Document:

Exhibit 10.6(a)

SEVENTH AMENDMENT TO CREDIT AGREEMENT

THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT ("Seventh
Amendment") is executed this 19th day of July, 2006 ("Effective Date"),
by and between U.S. PREMIUM BEEF, LLC, a limited liability company formed under
the laws of the State of Delaware (successor, by merger, to U.S. Premium Beef,
Ltd.), ("Borrower"), whose mailing address is 12200 North Ambassador
Drive, Suite 501, Kansas City, Missouri 64163, and COBANK, ACB ("CoBank"),
as agent for the benefit of the Syndication Parties (in that capacity, "Agent"),
whose mailing address is 5500 South Quebec Street, Greenwood Village, Colorado
80111.

RECITALS

A.      CoBank, as Agent and as a Syndication Party
(collectively, the present and future Syndication Parties shall be referred to
herein as the "Syndication Parties" and, each, a "Syndication Party")
and Borrower's predecessor, U.S. Premium Beef, Ltd. ("Original Borrower
Entity"), entered into that certain Credit Agreement (Term Loan) dated as
of November 25, 1997, as amended by that certain First Amendment to Credit
Agreement (Term Loan) dated effective as of March 21, 2000, as amended by that
certain Second Amendment to Credit Agreement (Term Loan) dated effective as of
August 24, 2001, as amended by that certain Third Amendment to Credit Agreement
dated effective as of August 29, 2002, as amended by that certain Fourth
Amendment to Credit Agreement dated effective as of August 6, 2003, as amended
by that certain Fifth Amendment to Credit Agreement dated effective as of
September 29, 2004, and as amended by that certain Sixth Amendment to Credit
Agreement dated effective as of June 20, 2006 (as so amended and as further
amended, modified, supplemented, restated or replaced from time to time, the "Credit
Agreement") pursuant to which the Syndication Parties agreed to make a term
loan to Original Borrower Entity under the terms and conditions set forth in
the Credit Agreement.

B.      Borrower has requested that the Syndication
Parties amend the Credit Agreement provisions with respect to distributions to
equity holders, which the Syndication Parties are willing to do under the terms
and conditions as set forth in this Seventh Amendment.

AGREEMENT

NOW, THEREFORE, for good and
valuable consideration, the receipt of which is hereby acknowledged, including
the mutual promises and agreements contained herein, the parties hereto hereby
agree as follows:

 

 

1.                 
Amendments to Credit Agreement.  The Credit Agreement
is amended as of the Effective Date as follows:

1.1       A new Section 1.136 is added to Article I, reading as
follows:

1.136   Excessive Distribution: 
shall have the meaning set forth in Section 13.11.

1.2       Section 13.11 is amended in its entirety to read as follows:

13.11 Payment of Dividends.  Borrower shall not,
directly or indirectly, declare or pay any dividends on account of any shares
of any class of its capital stock now or hereafter outstanding, or set aside or
otherwise deposit or invest any sums for such purpose, or redeem, retire,
defease, purchase or otherwise acquire any shares of any class of its capital
stock (or set aside or otherwise deposit or invest any sums for such purpose)
for any consideration other than common stock or apply or set apart any sum, or
make any other distribution (by reduction or capital or otherwise) in respect
of any such shares or retire capital equities or other written notices of
allocation, or make any other distribution or allocation of its earnings,
surplus or assets to any holder of stock, allocated equities or other written
notices of allocation, or agree to do any of the foregoing; provided
that prior to the Conversion Date, Borrower may: (a) refund any Unit Retains
and/or pay interest on Unit Retains so long as such interest payments are
treated as expenses to be deducted from income in the calculation of the Debt
Service Coverage Ratio; (b) distribute patronage-sourced earnings annually in
the form of cash and qualified written notices of allocation, so long as the
cash portion is the minimum amount required to qualify the distribution as a
deductible patronage distribution for federal income tax purposes, and such
written notices constitute equity and not debt; (c) during any fiscal year of
Borrower retire written notices of allocation issued during any previous fiscal
year, and (d) redeem or retire the interests of retiring and/or terminated
members, and provided further that (e) on and after the Conversion Date,
so long as Borrower is treated as a partnership for tax purposes, Borrower
shall be entitled to make distributions to its members (i) on account of the
federal and state income taxes that would be assessed to such members based on
Borrower's income, provided that the aggregate amount of all such distributions
in any calendar year may not exceed the amount of such income which would be
taxable to such members for such calendar year, multiplied by the maximum
applicable state and federal income tax rate for the calendar year in which
taxed, and (ii) without duplication of any amount included within clause
(e)(i), equal to the amount, up to an aggregate of $2,000,000.00 in
distributions under this clause (e)(ii) for all members, of federal and state
income taxes that would be assessed to such member on account of the transfer
of assets and liabilities occurring in connection with the Permitted Conversion
Transaction; so long as, in the case of (a), (b), (c), (d) and/or (e),
Borrower will, after taking into account any such payments, satisfy the
requirements of Section 12.19 hereof as of the end of the Quarter during which
such payments or refunds will be made; and provided that in the event
that, with respect to any calendar year commencing on or after January 1, 2006,
Borrower makes any distribution to its members pursuant to clause (e)(i) of
this Section based on an estimate of the amount of Borrower's income which
would be taxable to Borrower's members for such calendar year, and,
subsequently, under the applicable federal income tax return of Borrower as
filed, Borrower's members are in fact taxed based on a lesser amount of income,
resulting in a distribution to its members of an amount in excess of the amount
allowed pursuant to clause (e)(i) of this Section ("Excess Distribution"),
the amount of such Excess Distribution shall be deducted from the amount which
could otherwise be distributed to its members during the following calendar
years until such Excess Distribution has been fully deducted.

2

 

2.                 
Conditions to Effectiveness of this
Seventh Amendment.  The effectiveness of this Seventh Amendment is
subject to satisfaction, in Agent's sole discretion, of each of the following
conditions precedent:

2.1    Representations and Warranties. 
The representations and warranties of Borrower shall be true and correct in all
material respects on and as of the Effective Date as though made on and as of
such date.

2.2    No Event of Default.  No Event of Default shall have
occurred and be continuing under the Credit Agreement as of the Effective Date
of this Seventh Amendment. 

2.3    Costs and Expenses.  Borrower shall have reimbursed
Agent for all of its costs and expenses incurred in connection with this
Seventh Amendment, including attorney's fees to Agent's counsel.

3.                 
General Provisions.

3.1    No Other Modifications.  The Credit Agreement, as
expressly modified herein, shall continue in full force and effect and be
binding upon the parties thereto.        

3.2    Successors and Assigns.  This Seventh Amendment shall
be binding upon and inure to the benefit of Borrower and Agent, and their
respective successors and assigns, except that Borrower may not assign or
transfer its rights or obligations hereunder. 

3.3     Definitions.  Capitalized terms used, but not defined,
in this Seventh Amendment shall have the meaning set forth in the Credit
Agreement.

3.4     
Severability. 
Should any provision of this Seventh Amendment be deemed unlawful or
unenforceable, said provision shall be deemed several and apart from all other
provisions of this Seventh Amendment and all remaining provisions of this
Seventh Amendment shall be fully enforceable.

3.5     
Governing
Law.  To the extent not governed by federal law, this Seventh Amendment and
the rights and obligations of the parties hereto shall be governed by,
interpreted and enforced in accordance with the laws of the State of Colorado.

3.6     
Headings. 
The captions or headings in this Seventh Amendment are for convenience only and
in no way define, limit or describe the scope or intent of any provision of
this Seventh Amendment.

	
  3

  

3.7      Counterparts.  This Seventh Amendment may be executed
in any number of counterparts and by different parties to this Seventh
Amendment in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one
and the same agreement.  Copies of documents or signature pages bearing
original signatures, and executed documents or signature pages delivered by telefax
or facsimile or by e-mail transmission of an Adobeâ file format document (also known as a PDF file), shall, in
each such instance, be deemed to be, and shall constitute and be treated as, an
original signed document or counterpart, as applicable.  Any party delivering an executed counterpart of this Seventh
Amendment by telefax or telefacsimile, or by
e-mail transmission of an Adobe file format document
also shall deliver an original executed counterpart of this Seventh
Amendment, but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding
effect of this Seventh Amendment.

[Signatures
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IN WITNESS WHEREOF,
the parties hereto have caused this Seventh Amendment to Credit Agreement to be
executed as of the Effective Date.

