Document:

United Launch Alliance Master Agreement

 Exhibit 10.2 
  

  
 JOINT VENTURE MASTER AGREEMENT 
  
 Dated as of
May 2, 2005 
  
 By and Among 
  
 LOCKHEED MARTIN CORPORATION, 
  
 THE BOEING COMPANY 
  
 and 
  
 A DELAWARE LIMITED LIABILITY COMPANY TO BE FORMED 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

	ARTICLE I	  	DEFINITIONS	  	1
			
	        SECTION 1.01	  	        DEFINITIONS.	  	1
			
	ARTICLE II	  	THE JOINT VENTURE	  	1
			
	        SECTION 2.01	  	        ORGANIZATION OF THE COMPANY.	  	1
	        SECTION 2.02	  	        OPERATING AGREEMENT.	  	1
	        SECTION 2.03	  	        NAME.	  	2
	        SECTION 2.04	  	        PRINCIPAL PLACE OF BUSINESS.	  	2
	        SECTION 2.05	  	        OTHER FACILITIES.	  	2
	        SECTION 2.06	  	        MEMBERS	  	2
	        SECTION 2.07	  	        BOARD OF DIRECTORS AND OFFICERS.	  	2
	        SECTION 2.08	  	        PURPOSE OF THE COMPANY	  	2
	        SECTION 2.09	  	        TERM.	  	3
	        SECTION 2.10	  	        TAX TREATMENT.	  	3
	        SECTION 2.11	  	        INDEPENDENT OPERATION OF COMPANY.	  	4
	        SECTION 2.12	  	        COMPLIANCE WITH APPLICABLE LAW.	  	4
			
	ARTICLE III	  	TRANSACTIONS AND CLOSING	  	4
			
	        SECTION 3.01	  	        CLOSING TRANSACTIONS.	  	4
	        SECTION 3.02	  	        CLOSING.	  	6
	        SECTION 3.03	  	        OPENING STATEMENT.	  	6
	        SECTION 3.04	  	        ADJUSTMENT OF CONTRIBUTIONS.	  	6
	        SECTION 3.05	  	        ASSIGNMENT OF CONTRACTS AND RIGHTS.	  	9
			
	ARTICLE IV	  	REPRESENTATIONS AND WARRANTIES	  	9
			
	        SECTION 4.01	  	        REPRESENTATIONS AND WARRANTIES OF LOCKHEED
MARTIN.	  	9
	        SECTION 4.02	  	        REPRESENTATIONS AND WARRANTIES OF BOEING.	  	9
	        SECTION 4.03	  	        REPRESENTATIONS AND WARRANTIES OF THE
COMPANY.	  	10
			
	ARTICLE V	  	COVENANTS AND AGREEMENTS OF THE PARTIES	  	10
			
	        SECTION 5.01	  	        CONDUCT OF ELV BUSINESSES.	  	10
	        SECTION 5.02	  	        CONDUCT OF BUSINESS OF THE COMPANY.	  	10
	        SECTION 5.03	  	        ACCESS TO INFORMATION; CONFIDENTIALITY.	  	10
	        SECTION 5.04	  	        PROVISION AND PRESERVATION OF AND ACCESS
TO CERTAIN INFORMATION; COOPERATION AFTER CLOSING.	  	12
	        SECTION 5.05	  	        INSURANCE.	  	14
	        SECTION 5.06	  	        NON-HIRE AND NONSOLICITATION OF CERTAIN
EMPLOYEES.	  	15
	        SECTION 5.07	  	        FINANCIAL SUPPORT ARRANGEMENTS.	  	17
	        SECTION 5.08	  	        CERTAIN INTELLECTUAL PROPERTY MATTERS.	  	17
	        SECTION 5.09	  	        NOVATION OF GOVERNMENT CONTRACTS.	  	20
	        SECTION 5.10	  	        COMPANY FINANCING	  	21
	        SECTION 5.11	  	        COMPETITIVE BUSINESSES.	  	21
	        SECTION 5.12	  	        STAY OF CIVIL PROCEEDING.	  	21
	        SECTION 5.13	  	        NON-COMPETITION AGREEMENT.	  	23
	        SECTION 5.14	  	        SPACEPORT LEASE.	  	25
	        SECTION 5.15	  	        COMPLIANCE WITH ADMINISTRATIVE AGREEMENT.	  	26
			
	ARTICLE VI	  	FURTHER COVENANTS AND AGREEMENTS OF THE PARTIES	  	27
			
	        SECTION 6.01	  	        FURTHER ASSURANCES.	  	27
	        SECTION 6.02	  	        CERTAIN FILINGS; CONSENTS.	  	27

					
	        SECTION 6.03	  	        PUBLIC ANNOUNCEMENTS.	  	27
	        SECTION 6.04	  	        ANTITRUST LAWS.	  	27
	        SECTION 6.05	  	        AGREEMENTS REGARDING TAX MATTERS.	  	28
	        SECTION 6.06	  	        ADMINISTRATION OF ACCOUNTS.	  	30
	        SECTION 6.07	  	        CLEARANCES; UNDISCLOSED CONTRACTS.	  	30
	        SECTION 6.08	  	        AUDITS.	  	30
	        SECTION 6.09	  	        CERTAIN ENVIRONMENTAL MATTERS.	  	30
	        SECTION 6.10	  	        PAYMENTS RELATING TO CERTAIN PRE-CLOSING
ACTIVITIES.	  	34
			
	ARTICLE VII	  	TRANSACTION DOCUMENTS	  	34
			
	        SECTION 7.01	  	        TRANSACTION DOCUMENTS	  	34
			
	ARTICLE VIII	  	EMPLOYEE AND EMPLOYEE BENEFIT MATTERS	  	34
			
	        SECTION 8.01	  	        EMPLOYEE AND EMPLOYEE BENEFIT MATTERS.	  	34
			
	ARTICLE IX	  	REAL PROPERTY AND RELATED MATTERS	  	34
			
	        SECTION 9.01	  	        CERTAIN REAL PROPERTY AND RELATED
MATTERS.	  	34
			
	ARTICLE X	  	CONDITIONS TO CLOSING	  	35
			
	        SECTION 10.01	  	        CONDITIONS TO OBLIGATIONS OF EACH MEMBER.	  	35
	        SECTION 10.02	  	        CONDITIONS TO OBLIGATIONS OF LOCKHEED
MARTIN.	  	36
	        SECTION 10.03	  	        CONDITIONS TO OBLIGATIONS OF BOEING.	  	37
	        SECTION 10.04	  	        UPDATED DISCLOSURE SCHEDULES.	  	37
	        SECTION 10.05	  	        MAE EXCEPTIONS.	  	38
			
	ARTICLE XI	  	SURVIVAL; INDEMNIFICATION	  	38
			
	        SECTION 11.01	  	        SURVIVAL.	  	38
	        SECTION 11.02	  	        INDEMNIFICATION.	  	39
	        SECTION 11.03	  	        PROCEDURES.	  	40
	        SECTION 11.04	  	        LIMITATIONS.	  	42
	        SECTION 11.05	  	        RECOVERY UNDER CONTRACTS.	  	43
			
	ARTICLE XII	  	TERMINATION	  	45
			
	        SECTION 12.01	  	        TERMINATION.	  	45
	        SECTION 12.02	  	        EFFECT OF TERMINATION.	  	45
	        SECTION 12.03	  	        NON-EXCLUSIVE REMEDIES.	  	46
			
