to the Program. If the parties fail to agree upon a modification to this Agreement within a reasonable time under the circumstances, either party may terminate this Agreement. 

12.4. If this Agreement is terminated for any reason other than pursuant to §12.1.7, either party is free to pursue its individual
technical approach in association with the successful contractor or a third party for the Program. Where this Agreement is terminated pursuant to §12.1.7 for material breach, only the non-breaching party is free to pursue its individual
technical approach in association with the successful contractor or a third party for the Program. 

  
 -Page 7 of 9-

 12.5. All terms and conditions of this Agreement that by their nature are intended to
survive termination, including but not limited to §§5, 6, 9, 10, 13, 14, 15, 16, 17, and Exhibit B, shall remain enforceable subsequent to termination. 
 Section 13. 
 LIMITED WARRANTY 

13.1. Each Team Member warrants that it has the right to enter into this Agreement and can fully perform all obligations herein
undertaken. 
 13.2. Each Team Member warrants that the data, information, and other material furnished to the other Team Member
does not infringe any third-party rights in any U.S. patent, copyright, trademark, semiconductor mask, or trade secret. 
 13.3.
Subcontractor warrants that any and all pricing data or pricing information provided for submission to the Customer is true, current, accurate, and complete. Subcontractor shall indemnify Prime Contractor for all losses and expenses that arise out
of any breach of this warranty. 
 Section 14. 
 LIMITATION OF LIABILITY 
 14.1. Except for claims based on any infringement
of proprietary rights, in no event shall either Team Member be liable to the other, as a result of the performance of this Agreement, for any loss of profits; any incidental, special, exemplary, or consequential damages; or any claims or demands
brought against the other Team Member, even if such Team Member has been advised of the possibility of such damages. 

Section 15. 

APPLICABILITY OF STATE LAW 
 15.1. This Agreement shall be construed under the laws of the State of New York, except for the conflict of laws provisions, for all matters subject to state law. To the extent that the laws, rules, and
regulations for U.S. Government procurement apply, then the laws commonly referred to as U.S. Government contract law shall apply. 
 15.2. All disputes arising out of or related to this Agreement will be subject to the exclusive jurisdiction and venue of the State of New York, and the parties hereby consent to such jurisdiction and
venue. THE PARTIES HEREBY WAIVE TRIAL BY JURY WITH RESPECT TO ANY DISPUTE RELATING TO THIS AGREEMENT. 
 Section 16.

 COMPLIANCE WITH LAWS AND REGULATIONS 
 16.1. Team Member agrees at all times to comply with all applicable Federal, State, and local laws, rules and regulations, including but not limited to, Executive Order 11246 as amended on Equal
Opportunity, the Fair Labor Standards Act, the Walsh-Healy Public Contracts Act, the Foreign Corrupt Practices Act, and the Procurement Integrity Act. 

  
 -Page 8 of 9-

 Section 17. 
 AGREEMENT 
 17.1. Upon signing by their duly authorized representatives,
this Agreement shall become a mutually binding agreement by and between Prime Contractor and Subcontractor. It shall not be varied, except by an instrument in writing of subsequent date duly executed by an authorized representative of each party.

 17.2. This Agreement contains the entire agreement between the Team Members and supersedes any previous understandings,
commitments, or agreements, oral or written, with respect to the Program, the Proposal, or any resulting subcontract or other work. 
 17.3. The parties agree that this Agreement may be executed by fax, facsimile, email, or similar electronic means and shall be as effective as and as binding as if the Agreement was executed with original
signatures. The parties also agree that this Agreement may be executed in duplicate, with each party retaining one original. 

17.4. The failure of either party at any time to require performance by the other party of any provision hereof, shall in no way effect
the right of the party not requiring performance to enforce same. Nor shall waiver by said party of any breach of any provision hereof be taken or held to be a waiver of the provision itself. 

17.5. If, for any reason, any provision of this Agreement is determined to be illegal or otherwise invalid or unenforceable under
applicable present or future laws or regulations, that provision shall be deemed not to be a part of this Agreement, and so much of the remainder of this Agreement as shall otherwise remain intelligible shall be given full force and effect and shall
bind the parties. 
 17.6. This Agreement may not be assigned or otherwise transferred, including by operation of law, by
Subcontractor in whole or in part, without the express prior written consent of Prime Contractor. 
 IN WITNESS WHEREOF,
each of the Team Members hereto has caused this Agreement to be executed by its duly authorized representative as of the day and year first above written. 
  

									
	PRIME CONTRACTOR	 		 	SUBCONTRACTOR
					
	BY:	 	  
	 		 	BY:	 	  

	NAME:	 	  
	 		 	NAME:	 	  

	TITLE:	 	  
	 		 	TITLE:	 	  

	DATE:	 	  
	 		 	DATE:	 	  

  
 -Page 9 of 9-

 EXHIBIT A 
 STATEMENT OF WORK 
  

	A.1	Subcontractor’s Proposal Obligations 

  

	A.2	Subcontractor’ Prime Contract Obligations 

  

	A.3	Work Share 

  
 -Page A-1-

 PROPRIETARY INFORMATION AGREEMENT 

Between 
 L-3
COMMUNICATIONS [insert Division name] 
 And 
 [COMPANY NAME] 
 This Agreement is made and entered into between [Division Name]
                    , a Division of L-3
                    [Fill in Corporate
Entity]                     (“L-3”), having a place of business at
                     and [COMPANY NAME] having a place of business at [COMPANY ADDRESS] (“Company”). For purposes of this
Agreement, a party to this Agreement is referred to individually as a “Party,” while collectively both parties are referred to as “Parties.” This Agreement applies to the exchange of technical, financial, competition-sensitive
information, or other business sensitive information, some of which may be deemed to be Proprietary Information as hereinafter defined. 
 1.
Purpose: The Parties desire to provide a mechanism and capability for the exchange of Proprietary Information for the purpose of             [INSERT
PURPOSE]             (“Purpose”). 
 2. Disclosure Period:
The duration of this Agreement during which either Party may furnish to the other relating to and for the Purpose shall be for a period of two (2) years from the effective date of this Agreement, unless otherwise extended by the Parties in
writing (“Disclosure Period”). 
 3. Term: The term of the Agreement (including the Protection Period) shall begin on
the date of disclosure and ending three years from the end of the Disclosure Period. 
 4. Coordinators: Coordinators for each
Party shall supervise the disclosure of Proprietary Information. The Coordinators are identified below: 
  

					
	  	  	 FOR L-3 [DIVISION]
	  	 FOR COMPANY

	Name:	  		  	
	Title:	  		  	
	Email:	  		  	
	Phone:	  		  	
	Fax:	  		  	
	Address:	  		  	
	City State Zip:	  		  	

 A Party may change its Coordinators by written notice to the other Party. However, all Proprietary Information, as
hereinafter defined, exchanged under this Agreement shall be afforded the protection of this Agreement even if not furnished to the Coordinators listed above. 

  
 -Page B-1-

 5. Proprietary Information:  

 

	a.	“Proprietary Information” shall be any and all business, technical and other information which is identified or labeled as “Proprietary” or
“Confidential,” whether written, oral or otherwise furnished by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) and shall include, but not be limited to all data, reports, interpretations,
forecasts and records which Receiving Party or its respective agents or employees shall have been furnished or had access to heretofore or hereafter in the course of the Parties’ discussions. Proprietary Information shall also include
information received as a result of plant tours, demonstrations or other visual or audio presentations or verbal disclosures that the Disclosing Party indicates in writing to the Receiving Party no later than thirty (30) business days after
conveying such information that it is Proprietary Information. 

  

	b.	The foregoing shall not apply to: 

  

	 	i.	Information that at the time of disclosure had been previously published and available to the public; 

 

	 	ii.	Information which is published after disclosure and available to the public, unless such publication is a breach of this Agreement; 

 

	 	iii.	Information which, prior to disclosure hereunder was already in the possession of the Receiving Party as evidenced by records kept in the ordinary course of business or
by proof of actual prior possession; and 

  

	 	iv.	Information, which subsequent to disclosure hereunder, is obtained from a third person who (insofar as is known) is not in violation of any contractual, legal or
fiduciary obligation with respect to such information. 

  

	c.	If any exception listed above in §5.b applies to only a portion of any confidential data, the remainder shall continue to be subject to the foregoing prohibitions
and restrictions. Proprietary Information is not to be deemed to be in the public domain merely because any part of the Proprietary Information is embodied in a general disclosure or because individual features, components, or combinations thereof
are now or become known to the public. 

 6. Restrictions: Each Party agrees that, during the term of this Agreement
it shall: (a) use any Proprietary Information disclosed to it only for the Purpose stated above; (b) not disclose the Proprietary Information to any third party; (c) not disclose the Proprietary Information to any employee who does
not have a need-to-know such information; and (d) employ the same standard of care it uses to protect its own Proprietary Information, paying particular attention to avoid disclosing Proprietary Information to employees or parties who may be or
are also examining or participating in business opportunities competitive to the Purpose. In no case shall the standard of care with respect to the Proprietary Information be less than reasonable care. 