  	

BORROWER:

      
	

 

      
	

U.S.
PREMIUM BEEF, LLC, a limited liability 

company formed under the laws of the
State of 

Delaware

      
	

 

      
	

By: /s/
Steven D. Hunt

Name:
Steven D. Hunt

Title:
Chief Executive Officer

      
	

 

      
	

AGENT:

      
	

 

      
	

COBANK, ACB

      
	

 

      
	

By: /s/
Jim Stutzman

Name: Jim
Stutzman

Title: Vice
President, Corporate Finance Division

      
	 
      
	

SYDICATION
PARTY:

      
	

 

      
	

COBANK, ACB

      
	

 

      
	

By: /s/
Jim Stutzman

Name: Jim
Stutzman 

Title: Vice President, Corporate Finance Division

      

                                                                                                                                                                                                                                                                                                                                                                                

 

5CERTAIN  PORTIONS OF THIS  AGREEMENT  HAVE BEEN  OMITTED  BASED ON A REQUEST FOR
CONFIDENTIAL  TREATMENT SUBMITTED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION
(THE  "SEC").  THE  NON-PUBLIC  INFORMATION  THAT HAS  BEEN  OMITTED  FROM  THIS
AGREEMENT HAS BEEN SEPARATELY  FILED WITH THE SEC. EACH REDACTED PORTION OF THIS
AGREEMENT  IS  INDICATED  BY A "[ *  ]"  AND  IS  SUBJECT  TO  THE  REQUEST  FOR
CONFIDENTIAL  TREATMENT  SUBMITTED  TO THE  SEC.  THE  REDACTED  INFORMATION  IS
CONFIDENTIAL INFORMATION OF TITANIMUM METALS CORPORATION AND THE BOEING COMPANY.

                             GENERAL TERMS AGREEMENT

                                     between

                               THE BOEING COMPANY

                                       and

                           TITANIUM METALS CORPORATION

                                      [ * ]

<PAGE>

                                TABLE OF CONTENTS
TITLE PAGE
TABLE OF CONTENTS
AMENDMENT PAGE
RECITAL PAGE

1.0       DEFINITIONS..........................................................7

2.0       ORDERING.............................................................7
         2.1       Issuance of Orders..........................................7
         2.2       Acceptance of Orders........................................8
         2.3       Written Authorization to Proceed............................8

3.0       TITLE AND RISK OF LOSS...............................................8

4.0       DELIVERY.............................................................8
         4.1       Schedule....................................................8
         4.2       Reserved....................................................9
         4.3       Notice of Labor Negotiations................................9

5.0       ON-SITE REVIEW AND RESIDENT REPRESENTATIVES..........................9
         5.1       Review  9
         5.2       Resident Representatives....................................9

6.0       CREDIT OFFICE VISIBILITY.............................................9

7.0       PACKING AND SHIPPING................................................10
         7.1       General 10
                  7.1.1       Shipping Documentation..........................10
                  7.1.2       Insurance.......................................10
                  7.1.3       Shipping Container Labels.......................10
                  7.1.4       Carrier Selection...............................10
                  7.1.5       Invoices........................................10
                  7.1.6       Noncompliance...................................10
                  7.1.7       Reserved........................................10
         7.2       Barcode Marking and Shipping...............................11

8.0       QUALITY ASSURANCE, INSPECTION, REJECTION, & ACCEPTANCE..............11
         8.1       Controlling Document.......................................11
         8.2       Seller's Inspection........................................11
                  8.2.1       Seller's Disclosure.............................11
                  8.2.2       Seller's Acceptance.............................11
         8.3       Boeing's Inspection and Rejection..........................11
         8.4      Rights of Boeing's Customers and Regulators to Perform
                    Inspections, Surveillance, and Testing....................12
         8.5       Retention of Records.......................................12
         8.6       Inspection.................................................12
         8.7       Reserved...................................................12
         8.8       Reserved...................................................12

9.0       EXAMINATION OF RECORDS..............................................12

10.0      CHANGES 13
         10.1      Changes Clause.............................................13

11.0      GENERAL & INTERNATIONAL REQUIREMENTS................................13
         11.1      Language...................................................13
         11.2      Currency...................................................13
         11.3      Import/Export..............................................13

12.0      TERMINATION FOR CONVENIENCE.........................................14
         12.1      Basis for Termination; Notice..............................14
         12.2      Termination Instructions...................................14
         12.3      Seller's Claim.............................................14
         12.4      Failure to Submit a Claim..................................15
         12.5      Partial Termination........................................15
         12.6      Product Price..............................................15
         12.7      Exclusions or Deductions...................................15
         12.8      Partial Payment/Payment....................................15
         12.9      Seller's Accounting Practices..............................16
         12.10     Records 16

13.0      EVENTS OF DEFAULT AND REMEDIES......................................16
         13.1      Seller Events of Default...................................16
         13.2      Boeing Events of Default...................................26
         13.3      Remedies for Non-Performance on Orders.....................16
         13.4      Cancellation of Contract in the Event of Default...........30
         13.5      Remedies Generally.........................................31

14.0      EXCUSABLE DELAY.....................................................18

15.0      SUSPENSION OF WORK..................................................19

16.0     TERMINATION OR WRONGFUL CANCELLATION--Not Applicable.................19

17.0      ASSURANCE OF PERFORMANCE............................................19

18.0      RESPONSIBILITY FOR PROPERTY.........................................19

19.0      LIMITATION OF SELLER'S RIGHT TO ENCUMBER ASSETS.....................20

20.0      PROPRIETARY INFORMATION AND ITEMS...................................20

21.0      COMPLIANCE..........................................................21
         21.1      Compliance With Laws.......................................21
         21.2      Government Requirements....................................21
         21.3      Ethic Requirements/Code of Conduct.........................22

22.0      INTEGRITY IN PROCUREMENT............................................22

23.0      UTILIZATION OF SMALL BUSINESS CONCERNS..............................22

24.0     BOEING'S RIGHTS IN SELLER'S PATENTS, COPYRIGHTS, TRADE SECRETS, AND
           TOOLING............................................................22

25.0      TERMINATION OF AIRPLANE PROGRAM--Not Applicable.....................23
         25.1      Program Termination--Not Applicable........................23
         25.2      Termination Liability--Not Applicable......................23

26.0      PUBLICITY...........................................................23

27.0      PROPERTY INSURANCE..................................................23
         27.1      Insurance..................................................23
         27.2      Certificate of Insurance...................................23
         27.3      Notice of Damage or Loss...................................23

28.0      RESPONSIBILITY FOR PERFORMANCE......................................24
         28.1      Subcontracting.............................................24
         28.2      Reliance...................................................24
         28.3      Assignment.................................................24

29.0      NON-WAIVER/PARTIAL INVALIDITY.......................................25

30.0      HEADINGS............................................................25

31.0      RESERVED............................................................25

32.0      RESERVED............................................................25

33.0      DISPUTES............................................................25

34.0      RESERVED............................................................25

35.0      TAXES   25
         35.1      Inclusion of Taxes in Price................................25
         35.2      Litigation.................................................25
         35.3      Rebates 25

36.0      OFFSET CREDITS......................................................26

General Terms Agreement                              Titanium Metals Corporation
Pro-Forma dated 08-02-05                             [ * ]
                                                                             MSC

*  Certain  information,  indicated  by  "[ * ]"  has  been  omitted  and  filed
separately  with the  U.S.  Securities  and  Exchange  Commission.  Confidential
treatment has been requested with respect to such omitted portions.
<PAGE>

                                [LOGO GOES HERE]
                    Boeing Proprietary and Seller Proprietary

                                   AMENDMENTS

--------------- ----------------------------------- -------------- -------------
    Amend       Description                         Date           Approval
    Number
--------------- ----------------------------------- -------------- -------------
--------------- ----------------------------------- -------------- -------------

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

General Terms Agreement                              Titanium Metals Corporation
Pro-Forma dated 08-02-05                             [ * ]
                                                                             MSC

*  Certain  information,  indicated  by  "[ * ]"  has  been  omitted  and  filed
separately  with the  U.S.  Securities  and  Exchange  Commission.  Confidential
treatment has been requested with respect to such omitted portions.

<PAGE>

                             GENERAL TERMS AGREEMENT

                                   RELATING TO

                                 BOEING PRODUCTS

General Terms Agreement                              Titanium Metals Corporation
Pro-Forma dated 08-02-05                             [ * ]
                                                                             MSC

*  Certain  information,  indicated  by  "[ * ]"  has  been  omitted  and  filed
separately  with the  U.S.  Securities  and  Exchange  Commission.  Confidential
treatment has been requested with respect to such omitted portions.
<PAGE>

THIS GENERAL TERMS AGREEMENT  ("GTA") is entered into as of July 1, 2005, by and
between Titanium Metals Corporation, a Delaware corporation,  with its principal
office in  Denver,  Colorado,  ("Seller"),  and The Boeing  Company,  a Delaware
corporation  acting by and  through  its Boeing  Commercial  Airplanes  division
("Boeing").  Hereinafter,  the Seller and  Boeing may be  referred  to each as a
"Party" and jointly as "Parties" hereto.