	 ARTICLE XIII
	  	MISCELLANEOUS	  	46
			
	        SECTION 13.01	  	        NOTICES.	  	46
	        SECTION 13.02	  	        AMENDMENTS; WAIVERS.	  	48
	        SECTION 13.03	  	        EXPENSES; TAXES.	  	48
	        SECTION 13.04	  	        SUCCESSORS AND ASSIGNS.	  	48
	        SECTION 13.05	  	        DISCLOSURE.	  	49
	        SECTION 13.06	  	        CONSTRUCTION.	  	49
	        SECTION 13.07	  	        ENTIRE AGREEMENT.	  	49
	        SECTION 13.08	  	        GOVERNING LAW.	  	50
	        SECTION 13.09	  	        COUNTERPARTS; EFFECTIVENESS.	  	50
	        SECTION 13.10	  	        SEVERABILITY.	  	50
	        SECTION 13.11	  	        CAPTIONS.	  	50
	        SECTION 13.12	  	        BULK SALES.	  	51
	        SECTION 13.13	  	        DISCLAIMER OF AGENCY.	  	51
	        SECTION 13.14	  	        DISPUTE RESOLUTION.	  	51
	        SECTION 13.15	  	        JURISDICTION.	  	53
	        SECTION 13.16	  	        CONSEQUENTIAL DAMAGES.	  	53
	        SECTION 13.17	  	        PERFORMANCE.	  	53

  

 -ii- 

			
	 LIST OF EXHIBITS

		
	 Exhibit A
	    	                                   
 Definitions
	 Exhibit B
	    	                                    Representations and
Warranties of Lockheed Martin
	 Exhibit C
	    	                                    Representations and
Warranties of Boeing
	 Exhibit D
	    	                                    Representations and
Warranties of the Company
	 Exhibit E
	    	                                    Employee and Employee
Benefit Matters
	
	LIST OF ATTACHMENTS
		
	 Attachment I-A
	    	                                    Lockheed Martin Opening
Statement
	 Attachment I-B
	    	                                    Boeing Opening
Statement
	 Attachment II
	    	                                    Form of Certificate of
Formation
	 Attachment III
	    	                                    Form of Joinder to Joint
Venture Master Agreement
	 Attachment IV
	    	                                    Form of Operating
Agreement
	 Attachment V-A
	    	                                    Form of Lockheed Martin
Contribution and Assumption Agreement
	 Attachment V-B
	    	                                    Form of Boeing
Contribution and Assumption Agreement
	 Attachment VI
	    	                                    Form of Interim
Operating Agreement
	 Attachment VII
	    	                                    Form of Atlas Commercial
Sales and Marketing Agreement with Term Sheet
	 Attachment VIII
	    	                                    Form of Delta Commercial
Sales and Marketing Agreement with Term Sheet
	 Attachment IX
	    	                                    Denver Lease Agreement
Term Sheet
	 Attachment X
	    	                                    Form of Joint Signing
Press Release
	 Attachment XI
	    	                                    Material
Consents
	 Attachment XII
	    	                                    Form of Settlement
Agreement
	 Attachment XIII
	    	                                    Delta Inventory Supply
Agreement Term Sheet
	
	 LIST OF SCHEDULES

	
	 Transaction Agreement Schedules

		
	 Schedule 3.04(c)
	    	                                    Lockheed Martin
Threshold Amount
	 Schedule 3.04(d)
	    	                                    Boeing Threshold
Amount
	 Schedule 5.01
	    	                                    Conduct of ELV
Businesses
	 Schedule 5.06(a)
	    	                                    Initial Lockheed Martin
Business Employees
	 Schedule 5.06(b)
	    	                                    Initial Boeing Business
Employees
	 Schedule 11.02(a)
	    	                                    Lockheed Martin Special
Indemnity Items
	 Schedule 11.02(b)
	    	                                    Boeing Special Indemnity
Items
	 Schedule A-1
	    	                                    Contributed Leased Real
Property
	 Schedule A-2
	    	                                    Contributed Owned Real
Property

  

 -iii- 

			
	 Schedule A-3
	    	                                    Knowledge
Groups
	 Schedule A-4
	    	                                    Excluded
Inventory
	 Schedule E.01
	    	                                    Excluded Employees;
Inactive Employees
	 Schedule E.05(e)
	    	                                    Form of Amendment and
Continuation of Pension Plan Agreement
	 Schedule E.05(f)
	    	                                    Form of Pension Asset
Transfer
	 Schedule E.05(g)
	    	                                    Form of Amendment and
Continuation of Pension Plan Agreement
	 Schedule E.14-1
	    	                                    Certain Collective
Bargaining Agreements
	 Schedule E.14-2
	    	                                    Certain Collective
Bargaining Agreements
	 Schedule E.14-3
	    	                                    Certain Collective
Bargaining Agreements
	
	Lockheed Martin Disclosure Schedules
		
	 Schedule B.03
	    	                                    Governmental
Authorization
	 Schedule B.04
	    	                                   
 Non-Contravention
	 Schedule B.05
	    	                                    Opening
Statement
	 Schedule B.06
	    	                                    Absence of Certain
Changes
	 Schedule B.07
	    	                                    Sufficiency of and Title
to Contributed Assets
	 Schedule B.08
	    	                                    No Undisclosed
Liabilities
	 Schedule B.09
	    	                                   
 Litigation
	 Schedule B.10
	    	                                    Material
Contracts
	 Schedule B.11
	    	                                    Licenses and
Permits
	 Schedule B.13
	    	                                    Environmental
Compliance
	 Schedule B.14
	    	                                    Compliance with
Laws
	 Schedule B.15
	    	                                    Intellectual
Property
	 Schedule B.16
	    	                                    Taxes
	 Schedule B.17
	    	                                    Employee Benefit
Matters
	 Schedule B.18
	    	                                    Government Contracts and
Government Bids
	 Schedule B.19
	    	                                    Government-Furnished
Property or Equipment
	 Schedule B.20
	    	                                    Backlog
	 Schedule B.21
	    	                                    Labor and Employment
Matters
	 Schedule B.22
	    	                                    Product
Warranties
	 Schedule B.23
	    	                                   
 Insurance
	 Schedule B.24
	    	                                   
 Clearances
	 Schedule B.25
	    	                                    Foreign Corrupt
Practices Act
	 Schedule B.26
	    	                                    Export Control
Laws
	 Schedule B.29
	    	                                    Undisclosed
Contracts
	
	Boeing Disclosure Schedules
		
	 Schedule C.03
	    	                                    Governmental
Authorization
	 Schedule C.04
	    	                                   
 Non-Contravention
	 Schedule C.05
	    	                                    Opening
Statement
	 Schedule C.06
	    	                                    Absence of Certain
Changes
	 Schedule C.07
	    	                                    Sufficiency of and Title
to Contributed Assets

  

 -iv- 

			
	Schedule C.08	    	                                    No Undisclosed
Liabilities
	Schedule C.09	    	                                   
 Litigation
	Schedule C.10	    	                                    Material
Contracts
	Schedule C.11	    	                                    Licenses and
Permits
	Schedule C.13	    	                                    Environmental
Compliance
	Schedule C.14	    	                                    Compliance with
Laws
	Schedule C.15	    	                                    Intellectual
Property
	Schedule C.16	    	                                    Taxes
	Schedule C.17	    	                                    Employee Benefit
Matters
	Schedule C.18	    	                                    Government Contracts and
Government Bids
	Schedule C.19	    	                                    Government-Furnished
Property or Equipment
	Schedule C.20	    	                                    Backlog
	Schedule C.21	    	                                    Labor and Employment
Matters
	Schedule C.22	    	                                    Product
Warranties
	Schedule C.23	    	                                   
 Insurance
	Schedule C.24	    	                                   
 Clearances
	Schedule C.25	    	                                    Foreign Corrupt
Practices Act
	Schedule C.26	    	                                    Export Control
Laws
	Schedule C.28	    	                                    Undisclosed
Contracts
	