The Receiving Party shall not be liable for inadvertent disclosure or use of information received hereunder if, upon discovery of such, it shall take
reasonable steps to prevent any further inadvertent disclosure or unauthorized use. The Receiving Party may make disclosure pursuant to requirements of a solicitation anticipated by the Purpose of this Agreement, provided it is appropriately marked
with restrictive legends. If the Receiving Party is requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, similar process or otherwise), to disclose any Proprietary
Information, the Receiving Party shall provide the Disclosing 

  
 -Page B-2-

 
Party with prompt notice of such request(s) so that the Disclosing Party may seek an appropriate protective order and/or waive the Receiving Party’s compliance with the provisions of this
Agreement. If, failing the entry of a protective order or the receipt of a waiver hereunder, the Receiving Party shall be, in the written opinion of its counsel, compelled to disclose Proprietary Information under pain of liability for contempt or
other material censure or material penalty, the Receiving Party may disclose such information to such tribunal(s) without liability hereunder. In any event, the Receiving Party shall disclose only so much of the Proprietary Information as it is
legally compelled to disclose, and will take reasonable steps to obtain assurances that any Proprietary Information it must disclose will be treated confidentially to the extent possible. 
 7. Compliance with Export Regulation and Similar Restrictions: All information, including Proprietary Information exchanged hereunder may be subject to restrictions on the exchange imposed
by the United States Government. Such restrictions include, but are not limited to: the International Traffic in Arms Regulations (ITAR, 22 C.F.R. §§120-130), the Export Administration Regulations (EAR, 15 C.F.R. §§730-774), laws
concerning the disclosure of classified information, and other laws and regulations restricting disclosure. Accordingly, the Parties agree to abide by all such applicable laws and regulations governing the transfer, export, or re-export of technical
data, including all amendments thereto. Technical data that is controlled by the ITAR, EAR, or other applicable export restrictions shall not be released to foreign nationals, including foreign national employees of US companies, foreign companies,
or other entities without first obtaining the appropriate export license or other approval from the U.S. Government.
 8. Other Rights and
Obligations: Except as expressly set forth herein, no license is either granted or implied in the Proprietary Information, patents, inventions, copyrights, or trademarks of either Party. Communications from either Party shall not be in
violation of the proprietary rights of any third party. In the event of termination of this Agreement, the receiving Party shall at the option of the disclosing Party either promptly destroy the disclosing Party’s Proprietary Information and
certify its destruction, or promptly return it to the disclosing Party. Neither Party is required by this Agreement to disclose Proprietary Information to the other Party; all such disclosures are at the sole discretion of the Disclosing Party. This
Agreement does not create any agency, partnership, or business relationship between the parties. 
 9. Warranties: Each Party
warrants that it has the right to make the disclosures under this Agreement. Except as otherwise specifically provided in this Agreement, NO OTHER WARRANTIES ARE MADE BY EITHER PARTY UNDER THIS AGREEMENT. ANY INFORMATION EXCHANGED UNDER THIS
AGREEMENT IS PROVIDED “AS IS.” 
 10. Disputes and Governing Law: It is the intent of the Parties that this
Agreement be construed, interpreted, and applied in accordance with the laws of the State of New York exclusive of its conflicts of law rules. All disputes arising out of or related to this Agreement will be subject to the exclusive jurisdiction and
venue of the state and federal courts located in State of New York, and the parties hereby consent to such jurisdiction and venue. THE PARTIES HEREBY WAIVE TRIAL BY JURY WITH RESPECT TO ANY DISPUTE RELATING TO THIS AGREEMENT. To the extent that the
laws, rules, and regulations for U.S. Government procurement apply, then the laws commonly referred to as 

  
 -Page B-3-

 
U.S. Government contract law shall apply. The Parties shall use reasonable efforts to settle any dispute under this agreement including where appropriate referral to higher management for
resolution. 
 11. Remedies: The Parties acknowledge that due to the unique nature of the Information, any actual or threatened
breach of this Agreement may cause irreparable injury to the Disclosing Party, for which a remedy at law may be inadequate. Therefore, the Disclosing Party shall be entitled to seek equitable or injunctive relief, in addition to other remedies to
which it may be entitled at law or equity. In any action for equitable relief, the Parties agree to waive any requirement for the posting of a bond or security. 
 12. Termination: This Agreement, unless extended by the Parties in writing, shall terminate at the end of the term specified in §3, provided however, that either Party may terminate
this Agreement before that date by thirty (30) calendar days written notice to the other Party. No termination shall affect either Party’s obligations and rights herein with respect to information disclosed prior to termination. Upon
termination of this Agreement, the Receiving Party shall promptly (and in no event later than thirty (30) days after written request therefore) return to the Disclosing Party, all information embodied in writings, drawings, or the like
including all copies thereof, submitted or made available by the Disclosing Party to the Receiving Party, its affiliates or subsidiaries or the Receiving Party shall certify as to the destruction thereof to the Disclosing Party. Notwithstanding such
return, the Receiving Party and its respective agents and employees shall hold in confidence all Proprietary Information according to the terms of this Agreement. 
 13. Relationship to Related Contracts: If the Parties hereinafter enter into a contract that requires or permits use or disclosure of Proprietary Information disclosed pursuant to this
Agreement, the terms of such contract requiring or permitting such use or disclosure shall to that extent, supersede the provisions of this Agreement. 
 14. Agreement: 
  

	 	a.	Entire Agreement: This Agreement sets forth the entire understanding between the Parties hereto relative to the disclosure of Proprietary Information covered by this
Agreement, and supersedes all previous or contemporaneous understandings, commitments, or agreements, written or oral, regarding such information. The Agreement shall not be varied, except by an instrument in writing of subsequent date duly executed
by an authorized representative of each Party. This Agreement shall apply in lieu of, and notwithstanding the language of, any specific legend or statement associated with any particular information or data exchanged, and the obligations of the
Parties shall be determined exclusively by this Agreement. 

  

	 	b.	Execution: The Parties agree that this Agreement may be executed by fax, email, or similar electronic means and shall be as effective as and as binding as if the
Agreement was executed with original signatures. The Parties also agree that this Agreement may be executed in duplicate, with each Party retaining one original. 

 

	 	c.	 Waiver: Failure by either party hereto to enforce any of the provisions of this Agreement, or any right with respect thereto, or failure to exercise
any election provided for herein, shall in no way be considered a waiver of such provisions, rights 

  
 -Page B-4-

	 	
or elections, or in any way affect the validity of this Agreement. The failure by either party hereto to enforce any of said provisions, rights or elections shall not prejudice such party from
later enforcing or exercising same or any other provisions, rights or elections which it may have under this Agreement 

  

	 	d.	Invalid Terms: If, for any reason, any provision of this Agreement is determined to be illegal or otherwise invalid or unenforceable under applicable present or future
laws or regulations, that provision shall be deemed not to be a part of this Agreement, and so much of the remainder of this Agreement as shall otherwise remain intelligible shall be given full force and effect and shall bind the Parties.

  

	 	e.	Assignment: Neither Party shall assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the other Party, which
shall not be unreasonably withheld. Except as provided hereafter, any attempted assignment or transfer by any Party, or occurring by virtue of the purported operation of law, shall be void. A change of corporate name by a Party, merger or other
corporate reorganization (provided that the Party remains the surviving entity) or the sale by a Party of all or substantially all of its assets shall not be deemed an assignment or transfer hereunder. 

 

	 	f.	Specific Parties: This Agreement only binds the Parties named hereto. It is not intended and does not bind any other entity owned in whole or in part by of L-3
Communications Corporation, including, but not limited to subsidiaries, affiliated companies, joint ventures, or corporations. 

  

 

									
	 UNDERSTOOD & ACCEPTED
 L-3 [Division]
	 		 	 UNDERSTOOD & ACCEPTED
 Company

					
	BY:	 	  
	 		 	BY:	 	  

	NAME:	 	  
	 		 	NAME:	 	  

	TITLE:	 	  
	 		 	TITLE:	 	  

	DATE:	 	  
	 		 	DATE:	 	  

  
 -Page B-5-

 Appendix E 
 Confidential treatment has been requested with respect to the information contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the
Securities and Exchange Commission 
  

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start
Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New /
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/12	 	  	ETC$	 	  	Target
Fee-Profit%	 	  	Special
Pricing	 
	L-3 STRATIS (to C2S2)	  	2011-I-4-0011	  	Joint Deployable Intelligence Support Systems (JDISS) IV DO 12 - Engineering Technical Support (ETS)	  	12/1/2011	  	9/30/2012	  	Domestic	  	 USA
	  	Office of Naval Intelligence	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	2011-I-4-0007 TO 2	  	United States Air Force Europe- Advisory and Assistance Services (A&AS) II	  	7/2/2011	  	8/31/2014	  	International	  	Germany	  	United States Air Force Europe	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	2011-I-4-0006 TO 21	  	United States Air Force Europe- Advisory and Assistance Services (A&AS) II	  	7/2/2011	  	8/31/2014	  	International	  	Germany	  	United States Air Force Europe	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	ALLIANT1.005	  	Global Command and Control System (GCSS) Army	  	8/20/2010	  	8/19/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	Network Infrastructure Team Support (NITS) Operation Enduring Freedom (OEF) Afghanistan/GSA ALLIANT	  	3/1/2011	  	2/28/2013	  	International	  	Afghanistan	  	L-3 C2S2	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	2012-LC-4-0046	  	Veteran Benefits Management System (VBMS) Phase 3 Development (ENCORE II)	  	5/22/2012	  	3/31/2014	  	Domestic	  	USA	  	SPAWAR	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	NASA HQ Logistics Support Services MOBIS Schedule GS-10F-0188M; TO # NNH08CD81D	  	8/18/2008	  	8/16/2013	  	Domestic	  	USA	  	NASA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	2011-SC-4-0203	  	USFS Network & Radio Infrastructure Support Services GSA IT Schedule GS-35F-5396H; DO N10PS40117	  	11/1/2011	  	7/31/2013	  	Domestic	  	USA	  	United States Forest Service	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	IT Property Management and Inventory Support GSA IT Schedule GS-35F-5396H; DO GS09Q08DN0171	  	9/29/2008	  	9/30/2013	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 1 of 3