                                   AGREEMENTS

1.0      DEFINITIONS

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

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

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

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

                  D.  "On-Time"  delivery  by Seller  shall be defined as Seller
         having [ * ] Product available to ship from a period [ * ].

                  E. "Order"  means each  purchase  contract and purchase  order
         issued  by  Boeing  and  either  automatically  accepted,  accepted  by
         Seller's written  acceptance or mutually agreed to by the Parties under
         the terms of this GTA and SBP.

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

                  G.  "Product"  means titanium  product of the specific  grade,
         form and size  enumerated  on Attachment 1 to the SBP that is furnished
         or to be furnished to Boeing by Seller under any Order  pursuant to the
         SBP [ * ].

                  H. "Service  Provider" means TMX Aerospace or any other entity
         designated  by Boeing as its agent from time to time for the purpose of
         interacting  with Seller in the  placement,  administration  of Orders,
         aggregation of Orders and forecasting.

                  I. Special  Business  Provisions" or "SBP" means that "Special
         Business  Provisions"  between The Boeing  Company and Titanium  Metals
         Corporation dated as of August 2, 2005 and effective as of July 1, 2005
         ([ * ]), as amended,  modified,  restated or supplemented  from time to
         time.

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

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

2.0      ORDERING

2.1      Issuance of Orders

Boeing or Boeing's  Service  Provider may issue offers for Orders to Seller from
time to time.  Each  offer  for an Order  shall  contain  a  description  of the
Products ordered, a reference to the applicable Specifications for such Product,
the Boeing Order number, the quantities and prices, the delivery schedule,  part
number  for  which  the  Products  are to be  supplied,  the  terms and place of
delivery and any proposed  special terms or conditions  that are different  from
those contained in this GTA.

Pricing for each  Product  shall be as set forth on  Attachment 1 to the SBP and
incorporated herein by this reference.

Boeing and Seller shall agree in writing upon the  scheduled  delivery  date for
any Product  requested for delivery in less than the protected reorder lead time
for such Product.

Each Order shall be governed by and be deemed to include the  provisions of this
GTA and SBP and  shall  reference  the SBP  number.  Any  Order  which  does not
reference the SBP number shall not be regarded as an Order under the SBP, unless
such  information  is  provided by Boeing to Seller  within  twenty (20) days of
Seller's acknowledgement of the original Order. [ * ]. Any other Order terms and
conditions, which conflict with this Agreement, do not apply unless specifically
agreed to in writing by the Parties.

2.2      Acceptance of Orders

Orders may be accepted either automatically or by Seller's written acceptance.

         (a)      Automatic  Acceptance of Orders.  Each Order is Boeing's offer
                  to Seller and acceptance is strictly limited to its terms. All
                  offers for Orders that contain terms consistent with this GTA,
                  that are for Product represented on SBP Attachment 1, [ * ].

         (b)      Written Acceptance of Orders. To the extent any such offer for
                  Order is not  automatically  accepted,  such offers for Orders
                  shall  be  accepted  only  when  Seller   provides  a  written
                  acceptance of terms to Boeing which shall be provided within [
                  * ] of receipt of Boeing's offer for Order.

         (c)      Written  Proposal for  Unaccepted  Orders.  If Seller does not
                  accept any terms  contained in Boeing's offer for Order (where
                  such  terms  require  Seller's  acceptance),  including  where
                  Boeing's  offer for Order  contains a new  Specification  that
                  Seller  has not  agreed  upon or if  Boeing's  offer for Order
                  contains a request for  Product on terms that are  contrary to
                  any  relevant  Product  Specification,  Seller  shall  provide
                  Boeing with a written proposal  containing the terms of supply
                  agreeable to Seller and the reasons for rejection  which shall
                  be provided within [ * ] of receipt of Boeing's Order.  Boeing
                  may either accept such proposal or request  Seller to agree to
                  differing terms within [ * ] of receipt of Seller's  proposal.
                  Boeing's  failure to respond in the required time period shall
                  be deemed  rejection of Seller's  proposal.  If the Parties do
                  not agree upon terms of the Order,  the requested  Order shall
                  be of no effect.

2.3      Written Authorization to Proceed

Boeing's Procurement Representative may give written or electronic authorization
to  Seller to  commence  performance  before  Boeing  issues an Order.  Provided
Boeing's authorization specifies that an Order will be issued, Boeing and Seller
shall  proceed  as  if  an  Order  had  been  issued,   provided  that  Boeing's
authorization  must  include the product  description,  Specification,  quantity
ordered,  price, delivery date, purchase order number and the authorization must
be transmitted  to Seller by Boeing's  Procurement  Representative,  and further
provided that if the Order,  once issued,  contains terms that differ from those
contained in the written  authorization to proceed, such Order shall be regarded
by Seller as a change to the Order under Section 10.1 of this GTA. This GTA, the
applicable SBP and the terms stated in the authorization shall be deemed to be a
part of Boeing's offer and the Parties shall promptly and in good faith agree on
any open Order terms.

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

3.0      TITLE AND RISK OF LOSS

Except as otherwise  agreed to by the Parties,  title to and risk of any loss of
or  damage  to the  Products  shall  pass at the  F.O.B.  or  INCOTERM  point as
specified in the applicable Order.

4.0      DELIVERY

Deliver of Product shall be [ * ].

[ * ].

4.1      Schedule

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

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

If Products are manufactured with reference to Boeing Proprietary Information or
Materials,  Seller agrees that pursuant to the Proprietary Information and Items
article of this  Agreement,  it will not sell or offer such Products for sale to
anyone other than Boeing without Boeing's prior written consent.

4.2      Reserved

4.3      Notice of Labor Negotiations

When requested by Boeing,  Seller will provide notice to Boeing of any actual or
threatened  labor dispute and of the fact of labor  contract  negotiations  that
could  reasonably  be expected to disrupt the timely  performance  of the Order,
except as may be prohibited by law. Seller shall require that any  subcontractor
to Seller with respect to a Product  provide similar notice to Seller and Seller
will provide that information to Boeing.

5.0      ON-SITE REVIEW AND RESIDENT REPRESENTATIVES

5.1      Review

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

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

5.2      Resident Representatives

Boeing may, in its sole discretion,  and for such period, as it deems necessary,
locate resident  personnel  ("Resident  Team") at Seller's facility to assist or
support  Seller.  The  Resident  Team shall  function  under the  direction of a
resident Boeing manager, if appropriate, or a manager located at Boeing who will
supervise Resident Team activities. Access by the Resident Team shall be subject
to the  regulations  of any  governmental  agency  regarding  admissibility  and
movement of personnel on the premises of Seller or any of its  subcontractors or
suppliers,  and Seller's normal  workplace rules and  regulations.  Boeing shall
notify  Seller  prior to the arrival of the  Resident  Team.  Such notice  shall
contain the names,  citizenship and positions of the Resident Team personnel and
the expected duration and purpose of the Resident Team's activities.

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

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

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

6.0      CREDIT OFFICE VISIBILITY

The Boeing  Corporate  Credit  Office shall obtain  Seller  financial  data from
information  made  available to the general  public via 10-K and 10-Q  reporting
requirements.  In the  event  the  Seller  is no  longer  required  to  disclose
financial  information  to the general  public via 10-K and 10-Q,  Seller  shall
provide [ * ], to the Boeing  Corporate Credit Office for [ * ]. Such data shall
include [ * ]. In the event of [ * ]. This type of [ * ] data typically includes
- but is not always  limited to - [ * ]. Seller shall endeavor to have copies of
such data to be made  available  within [ * ] of any written  request by Boeing.
The Boeing  Corporate Credit Office review shall be performed in accordance with
the terms of the Proprietary  Information Agreement between the Parties executed
as of August 2, 2005.  Boeing shall treat all such  information  as  Proprietary
Information and Materials subject to the terms of GTA Section 20.0.

7.0      PACKING AND SHIPPING

7.1      General

Seller shall pack the Products in accordance with Boeing's packing specification
to prevent  damage and  deterioration  taking  into  account  method of shipment
location of shipment and destination of receipt, as well as time associated with
shipment.

Unless the Order specifies otherwise, Products will be shipped [ * ].

Notwithstanding the provisions of GTA Section 4.0, [ * ].

[ * ]

Seller  will  use  only  carriers  selected  by  Boeing.   Seller  shall  follow
instructions         on        the        Boeing        Traffic         website,
http://www.boeing.com/companyoffices/doingbiz/routinginst/routing.htm.