	Company Disclosure Schedules
		
	Schedule D.03	    	                                    Governmental
Authorization
	Schedule D.04	    	                                   
 Non-Contravention

  

 -v- 

 JOINT VENTURE MASTER AGREEMENT 
  
 This Joint Venture Master Agreement (together with the Exhibits, Schedules and Attachments hereto, this
“Agreement”) is made as of the 2nd day of May 2005, by and among Lockheed Martin Corporation, a
Maryland corporation (“Lockheed Martin”), The Boeing Company, a Delaware corporation (“Boeing”), and, subject to Section 2.01 hereof, a Delaware limited liability company to be formed (the
“Company”). Lockheed Martin and Boeing are sometimes referred to herein as a “Member” or collectively as the “Members.” The Members and the Company are sometimes referred to herein as a
“Party” or collectively as the “Parties.” 
  
 W I T N E S S E T H: 
  
 WHEREAS, each of the Members, among other things, is a developer and manufacturer of certain expendable launch vehicle systems and a supplier of related
Launch Services to the U.S. Government; 
  
 WHEREAS, the
Members desire to form a joint venture to develop and manufacture integrated ELV Systems and supply related Launch Services to the U.S. Government; 
  
 WHEREAS, the Members intend for the joint venture to maintain each of the Members’ independent ELV System platforms and thereby support assured
access to space while operating as a combined entity to enhance operating efficiencies and reduce costs; and  
  
 WHEREAS, in furtherance of the objectives set forth above, the Parties desire to enter into this Agreement and the other Transaction Documents;

  
 NOW, THEREFORE, in consideration of the mutual covenants and
agreements of the Parties contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.01 Definitions.
Capitalized terms used in this Agreement shall have the meanings specified in Exhibit A or elsewhere in this Agreement. 
  
 ARTICLE II 
 THE JOINT VENTURE

  
 Section 2.01 Organization of the Company. Prior to
the Closing, the Members shall cause the Company to be formed as a Delaware limited liability company by filing a certificate of formation with the Secretary of State of the State of Delaware substantially in the form attached hereto as
Attachment II (the “Certificate of Formation”). On or before the Closing Date, the Members shall cause the Company to execute a joinder to this Agreement as a Party hereto in the form attached hereto as Attachment III
(the “Joinder”). 
  
 Section 2.02 Operating
Agreement. From the date of its formation until the Closing Date, the affairs of the Company shall be governed by an interim Operating Agreement 

 
substantially in the form attached hereto as Attachment VI (the “Interim Operating Agreement”). On the Closing Date, each of the
Members shall execute and deliver an Amended and Restated Operating Agreement governing the affairs of the Company and the conduct of the Company’s business substantially in the form attached hereto as Attachment IV (the
“Operating Agreement”), which Operating Agreement shall amend and replace in its entirety the Interim Operating Agreement. 
  
 Section 2.03 Name. The name of the Company shall be as mutually agreed by the Members prior to the Closing. 
  
 Section 2.04 Principal Place of Business. The principal place of
business of the Company shall be located at 12257 S. Wadsworth Blvd., Littleton, Colorado 80125. The headquarters, engineering and administrative functions of the Company shall be performed at the Company’s principal place of business. The
principal place of business of the Company may be transferred from time to time to such other place as may be designated by the Board in accordance with the terms and conditions of the Operating Agreement. 
  
 Section 2.05 Other Facilities. The Company’s principal
manufacturing operations shall be performed at 100 Decatur Way, Trinity, Alabama 35673. In addition, the Company shall maintain ancillary manufacturing operations at, among other places, 2717 Airport Drive, West Warehouse and 2800 Airport Drive,
Harlingen, Texas 78550. The Company’s east coast launch operations shall be performed at Cape Canaveral Air Force Station, Florida, and the Company’s west coast launch operations shall be performed at Vandenberg Air Force Base, California.
The location of each of the facilities may be changed from time to time as such places may be designated by the Board in accordance with the terms and conditions of the Operating Agreement. 
  
 Section 2.06 Members. Upon the formation of the Company, at all times
prior to the Closing and immediately prior to the Closing, each of Lockheed Martin and Boeing shall have a 50% membership interest in the Company. As of the Closing, each of Lockheed Martin and Boeing shall transfer either (i) a portion of its
membership interest in the Company to one or more of its direct or indirect wholly owned domestic Subsidiaries, or (ii) its entire membership interest in the Company to two or more of its direct or indirect wholly owned domestic Subsidiaries, which
transfers shall in each case be made in accordance with and subject to the provisions of the Operating Agreement. 
  
 Section 2.07 Board of Directors and Officers. From and after the Closing, the Company shall be managed by the Board and by officers as provided in
the Operating Agreement. Prior to the Closing, the Company shall be managed by the Members and may act only upon the unanimous written consent of the Members. 
  

Section 2.08 Purpose of the Company. Each of the Parties hereby acknowledges and agrees that the exclusive purposes for which the Company will
be formed shall be:  
  
 (a) to design, develop,
manufacture, sell, repair, service and support ELV Systems, and to supply related Launch Services using such ELV Systems, (i) to the U.S. Government pursuant to one or more Contracts between the Company and the U.S. Government 
  

 - 2 - 

 
or to any Person in furtherance of a DIO Contract, (ii) subject to the limitations set forth in Section 10.06 of the Operating Agreement, to commercial
launch services providers (including the Members or their respective Affiliates) for marketing and sale to Commercial Customers, (iii) to a Member or an Affiliate of a Member where the Member or such Affiliate employs the Launch Services in
connection with a DIO Contract, (iv) to Lockheed Martin or any of its Affiliates in connection with the development of, or the sale to the U.S. Government of, any component of an Atlas III or Atlas V, (v) to Boeing or any of its Affiliates in
connection with the development of, or the sale to the U.S. Government of, any component of a Delta II or Delta IV, and (vi) pursuant to and in accordance with the terms and conditions of the Galex Contract and any follow on Contracts to the Galex
Contract;  
  
 (b) to enter into agreements with the
Members or their respective Affiliates for the purpose of designing and developing unique capabilities of expendable launch vehicles where the ultimate customer would be the U.S. Government, including under a DIO Contract, which agreements shall
contain appropriate firewall and confidentiality provisions to protect the proprietary interests of the parties to the agreements (including proprietary trade secrets of the parties) and provisions relating to the ownership of any intellectual
property created in connection with the work to be done under such agreements; and  
  
 (c) to enter into and perform its obligations under the Transaction Documents to which it is a party. 
  
 Notwithstanding the foregoing, it is acknowledged and agreed that the Company shall not at any time market or sell any ELV System or related Launch Service to any
Commercial Customer except indirectly pursuant to a Contract between the Company and a commercial launch services provider. The Company may engage in any activity and perform any and all acts necessary, appropriate, proper, advisable, incidental or
convenient to or in furtherance of the foregoing purposes.  
  