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start
Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New /
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/12	 	  	ETC$	 	  	Target
Fee-Profit%	 	  	Special
Pricing	 
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111211600	  	10/1/2011	  	2/10/2013	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111212886	  	1/1/2012	  	5/18/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111212887	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213139	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213157	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213158	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213160	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213161	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 2 of 3

 Confidential treatment has been requested with respect to the information
contained with the [**] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission 

 

																																																			
	 L-3 Division
	  	 IDWA#
	  	 Program
Name
	  	 Start Date
	  	 End Date
	  	 Internat’l/
Domestic
	  	 Country
	  	 Customer
	  	Contract
Type	 	  	Contract
Category
(New /
Follow-on)	 	  	Sole
Source /
Comp	 	  	Prime /
Sub	 	  	Contract
value	 	  	ITD$
thru
5/25/12	 	  	ETC$	 	  	Target
Fee-Profit%	 	  	Special
Pricing	 
	L-3 STRATIS (to C2S2)	  	N/A	  	New York Health & Hospital Corp Infrastructure Support GSA IT Schedule GS-35F-5396H; DO 1-0111213162	  	12/1/2011	  	6/30/2012	  	Domestic	  	USA	  	New York Health & Hospital Corp	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	N/A	  	Department of Interior COOP GSA Schedule GS-35F-5396H; DO N10PD40259	  	3/15/2010	  	3/14/2015	  	Domestic	  	USA	  	Dept of Interior	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	800949300.700.S3.42	  	Publication of JWIST Training Manuals per contract requirements	  	12/31/2010	  	6/30/2012	  	Domestic	  	USA	  	SPAWAR	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	00143080	  	ANSWER Langley AFB IT Services	  	4/1/2009	  	3/31/2014	  	Domestic	  	USA	  	Air Force	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	ALLIANT1.0001	  	US Army Software Integration Lab for SEC-LEE	  	5/15/2010	  	5/14/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to GSES)	  	ALLIANT1.0002	  	Regional Automation Support Center (RASC)	  	7/4/2010	  	6/3/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	ALLIANT1.0004	  	Program Mgmt & Acquisition Mgmt for SEC-LEE	  	8/20/2010	  	8/19/2015	  	Domestic	  	USA	  	Army	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 GSS (to GSES)	  	PO # POMCE0006	  	Translation Services	  	5/31/2012	  	8/31/2012	  	International	  	Republic of Equatorial Guinea (EG)	  	L-3 GSS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	180731S	  	JRDC	  	8/27/2011	  	1/31/12 (extendable to 2016)	  	Domestic	  	USA	  	MDA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	980735S	  	JRDC	  	12/3/2009	  	1/31/12 (extendable to 2016)	  	Domestic	  	USA	  	MDA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 Comm UK (to C2S2)	  	L-3 UK #	  	MTWS	  	4/4/2011	  	3/31/2012	  	International	  	UK	  	SCS and MOD	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	080727s.ET. (PO#180707s)	  	BD & Mktg. Supt.	  	1/1/2011	  	12/31/2011	  	Domestic	  	USA	  	E&TS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 CS-W/E&TS (to GSES)	  	080728s.ET (PO#180707s)	  	Publications	  	1/1/2011	  	12/31/2011	  	Domestic	  	USA	  	E&TS	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  
	L-3 STRATIS (to MPRI)	  	ALLIANT1.006	  	Aeronautical Systems Center (ASC/XRA) - Simulation & Analysis Facility O&M And Event Support	  	2/1/2011	  	1/31/2012	  	Domestic	  	USA	  	GSA	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  	  	 	**	  

  
 Page 3 of 3II-VI Inc. 2012 Omnibus Incentive Plan

 Exhibit 10.01 

 
 II-VI INCORPORATED 

2012 OMNIBUS INCENTIVE PLAN 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 1. PURPOSE
	  	 	A-1	  
		
	 2. DEFINITIONS
	  	 	A-1	  
	 2.1 “Award”
	  	 	A-1	  
	 2.2 “Award Agreement”
	  	 	A-1	  
	 2.3 “Base Price”
	  	 	A-1	  
	 2.4 “Board”
	  	 	A-1	  
	 2.5 “Change in Control”
	  	 	A-1	  
	 2.6 “Code”
	  	 	A-1	  
	 2.7 “Committee”
	  	 	A-1	  
	 2.8 “Common Stock”
	  	 	A-1	  
	 2.9 “Company”
	  	 	A-2	  
	 2.10 “Consultant”
	  	 	A-2	  
	 2.11 “Deferral Period”
	  	 	A-2	  
	 2.12 “Deferred Shares”
	  	 	A-2	  
	 2.13 “Effective Date”
	  	 	A-2	  
	 2.14 “Employee”
	  	 	A-2	  
	 2.15 “Fair Market Value”
	  	 	A-2	  
	 2.16 “Freestanding Stock Appreciation Right”
	  	 	A-2	  
	 2.17 “Grant Date”
	  	 	A-2	  
	 2.18 “Incentive Stock Option”
	  	 	A-2	  
	 2.19 “Nonemployee Director”
	  	 	A-2	  
	 2.20 “Non-qualified Stock Option”
	  	 	A-2	  
	 2.21 “Option”
	  	 	A-2	  
	 2.22 “Optionee”
	  	 	A-2	  
	 2.23 “Option Price”
	  	 	A-2	  
	 2.24 “Participant”
	  	 	A-2	  
	 2.25 “Performance Objectives”
	  	 	A-2	  
	 2.26 “Performance Period”
	  	 	A-3	  
	 2.27 “Performance Share”
	  	 	A-3	  
	 2.28 “Performance Unit”
	  	 	A-3	  
	 2.29 “Predecessor Plans”
	  	 	A-3	  
	 2.30 “Qualified Performance-Based Award”
	  	 	A-3	  
	 2.31 “Restricted Period”
	  	 	A-4	  
	 2.32 “Restricted Shares”
	  	 	A-4	  
	 2.33 “Restricted Share Units
	  	 	A-4	  
	 2.34 “Section 162(m)”
	  	 	A-4	  
	 2.35 “Section 409A”
	  	 	A-4	  
	 2.36 “Separation from Service” and “Separate from Service”
	  	 	A-4	  
	 2.37 “Shares”
	  	 	A-4	  
	 2.38 “Specified Employee”
	  	 	A-4	  
	 2.39 “Spread”
	  	 	A-4	  
	 2.40 “Stock Appreciation Right”
	  	 	A-4	  
	 2.41 “Subsidiary”
	  	 	A-5	  
	 2.42 “Tandem Stock Appreciation Right”
	  			
		
	 3. SHARES AVAILABLE UNDER THE PLAN
	  	 	A-5	  
	 3.1 Reserved Shares
	  	 	A-5	  
	 3.2 Maximum Calendar Year Award
	  	 	A-5	  
	 3.3 Predecessor Plan Options; Forfeitures
	  	 	A-5	  
		
	 4. PLAN ADMINISTRATION
	  	 	A-5	  
	 4.1 Authority of Committee
	  	 	A-5	  
	 4.2 Committee Delegation
	  	 	A-5	  
	 4.3 No Liability
	  	 	A-6	  

					
	 	  	Page	 
	 5. OPTIONS
	  	 	A-6	  
	 5.1 Number of Shares
	  	 	A-6	  
	 5.2 Option Price
	  	 	A-6	  
	 5.3 Consideration
	  	 	A-6	  
	 5.4 Cashless Exercise
	  	 	A-6	  
	 5.5 Performance-Based Options
	  	 	A-6	  
	 5.6 Vesting
	  	 	A-6	  
	 5.7 ISO Dollar Limitation
	  	 	A-7	  
	 5.8 Exercise Period
	  	 	A-7	  
	 5.9 Award Agreement
	  	 	A-7	  
		
	 6. STOCK APPRECIATION RIGHTS
	  	 	A-7	  
	 6.1 Payment in Cash or Shares
	  	 	A-7	  
	 6.2 Maximum SAR Payment
	  	 	A-7	  
	 6.3 Exercise Period
	  	 	A-7	  
	 6.4 Change in Control
	  	 	A-7	  
	 6.5 Dividend Equivalents
	  	 	A-7	  
	 6.6 Performance-Based Stock Appreciation Rights
	  	 	A-7	  
	 6.7 Award Agreement
	  	 	A-7	  
	 6.8 Tandem Stock Appreciation Rights
	  	 	A-8	  
	 6.9 Exercise Period
	  	 	A-8	  
	 6.10 Freestanding Stock Appreciation Rights
	  	 	A-8	  
		
	 7. RESTRICTED SHARES AND RESTRICTED SHARE UNITS
	  	 	A-8	  
	 7.1 Number of Shares
	  	 	A-8	  
	 7.2 Consideration
	  	 	A-8	  
	 7.3 Forfeiture/Transfer Restrictions
	  	 	A-8	  
	 7.4 Rights/Dividends and Dividend Equivalents.
	  	 	A-8	  
	 7.5 Stock Certificate
	  	 	A-9	  
	 7.6 Performance-Based Restricted Shares or Restricted Share Units
	  	 	A-9	  
	 7.7 Award Agreements
	  	 	A-9	  
		