Seller  shall  comply  with  proper   documentation   of  carrier   tariffs  for
classification of freight. For Products shipped domestically,  Seller shall make
no declaration  concerning the value of the Products  shipped.  The Seller shall
not insure any  shipment.  Notwithstanding  the  provisions  of GTA Section 4.0,
Boeing  may  charge  Seller  for  damage  to or  deterioration  of any  Products
resulting  from  improper  packing  or  loading  that  does  not  meet  Boeing's
specifications.  Seller shall comply with any special instructions stated in the
applicable Order. Except as otherwise agreed to by Seller in the Order, [ * ].

7.1.1    Shipping Documentation

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

7.1.2    Insurance

Seller  will not  insure any  shipment  designated  origin or place of  shipment
unless  authorized by Boeing,  in which case Boeing will pay for such  requested
insurance.

7.1.3    Shipping Container Labels

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

7.1.4    Carrier Selection

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

7.1.5    Invoices

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

7.1.6    Noncompliance

If Seller is unable to comply with the shipping instructions in an Order, Seller
will contact  Boeing's  Traffic  Management  Department or Boeing's  Procurement
Representative.

7.1.7    Reserved

7.2      Barcode Marking and Shipping

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

8.0      QUALITY ASSURANCE, INSPECTION, REJECTION, & ACCEPTANCE

8.1      Controlling Document

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

8.2      Seller's Inspection

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

8.2.1    Seller's Disclosure

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

         o        Affected process or Product number and name

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

         o        Quantity and dates delivered

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

The  Seller  shall  notify  Seller's  "ship-to"  customer,  Boeing's  "sold  to"
customer,  the Boeing  Procurement  Representative  and the  Boeing  Procurement
Quality Assurance Field  Representative  for Seller's location where the Product
was manufactured.

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

8.2.2    Seller's Acceptance

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

8.3      Boeing's Inspection and Rejection

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

If Seller delivers  non-conforming  Products,  Boeing may at its option,  [ * ].
Except as expressly limited in GTA Sections 13.3 and 13.5, these remedies [ * ].

Seller shall not redeliver  corrected or rejected  goods  without  disclosing to
Boeing's  Procurement  Representative  the former  rejection or requirement  for
correction.   Seller  shall  disclose  any  corrective  action  taken.   Repair,
replacement and other  correction and redelivery  shall be completed  within the
original delivery schedule or such later time as Procurement  Representatives of
Boeing may reasonably direct.

Responsibility for such delivery of rejected goods shall be handled on the terms
outlined in Section 13.3.

Acceptance of any Product by Boeing following any [ * ] pursuant to this Section
8.3 shall not alter or affect the  obligations of Seller or the rights of Boeing
under SBP Section 6.1.

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

Boeing's  rights to perform  inspections,  surveillance  and tests and to review
procedures,  practices,  processes  and  related  documents  related  to quality
assurance,  quality  control,  flight safety,  and  configuration  control shall
extend  to  the   Customers  of  Boeing  that  are   departments,   agencies  or
instrumentalities  of the  United  States  Government  and to the  FAA or to any
governmental  agency  or  instrumentality   having  equivalent  purpose  or  any
successor  agency or  instrumentality  of the United States  Government.  Seller
shall  cooperate  with any such  United  States  Government  or Boeing  directed
inspection,  surveillance,  test or review without  additional charge to Boeing.
Nothing in any Order shall be  interpreted  to limit  United  States  Government
access to Seller's facilities pursuant to law or regulation.

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

8.5      Retention of Records

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

At the expiration of such period,  Boeing reserves the right to request delivery
of such  records.  In the event Boeing  chooses to exercise  this right,  Seller
shall  promptly  deliver such records to Boeing [ * ] on media agreed to by both
Parties.

8.6      Inspection

[ * ],  Products  may be  subject  to  inspection,  surveillance  and test  with
reasonable  prior notice,  at reasonable times during normal operating hours and
at  reasonable  places,   including   Seller's   subcontractors'  or  suppliers'
locations. Boeing will perform inspections;  surveillance and tests so as not to
unduly delay the work.  Seller shall maintain an inspection system acceptable to
Boeing for the Products  purchased under any Order. Such access shall be subject
to the  regulations  of any  governmental  agency  regarding  admissibility  and
movement of personnel on the premises of Seller or any of its  subcontractors or
suppliers,  and Seller's normal  workplace rules and  regulations.  Boeing shall
notify  Seller  prior  to any  visit.  Such  notice  shall  contain  the  names,
citizenship and positions of the visiting personnel and the duration and purpose
of such visit.

If  Boeing  performs  an  inspection  or test on the  premises  of Seller or its
subcontractors or suppliers, Seller shall furnish and require its subcontractors
or suppliers to furnish,  without additional charge,  reasonable  facilities and
assistance for the safe and convenient performance of these duties.

Seller's  documentation  accompanying the shipment must reflect evidence of this
inspection.

8.7      Reserved

8.8      Reserved

9.0      EXAMINATION OF RECORDS

Seller shall maintain  complete and accurate records showing the sales volume of
all Products.  Such records shall support all services performed,  allowances or
adjustments  for  changes  to  Orders  and  prices  charged  by  Seller  in  the
performance of each Order, including but not limited to certain information from
shop travelers.  Such records (not including  Seller's Product cost information)
may be examined and audited by authorized representatives of Boeing and shall be
available  to Boeing's  authorized  representatives  at Seller's  facility  with
reasonable  prior notice at all  reasonable  times during normal  business hours
from the date of the applicable Order until [ * ] after final payment under such
Order.  Seller shall provide  assistance to interpret  such data if requested by
Boeing. [ * ]. Such examination shall provide Boeing with information to be used
for circumstances  including, but not limited to, verifying new Product pricing,
negotiation of equitable  adjustments  for changes and  termination/obsolescence
claims  pursuant  to GTA  Section  10.0.  Boeing  shall  treat  all  information
disclosed  under  this GTA  Section as  confidential,  unless  required  by U.S.
Government contracting regulation(s).

10.0     CHANGES

10.1     Changes Clause

Subject to Boeing's  right to  terminate  an Order under  Section 12 and further
subject  to  all  of  the  terms  of  SBP  Section  8.0,  Boeing's   Procurement
Representative may, without notice to sureties, in writing direct changes within
the general scope of this GTA or an Order in any of the following: (i) technical
requirements and descriptions,  Specifications,  statement of work,  drawings or
designs; (ii) shipment or packing methods;  (iii) place of delivery,  inspection
or acceptance;  (iv) reasonable  adjustments in quantities or delivery schedules
or both; (v) amount of Boeing-furnished property; and, if this contract includes
services,  (vi)  description  of  services  to  be  performed;   (vii)  time  of
performance  (i.e.,  hours of the day, days of the week, etc.); and (viii) place
of  performance.  Upon receipt of written  notice of such  change,  Seller shall
implement the change as soon as possible.  Provided,  however, that if Seller is
unable to implement any changes under (i) or (vi) above,  Seller shall  promptly
notify  Boeing of Seller's  inability to comply with the changes  requested.  If
Seller receives any direction to manufacture any Product to a new  Specification
that  Seller  has not agreed  upon,  Seller  will  immediately  notify  Boeing's
Procurement  Representative  and request a copy of the new  Specification.  Upon
receipt  by  Seller  of the  new  Specification,  Seller  will  review  the  new
Specification with Boeing's and Seller's quality and technical  personnel and/or
metallurgists and Boeing's Procurement Representative,  and will notify Boeing's
Procurement  Representative  regarding  whether  or not  Seller  is  capable  of
manufacturing Product to the new Specification.

[ * ].  Seller  shall  provide  prompt  notice of any claim  for  adjustment  to
Boeing's  Procurement  Representative  in writing and deliver a fully  supported
proposal to Boeing's  Procurement  Representative  generally  within [ * ] after
Seller's  receipt of such  direction.  If due to the  magnitude of the requested
change,  [ * ] is not a  sufficient  time  for  provision  of a fully  supported
proposal,  the Parties will discus a reasonable  time frame for submitting  such
proposal.  Boeing shall modify the Order in writing accordingly.  Boeing may, at
its sole discretion, consider any claim regardless of when asserted. If Seller's
claim  includes  the cost of  property  made  obsolete  or excess by the change,
Boeing may direct the  disposition  of the  property.  Seller  shall  provide to
Boeing all reasonably  necessary  information or records that support the amount
of Seller's claim.