 Section 2.09 Term. The term of the Company shall be perpetual unless earlier terminated in accordance with the provisions of the Operating Agreement. 
  
 Section 2.10 Tax Treatment. 
  

(a) It is the intent of the Members that the Company shall at all times be classified as a partnership for Income Tax purposes. The Company shall not
elect to be treated as a corporation for Income Tax purposes unless each of the Members shall consent in writing. Neither Member shall recognize or report any income, deduction, gain, or loss for federal Income Tax purposes on the contribution and
transfer of assets to the Company at the Closing or any other transaction under section 3.01 of this Agreement. Lockheed Martin agrees to continue prosecuting the change in accounting method for service contracts that it filed with the Internal
Revenue Service on December 9, 2004. Each Member agrees not to take any position on any Tax Return or any Tax filing, or in any Tax audit or proceeding, that is inconsistent with this Section 2.10 (provided, however, that each Member shall have the
right at any time to seek the opinion of independent tax counsel of national reputation reasonably acceptable to the other Member (“Tax Counsel”) that there is no reasonable basis for a position consistent with this Section 2.10,
and upon providing such opinion of Tax Counsel to the other Member shall be 
  

 - 3 - 

 
entitled to take such an inconsistent position), and each Member agrees to provide the other Member with advance notice of any public filing or documentation
that is inconsistent with this Section 2.10. 
  
 (b) Each Member
acknowledges that reporting for financial accounting purposes may differ from federal Income Tax treatment, and that Section 2.10(a) shall not prevent either Member from appropriately reporting the transactions contemplated by this Agreement for
financial accounting purposes as required under GAAP. 
  
 Section
2.11 Independent Operation of Company. Subject to the provisions of the Operating Agreement, the Company shall operate as an independent entity separate and apart from the Members. From and after the Closing, the Company shall take such
actions as are consistent with the operation of an independent business, including hiring and maintaining its own workforce, entering into and fully performing its own Contracts and maintaining its own property, facilities and equipment. From and
after the Closing, the Company shall assume complete ownership of and control over the Contributed Assets and shall assume complete responsibility for the Assumed Liabilities, including the assumption of performance of all Contracts constituting
Contributed Assets, subject to the terms hereof. 
  
 Section 2.12
Compliance with Applicable Law. The Company shall, and the Members shall at all times cause the Company to, conduct all of its activities in full compliance with Applicable Laws and all ethics and compliance policies adopted from time to time
by the Company. 
  
 ARTICLE III 
 TRANSACTIONS AND CLOSING 
  
 Section 3.01 Closing Transactions. Upon the terms and conditions set forth in this Agreement and the other Transaction Documents, the Parties agree
that at the Closing, among other things: 
  
 (a) Lockheed Martin
shall contribute, or shall cause its Affiliated Transferors to contribute, the Lockheed Martin Contributed Assets to the Company in exchange for a 50% membership interest in the Company; 
  
 (b) Boeing shall contribute, or shall cause its Affiliated Transferors to contribute, the Boeing Contributed Assets to the
Company in exchange for a 50% membership interest in the Company; 
  
 (c) the Company shall assume and agree to pay, satisfy and discharge the Lockheed Martin Assumed Liabilities; 
  
 (d) the Company shall assume and agree to pay, satisfy and discharge the Boeing Assumed Liabilities; 
  
 (e) to effect the contribution of the Lockheed Martin Contributed Assets and
the assumption of the Lockheed Martin Assumed Liabilities, Lockheed Martin or its Affiliated Transferors, as the case may be, and the Company shall execute and deliver the Lockheed Martin Contribution and Assumption Agreement; 
  

 - 4 - 

 (f) to effect the contribution of the Boeing Contributed Assets and the assumption of the Boeing Assumed
Liabilities, Boeing or its Affiliated Transferors, as the case may be, and the Company shall execute and deliver the Boeing Contribution and Assumption Agreement; 
  
 (g) the Parties shall execute and deliver, and shall cause their respective Subsidiaries to execute and deliver, as
applicable, the Transition Services Agreements, the Commercial Sales and Marketing Agreements, the Settlement Agreement and each of the other Transaction Documents contemplated to be executed and delivered at the Closing; 
  
 (h) each Member or its applicable Affiliated Transferor, as the case may be,
and the Company shall execute and deliver assignment agreements for the assignment to the Company of the leases governing the Contributed Leased Real Property on terms and conditions to be mutually agreed between the Members; provided,
however, that if any landlord of any Contributed Leased Real Property is unwilling either to release the applicable Member or its Affiliated Transferor from all liabilities and obligations under the lease relating to such Contributed Leased
Real Property or to include in the consent to any such assignment a recapture provision that would allow such Member or its Affiliated Transferor to take back the lease in the event of a default by the Company under the lease, at the option of such
Member, in lieu thereof, such Member or its applicable Affiliated Transferor, as the case may be, and the Company shall execute and deliver a sublease agreement for the sublease by the Company of such Contributed Leased Real Property on terms and
conditions to be mutually agreed between the Members;  
  
 (i) to effect the lease of the Denver Facility and related matters, Lockheed Martin (or its Affiliated Transferors, as the case may be) and the Company shall execute and deliver one or more lease agreements on terms and conditions
consistent with the terms and conditions summarized in Attachment IX (as the same may be amended, supplemented or otherwise modified from time to time, the “Denver Lease Agreement”); 
  
 (j) to ensure an adequate supply of certain components used in Delta II and
Delta IV launch vehicles, Boeing (or its Affiliated Transferors, as the case may be) and the Company shall execute and deliver a supply agreement on terms and conditions consistent with the terms and conditions summarized in Attachment XIII,
as the same may be amended, supplemented or otherwise modified from time to time (the “Delta Inventory Supply Agreement”); and 
  
 (k) to ensure continuation of existing business relationships between Lockheed Martin’s ELV Business and other businesses of Lockheed Martin
(including Lockheed Martin’s business unit in Fort Worth, Texas) and Boeing’s ELV Business and other businesses of Boeing (including Boeing’s business unit in Huntington Beach, California), the Company and Lockheed Martin and the
Company and Boeing, as the case may be, shall enter into such supply, purchase and other arrangements as may be agreed upon by the Parties, on terms and conditions consistent with existing intercompany agreements or arrangements or on such other
terms and conditions as may be agreed to by the Parties. 
  

 - 5 - 

 Section 3.02 Closing. The closing (the “Closing”) of the Contemplated
Transactions shall take place at the offices of King & Spalding LLP, 1700 Pennsylvania Avenue, N.W., Washington, D.C. 20006, at 10:00 a.m. on the third Business Day following the satisfaction or waiver (by the Member entitled to waive the
condition) of all conditions to the Closing set forth in Article X, or at such other time and place as the Parties may agree. The Closing will become effective at 12:01 a.m., Eastern time, on the Closing Date. 
  
 Section 3.03 Opening Statement. Attached hereto as Attachment
I-A and Attachment I-B, respectively, is an Unaudited Statement of Net Assets of each of Lockheed Martin’s and Boeing’s respective ELV Business at December 31, 2004, together with the Notes thereto (each, an “Opening
Statement”). 
  
 Section 3.04 Adjustment of
Contributions. 
  