	 8. DEFERRED SHARES
	  	 	A-9	  
	 8.1 Deferred Compensation
	  	 	A-9	  
	 8.2 Consideration
	  	 	A-9	  
	 8.3 Deferral Period
	  	 	A-9	  
	 8.4 Dividend Equivalents and Other Ownership Rights
	  	 	A-9	  
	 8.5 Performance Objectives
	  	 	A-9	  
	 8.6 Award Agreement
	  	 	A-9	  
		
	 9. PERFORMANCE SHARES AND PERFORMANCE UNITS
	  	 	A-9	  
	 9.1 Number of Performance Shares or Units
	  	 	A-9	  
	 9.2 Performance Period
	  	 	A-10	  
	 9.3 Performance Objectives
	  	 	A-10	  
	 9.4 Threshold Performance Objectives
	  	 	A-10	  
	 9.5 Payment of Performance Shares and Units
	  	 	A-10	  
	 9.6 Maximum Payment
	  	 	A-10	  
	 9.7 Award Agreement
	  	 	A-10	  
		
	 10. TRANSFERABILITY
	  	 	A-10	  
	 10.1 Transfer Restrictions
	  	 	A-10	  
	 10.2 Limited Transfer Rights
	  	 	A-10	  
	 10.3 Restrictions on Transfer
	  	 	A-10	  
		
	 11. ADJUSTMENTS
	  	 	A-10	  
		
	 12. FRACTIONAL SHARES
	  	 	A-11	  

					
	 	  	Page	 
	 13. WITHHOLDING TAXES
	  	 	A-13	  
		
	 14. CERTAIN TERMINATIONS OF EMPLOYMENT, HARDSHIP & APPROVED LEAVES OF
ABSENCE
	  	 	A-13	  
		
	 15. FOREIGN PARTICIPANTS
	  	 	A-12	  
		
	 16. AMENDMENTS AND OTHER MATTERS
	  	 	A-12	  
	 16.1 Plan Amendments
	  	 	A-12	  
	 16.2 Award Deferrals
	  	 	A-12	  
	 16.3 Conditional Awards
	  	 	A-12	  
	 16.4 Repricing Prohibited
	  	 	A-12	  
	 16.5 No Employment Right
	  	 	A-12	  
	 16.6 Tax Qualification
	  	 	A-13	  
		
	 17. SECTION 409A
	  	 	A-13	  
		
	 18. EFFECTIVE DATE
	  	 	A-14	  
		
	 19. TERMINATION
	  	 	A-14	  
		
	 20. LIMITATIONS PERIOD
	  	 	A-14	  
		
	 21. GOVERNING LAW
	  	 	A-14	  

 II-VI INCORPORATED 

2012 OMNIBUS INCENTIVE PLAN 
  

1. Purpose. The purposes of this II-VI Incorporated 2012 Omnibus Incentive Plan (the “Plan”) are
to optimize the profitability and growth of the Company by providing certain eligible persons with annual and long-term incentives to continue in the long-term service of the Company and to create in such persons a more direct interest in the future
operations of the Company by relating incentive compensation to increases in shareholder value, so that the income of those participating in the Plan is more closely aligned with the income of the Company’s shareholders. The Plan is also
designed to provide Participants with an incentive for excellence in individual performance, to promote teamwork among Participants, and to motivate, attract and retain the services of employees, consultants and directors for II-VI Incorporated and
its subsidiaries and to provide such persons with incentives and rewards for superior performance. 
  
 2. Definitions. As used in this Plan and unless otherwise specified in the applicable Award Agreement, the following terms shall be defined as set forth
below: 
  

2.1 “Award” means any Option, Stock Appreciation Right, Restricted Shares, Restricted
Share Units, Deferred Shares, Performance Shares or Performance Units granted under the Plan. 
  
 2.2 “Award Agreement” means an agreement, certificate, resolution or other form of writing or other evidence approved by the Committee which sets forth
the terms and conditions of an Award. An Award Agreement may be in an electronic medium and may be limited to a notation on the Company’s books and records. 

 
 2.3 “Base
Price” means the price to be used as the basis for determining the Spread upon the exercise of a Freestanding Stock Appreciation Right. 
  

2.4 “Board” means the Board of Directors of the Company. 

 
 2.5 “Change in
Control” means (i) the consummation of any merger or consolidation as a result of which the Common Stock shall be changed, converted or exchanged (other than a merger with a wholly owned subsidiary of the Company) or any liquidation of
the Company or any sale or other disposition of all or substantially all of the assets of the Company; (ii) the consummation of any merger or consolidation to which the Company is a party as a result of which the “persons” (as that
term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) who were stockholders of the Company immediately prior to the effective date of the merger or consolidation shall have beneficial ownership of less than
a majority of the combined voting power for election of directors of the surviving corporation following the effective date of such merger or consolidation or (iii) any “person” (as defined above) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then-outstanding
securities in a transaction or series of transactions not approved by the Board of Directors. Notwithstanding the foregoing or any provision of this Plan to the contrary, if an Award is subject to Section 409A (and not excepted therefrom) and a
Change in Control is a distribution event for purposes of an Award, the foregoing definition of Change in Control shall be interpreted, administered and construed in manner necessary to ensure that the occurrence of any such event shall result in a
Change in Control only if such event qualifies as a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation, as applicable, within the meaning of Treas. Reg.
§1.409A-3(i)(5) or any successor provision. 
  

 2.6 “Code” means the Internal Revenue Code of 1986, as amended from time to
time. 
  

2.7 “Committee” means the Compensation Committee of the Board or its successor.

  
 2.8
“Common Stock” means the common stock, no par value, of the Company. 

  
 A-1

 2.9 “Company” means II-VI Incorporated,
a Pennsylvania corporation, or any successor corporation. 
  
 2.10 “Consultant” means any non-Employee independent contractor or other service provider engaged by the Company or a Subsidiary 

 
 2.11 “Deferral
Period” means the period of time during which Deferred Shares are subject to deferral limitations under Section 8. 
  

2.12 “Deferred Shares” means an Award pursuant to Section 8 of the right to
receive Shares at the end of a specified Deferral Period. 
  
 2.13 “Effective Date” means the date this Plan is approved by the shareholders of the Company. 
  
 2.14 “Employee” means any person, including an officer,
employed by the Company or a Subsidiary. 
  

 2.15 “Fair Market Value” means the fair market value of the Shares as
determined by the Committee from time to time. Unless otherwise determined by the Committee, the fair market value shall be the closing sales price for the Shares reported on a consolidated basis on the Nasdaq National Market (or, if the Shares are
not trading on the Nasdaq National Market, on the principle market on which the Shares are trading) on the relevant date or, if there were no sales on such date, the closing sales price on the nearest preceding date on which sales occurred. If the
Shares are not reported on the basis of closing sale price, then the average of the highest bid and lowest ask prices shall be used to determine fair market value. 

 

2.16 “Freestanding Stock Appreciation Right” means a Stock Appreciation Right granted
pursuant to Section 6 that is not granted in tandem with an Option or similar right. 
  
 2.17 “Grant Date” means the date specified by the Committee on which a grant of an Award shall become effective, which shall not be earlier than the
date on which the Committee takes action with respect thereto. 
  
 2.18 “Incentive Stock Option” means any Option that is intended to qualify as an “incentive stock option” under Code Section 422 or any
successor provision. 
  

2.19 “Nonemployee Director” means a member of the Board who is not an Employee.

  

2.20 “Nonqualified Stock Option” means an Option that is not intended to qualify as
an Incentive Stock Option. 
  

 2.21 “Option” means any option to purchase Shares granted under
Section 5. 
  

2.22 “Optionee” means a Participant who holds an outstanding Option. 

 
 2.23 “Option
Price” means the purchase price payable upon the exercise of an Option. 
  
 2.24 “Participant” means an Employee, Consultant or Nonemployee Director who is selected by the Committee to receive benefits under this Plan, provided
that only Employees shall be eligible to receive grants of Incentive Stock Options. 
  
 2.25 “Performance Objectives” means the performance objectives established pursuant to this Plan for Participants who have received performance-based
Awards. Performance Objectives may be described in terms of Company-wide objectives or objectives that are related to the performance of the individual Participant or the Subsidiary, division, department or function within the Company or Subsidiary
in which the Participant is employed. Performance Objectives may be measured on an absolute or relative basis. Relative performance may be measured by a group of peer companies or by a financial market index. Any Performance Objectives

  
 A-2

 
applicable to a Qualified Performance-Based Award shall be limited to any one or more of the following performance criteria, either individually, alternatively or in any combination, and subject
to such modifications or variations as specified by the Committee, applied to either the Company as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured over a period of time including
any portion of a year, annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group, in each case as specified by the Committee:
return on equity, diluted or adjusted earnings per share, total earnings, earnings growth, return on capital, return on assets, earnings before interest and taxes, sales, sales growth, gross margin return on investment, increase in the fair market
value of the Shares, share price (including but not limited to, growth measures and total shareholder return), operating profit, net earnings, cash flow (including, but not limited to, operating cash flow and free cash flow), cash flow return on
investment (which equals net cash flow divided by total capital), inventory turns, financial return ratios, total return to shareholders, market share, earnings measures/ratios, economic value added (EVA), balance sheet measurements such as
receivable turnover, internal rate of return, increase in net present value or expense targets, “Employer of Choice” or similar survey results, customer satisfaction surveys, productivity, expense reduction levels, debt, debt reduction,
the completion of acquisitions, business expansion, product diversification, new or expanded market penetration and other non-financial operating and management performance objectives. To the extent consistent with Section 162(m) of the Code,
the Committee may determine, at the time the performance goals are established, that certain adjustments shall apply, in whole or in part, in such manner as determined by the Committee, to exclude the effect of any of the following events that occur
during a performance period: the impairment of tangible or intangible assets; litigation or claim judgments or settlements; the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results; business
combinations, reorganizations and/or restructuring programs, including, but not limited to, reductions in force and early retirement incentives; currency fluctuations; and any extraordinary, unusual, infrequent or non-recurring items, including, but
not limited to, such items described in management’s discussion and analysis of financial condition and results of operations or the financial statements and notes thereto appearing in Company’s annual report for the applicable period. If
the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances or individual performance renders the
Performance Objectives unsuitable, the Committee may modify such Performance Objectives or the related minimum acceptable level of achievement, in whole or in part, upward or downward, as the Committee deems appropriate and equitable; provided,
however, that (i) no such adjustment shall be authorized to the extent that such authority would be inconsistent with the Plan or any award meeting the requirements (or an applicable exception thereto) of Section 162(m), Section 409A
or other applicable statutory provision; and (ii) in the case of a Qualified Performance-Based Award, the Committee shall not use its discretionary authority to increase any Award that is intended to be performance-based compensation under
Section 162(m) of the Code. 
  