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

11.0     GENERAL & INTERNATIONAL REQUIREMENTS

11.1     Language

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

11.2     Currency

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

11.3     Import/Export

         (a) In performing the obligations of this GTA, both Parties will comply
with United States export control and sanctions laws,  regulations,  and orders,
as they may be amended from time to time, applicable to the export and re-export
of goods,  software,  technology,  or  technical  data  ("Items")  or  services,
including  without  limitation the Export  Administration  Regulations  ("EAR"),
International Traffic in Arms Regulations  ("ITAR"),  and regulations and orders
administered  by the  Treasury  Department's  Office of Foreign  Assets  Control
(collectively, "Export Control Laws").

         (b) The Party  conducting the export shall be responsible for obtaining
the  required  authorizations.  The  Party  conducting  the  re-export  shall be
responsible  for  obtaining  the  required  authorizations.   Each  Party  shall
reasonably  cooperate and exercise reasonable efforts to support the other Party
in obtaining any necessary  licenses or  authorizations  required to perform its
obligations under this Agreement.

         (c) The Party  providing  any Items under this  Agreement  shall,  upon
request,  notify the other  Party of the Items'  Export  Control  Classification
Numbers  ("ECCNs") as well as the ECCNs of any  components  or parts  thereof if
they are different from the ECCN of the Item at issue.

         (d)  Each  Party  represents  that (i) the  Items,  and the  parts  and
components  thereof,  it is  providing  under this  Agreement  are not  "defense
articles" as that term is defined in 22 C.F.R.  ss. 120.6 of the ITAR.  and (ii)
the services it is providing under this Agreement are not "defense  services" as
that term is defined in 22 C.F.R. ss. 120.9 of the ITAR. The Parties acknowledge
that this  representation  means that an  official  capable of binding the Party
providing such Items knows or has otherwise  determined that such Items, and the
parts and components thereof,  are not on the ITAR's Munitions List at 22 C.F.R.
ss.121.1. Each Party agrees to reasonably cooperate with the other in providing,
upon  request  of the  other  Party,  documentation  or other  information  that
supports or confirms this representation.

         (e) To the extent that such Items, or any parts or components  thereof,
were  specifically  designed or modified for a military end use or end user, the
Party  providing  such Items shall notify the other Party of this fact and shall
also provide the other Party with written  confirmation  from the United  States
Department of State that such Items,  and all such parts or components  thereof,
are not subject to the jurisdiction of the ITAR.

12.0     TERMINATION FOR CONVENIENCE

12.1     Basis for Termination; Notice

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

12.2     Termination Instructions

On receipt of a written  notice of  termination  pursuant to GTA  Section  12.1,
unless otherwise directed by Boeing, Seller shall:

                  A. Immediately stop work as specified in the notice;

                  B. Immediately  terminate its subcontracts and purchase orders
         relating  to  work  terminated,  to the  extent  legally  possible  and
         commercially reasonable;

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

                  D. Preserve and protect in a reasonable  manner all terminated
         inventory and Products;

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

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

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

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

                  I. Complete performance of the work not terminated.

12.3     Seller's Claim

If Boeing  terminates  an Order in whole or in part pursuant to GTA Section 12.1
above,  Seller  shall  have the right to submit a written  termination  claim to
Boeing in accordance with the terms of this GTA Section 12.3.  Such  termination
claim shall be asserted to Boeing within [ * ] and all documentation  supporting
said claim must be asserted not later than [ * ] after  Seller's  receipt of the
termination  notice and shall be in the form mutually  agreed upon by Seller and
Boeing. Such claim must contain sufficient detail to explain the amount claimed,
including  detailed  inventory  schedules and a detailed  breakdown of all costs
claimed separated into categories (e.g.,  materials,  purchased parts,  finished
components, labor, burden, general and administrative), and to explain the basis
for  allocation of all other costs.  In no event shall claims for  non-recurring
engineering be considered or paid by Boeing to Seller. With regard to the amount
compensable  to Seller under a  termination  pursuant to GTA Section 12.1 above,
Seller shall be entitled to  compensation  in accordance  with and to the extent
allowed under the terms of [ * ].

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

[  * ]

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

12.4     Failure to Submit a Claim

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

12.5     Partial Termination

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

12.6     Product Price

Termination  under this GTA Section  12.0 shall not result in any change to unit
prices for Products not terminated except as may be provided for in Attachment 1
to SBP.

12.7     Exclusions or Deductions

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

     A.   [ * ]

     B.   [ * ]

     C.   [ * ]

     Provided, however, that any claim Boeing has against Seller with respect to
     the Order termination may be considered by Boeing in its evaluation of the
     Seller's claim.

12.8     Partial Payment/Payment

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

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

A.       Undisputed Amounts:

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

B.       Disputed Amounts:

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

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

C.       Late Payments:

         Amounts determined to due by the procedures outlined above by one Party
         to the other Party under this  Article  12.8 that are not paid when due
         will also be subject to a late charge on the amount due  computed  over
         the period [ * ].

D.       Interest Calculation:

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

              [ * ]

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

              [ * ]

12.9     Seller's Accounting Practices

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

12.10    Records

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

13.0     EVENTS OF DEFAULT AND REMEDIES

13.1     Seller Event of Default

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

         A.       Any breach by Seller of the Contract in any material  respect,
                  which  breach  continues  unremedied  for  more  than  [  *  ]
                  following written notice of such breach by Boeing to Seller; [
                  * ] for a  breach  of the  Contract  in any  material  respect
                  arising under Section 20.0 hereof); or

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

         C.       Boeing  acting  reasonably  and in good  faith,  makes a final
                  determination  and revokes Seller's  Quality  Assurance System
                  approval, if applicable; or,

         D.       (a) The  suspension,  dissolution  or  winding-up  of Seller's
                  business,  (b) Seller's  insolvency,  or its  inability to pay
                  debts as they become due or its  nonpayment of debts,  (c) the
                  institution  of  reorganization,  liquidation,  bankruptcy  or
                  other such proceedings by or against Seller which in the event
                  of an involuntary  proceeding remain undismissed for more than
                  [ * ] or the appointment of a custodian,  trustee, receiver or
                  similar  person for Seller's  properties  or business,  (d) an
                  assignment by Seller for the benefit of its creditors,  or (e)
                  any  action  of  Seller  for  the  purpose  of   effecting  or
                  facilitating any of the foregoing.

13.2     Boeing Event of Default

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

         A.       any breach by Boeing of the Contract in any material  respect,
                  which  breach  continues  unremedied  for  more  than  [  *  ]
                  following written notice of such breach by Seller to Boeing, [
                  * ] for a  breach  of the  Contract  in any  material  respect
                  arising under Section 20.0 hereof); or

         B.       (a) The  suspension,  dissolution  or  winding-up  of Boeing's
                  business,  (b) Boeing's  insolvency,  or its  inability to pay
                  debts as they become due or its  nonpayment of debts,  (c) the
                  institution  of  reorganization,  liquidation,  bankruptcy  or
                  other such proceedings by or against Boeing which in the event
                  of an involuntary  proceeding remain undismissed for more than
                  [ * ] or the appointment of a custodian,  trustee, receiver or
                  similar  person for Boeing's  properties  or business,  (d) an
                  assignment by Boeing for the benefit of its creditors,  or (e)
                  any  action  of  Boeing  for  the  purpose  of   effecting  or
                  facilitating any of the foregoing.

13.3     Remedies for Non-Performance on Orders

If either Party fails to perform on an Order,  the Parties shall, as applicable,
be entitled to the following remedies:

         A.       Modification of Boeing's Credit Rating

                  For any  material  failure  (to be  determined  based upon the
                  circumstances)  to  perform  by Boeing on one or more  Orders,
                  Seller may, upon written notice to Boeing, make adjustments in
                  the credit  terms then  applied to Boeing in  accordance  with
                  Seller's  customary  policies and  procedures  applied in good
                  faith (including without limitation,  requiring Boeing to make
                  full payment at or prior to time of Order shipment).

         B.       Cancellation of Order and Cover by Boeing; Additional Damages

                  1.       If  Seller  has not made [ * ],  Boeing  may,  at its
                           option, by giving written notice to Seller,  exercise
                           any of the following  remedies on the terms  outlined
                           in this GTA Section 13.3.B:

                           (a)      immediately cancel the Order with respect to
                                    the Products affected,  in whole or in part,
                                    [ * ]; and

                                    [ * ];

                           (b)      require  Seller  to  expedite  work  on  any
                                    shipment that is not [ * ], or to promptly [
                                    * ] Products that [ * ] or, where allowed by
                                    the applicable regulatory authority,  Boeing
                                    or its designee [ * ] in accordance with GTA
                                    Section 8.3.

                  In order  to  mitigate  the  impact  of [ * ], and to  provide
                  incentive  [ * ].  When  Seller  provides  notice  that [ * ],
                  Seller will in good faith provide Boeing [ * ].