 (a) Promptly following the Closing Date,
but in no event later than 90 days after the Closing Date, each Member shall, at its expense and with the assistance of the Company, prepare and submit to the Company and the other Member a statement setting forth, in reasonable detail, such
Member’s calculation of the Net Working Capital of its ELV Business as of the close of business on the day prior to the Closing Date (as to each Member, its “Proposed Adjusted Net Working Capital Amount”). In the event a Member
disputes the correctness of the other Member’s Proposed Adjusted Net Working Capital Amount, such Member shall notify the other Member in writing of its objections within 60 days after receipt of the other Member’s calculation of its
Proposed Adjusted Net Working Capital Amount and shall set forth, in writing and in reasonable detail, the reasons for its objections. To be assertable, an objection by a Member with respect to any individual item in respect of the other
Member’s Proposed Adjusted Net Working Capital Amount must be in an amount equal to or greater than $25,000 (it being understood that, for purposes of clarification and not by way of limitation, a method of valuation or the application of an
accounting principle used in the preparation of a Member’s Proposed Adjusted Net Working Capital Amount each shall be deemed a separate “item” for purposes of this Section 3.04(a)) and assert that the item was not prepared in
accordance with Section 3.04(b). To the extent a Member does not so object, in writing and in reasonable detail as required and within the time period contemplated by this Section 3.04(a), each of the Members shall be deemed to have accepted the
other Member’s calculation and presentation in respect of the matters not subject to objection and such matters shall not be considered to be in dispute. The Members shall endeavor in good faith to resolve any disputed matters within 60 days
after the date on which the last notice of objections was delivered to a Member. If the Members are unable to resolve the disputed matters, the Members shall engage a nationally known independent accounting firm (the “Unaffiliated
Firm”), other than Ernst & Young LLP or Deloitte & Touche LLP, to resolve the matters in dispute (in accordance with Section 3.04(b) and consistent, to the extent possible, with any matters not in dispute). The Members shall jointly
engage the Unaffiliated Firm. Promptly after such engagement of the Unaffiliated Firm, the Members will provide the Unaffiliated Firm with a copy of this Agreement, the Opening Statements, the statements of Proposed Adjusted Net Working Capital
Amounts and any written notices of objections related thereto. Each Member shall deliver to the Unaffiliated Firm a written submission of its position with respect to the matters in dispute, which submissions shall be delivered by each Member to the
Unaffiliated Firm and to the other Member simultaneously within 15 days of the engagement of such Unaffiliated Firm. Each Member shall thereafter be 
  

 - 6 - 

 
entitled to submit a rebuttal to the other Member’s submission, which rebuttals shall be delivered to the Unaffiliated Firm and to the other Member
simultaneously within 30 days of the delivery of the Members’ initial submissions. The Unaffiliated Firm may request additional information from either Member, but absent such a request neither Member may make (nor permit any of its Affiliates
or Representatives to make) any additional submission to the Unaffiliated Firm or otherwise communicate with the Unaffiliated Firm, and in no event will either Member (i) communicate (or permit any of its Affiliates or Representatives to
communicate) with the Unaffiliated Firm without providing the other Member a reasonable opportunity to participate in such communication or (ii) make (or permit any of its Affiliates or Representatives to make) a written submission to the
Unaffiliated Firm unless a copy of such submission is simultaneously provided to the other Member. Either Member may make a written request for a hearing with the Unaffiliated Firm by delivering notice to the other Member and the Unaffiliated Firm
within 15 days after the submission of rebuttals by the Members. Within 30 days of such written request, the Unaffiliated Firm shall hold a joint hearing, in person or by teleconference, at which each Member shall be entitled to make an oral
presentation and rebuttal. The Unaffiliated Firm shall have 30 days from the date of such hearing (or, if no such hearing is requested, from the date of submission of written rebuttals) to review the documents provided to it pursuant to this Section
3.04(a) and deliver its written determination with respect to each of the adjustments in dispute submitted to it for resolution. The Unaffiliated Firm shall resolve the differences regarding the statements of Proposed Adjusted Net Working Capital
Amounts based solely on the information provided to the Unaffiliated Firm by the Members pursuant to the terms of this Agreement (and not by independent review). The Unaffiliated Firm’s authority will be limited to resolving disputes with
respect to whether the statements of Proposed Adjusted Net Working Capital Amounts were prepared in accordance with the terms of Section 3.04(b) with respect to the individual items on the statements of Proposed Adjusted Net Working Capital Amounts
in dispute (it being understood that the Unaffiliated Firm will have no authority to make any adjustments to any financial statements or amounts other than the statements of Proposed Adjusted Net Working Capital Amounts and amounts set forth therein
that are in dispute). In resolving any disputed item, the Unaffiliated Firm may not assign a value to such item greater than the greatest value for such item asserted by either Member or less than the smallest value for such item asserted by either
Member. The determination of the Unaffiliated Firm in respect of the correctness of each matter remaining in dispute in accordance with this Section 3.04(a) shall be conclusive and binding on the Members and judgment may be entered thereon as an
arbitration award pursuant to 9 U.S.C. § 9 in any court of competent jurisdiction. The Net Working Capital of each Member’s ELV Business as of the close of business on the day prior to the Closing Date, as finally determined pursuant to
this Section 3.04(a), is referred to herein as the “Adjusted Net Working Capital Amount” of such Member’s ELV Business. 
  
 (b) The Proposed Adjusted Net Working Capital Amount and the Adjusted Net Working Capital Amount of each Member’s ELV Business shall be determined in
accordance with the accounting principles, policies, practices, methods and procedures, applied on a consistent basis in accordance with past practice, utilized in the preparation of such Member’s Opening Statement as disclosed in the Notes to
such Opening Statement, in each case except as otherwise set forth in the Notes to such Opening Statement. 
  
 (c) If Lockheed Martin’s Adjusted Net Working Capital Amount is less than the amount set forth on Schedule 3.04(c) (the “Lockheed
Martin Threshold Amount”), then 
  

 - 7 - 

 
Lockheed Martin shall pay the difference to the Company, and if Lockheed Martin’s Adjusted Net Working Capital Amount is greater than the Lockheed
Martin Threshold Amount, then the Company shall pay the difference to Lockheed Martin, in each case with simple interest thereon from the Closing Date to the date of payment at a rate per annum equal to the per annum interest rate announced from
time to time by JPMorgan Chase Bank as its prime rate in effect; provided, that neither Lockheed Martin nor the Company shall have any obligation to make a payment to the other under this Section 3.04(c) unless the amount of the difference
(whether positive or negative) between Lockheed Martin’s Adjusted Net Working Capital Amount and the Lockheed Martin Threshold Amount shall be equal to or greater than $5,000,000 (it being understood that in the event any such adjustment shall
be equal to or greater than $5,000,000, the Company or Lockheed Martin, as the case may be, shall pay to the other the entire amount of such difference). Any such payment shall be made in immediately available funds not later than five Business Days
after the determination of Lockheed Martin’s Adjusted Net Working Capital Amount by wire transfer to a bank account designated in writing by the payee to the payor within two Business Days of the date of the determination of such Adjusted Net
Working Capital Amount. The obligations of Lockheed Martin and the Company under this Section 3.04(c) are independent of the obligations of Boeing and the Company under Section 3.04(d). 
  