 2.26 “Performance Period” means the period of time within which the
Performance Objectives relating to a performance-based Award must be achieved. 
  
 2.27 “Performance Share” means a bookkeeping entry that records the equivalent of one Share awarded pursuant to Section 9. 

 
 2.28 “Performance
Unit” means a bookkeeping entry that records a unit equivalent to $1.00 awarded pursuant to Section 9. 
  

2.29 “Predecessor Plans” means the II-VI Incorporated Stock Option Plan of 2001, the
II-VI Incorporated 2005 Omnibus Incentive Plan and/or the II-VI Incorporated 2009 Omnibus Incentive Plan. 
  

2.30 “Qualified Performance-Based Award” means an Award or portion of an Award that
is intended to satisfy the requirements for “qualified performance-based compensation” under Section 162(m). The Committee shall designate any Qualified Performance-Based Award as such at the time of grant. For any Qualified
Performance-Based Award under Section 162(m), performance goals relating to the performance measures set 

  
 A-3

 
forth above shall be preestablished in writing by the Committee, and achievement thereof certified in writing prior to payment of the Award, as required by Section 162(m) and regulations
promulgated thereunder. All such performance goals shall be established in writing no later than ninety (90) days after the beginning of the applicable performance period; provided however, that for a performance period of less than one year,
the Committee shall take any such actions prior to the lapse of 25% of the performance period. In addition to establishing minimum performance goals below which no compensation shall be payable pursuant to a Performance Award, the Committee, in its
discretion, may create a performance schedule under which an amount less than or more than the target award may be paid so long as the performance goals have been achieved. 

 
 2.31 “Restricted
Shares” shall mean an Award of Shares that are granted under and subject to the terms, conditions and restrictions described in Section 7. 
  

2.32 “Restricted Share Units” shall mean an Award of the right to receive (as the
Committee determines) Shares, or cash or other consideration equal to the Fair Market Value of a Share for each Restricted Share Unit, granted under and subject to the terms, conditions and restrictions described in Section 7. 

 
 2.33 “Section
162(m)” shall mean Section 162(m) of the Code, the regulations and other binding guidance promulgated thereunder, as they may now exist or may be amended from time to time, or any successor to such section. 

 
 2.34 “Section
409A” shall mean Section 409A of the Code, the regulations and other binding guidance promulgated thereunder, as they may now exist or may be amended from time to time, or any successor to such section. 

 
 2.35 “Separation from
Service” and “Separate from Service” shall mean the Participant’s death, retirement or other termination of employment or service with the Company (including all persons treated as a single employer under
Section 414(b) and 414(c) of the Code) that constitutes a “separation from service” (within the meaning of Section 409A). For purposes hereof, the determination of controlled group members shall be made pursuant to the provisions of
Section 414(b) and 414(c) of the Code; provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears in Section 1563(a)(1),(2) and (3) of the Code and
Treas. Reg. § 1.414(c)-2; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)), the language “at least 20 percent” shall be used instead of “at least 80
percent” in each place it appears. Whether a Participant has Separated from Service will be determined based on all of the facts and circumstances and, to the extent applicable to any Award or benefit, in accordance with the guidance issued
under Section 409A. A Participant will be presumed to have experienced a Separation from Service when the level of bona fide services performed permanently decreases to a level less than twenty percent (20%) of the average level of
bona fide services performed during the immediately preceding thirty-six (36) month period or such other applicable period as provided by Section 409A.2.33 

 
 2.36 “Shares”
means shares of Common Stock, as adjusted in accordance with Section 11. 
  
 2.37 “Specified Employee” means a key employee (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof) of the Company
as determined in accordance with the regulations issued under Section 409A and the procedures established by the Company. 
  

2.38 “Spread” means, in the case of a Freestanding Stock Appreciation Right, the
amount by which the Fair Market Value on the date when any such right is exercised exceeds the Base Price specified in such right or, in the case of a Tandem Stock Appreciation Right, the amount by which the Fair Market Value on the date when any
such right is exercised exceeds the Option Price specified in the related Option. 
  
 2.39 “Stock Appreciation Right” means a right granted under Section 6, including a Freestanding Stock Appreciation Right or a Tandem Stock
Appreciation Right. 

  
 A-4

 2.40 “Subsidiary” means a corporation
or other entity in which the Company has a direct or indirect ownership or other equity interest, including any such corporation or other entities which become a Subsidiary after adoption of the Plan; provided that for purposes of determining
whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any subsidiary corporation within the meaning of the Code Section 424(f) or any successor provision thereof. 

 
 2.41 “Tandem
Stock Appreciation Right” means a Stock Appreciation Right granted pursuant to Section 6 that is granted in tandem with an Option or any similar right granted under any other plan of the Company. 

 

3. Shares Available Under the Plan.  

 
 3.1 Reserved
Shares. Subject to adjustment as provided in Section 11, the maximum number of Shares that may be delivered pursuant to Awards, including Shares issued or transferred in payment of dividends or dividend equivalents paid with respect to
Awards, shall not in the aggregate exceed 1,900,000 Shares plus Shares added to the Plan pursuant to Section 3.3. Such Shares may be Shares of original issuance, Shares held in treasury, or Shares that have been reacquired by the Company.

  

3.2 Maximum Calendar Year Award. No Participant may receive Awards representing more than
250,000 Shares in any one calendar year, subject to adjustment as provided in Section 11, provided, however, that the maximum number of Performance Shares and/or Performance Units that may be granted to a Participant in any one calendar year is
10,000,000. 
  

3.3 Predecessor Plan Options; Forfeitures. Upon the effectiveness of this Plan pursuant to
Section 18, no additional options or other awards shall be made pursuant to a Predecessor Plan. To the extent that (i) Options are granted under the Plan, or (ii) any of the options granted under a Predecessor Plan, which are
outstanding as of the Effective Date, shall expire or terminate without being exercised, the Shares covered thereby shall remain available under or be added to the Plan, as the case may be. To the extent that Shares underlying Awards made under the
Plan shall be forfeited, such Shares shall remain available under the Plan. 
  
 4. Plan Administration.  
  

4.1 Authority of Committee. This Plan shall be administered by the Committee, provided that the full
Board may at any time act as the Committee. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and discretionary
authority to decide all matters relating to the administration and interpretation of the Plan, provided, however, that ministerial responsibilities of the Plan (e.g., management of day-to-day matters) may be delegated to the Company’s officers,
as set forth in Section 4.2 below. The Committee’s powers include, without limitation, the authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine
the number of Shares to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award, including the discretion to determine the
extent to which Awards will be structured to conform to the requirements applicable to performance-based compensation described in Section 162(m) of the Code; (v) determine whether, to what extent, and under what circumstances Awards may
be settled or exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited, or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended;
(vi) determine whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, other property, and other amounts payable with respect to an Award shall be deferred either automatically or at the election of
the holder thereof or of the Board; (vii) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (viii) establish, amend, suspend, or waive such rules and regulations and appoint such
agents as it shall deem appropriate for the proper administration of the Plan; (ix) advance the lapse of any waiting period, accelerate any exercise date, waive or modify any restriction applicable to Awards (except those restrictions imposed
by law); (x) correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it shall deem 

  
 A-5

 
expedient to carry the Plan into effect; and (xi) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.
All decisions and determinations of the Committee shall be final, conclusive and binding on the Company, the Participant and any and all interested parties. Except to the extent prohibited by applicable law or regulation, the Committee may allocate
all or any portion of its responsibilities and powers to any one or more of its members and may revoke any such allocation at any time. 
  

4.2 Committee Delegation. Except to the extent prohibited by applicable law or regulation,
the Committee may delegate all or any portion of its responsibilities and powers to any person or persons selected by it, and may revoke such delegation at any time. The Committee may, with respect to Participants whom the Committee determines are
not likely to be subject to Code Section 162(m), delegate to one or more officers of the Company the authority to grant Awards to Participants who are not directors or executive officers of the Company, provided that the Committee shall have
fixed the total number of Shares subject to such Awards. No officer to whom administrative authority has been delegated pursuant to this provision may waive or modify any restriction applicable to an award to such officer under the Plan. 