                  Boeing  may  exercise  any of the  foregoing  remedies  on the
                  following terms:

If Seller provides Boeing [ * ]:

o        If the [ * ], Seller  will,  as  directed by Boeing,  [ * ], and Boeing
         will be entitled [ * ] for the Products in the affected shipment.

o        [ * ], at Boeing's  option,  Seller will, as directed by Boeing:  [ * ]
         for the Products in the affected shipment;  or Boeing may [ * ] for the
         Products for which Boeing [ * ].

If Seller provides Boeing [ * ]:

o        [ * ] Seller will, as directed by Boeing, [ * ].

o        [ * ], at Boeing's  option,  Seller will, as directed by Boeing:  [ * ]
         for the Products in the affected shipment;  or Boeing may [ * ] for the
         Products for which Boeing has covered.

o        [ * ], at Boeing's  option,  Seller will, as directed by Boeing:  [ * ]
         for the Products in the affected shipment;  or Boeing may [ * ] for the
         Products for which Boeing [ * ].

If Seller provides Boeing [ * ]:

o        [ * ], Seller will, as directed by Boeing, [ * ].

o        [ * ], at Boeing's  option,  Seller will, as directed by Boeing:  [ * ]
         for the Products in the affected shipment;  or Boeing may [ * ] for the
         Products for which Boeing [ * ].

o        [ * ], at Boeing's  option,  Seller will, as directed by Boeing:  [ * ]
         for the Products in the affected shipment;  or Boeing may [ * ] for the
         Products for which Boeing [ * ].

The foregoing remedies are shown in summary form on the table below:

         [ * ]

         Boeing shall notify Seller,  within [ * ] of receipt of Seller's notice
         that a shipment will [ * ], whether Boeing has elected to [ * ].

         All  volume  of  Product  [ * ] for the  Products  to be  delivered  or
         provided by Seller hereunder [ * ].

         [ * ]. All claims for [ * ] shall be waived if not made within [ * ] of
         the committed ship date.

         [ * ]

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

13.4     Cancellation of Contract in the Event of Default

         The  Contract  may be cancelled  by the  respective  Parties  under the
         circumstances outlined herein:

         A.       [ * ]

         B.       [ * ]

         C.       [ * ]

13.5     Remedies Generally

No  failure  on the part of  either  Party in  exercising  any  right or  remedy
hereunder,  or as  provided  by law or in equity,  shall  impair,  prejudice  or
constitute  a waiver of any such right or  remedy,  or shall be  construed  as a
waiver of any  Event of  Default  or as an  acquiescence  therein.  No single or
partial exercise of any such right or remedy shall preclude any other or further
exercise thereof or the exercise of any other right or remedy.  No acceptance of
partial  payment or performance of any of Seller's  obligations  hereunder shall
constitute  a waiver of any  Seller  Event of  Default or a waiver or release of
payment or performance in full by Seller of any such  obligation.  No acceptance
of partial payment or performance of any of Boeing's obligations hereunder shall
constitute  a waiver of any  Boeing  Event of  Default or a waiver or release of
payment or performance in full by Boeing of any such obligation.  All rights and
remedies of the Parties  hereunder  and at law and in equity shall be cumulative
and not mutually  exclusive and the exercise of one shall not be deemed a waiver
of the right to  exercise  any  other.  Except for the  remedy  limitations  for
non-performance  on Orders  expressly  identified  in GTA Section 13.3 which are
intended as the sole and exclusive  remedies for  non-performance on Orders, and
as expressly provided  elsewhere in the Contract,  nothing contained in this GTA
shall be construed to limit any right or remedy of either Party now or hereafter
existing at law or in equity.

14.0     EXCUSABLE DELAY

If delivery of any Product is delayed by unforeseeable  circumstances beyond the
control and without the fault or  negligence  of Seller or of its  suppliers  or
subcontractors  (any such delay  being  hereinafter  referred  to as  "Excusable
Delay"),  the delivery of such Product  shall be extended for no longer than the
period that such Excusable Delay shall continue.  Excusable  Delays may include,
but are not  limited  to,  acts of God,  war,  terrorist  acts,  riots,  acts of
government,   fires,  floods,   epidemics,   quarantine  restrictions,   freight
embargoes,  strikes,  labor  disputes or  unusually  severe  weather,  but shall
exclude  Seller's  noncompliance  with any legal  requirement as required by GTA
Section 21.0 "Compliance  with Laws".  Seller shall use best efforts to mitigate
the effects of any Excusable Delay,  both during and after such Excusable Delay.
It is  understood  and agreed that (i) delays of less than [ * ] duration  shall
not be considered to be Excusable Delays unless such delays shall occur within [
* ]  preceding  the  scheduled  delivery  date of any Product and (ii) [ * ]. If
delivery of any Product is delayed by any  Excusable  Delay for more than [ * ],
Boeing may, without any additional extension by written notice to Seller, cancel
all or part of any Order with respect to the delayed Products,  and exercise any
of its remedies in accordance with GTA Section 13.2 [ * ].

15.0     SUSPENSION OF WORK

Subject  to the  provisions  of Section  12 above,  Boeing  may at any time,  by
written  order to  Seller,  require  Seller  to stop all or any part of the work
called for by any Order for up to [ * ]  hereafter  referred  to as a "Stop Work
Order" issued pursuant to this GTA Section 15.0. If the circumstances that cause
Boeing to provide  Seller with a Stop Work Order would  constitute  an Excusable
Delay  under  Section  14.0  hereof,  the  period of the Stop Work Order in that
circumstance  be increased  from [ * ] to up to [ * ]. On receipt of a Stop Work
Order,  Seller shall  promptly  comply with its terms and take all  commercially
reasonable  steps to minimize  the  occurrence  of costs  arising  from the work
covered by the Stop Work Order  during the period of work  stoppage.  Within the
period covered by the Stop Work Order  (including any extension  thereof) Boeing
shall either (i) cancel the Stop Work Order or (ii) terminate or cancel the work
covered by the Stop Work Order in accordance  with the provisions of GTA Section
12.0 or 13.0.  Unless  Boeing  has  canceled  the Stop  Work  Order  within  the
permitted [ * ] or [ * ] as the case may be following its issuance,  Seller will
be entitled  to treat the  portion of the given  Order  subject to the Stop Work
Order as having been  terminated in accordance with the provisions of Section 12
above.  Provided,  however,  that  Boeing  may elect to extend a Stop Work Order
beyond the  permitted  [ * ] or [ * ], as  applicable,  [ * ] for an  additional
period of [ * ] provided  that [ * ] during the Stop Work Order  Period.  In the
event the Stop Work Order is  canceled  by Boeing or the period of the Stop Work
Order (including any extension  thereof)  expires,  Seller shall promptly resume
work in accordance  with the terms of the Agreement.  The  applicable  scheduled
delivery  date  under such Order  shall be deemed to have been  extended  by the
number of days elapsing from the date of Seller's receipt of the Stop Work Order
until the date of its receipt of notice of  cancellation of the Stop Work Order,
[ * ] to allow for the material to be worked back into the  existing  production
schedule in an orderly fashion.

16.0     TERMINATION OR WRONGFUL CANCELLATION

Boeing  shall not be  liable  for any loss or  damage  resulting  from any Order
termination  pursuant to GTA Section 12.1,  except as expressly  provided in GTA
Section  12.3 or any Order  cancellation  under GTA  Section  13.3 except to the
extent that such cancellation  shall have been determined to have been wrongful,
in which case such wrongful  cancellation shall be deemed a termination pursuant
to GTA Section 12.1 and therefore,  Boeing's  liability  shall be limited to the
payment to Seller of the amount or amounts identified in GTA Section 12.3.

17.0     ASSURANCE OF PERFORMANCE

Notwithstanding  the right of either  Party to exercise its rights under RCW 62A
2-609, if either Party determines,  at any time or from time to time, that it is
not  sufficiently  assured of the other  Party's  full,  timely  and  continuing
performance  hereunder,  such Party may request one or more meetings with senior
management  or other  employees of the other Party for the purpose of discussing
that Party's concerns. Each Party shall make such persons available to meet with
representatives  of the other  Party as soon as may be  practicable  following a
request for any such  meeting by a Party and shall make  available  to the other
Party any  additional  information,  reports or other  materials  in  connection
therewith as that Party may reasonably request. Boeing may request, by notice to
Seller, written assurance (hereafter an "Assurance of Performance") with respect
to any specific matters affecting Seller's performance hereunder, that Seller is
able to perform all of its  respective  obligations  under any Order when and as
specified herein.  Each Assurance of Performance shall be delivered by Seller to
Boeing as promptly as  possible,  and each  Assurance  of  Performance  shall be
accompanied by any information,  reports or other materials, prepared by Seller,
as Boeing may reasonably request.  The Assurance of Performance would be created
to  address  the  specific  matters  identified  by  Boeing  affecting  Seller's
performance,  and would  include  mutually  agreeable  milestones  for measuring
Seller's improvement. The Assurance of Performance could include, as appropriate
to the context,  measures such as buffer programs;  build-ahead plans; plans for
providing  Boeing  with  written  notice of  matters  such as  revised  delivery
schedules,  work  stoppages  or  significant  changes  in  production  flow;  or
subcontracting or off-loading plans.