 (d) If Boeing’s Adjusted Net Working Capital Amount is less than the amount set forth on Schedule 3.04(d) (the
“Boeing Threshold Amount”), then Boeing shall pay the difference to the Company, and if Boeing’s Adjusted Net Working Capital Amount is greater than the Boeing Threshold Amount, then the Company shall pay the difference to
Boeing, in each case with simple interest thereon from the Closing Date to the date of payment at a rate per annum equal to the per annum interest rate announced from time to time by JPMorgan Chase Bank as its prime rate in effect; provided,
that neither Boeing nor the Company shall have any obligation to make a payment to the other under this Section 3.04(d) unless the amount of the difference (whether positive or negative) between Boeing’s Adjusted Net Working Capital Amount and
the Boeing Threshold Amount shall be equal to or greater than $5,000,000 (it being understood that in the event any such adjustment shall be equal to or greater than $5,000,000, the Company or Boeing, as the case may be, shall pay to the other the
entire amount of such difference). Any such payment shall be made in immediately available funds not later than five Business Days after the determination of Boeing’s Adjusted Net Working Capital Amount by wire transfer to a bank account
designated in writing by the payee to the payor within two Business Days of the date of the determination of such Adjusted Net Working Capital Amount. The obligations of Boeing and the Company under this Section 3.04(d) are independent of the
obligations of Lockheed Martin and the Company under Section 3.04(c). 
  
 (e) Subject to any applicable privileges (including the attorney-client privilege), each Member shall make available to the other and, upon reasonable request, to the Unaffiliated Firm, the books, records, documents and work papers
underlying the preparation of such Member’s Opening Statement and the calculation of such Member’s Proposed Adjusted Net Working Capital Amount and the relevant personnel of such Member. 
  
 (f) The fees and expenses, if any, of the Unaffiliated Firm shall be shared
equally by the Members. 
  

 - 8 - 

 Section 3.05 Assignment of Contracts and Rights. Anything in this Agreement to the contrary
notwithstanding, this Agreement shall not constitute an agreement to contribute or otherwise sell, convey, transfer, assign or sublicense any Contract, license or permit constituting a Contributed Asset, or any claim, right or benefit arising
thereunder or resulting therefrom, or to enter into any other agreement or arrangement with respect thereto, if an attempted assignment, sale, conveyance, sublicense or transfer thereof, or entering into any such agreement or arrangement, without
the consent of a third party, would constitute a breach of, or other contravention under, any agreement to which either Member is a party, be ineffective with respect to any party thereto or in any way adversely affect the rights of either Member or
the Company thereunder. With respect to any such Contract, license or permit or any claim, right or benefit arising thereunder or resulting therefrom, promptly after the date hereof, the Parties will use reasonable commercial efforts (but without
any payment of money or other transfer of value by either Member or the Company or any of their respective Affiliates to any third party) to obtain any required consent for the assignment, transfer or sublicense of any such Contract, license or
permit to the Company, or written confirmation reasonably satisfactory in form and substance to the Parties confirming that such consent is not required. If a required consent is not obtained with respect to any such Contract, license or permit, or
if an attempted assignment, transfer or sublicense thereof would be ineffective or would adversely affect the right of either Member or the Company thereunder (a “Consent Failure”), the applicable Member and the Company will
cooperate in a mutually agreeable arrangement under which the Company would obtain the benefits thereunder in accordance with this Agreement, including subcontracting or subleasing to the Company, subject to Applicable Law and the terms of any such
Contract, license or permit, with the Company obtaining the claims, rights and benefits of the applicable Member and assuming the obligations under such Contract, license or permit in accordance with this Agreement, and the Members will enforce at
the request of and for the benefit of the Company, with the Company assuming the Members’ obligations, any and all claims, rights and benefits of the Members against any third party thereto arising from any such Contract, license or permit
(including the right to elect to terminate such Contract in accordance with the terms thereof upon the request of the Company). If any Consent Failure occurs and the applicable Member and the Company have failed to have entered into an arrangement
to provide to the Company the benefits under the relevant Contract, license or permit, such Member and the Company shall cooperate following the Closing to obtain such consent or enter into an agreement with respect thereto as soon as reasonably
practicable thereafter. Notwithstanding the foregoing provisions of this Section 3.05, in the case of commercial off-the-shelf (“COTS”) software having an initial purchase price of $10,000 or less per copy, the Company shall have
the sole responsibility for obtaining license rights to use such software at the Company’s cost and expense. 
  
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.01 Representations and Warranties of Lockheed Martin.
Lockheed Martin represents and warrants to Boeing and to the Company as set forth in Exhibit B. 
  
 Section 4.02 Representations and Warranties of Boeing. Boeing represents and warrants to Lockheed Martin and to the Company as set forth in
Exhibit C. 
  

 - 9 - 

 Section 4.03 Representations and Warranties of the Company. The Company represents and warrants to
the Members as set forth in Exhibit D. 
  
 ARTICLE V

 COVENANTS AND AGREEMENTS OF THE PARTIES 
  

Section 5.01 Conduct of ELV Businesses. Except as set forth in Schedule 5.01, as otherwise contemplated by this Agreement or as required
by Applicable Law, from the date of this Agreement until the Closing Date, each of the Members shall conduct, and shall cause its respective Subsidiaries to conduct, its ELV Business in all material respects in accordance with the historical and
customary operating practices relating to the conduct of such ELV Business and shall use reasonable commercial efforts to preserve intact its ELV Business and its relationships with employees and other third parties in connection with the operation
of its ELV Business. In addition to and without limiting the generality of the foregoing, except (i) with the written consent of the other Member (which consent shall not be unreasonably withheld or delayed), (ii) as set forth in Schedule
5.01, or (iii) as required by Applicable Law or in accordance with the terms and conditions of Contracts (including any collective bargaining agreements) in existence on the date of this Agreement, neither Member shall, and each Member shall
cause its Subsidiaries not to, (a) rebadge or otherwise transfer any Business Employee such that he or she no longer would be a Business Employee, or (b) engage in any transaction that, if engaged in since December 31, 2004, but on or before the
date of this Agreement, and not listed in Schedule B.06 or Schedule C.06, respectively, would constitute a breach of the representations and warranties of the Member contained in clauses (c) through (g) of Section B.06 of Exhibit
B or Section C.06 of Exhibit C, respectively. 
  
 Section 5.02 Conduct of Business of the Company. From and after the formation of the Company in accordance with Section 2.01 and until the Closing Date, the Members (i) shall not conduct any business with or through the Company, and
the Company shall not conduct any business, take any action or incur any liability, except as expressly provided in this Agreement or as otherwise expressly agreed in writing by the Members, and (ii) shall take such actions as may be necessary to
cause the Company to satisfy its obligations under this Agreement in connection with the Contemplated Transactions. In addition to and notwithstanding the foregoing, any action of the Company prior to the Closing Date shall require the unanimous
written consent of the Members. 
  
 Section 5.03 Access to
Information; Confidentiality. 
  