 
 4.3 No
Liability. No member of the Committee shall be liable to any person for any such action taken or determination made in good faith.  
  

5. Options. The Committee may from time to time authorize grants to Participants of options to purchase
Shares upon such terms and conditions as the Committee may determine in accordance with the following provisions: 
  

5.1 Number of Shares. Each grant shall specify the number of Shares to which it pertains.

  
 5.2 Option
Price. Each grant shall specify an Option Price per Share, which shall be equal to or greater than the Fair Market Value per Share on the Grant Date. 
  

5.3 Consideration. Each grant shall specify the form of consideration to be paid in
satisfaction of the Option Price and the manner of payment of such consideration, which may include (i) cash in the form of currency or check or other cash equivalent acceptable to the Company, (ii) nonforfeitable, unrestricted Shares
owned by the Optionee which have a value at the time of exercise that is equal to the Option Price provided such Shares have been purchased by such Optionee in the open market or have been held by such Optionee for at least six months,
(iii) any other legal consideration that the Committee may deem appropriate, including without limitation any form of consideration authorized under Section 5.4, on such basis as the Committee may determine in accordance with this Plan, or
(iv) any combination of the foregoing. 
  

 5.4 Cashless Exercise. To the extent permitted by applicable law, any grant may
provide for the deferred payment of the Option Price from the proceeds of the sale through a bank or broker on the date of exercise of some or all of the Shares to which the exercise relates. 
  
 5.5 Performance-Based Options. Any grant of an Option may
specify Performance Objectives that must be achieved as a condition to the exercise of the Option. Each grant of an Option may specify in respect of the specified Performance Objectives a minimum acceptable level of achievement below which no
portion of the Option will be exercisable and may set forth a formula for determining the portion of the Option to be exercisable if performance is at or above such minimum acceptable level but falls short of the maximum achievement of the specified
Performance Objectives. 
  

 5.6 Vesting. Each Option grant may specify a period of continuous employment of
the Optionee by the Company or any Subsidiary (or, in the case of a Nonemployee Director, service on the Board) that is necessary before the Options or portions thereof shall become exercisable, and any grant may provide for the earlier exercise of
such Option in the event of a Change in Control of the Company or other similar transaction or event. 

  
 A-6

 5.7 ISO Dollar Limitation. Options granted
under this Plan may be Incentive Stock Options, Nonqualified Stock Options or a combination of the foregoing, provided that only Nonqualified Stock Options may be granted to Nonemployee Directors. Each grant shall specify whether (or the extent to
which) the Option is an Incentive Stock Option or a Nonqualified Stock Option. Notwithstanding any such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Options designated as Incentive Stock Options
are exercisable for the first time by an Optionee during any calendar year (under all plans of the Company) exceeds $100,000 or such other amount limitation as may be provided in the Code, such Options shall be treated as Nonqualified Stock Options.
The terms of any Incentive Stock Option granted under this Plan shall comply in all respects with the provisions of Code Section 422, or any successor provision thereto, and any regulations promulgated thereunder. 

 
 5.8 Exercise
Period. Each Option shall be exercisable at such times and subject to such terms and conditions as the Committee may, in its sole discretion, specify in the applicable Award Agreement or thereafter. No Option granted under this Plan may be
exercised more than ten years from the Grant Date. 
  

5.9 Award Agreement. Each grant shall be evidenced by an Award Agreement containing such
terms and provisions as the Committee may determine consistent with this Plan. 
  
 6. Stock Appreciation Rights. The Committee may also authorize grants to Participants of Stock Appreciation Rights. A Stock Appreciation Right is the right
of the Participant to receive from the Company an amount, which shall be determined by the Committee and shall be expressed as a percentage (not exceeding 100 percent) of the Spread at the time of the exercise of such right. Any grant of Stock
Appreciation Rights under this Plan shall be upon such terms and conditions as the Committee may determine in accordance with the following provisions: 
  

6.1 Payment in Cash or Shares. Any grant may specify that the amount payable upon
the exercise of a Stock Appreciation Right may be paid by the Company in cash, Shares or any combination thereof and may (i) either grant to the Participant or reserve to the Committee the right to elect among those alternatives or
(ii) preclude the right of the Participant to receive and the Company to issue Shares or other equity securities in lieu of cash.  
  

6.2 Maximum SAR Payment. Any grant may specify that the amount payable upon the exercise
of a Stock Appreciation Right shall not exceed a maximum amount specified by the Committee on the Grant Date. 
  

6.3 Exercise Period. Any grant may specify (i) a waiting period or periods before
Stock Appreciation Rights shall become exercisable and (ii) permissible dates or periods on or during which Stock Appreciation Rights shall be exercisable. 
  

6.4 Change in Control. Any grant may specify that a Stock Appreciation Right may be
exercised only in the event of a Change in Control of the Company or other similar transaction or event. 
  

6.5 Dividend Equivalents. On or after the Grant Date of any Stock Appreciation Rights, the
Committee may, to the extent not inconsistent with Section 162(m) or Section 409A, provide for the payment to the Participant of dividend equivalents thereon in cash or Shares on a current, deferred or contingent basis. 

 
 6.6 Performance-Based
Stock Appreciation Rights. Any grant of a Stock Appreciation Right may specify Performance Objectives that must be achieved as a condition to the exercise of the Stock Appreciation Right. Each grant of a Stock Appreciation Right may specify
in respect of the specified Performance Objectives a minimum acceptable level of achievement below which no portion of the Stock Appreciation Right will be exercisable and may set forth a formula for determining the portion of the Stock Appreciation
Right to be exercisable if performance is at or above such minimum acceptable level but falls short of the maximum achievement of the specified Performance Objectives. 

 
 6.7 Award
Agreement. Each grant shall be evidenced by an Award Agreement which shall describe the subject Stock Appreciation Rights, identify any related Options, state that the Stock Appreciation Rights are

  
 A-7

 
subject to all of the terms and conditions of this Plan and contain such other terms and provisions as the Committee may determine consistent with this Plan. 

 
 6.8 Tandem Stock
Appreciation Rights. Each grant of a Tandem Stock Appreciation Right shall provide that such Tandem Stock Appreciation Right may be exercised only (i) at a time when the related Option (or any similar right granted under any other plan
of the Company) is also exercisable and the Spread is positive; and (ii) by surrender of all or a portion of the related Option (or such other right) for cancellation in an amount equal to the portion of the Tandem Stock Appreciation Right so
exercised. 
  

6.9 Exercise Period. No Stock Appreciation Right granted under this Plan may be exercised
more than ten years from the Grant Date. 
  

 6.10 Freestanding Stock Appreciation Rights. Regarding Freestanding Stock
Appreciation Rights only: 
  

(i) Each grant shall specify in respect of each Freestanding Stock Appreciation Right a Base Price per Share, which
shall be equal to or greater than the Fair Market Value on the Grant Date; 
  
 (ii) Successive grants may be made to the same Participant regardless of whether any Freestanding Stock Appreciation Rights previously granted to such Participant remain unexercised; and 

 
 (iii) Each grant shall specify the
period or periods of continuous employment or service of the Participant by the Company or any Subsidiary that are necessary before the Freestanding Stock Appreciation Rights or installments thereof shall become exercisable, and any grant may
provide for the earlier exercise of such rights in the event of a Change in Control of the Company or other similar transaction or event. 
  

7. Restricted Shares and Restricted Share Units. The Committee may also authorize grants to Participants
of Restricted Shares and Restricted Share Units upon such terms and conditions as the Committee may determine in accordance with the following provisions: 
  

7.1 Number of Shares. Each grant shall specify the number of Shares to be issued to a
Participant pursuant to the Award of Restricted Shares or Restricted Shares Units. 
  
 7.2 Consideration. Each grant may be made without additional consideration from the Participant or in consideration of a payment by the Participant that is less
than the Fair Market Value on the Grant Date. 
  

 7.3 Forfeiture/Transfer Restrictions. Each grant of Restricted Shares and
Restricted Share Units shall specify the duration of the period during which, and the conditions under which, the Restricted Shares or Restricted Share Units may be forfeited to the Company, and the other terms and conditions of such Awards.
Restricted Shares and Restricted Share Units may not be sold, assigned, transferred, pledged or otherwise encumbered, except, in the case of Restricted Shares, as provided in the Plan or the applicable Award Agreements. 

 
 7.4 Rights/Dividends and
Dividend Equivalents. Each grant of Restricted Shares shall constitute an immediate transfer of the ownership of Shares to the Participant in consideration of the performance of services, subject to terms and conditions described in this
Section 7 and in the Award Agreement evidencing such Award and shall entitle the Participant to dividend, voting and other ownership rights. Each grant of Restricted Share Units shall constitute a right to receive Shares, or cash or other
consideration equal to the Fair Market Value of a Share for each Restricted Share Unit granted, subject to the terms and conditions described in this Section 7 and in the Award Agreement evidencing such Award. The Committee may grant dividend
equivalent rights to Participants in connection with Awards of Restricted Share Units. The Committee may specify whether such dividend or dividend equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in
additional Shares; provided that, unless otherwise determined by the Committee, dividends and dividend equivalents shall be subject to all conditions and restrictions of the underlying Restricted Shares and Restricted Share Units to which they
relate. 

  
 A-8

 7.5 Stock Certificate. At the discretion of the
Committee, the Company need not issue stock certificates representing Restricted Shares and such Restricted Shares may be evidenced in book entry form on the books and records of the Company’s transfer agent. If certificates are issued for
Restricted Shares, unless otherwise directed by the Committee, all certificates representing Restricted Shares, together with a stock power that shall be endorsed in blank by the Participant with respect to such Shares, shall be held in custody by
the Company until all restrictions thereon have lapsed. 
  