18.0     RESPONSIBILITY FOR PROPERTY

Seller shall  clearly  mark,  maintain an inventory  of, and keep  segregated or
identifiable  all of Boeing's  property  and all  property  to which  Boeing has
acquired  an  interest.  Except as may be  expressly  agreed to by the  Parties,
Seller assumes all risk of loss, destruction or damage of such property while in
Seller's or it's subcontractors' or suppliers'  possession,  custody or control.
Upon  request,  Seller shall  provide  Boeing with  adequate  proof of insurance
against such risk of loss where Seller (rather than Boeing) has assumed the risk
of such loss. Seller shall not use such property other than in performance of an
Order without prior written  consent from Boeing.  Seller shall notify  Boeing's
Procurement  Representative if Boeing's property is lost,  damaged or destroyed.
As directed by Boeing,  upon  completion,  termination  or  cancellation  of the
Contract or any Order,  Seller shall  deliver such  property,  to the extent not
incorporated  in  delivered  Products,  to Boeing in good  condition  subject to
ordinary wear and tear and normal manufacturing losses, and Seller's obligations
under this Section with respect to such Property shall thereafter cease. Nothing
in this GTA Section 18.0 limits  Seller's use, in its direct  contracts with the
Government, of property in which the Government has an interest.

19.0     LIMITATION OF SELLER'S RIGHT TO ENCUMBER ASSETS

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

20.0     PROPRIETARY INFORMATION AND ITEMS

         A. Boeing and Seller  shall each keep  confidential  and  protect  from
disclosure all (i) confidential,  proprietary,  and/or trade secret  information
(including,  without limitation,  technical  information in the form of designs,
concepts,  requirements,   specifications,   software,  interfaces,  components,
processes, or the like); (ii) tangible items containing, conveying, or embodying
such information;  and (iii) tooling obtained from and/or belonging to the other
Party in connection with the Contract or any Order (collectively  referred to as
"Proprietary Information and Materials").  The Parties will attempt to limit the
exchange of  Proprietary  Information  and  Materials  to only that  Proprietary
Information and Materials necessary or useful for the purposes of the Contract.

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

         C. The  Parties  agree that  without the prior  written  consent of the
other Party  hereto and except as may be required by law,  the  receiving  Party
shall hold in confidence and not disclose Proprietary  Information and Materials
received by it, except to  representatives  of the  receiving  Party who require
such Proprietary  Information and Materials for purposes of the Contract and who
agree to maintain such Proprietary Information and Materials as confidential and
protect the same from disclosure in accordance with the terms of the Contract.

         D. Upon the  disclosing  Party's  request at any time, and in any event
upon the completion,  termination or cancellation of the Contract, the receiving
Party shall return all of the disclosing  Party's  Proprietary  Information  and
Materials,  and all copies  thereof and all materials  derived  therefrom to the
disclosing  Party  within [ * ] of the written  demand of the  disclosing  Party
unless  specifically  directed  otherwise  in writing by the  disclosing  Party;
provided,  however,  that the  receiving  Party may retain as many copies of the
Proprietary  Information  as shall be  necessary to fully effect the purpose and
intent of this  Contract and support  commitments  to Boeing  customers  and end
users which copies shall be held in confidence  in accordance  with the terms of
the Contract.

         E. Seller shall not, without the prior written authorization of Boeing,
sell or  otherwise  dispose  of (as  scrap  or  otherwise)  any  parts  or other
materials  containing,  conveying,  embodying,  or made in accordance with or by
reference to any  Proprietary  Information  and  Materials  of Boeing.  Prior to
disposing  of such  parts or  materials  as  scrap,  Seller  shall  render  them
unusable. Boeing shall have the right to audit Seller's compliance with this GTA
Section 20.0.

         F. Seller may copy and disclose  Proprietary  Information and Materials
of  Boeing  for use with  Seller's  subcontractors  or  suppliers  or  "ship-to"
customers  as  required  for  the  performance  of its  obligations  under  this
Contract, provided that all such use, disclosure,  copying and the like shall be
done in such a manner as to, and made only to such  persons who have also agreed
to, maintain Boeing's Proprietary  Information and Materials as confidential and
protect the same from  disclosure in accordance  with the terms of the Contract;
and Seller shall be liable to Boeing for any breach of such  obligation  by such
subcontractor.

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

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

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

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

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

         K. The  provisions  of this GTA Section 20.0 are  effective in lieu of,
and will  apply  notwithstanding  the  absence  of, any  restrictive  legends or
notices applied to Proprietary Information and Materials;  and the provisions of
this GTA Section 20.0 shall survive the performance,  completion, termination or
cancellation of the Contract or any Order.  Except as provided  below,  this GTA
Section  20.0  supersedes  and replaces  any and all other prior  agreements  or
understandings  between  the  Parties  to the  extent  that such  agreements  or
understandings   relate  to  the  receiving  Party's  obligations   relative  to
confidential,  proprietary,  and/or trade secret information,  or tangible items
containing,   conveying,  or  embodying  such  information,  obtained  from  the
disclosing Party and related to any Product,  regardless of whether disclosed to
the  receiving  Party before or after the effective  date of the  Contract.  The
provisions  of this GTA Section 20.0 do not  supersede and replace the following
agreements between the Parties: (a) Proprietary  Information Agreement effective
as of May 2, 2003; (2) Proprietary  Information Agreement effective as of August
2, 2005, both related to certain proprietary financial information of Seller.

21.0     COMPLIANCE

21.1     Compliance  With Laws

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

21.2     Government Requirements

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

          FAR 52.222-26   "Equal Opportunity"

          FAR 52.222-35   "Affirmative Action for Disabled Veterans and Veterans
                          of the Vietnam Era"

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

          FAR 52.247-64   "Preference for Privately Owned U.S.-Flagged
                          Commercial Vessels"

21.3     Ethic Requirements/Code of Conduct

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

22.0     INTEGRITY IN PROCUREMENT

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

23.0     UTILIZATION OF SMALL BUSINESS CONCERNS

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

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

Subject to the terms and conditions enumerated within this GTA Section 24.0, and
provided  Boeing is not in  breach of this  Contract,  Seller  hereby  grants to
Boeing [ * ] license [ * ]  (collectively  hereinafter  referred to as "Licensed
Property")  related  to  the  [  *  ].  Boeing  hereafter  retains  all  of  the
aforementioned  license rights in Licensed Property, but Boeing hereby covenants
not to exercise such rights  except in connection  with the [ * ] or products of
the same kind,  provided that such exercise of rights is limited  exclusively to
the  manufacture of parts or assemblies [ * ], provided,  that such  undelivered
quantity of [ * ] cannot, in Boeing's sole determination, be reasonably obtained
in the required  time frame at a reasonable  price from  commercially  available
sources  (including Boeing) without the use of Seller's Licensed Property and if
one or more of the following situations occur:

         A.       Seller  discontinues  or suspends  business  operations or the
                  production of any or all of the [ * ]

         B.       Seller is acquired by or transfers any or all of its rights to
                  manufacture any Product to any third party in violation of the
                  provisions  of GTA  Section  28.3,  whether  or  not  related,
                  without Boeing's prior written  concurrence where such written
                  concurrence is required;

         C.       Boeing  cancels this  Contract as a result of Seller's  breach
                  pursuant to GTA Section 13.0 herein;

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

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

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

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

         Provided, however, that Boeing's exercise of the license granted hereby
shall be further limited to each and all of the following terms and conditions:

         1.  Boeing  may  sublicense  its  rights  granted  hereby  to only  one
sublicensee at a given time.

         2. The duration of the license  granted  hereby shall be limited to the
duration of the Contract.  Boeing shall not be obligated,  but may choose in its
sole and absolute  discretion,  to resume purchasing from Seller any Product for
which Boeing has exercised rights with respect to Licensed  Property  hereunder.
Provided,  however,  that if Seller ceases to be a going concern the duration of
the license granted hereby shall be indefinite.

         3. If Seller has ceased to  manufacture  [ * ] unrelated  to any of the
circumstances  outlined in GTA Section 24.0 A. through F. above,  Boeing  agrees
that, prior to exercising any license rights granted hereby,  it will enter into
good faith negotiations with Seller.