 (a) Except as may be
necessary to comply with any Applicable Laws (including Antitrust Laws and similar laws), subject to any applicable privileges (including the attorney-client privilege), subject to the terms and conditions of the Confidentiality Agreement and this
Section 5.03, subject to the provisions of Section 5.11 and subject to the terms and conditions of any confidentiality or similar agreements between either of the Members and a third party, including customers, vendors and subcontractors, from the
date of this Agreement until the Closing Date, each Member shall (i) during normal business hours and upon reasonable prior notice, give the other Member and its Representatives reasonable access to the records of such Member and its Subsidiaries
relating to its ELV Business, (ii) during normal business hours and upon reasonable prior notice, give the other Member and its Representatives reasonable 
  

 - 10 - 

 access to any facilities the possession of which shall be transferred to the Company at Closing, (iii) furnish to the
other Member and its Representatives such financial and operating data and other information relating to its ELV Business as the other Member may reasonably request, (iv) instruct its employees and Representatives to provide reasonable cooperation
to the other Member in the other Member’s investigation of its ELV Business and (v) use reasonable commercial efforts to obtain the consent or waiver of any third parties with whom such Member has entered into a confidentiality or similar
arrangement in connection with such Member’s ELV Business to the disclosure of contracts or other information with respect to the Member’s relationship with such third parties. Without limiting the generality of the foregoing, and subject
to the limitations set forth in the first sentence of this Section 5.03(a), from the date of this Agreement until the Closing Date, each Member shall use reasonable commercial efforts to enable the other Member and its Representatives to conduct, at
such other Member’s expense, business and financial reviews, investigations and studies as to the operation of such Member’s ELV Business, including with respect to any tax, operating or other efficiencies that may be achieved through the
Company. Notwithstanding the foregoing, neither Member nor any of their respective Representatives shall have access to personnel records of the other Member relating to individual performance or evaluation records, medical histories or
records or other information that in such other Member’s good faith opinion is sensitive or the disclosure of which could subject such Member or its Subsidiaries to risk of liability. Each Member shall make available to the Company personnel
files of its respective Business Employees only after the Closing Date and only if and when the respective Member provides the Company with notice that the applicable Business Employee has provided the Member with a written release permitting
transfer of those files; provided, however, that the Company shall hold the respective Member harmless from any and all Damages arising out of or relating to the transfer of the personnel files. 
  
 (b) Each Member agrees that all information provided or otherwise made
available to it or any of its Representatives in connection with the Contemplated Transactions shall be governed by the provisions of, and treated as if provided or otherwise made available under, the Confidentiality Agreement (regardless of whether
or not the Confidentiality Agreement is in effect or has been terminated or superseded); provided, that nothing in this Section 5.03 shall limit or otherwise restrict the applicability of any other confidentiality or similar provisions
included in any of the Transaction Documents or any other agreement between the Members. Notwithstanding the provisions of this Section 5.03 or any other provision of this Agreement, the Members acknowledge and agree that all information disclosed
or otherwise discovered by the Parties pursuant to this Section 5.03 shall be used solely for the purpose of evaluating the Contemplated Transactions and the satisfaction of the conditions to Closing set forth in this Agreement and that no such
information shall be used for any other purpose, including in connection with the Civil Proceeding or any other Proceedings involving the Members and arising out of any matters other than the Contemplated Transactions. 
  
 (c) For a period commencing on the Closing Date and ending on the fifth
anniversary of the Closing Date, each Member shall treat and hold as confidential (A) all confidential or proprietary information related to, in the case of Boeing, the Boeing Assumed Liabilities or the Boeing Contributed Assets and, in the case of
Lockheed Martin, the Lockheed Martin Assumed Liabilities or the Lockheed Martin Contributed Assets, or related to the operations or affairs of the other Member’s ELV Business, and (B) all confidential or proprietary 
  

 - 11 - 

 information of the other Member disclosed by such other Member under Section 5.03(a) or otherwise made available by the
other Member in connection with the Contemplated Transactions. In addition, each Member shall continue to comply with all non-disclosure and confidentiality provisions of all Contracts in effect on the Closing Date that are contributed to the
Company as Contributed Assets for the maximum period of time required under such Contracts. In the event any Member is requested or required (by oral or written request for information or documents in any legal proceeding, interrogatory, subpoena,
civil investigative demand or similar process or by Applicable Law) to disclose any such confidential or proprietary information, then such Member shall notify the other Member or the Company, as the case may be, promptly of the request or
requirement so that the other Member or the Company, at its expense, may seek an appropriate protective order or waive compliance with this Section 5.03. If, in the absence of a protective order or receipt of a waiver hereunder, a Member is, on the
advice of counsel, compelled to disclose such confidential information, such Member may so disclose the confidential or proprietary information; provided that such Member shall use reasonable commercial efforts to obtain reliable assurance
that confidential treatment shall be accorded to such confidential or proprietary information. The provisions of this Section 5.03(c) shall not be deemed to prohibit the disclosure by either Member of confidential or proprietary information relating
to the operations or affairs of its ELV Business to the extent reasonably required (i) to prepare or complete any required Tax Returns or financial statements, (ii) in connection with audits or other proceedings by or on behalf of a Governmental
Authority, (iii) in connection with any insurance or benefits claims, (iv) to the extent necessary to comply with any Applicable Laws, (v) to provide services to the Company in accordance with the terms and conditions of any of the Transaction
Documents, (vi) in connection with asserting any rights or remedies or performing any obligations under any of the Transaction Documents, or (vii) in connection with any other similar administrative functions in the ordinary course of business;
provided that in each such case such Member shall use reasonable commercial efforts to obtain reliable assurance that confidential treatment shall be accorded to such confidential or proprietary information. Notwithstanding the foregoing, the
provisions of this Section 5.03 shall not apply to information that (x) is or becomes publicly available other than as a result of a disclosure by the Member required to keep the information confidential, (y) is or becomes available to a Member on a
non-confidential basis from a source that, to such Member’s knowledge, is not prohibited from disclosing such information by a legal, contractual or fiduciary obligation, or (z) is or has been independently developed by the Member required to
keep the information confidential (other than in connection with, in the case of Boeing, the Boeing Assumed Liabilities or the Boeing Contributed Assets or, in the case of Lockheed Martin, the Lockheed Martin Assumed Liabilities or the Lockheed
Martin Contributed Assets) as evidenced by written documentation. 
  
 Section 5.04 Provision and Preservation of and Access to Certain Information; Cooperation After Closing. 
  
 (a) On and after the Closing Date, the Company shall preserve all books and records of the Members’ respective ELV Businesses for a period of six
years commencing on the Closing Date (or (i) in the case of books and records relating to Tax, employment, environmental and employee benefits matters until such time as all statutes of limitations to which such records relate have expired, (ii) in
the case of books and records relating to any Government Contract, until the date that is 12 months after the date on which Lockheed Martin, Boeing or the 
  

 - 12 - 

 Company, as the case may be, reaches final agreement with the U.S. Government in respect of any open issues applicable to
such Government Contract, including the resolution of the incurred costs applicable to such Government Contract, and (iii) in the case of books and records as to which Applicable Law requires a longer period, for such longer period), and thereafter
the Company shall not destroy or dispose of such records without giving notice to the Members of such pending disposal and offering the applicable Member such records. In the event the applicable Member has not requested such materials or directed
the Company to retain such materials for a longer period of time within 90 days following the receipt of such notice from the Company, the Company may proceed to destroy or dispose of such materials. 
  
 (b) Except as may be necessary to comply with any Applicable Laws (including
Antitrust Laws and similar laws), subject to any applicable privileges (including the attorney-client privilege), subject to the terms and conditions of the Operating Agreement and this Section 5.04 and subject to the terms and conditions of any
confidentiality or similar agreements between the Company and a third party, including customers, vendors and subcontractors, from and after the Closing Date, the Company shall (i) afford the Members and their respective Representatives reasonable
access upon reasonable prior notice during normal business hours, to all employees, offices, properties, agreements, records, books and affairs of the Company and, at the applicable Member’s expense, provide copies of such information
concerning the Company, as the Members may reasonably request for any proper purpose, (ii) use reasonable commercial efforts to cooperate with the Members for any of the purposes contemplated by the preceding clause (i), and (iii) use reasonable
commercial efforts to cooperate with the Members in the defense of or pursuit of any Excluded Liability, Excluded Asset or Indemnified Claim between the Members, or any claim or action that relates to an Excluded Liability, Excluded Asset or
Indemnified Claim between the Members; provided that the applicable Member shall reimburse the Company for any reasonable out-of-pocket expenses incurred by the Company in connection with any such defense, claim or action. Each Member agrees
to treat and hold as confidential all information provided or otherwise made available to it or any of its Representatives under this Section 5.04(b) in accordance with the provisions of Section 5.04(d) and the confidentiality provisions of the
Operating Agreement. 
  