 7.6 Performance-Based Restricted Shares or Restricted Share Units. Any grant or the vesting thereof may be further conditioned upon the attainment of
Performance Objectives established by the Committee in accordance with the applicable provisions of Section 9 regarding Performance Shares and Performance Units. 

 
 7.7 Award
Agreements. Each Award of Restricted Shares or Restricted Share Units shall be evidenced by an Award Agreement containing such terms and provisions as the Committee may determine consistent with this Plan. 

 
 8. Deferred Shares. To the
extent consistent with the provisions of Section 17 of this Plan, the Committee may authorize grants of Deferred Shares to Participants upon such terms and conditions as the Committee may determine in accordance with the following provisions:

  

8.1 Deferred Compensation. Each grant shall constitute the agreement by the Company to
issue or transfer Shares to the Participant in the future in consideration of the performance of services, subject to the fulfillment during the Deferral Period of such conditions as the Committee may specify. 

 

8.2 Consideration. Each grant may be made without the payment of additional consideration
from the Participant or in consideration of a payment by the Participant that is less than the Fair Market Value on the Grant Date. 
  

8.3 Deferral Period. Each grant shall provide that the Deferred Shares covered thereby
shall be subject to a Deferral Period, which shall be fixed by the Committee on the Grant Date, and any grant or sale may provide for the earlier termination of such period in the event of a Change in Control of the Company or other similar
transaction or event. 
  

8.4 Dividend Equivalents and Other Ownership Rights. During the Deferral Period, the
Participant shall not have any right to transfer any rights under the Award, shall not have any rights of ownership in the Deferred Shares and shall not have any right to vote such Deferred Shares, but the Committee may on or after the Grant Date
authorize the payment of dividend equivalents on such Deferred Shares in cash or additional Shares on a current, deferred or contingent basis. 
  

8.5 Performance Objectives. Any grant or the vesting thereof may be further conditioned
upon the attainment of Performance Objectives established by the Committee in accordance with the applicable provisions of Section 9 regarding Performance Shares and Performance Units. 
  
 8.6 Award Agreement. Each grant shall be evidenced by an Award
Agreement containing such terms and provisions as the Committee may determine consistent with this Plan. 
  
 9. Performance Shares and Performance Units. The Committee may also authorize grants of Performance Shares and Performance Units, which shall become payable
to the Participant only upon the achievement of specified Performance Objectives, upon such terms and conditions as the Committee may determine in accordance with the following provisions: 
  
 9.1 Number of Performance Shares or Units. Each grant shall
specify the number of Performance Shares or Performance Units to which it pertains, which may be subject to adjustment to reflect changes in compensation or other factors. 

  
 A-9

 9.2 Performance Period. The Performance
Period with respect to each Performance Share or Performance Unit shall commence on the Grant Date and may be subject to earlier termination in the event of a Change in Control of the Company or other similar transaction or event. 

 
 9.3 Performance
Objectives. Each grant shall specify the Performance Objectives that must be achieved by the Participant or the Company, as applicable, in order for the Award to be earned. 
  
 9.4 Threshold Performance Objectives. Each grant may specify in
respect of the specified Performance Objectives a minimum acceptable level of achievement below which no payment will be made and may set forth a formula for determining the amount of any payment to be made if performance is at or above such minimum
acceptable level but falls short of the maximum achievement of the specified Performance Objectives. 
  

9.5 Payment of Performance Shares and Units. Each grant shall specify the time and manner
of payment of Performance Shares or Performance Units that shall have been earned, and any grant may specify that any such amount may be paid by the Company in cash, Shares or any combination thereof and may either grant to the Participant or
reserve to the Committee the right to elect among those alternatives. 
  
 9.6 Maximum Payment. Any grant of Performance Shares or Performance Units may specify that the amount payable, or the number of Shares issued, with respect
thereto may not exceed a maximum specified by the Committee on the Grant Date. 
  
 9.7 Award Agreement. Each grant shall be evidenced by an Award Agreement which shall state that the Performance Shares or Performance Units are subject to
all of the terms and conditions of this Plan and such other terms and provisions as the Committee may determine consistent with this Plan. 
  

10. Transferability.  
  
 10.1 Transfer Restrictions. Except as provided in
Section 10.2, no Award granted under this Plan shall be transferable by a Participant other than by will or the laws of descent and distribution, and Options and Stock Appreciation Rights shall be exercisable during a Participant’s
lifetime only by the Participant or, in the event of the Participant’s legal incapacity, by his guardian or legal representative acting in a fiduciary capacity on behalf of the Participant under state law. Any attempt to transfer an Award in
violation of this Plan shall render such Award null and void. 
  
 10.2 Limited Transfer Rights. The Committee may expressly provide in an Award agreement (or an amendment to an Award agreement) that a Participant may
transfer such Award (other than an Incentive Stock Option), in whole or in part, to a spouse or lineal descendant (a “Family Member”), a trust for the exclusive benefit of Family Members, a partnership or other entity in which all the
beneficial owners are Family Members, or any other entity affiliated with the Participant that may be approved by the Committee. Subsequent transfers of Awards shall be prohibited except in accordance with this Section 10.2. All terms and
conditions of the Award, including provisions relating to the termination of the Participant’s employment or service with the Company or a Subsidiary, shall continue to apply following a transfer made in accordance with this Section 10.2.

  

10.3 Restrictions on Transfer. Any Award made under this Plan may provide that all or any
part of the Shares that are (i) to be issued or transferred by the Company upon the exercise of Options or Stock Appreciation Rights, upon the termination of the Deferral Period applicable to Deferred Shares or upon payment under any grant of
Performance Shares or Performance Units, or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to in Section 7, shall be subject to further restrictions upon transfer. 

 
 11. Adjustments. In the
event (a) a stock dividend, stock split, combination or exchange of Shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, spin-out, split-off, split-up, reorganization,
partial or complete liquidation or other distribution of assets (other than a normal cash dividend), issuance of rights or warrants to purchase securities or (c) any other corporate 

  
 A-10

 
transaction or event having an effect similar to any of the foregoing affects the Common Stock such that an adjustment is necessary in order to prevent dilution or enlargement of the benefits or
potential benefits to Participants intended to be made available under the Plan, then the Committee shall, in an equitable manner, make or provide for such adjustments in the (x) number of Shares covered by outstanding Awards granted hereunder,
(y) prices per share applicable to Options and Stock Appreciation Rights granted hereunder, and/or (z) kind of shares covered thereby (including shares of another issuer), as the Committee in its sole discretion shall determine in good
faith to be equitably required in order to prevent such dilution or enlargement of the benefits or intended benefits to Participants. Moreover, in the event of any such transaction or event, the Committee may provide in substitution for any or all
outstanding Awards under this Plan such alternative consideration as it may in good faith determine to be equitable under the circumstances and may cancel all Awards in exchange for such alternative consideration. If, in connection with any such
transaction or event in which the Company does not survive, the amount payable pursuant to any Award, based on consideration per Share to be paid in connection with such transaction or event and the Base Price, Option Price, Spread or otherwise of
the Award, is not a positive amount, the Committee may provide for cancellation of such Award without any payment to the holder thereof. The Committee may also make or provide for such adjustments in each of the limitations specified in
Section 3 as the Committee in its sole discretion may in good faith determine to be appropriate in order to reflect any transaction or event described in this Section 11. The Committee will not, in any case, make any of the following
adjustments: (A) with respect to Awards of Incentive Stock Options, no such adjustment shall be authorized to the extent that such authority would cause the Plan to violate Section 422(b)(1) of the Code, as from time to time amended,
(B) with respect to any Award, no such adjustment shall be authorized to the extent that such authority would be inconsistent with the Plan’s meeting the requirements of Section 162(m) of the Code, unless otherwise determined by the
Board, and (C) with respect to any Award subject to Section 409A, no such adjustment shall be authorized to the extent that such authority would cause the Plan to fail to comply with Section 409A (or an exception thereto). 

 
 12. Fractional Shares. The
Company shall not be required to issue any fractional Shares pursuant to this Plan. The Committee may provide for the elimination of fractions or for the settlement thereof in cash. 
  
 13. Withholding Taxes. A Participant may be required to pay to the Company, a
Subsidiary or any affiliate, and the Company, Subsidiary or any affiliate shall have the right and is hereby authorized to withhold from any Award, from any payment due or transfer made under any Award or under the Plan or from any compensation or
other amount owing to a Participant an amount (in cash, Shares, other securities, other Awards or other property) sufficient to cover any federal, state, local or foreign income taxes or such other applicable taxes required by law in respect of an
Award, its exercise, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. The Company may, in its
discretion, permit a Participant (or any beneficiary or other Person entitled to act) to elect to pay a portion or all of the amount such taxes in such manner as the Committee shall deem to be appropriate, including, but not limited to, authorizing
the Company to withhold, or agreeing to surrender to the Company, Shares owned by such Participant or a portion of such forms of payment that would otherwise be distributed pursuant to an Award. Notwithstanding the foregoing or any provisions of the
Plan to the contrary, any broker-assisted cashless exercise shall comply with the requirements for equity classification of Paragraph 35 of FASB Statement No. 123(R) and any withholding satisfied through a net-settlement shall be limited to the
minimum statutory withholding requirements. 
  