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

25.0     TERMINATION OF AIRPLANE PROGRAM

25.1     Program Termination

         Not Applicable.

25.2     Termination Liability

         Not Applicable.

26.0     PUBLICITY

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

27.0     PROPERTY INSURANCE

27.1     Insurance

Seller  shall obtain and maintain  continuously  in effect a property  insurance
policy covering loss or destruction of or damage to all property in which Boeing
has an insurable  interest  pursuant to this GTA,  including  but not limited to
Tooling,  Boeing-furnished  property,  raw  materials,  parts,  work-in-process,
incomplete or completed  assemblies and all other products or parts thereof, and
all drawings,  specifications,  data and other materials  relating to any of the
foregoing in each case to the extent in the  possession  or under the  effective
care,  custody  or  control  of  Seller  or  any  agent,  employee,   affiliate,
subcontractor or supplier of Seller, in the amount of (i) full replacement value
thereof  if  the  property  is  replaced  or  remade  (except  in  the  case  of
work-in-process  property,  which  shall be  insured  and  replaceable  at cost,
including variable and overhead costs) or (ii) in the amount of the "cash value"
thereof (equal to the replacement cost less depreciation) if the property is not
replaced  or remade but a cash  settlement  is  accepted;  providing  protection
against all perils normally  covered in an "all risk" property  insurance policy
(including without limitation fire, windstorm, explosion, riot, civil commotion,
aircraft, earthquake, flood or other acts of God) and subject to exclusions that
are standard in such "all risk" property insurance policies.

Any such policy shall be with insurers reasonably acceptable to Boeing and shall
(a) provide for  payment of loss there  under to Boeing,  as loss payee,  as its
interests  may  appear  and (b)  contain a waiver of any  rights of  subrogation
against Boeing,  its  subsidiaries,  and their respective  directors,  officers,
employees and agents.

27.2     Certificate of Insurance

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

27.3     Notice of Damage or Loss

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

28.0     RESPONSIBILITY FOR PERFORMANCE

Seller  may  elect  to  supply  the  Products  from  any of  Seller's  qualified
facilities  as it may  reasonably  determine,  consistent  with the  commercial,
technical,  legal  and  regulatory  requirements  of  Boeing.  Provided  that in
exercising  its  right of  supply  under  this  Section  28.0,  Seller  shall be
responsible for all additional costs or charges (including,  without limitation,
additional shipping costs, duties, taxes and the like) that result from Seller's
election to supply any  Products  from such of Seller's  facilities  as have not
been among the  traditional  supply  facilities for such Products.  Seller shall
notify  Boeing prior to moving work to be performed  under the Contract  between
Seller's  various  facilities.  Seller shall include as part of its subcontracts
those  applicable  provisions  of the  Contract  that  protect  Boeing's  rights
including but not limited to right of entry provisions,  proprietary information
and rights provisions and quality control provisions.  In addition, Seller shall
provide to its subcontractor's  sufficient  information to document clearly that
the work being performed by Seller's  subcontractor is to facilitate performance
under the Contract or any Order.  Sufficient  information may include but is not
limited  to  Order  number,  GTA  number  or the  name of  Boeing's  Procurement
Representative.

28.1     Subcontracting

Seller shall maintain  complete and accurate records regarding all subcontracted
items and/or processes. Seller's use of subcontractors or suppliers shall comply
with Seller's  quality  assurance  system  approval for said  subcontractors  or
suppliers.  Seller  agrees  not  to  purchase  any  completed  or  substantially
completed Products from a  non-Boeing-approved  source as identified in Boeing's
Quality  systems.  No  subcontracting  by  Seller  shall  relieve  Seller of its
obligation under the applicable Order.  Utilization of a Boeing-approved  source
does  not   constitute  a  waiver  of  Seller's   responsibility   to  meet  all
Specification requirements.

28.2     Reliance

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

28.3     Assignment

Except as provided in GTA Section 28.1 "Subcontracting"  Seller shall not assign
any of its rights or interest in this GTA or the SBP, or subcontract or delegate
all or  substantially  all of its  performance  of this GTA or the SBP,  without
Boeing's prior written consent, which shall not be unreasonably withheld. Seller
may assign its right to monies due or to become due. No  assignment,  delegation
or  subcontracting by Seller,  with or without Boeing's  consent,  shall relieve
Seller  of any of its  obligations  under  this  GTA,  the SBP or any  Order  or
prejudice any rights of Boeing against  Seller  whether  arising before or after
the date of any  assignment.  This GTA  Section  28.3  shall not limit  Seller's
ability to purchase standard commercial supplies or raw material.

Without  Boeing's prior written  consent,  Seller may engage in or be subject to
any of the  following,  which  shall  not be deemed  an  "assignment"  under the
provisions of this GTA Section 28.3 [ * ]:

         (a)      Seller  shall  promptly  notify  Boeing  in  writing  of  such
                  transaction or occurrence.

         (b)      Boeing may  request,  within [ * ] of  receiving  such notice,
                  that  Seller  and the third  party  provide  Boeing  with such
                  information  as  Boeing  reasonably  requests  about the third
                  party and the transaction or occurrence.

         (c)      Within [ * ] after receipt of such  information,  Boeing shall
                  in good faith  determine  whether  the third  party is a [ * ]
                  (defined below).

         (d)      If  Boeing   reasonably   determines  the  third  party  is  a
                  Disqualified  Person,  it may also notify  Seller at that time
                  that it has elected to terminate the Contract.  If Boeing does
                  not terminate the Contract  within such [ * ] period,  it will
                  be deemed to have waived its right to  terminate  the Contract
                  under this GTA Section 28.3.

         (e)      If Boeing terminates the Contract pursuant to its rights under
                  this GTA Section 28.3, neither Party shall owe the other Party
                  any amounts resulting from the termination. Boeing's notice of
                  termination  may specify that Seller and Boeing will  continue
                  to perform under the Contract for a period not to exceed [ * ]
                  following the date of Boeing's notice of termination.

[ * ]

29.0              NON-WAIVER/PARTIAL INVALIDITY

Any failures, delays or forbearances of either Party in insisting upon or
enforcing any provisions of any Order, or in exercising any rights or remedies
under this GTA, shall not be construed as a waiver or relinquishment of any such
provisions, rights or remedies; rather, the same shall remain in full force and
effect. No acceptance of partial payment or performance of any obligation
hereunder shall constitute a waiver of any Event of Default or a waiver or
release of payment or performance in full of any such obligation. If any
provision of any Order is or becomes void or unenforceable by law, the remainder
shall be valid and enforceable.

30.0     HEADINGS

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

31.0     RESERVED

32.0     RESERVED

33.0     DISPUTES

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

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

34.0     RESERVED

35.0     TAXES

35.1     Inclusion of [ * ]

Unless parties agree otherwise, [ * ]. Seller shall be responsible for any taxes
based upon  Seller's net or gross income,  gross  receipts,  capital,  or equity
arising from Seller's sales under the Contract. With regard to value added taxes
(VAT) imposed on or measured by this Agreement,  Seller and Boeing also agree to
work together to administer VAT so that it can be reclaimed if legally possible.
If VAT cannot be reclaimed via  reasonable  business means and the VAT charge is
directly  related to the  unilateral  selection  of title  transfer and delivery
location by Boeing,  Boeing will be responsible for that instance of VAT. [ * ].
Prices shall not include any taxes, impositions,  charges or exactions for which
Boeing  has  furnished  a valid  exemption  certificate  or  other  evidence  of
exemption.

35.2     Litigation

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

35.3     Rebates

If any taxes paid by Boeing are subject to rebate or reimbursement, Seller shall
take the  necessary  actions to secure such rebates or  reimbursement  and shall
promptly refund to Boeing any amount recovered.  The actual and direct expenses,
without  the  addition  of profit and  overhead,  of  securing  such  rebates or
reimbursement shall be paid directly by Boeing or reimbursed to Seller.

36.0     OFFSET CREDITS

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

General Terms Agreement                              Titanium Metals Corporation
Pro-Forma dated 08-02-05                             [ * ]
                                                                             MSC

*  Certain  information,  indicated  by  "[ * ]"  has  been  omitted  and  filed
separately  with the  U.S.  Securities  and  Exchange  Commission.  Confidential
treatment has been requested with respect to such omitted portions.
<PAGE>

EXECUTED in  duplicate as of the date and year first  written  above by the duly
authorized representatives of the parties.

BOEING                                          SELLER

THE BOEING COMPANY                              TITANIUM METALS CORPORATION

------------------------------                  -------------------------------
Name: Michael S. Carr                           Name: Derek K. George
Title: Procurement Agent                        Title:  Boeing Contract Manager
Date: August 2, 2005                            Date:  August 2, 2005

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