 14. Certain Terminations of Employment, Hardship and Approved Leaves of
Absence. Notwithstanding any other provision of this Plan to the contrary, in the event of termination of employment or service by reason of death, disability, normal retirement, early retirement with the consent of the Company or leave of
absence approved by the Company, or in the event of hardship or other special circumstances, of a Participant who holds an Option or Stock Appreciation Right that is not immediately and fully exercisable, any Restricted Shares or Restricted Share
Units as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, any Deferred Shares as to which the Deferral Period is not complete, any Performance Shares or Performance Units that have not been
fully earned, or any Shares that are subject to any transfer restriction pursuant to Section 10.3, 

  
 A-11

 
the Committee may in its sole discretion take any action that it deems to be equitable under the circumstances or in the best interests of the Company, including, without limitation, waiving or
modifying any limitation or requirement with respect to any Award under this Plan. 
  
 15. Foreign Participants. In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide for such
special terms for Awards to Participants who are foreign nationals, or who are employed by or perform services for the Company or any Subsidiary outside of the United States of America, as the Committee may consider necessary or appropriate to
accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it may consider necessary or appropriate for such purposes
without thereby affecting the terms of this Plan as in effect for any other purpose, provided that no such supplements, amendments, restatements or alternative versions shall include any provisions that are inconsistent with the terms of this Plan,
as then in effect, unless this Plan could have been amended to eliminate such inconsistency without further approval by the shareholders of the Company. 
  

16. Amendments and Other Matters.  

 
 16.1 Plan
Amendments. This Plan may be amended from time to time by the Board, but no such amendment shall increase any of the limitations specified in Section 3, other than to reflect an adjustment made in accordance with Section 11,
without the further approval of the shareholders of the Company. The Board may condition any amendment on the approval of the shareholders of the Company if such approval is necessary or deemed advisable with respect to the applicable listing or
other requirements of a national securities exchange or other applicable laws, policies or regulations. Notwithstanding anything to the contrary contained herein, the Committee may also make any amendments or modifications to this Plan and/or
outstanding Awards in order to conform the provisions of the Plan or such Awards with Code Section 409A regardless of whether such modification, amendment, or termination of the Plan shall adversely affect the rights of a Participant under the
Plan or an Award Agreement. 
  

 16.2 Award Deferrals. The Committee may permit Participants to elect to defer
the issuance of Shares or the settlement of Awards in cash under the Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan. In the case of an award of Restricted Shares, the deferral may be effected by the
Participant’s agreement to forego or exchange his or her award of Restricted Shares and receive an award of Deferred Shares. The Committee also may provide that deferred settlements include the payment or crediting of interest on the deferral
amounts, or the payment or crediting of dividend equivalents where the deferral amounts are denominated in Shares. 
  

16.3 Conditional Awards. The Committee may condition the grant of any Award or
combination of Awards under the Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or any Subsidiary to the Participant. 

 
 16.4 Repricing
Prohibited. Except in connection with a corporate transaction involving the Company as provided for in Section 11, the terms of an outstanding Option or Stock Appreciation Right may not be amended by the Committee to reduce the
exercise price of outstanding Options or Stock Appreciation Rights, or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards, Options or Stock Appreciation Rights with an exercise price that is less than the
exercise price of the original Options or Stock Appreciation Rights without the approval of the shareholders of the Company. 
  

16.5 No Employment Right. This Plan shall not confer upon any Participant any right with
respect to continuance of employment or other service with the Company or any Subsidiary and shall not interfere in any way with any right that the Company or any Subsidiary would otherwise have to terminate any Participant’s employment or
other service at any time. 

  
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 16.6 Tax Qualifications. To the extent that
any provision of this Plan would prevent any Option that was intended to qualify under particular provisions of the Code from so qualifying, such provision of this Plan shall be null and void with respect to such Option, provided that such provision
shall remain in effect with respect to other Options, and there shall be no further effect on any provision of this Plan. Notwithstanding any provision of this Plan to the contrary, if any benefit or Award under this Plan is intended to qualify as
performance-based compensation under Code Section 162(m) and the regulations issued thereunder and a provision of this Plan would prevent such benefit or Award from so qualifying, such provision shall be administered, interpreted and construed
to carry out such intention (or disregarded to the extent such provision cannot be so administered, interpreted or construed). In no event shall any member of the Board, the Committee or the Company (or its employees, officers or directors) have any
liability to any Participant (or any other Person) due to the failure of an Award to satisfy the requirements of Section 162(m), Section 409A or any other applicable statutory or regulatory provision. 

 
 17. Section 409A.  

 
 Notwithstanding any provision of the Plan or an Award
Agreement to the contrary, if any Award or benefit provided under this Plan is subject to the provisions of Section 409A, the provisions of the Plan and any applicable Award Agreement shall be administered, interpreted and construed in a manner
necessary to comply with Section 409A or an exception thereto (or disregarded to the extent such provision cannot be so administered, interpreted or construed). The following provisions shall apply, as applicable: 

 
 (a) If a Participant is a Specified Employee
and a payment subject to Section 409A (and not excepted therefrom) to the Participant is due upon Separation from Service, such payment shall be delayed for a period of six (6) months after the date the Participant Separates from Service
(or, if earlier, the death of the Participant). Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period in the month following the month containing the
six-month anniversary of the date of termination unless another compliant date is specified in the applicable agreement. 
  

(b) For purposes of Section 409A, and to the extent applicable to any Award or benefit under the Plan, it is intended
that distribution events qualify as permissible distribution events for purposes of Section 409A and shall be interpreted and construed accordingly. With respect to payments subject to Section 409A, the Company reserves the right to
accelerate and/or defer any payment to the extent permitted and consistent with Section 409A. Whether a Participant has Separated from Service or employment will be determined based on all of the facts and circumstances and, to the extent
applicable to any Award or benefit, in accordance with the guidance issued under Section 409A. For this purpose, a Participant will be presumed to have experienced a Separation from Service when the level of bona fide services performed
permanently decreases to a level less than twenty percent (20%) of the average level of bona fide services performed during the immediately preceding thirty-six (36) month period or such other applicable period as provided by
Section 409A. 
  
 (c) The
Committee, in its discretion, may specify the conditions under which the payment of all or any portion of any Award may be deferred until a later date. Deferrals shall be for such periods or until the occurrence of such events, and upon such terms
and conditions, as the Committee shall determine in its discretion, in accordance with the provisions of Section 409A, the regulations and other binding guidance promulgated thereunder; provided, however, that no deferral shall be permitted
with respect to Options, Stock Appreciation Rights and other stock rights subject to Section 409A. An election shall be made by filing an election with the Company (on a form provided by the Company) on or prior to December 31st of the
calendar year immediately preceding the beginning of the calendar year (or other applicable service period) to which such election relates (or at such other date as may be specified by the Committee to the extent consistent with Section 409A)
and shall be irrevocable for such applicable calendar year (or other applicable service period). To the extent authorized, a Participant who first becomes eligible to participate in the Plan may file an election (“Initial Election”) at any
time prior to the 30-day period following the date on 

  
 A-13

 
which the Participant initially becomes eligible to participate in the Plan (or at such other date as may be specified by the Committee to the extent consistent with Section 409A). Any such
Initial Election shall only apply to compensation earned and payable for services rendered after the effective date of the Election. 
  

(d) The grant of non-qualified Options, Stock Appreciation Rights and other stock rights subject to Section 409A
shall be granted under terms and conditions consistent with Treas. Reg. § 1.409A-1(b)(5) such that any such Award does not constitute a deferral of compensation under Section 409A. Accordingly, any such Award may be granted to Employees
and Directors of the Company and its subsidiaries and affiliates in which the Company has a controlling interest. In determining whether the Company has a controlling interest, the rules of Treas. Reg. § 1.414(c)-2(b)(2)(i) shall apply;
provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. §
1.409A-1(b)(5)(iii)(E)(i)), the language “at least 20 percent” shall be used instead of “at least 80 percent” in each place it appears. The rules of Treas. Reg. §§ 1.414(c)-3 and 1.414(c)-4 shall apply for purposes of
determining ownership interests. 
  

(e) In no event shall any member of the Board, the Committee or the Company (or its employees, officers or directors) have
any liability to any Participant (or any other Person) due to the failure of an Award to satisfy the requirements of Section 409A. 
  

18. Effective Date. This Plan shall become effective upon its approval
by the shareholders of the Company. 
  

19. Termination. No Award shall be granted from and after the tenth anniversary of the date upon which
this Plan is approved by the shareholders of the Company or after such date that the Board shall have adopted a resolution terminating the Plan. This Plan shall remain in effect with respect to Awards outstanding at that time. 

 
 20. Limitations Period. Any
person who believes he or she is being denied any benefit or right under the Plan may file a written claim with the Committee. Any claim must be delivered to the Committee within forty-five (45) days of the specific event giving rise to
the claim. Untimely claims will not be processed and shall be deemed denied. The Committee, or its designated agent, will notify the Participant of its decision in writing as soon as administratively practicable. Claims not responded to by the
Committee in writing within ninety (90) days of the date the written claim is delivered to the Committee shall be deemed denied. The Committee’s decision is final and conclusive and binding on all persons. No lawsuit relating to the Plan
may be filed before a written claim is filed with the Committee and is denied or deemed denied and any lawsuit must be filed within one year of such denial or deemed denial or be forever barred. 

 
 21. Governing Law. The
validity, construction and effect of this Plan and any Award hereunder will be determined in accordance with the internal laws of the Commonwealth of Pennsylvania without giving effect to conflict of laws. 

  
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