 (c) Except as may be necessary to comply
with any Applicable Laws (including Antitrust Laws and similar laws), subject to any applicable privileges (including the attorney-client privilege), subject to the terms and conditions of the Operating Agreement and this Section 5.04 and subject to
the terms and conditions of any confidentiality or similar agreements between either of the Members and a third party, including customers, vendors and subcontractors, from and after the Closing Date, each Member shall, and shall cause each of its
Subsidiaries to, at the Company’s expense (i) afford the Company and its Representatives reasonable access, upon reasonable prior notice during normal business hours, to all employees, offices, properties, agreements, records, books and affairs
of such Member and its Subsidiaries to the extent relating to the conduct of such Member’s ELV Business prior to the Closing, as the Company may reasonably request for any proper purpose and (ii) use reasonable commercial efforts to cooperate
with the Company with respect to matters relating to the conduct of such Member’s ELV Business prior to the Closing, including in the defense or pursuit of any Contributed Asset or Assumed Liability or any claim or action that relates to
occurrences involving the Members’ respective ELV Businesses prior to the Closing Date; provided that the Company shall reimburse the Members for any reasonable out-of-pocket expenses incurred by 
  

 - 13 - 

 the Members or their Subsidiaries in connection with any such defense, claim or action. The Company agrees to treat and
hold as confidential all information provided or otherwise made available to it or any of its Representatives under this Section 5.04(c) in accordance with the provisions of Section 5.04(d) and the confidentiality provisions of the Operating
Agreement. 
  
 (d) In the event a Member or the Company is
requested or required (by oral or written request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand or similar process or by Applicable Law) to disclose any confidential or proprietary
information provided to such Party under this Section 5.04, then such Member or the Company, as the case may be, shall notify the disclosing Party promptly of the request or requirement so that the disclosing Party, at its expense, may seek an
appropriate protective order or waive compliance with Section 5.04(b) or Section 5.04(c), as the case may be. If, in the absence of a protective order or receipt of a waiver hereunder, such Party is, on the advice of counsel, compelled to disclose
such confidential or proprietary information, such Party may so disclose the confidential or proprietary information; provided that such Party shall use reasonable commercial efforts to obtain reliable assurance that confidential treatment
shall be accorded to such confidential or proprietary information. The provisions of this Section 5.04(d) shall not be deemed to prohibit the disclosure by any Party of confidential or proprietary information to the extent reasonably required (i) to
prepare or complete any required Tax Returns or financial statements, (ii) in connection with audits or other proceedings by or on behalf of a Governmental Authority, (iii) in connection with any insurance or benefits claims, (iv) to the extent
necessary to comply with any Applicable Laws, (v) to provide services to the disclosing Party or the Company in accordance with the terms and conditions of any of the Transaction Documents, (vi) in connection with asserting any rights or remedies or
performing any obligations under any of the Transaction Documents, or (vii) in connection with any other similar administrative functions in the ordinary course of business; provided that in each such case such Party shall use reasonable
commercial efforts to obtain reliable assurance that confidential treatment shall be accorded to such confidential or proprietary information. Notwithstanding the foregoing, the confidentiality restrictions of this Section 5.04 shall not apply to
information that (x) is or becomes publicly available other than as a result of a disclosure by the receiving Party, (y) is or becomes available to a Party on a non-confidential basis from a source that, to such Party’s knowledge, is not
prohibited from disclosing such information by a legal, contractual or fiduciary obligation, or (z) is or has been independently developed by the receiving Party as evidenced by written documentation. 
  
 Section 5.05 Insurance. 
  
 (a) Except as otherwise provided in Exhibit E and except for the
replacement of existing insurance policies with substantially similar policies upon expiration of existing policies, on and after the date of this Agreement and until the Closing Date, the Members shall not take or fail to take any action if such
action or inaction, as the case may be, would adversely affect the applicability of any insurance (including reinsurance) maintained by the Members and in effect on the date of this Agreement that covers all or any part of the assets that would
constitute Contributed Assets (if owned, held or used by a Member or its Subsidiaries on the Closing Date), the Members’ ELV Businesses or the Business Employees. Except as otherwise provided in Exhibit E, on and after the Closing Date,
neither Member shall intentionally take or intentionally fail to take any action if such action or inaction, as the case may be, would 
  

 - 14 - 

 adversely affect any insurance proceeds constituting Contributed Assets to the extent such action relates to an event or
occurrence prior to the Closing Date. Except as otherwise provided in Exhibit E, as required by any Contracts constituting Contributed Assets or as may otherwise be agreed in writing by the Members, neither Member shall have any obligation to
maintain the effectiveness of any such insurance policy, or to make any monetary payment in connection with any such policy, after the Closing Date. 
  
 (b) Notwithstanding the provisions of Section 5.05(a), the Parties hereby acknowledge and agree that as of the Closing Date, neither the Company, the ELV
Business, any property owned or leased by any of the foregoing, any directors, officers, employees (including the Transferred Employees) or agents of any of the foregoing nor the Contributed Assets, shall be insured under any insurance policies
maintained by either of the Members or any of their Affiliates, except (i) in the case of certain claims made policies, to the extent that a claim has been reported as of the Closing Date, (ii) in the case of a policy that is an occurrence policy,
to the extent the accident, event or occurrence that results in an insurable loss occurs prior to the Closing Date and has been, is or shall be reported or noticed to the respective carrier by the Company or the applicable Member in accordance with
the requirements of such policies (which claims the applicable Member shall, at the Company’s cost and expense, use reasonable commercial efforts to pursue on the Company’s behalf, and the net proceeds of which claims (except to the extent
they relate to Excluded Liabilities) shall be remitted promptly to the Company upon receipt thereof), and (iii) as otherwise provided in Exhibit E or otherwise agreed to in writing by the Parties. Except as otherwise provided in Exhibit
E or as otherwise may be agreed to in writing by the Parties, from and after the Closing Date, neither Member shall have any obligation of any kind to maintain any form of insurance covering all or any part of the Contributed Assets, the ELV
Business or the Transferred Employees. 
  
 (c) On and after the
Closing Date, the Company shall reimburse the Members within 30 days of receipt of an invoice for any self insurance, retention, deductible, retrospective premium, cash payment for reserves calculated or charged on an incurred loss basis and similar
items, including associated administrative expenses and allocated loss adjustment or similar expenses (collectively, “Insurance Liabilities”) allocated by either Member to its ELV Business on a basis consistent with past practices
resulting from or arising under any and all current or former insurance policies maintained by such Member or its Affiliates to the extent that such Insurance Liabilities relate to or arise out of Assumed Liabilities or any activities of the
Company. The Company agrees that, to the extent any of the insurers under the insurance polices, in accordance with the terms of the insurance policies, requests or requires collateral, deposits or other security to be provided with respect to
claims made against such insurance polices relating to or arising from the ELV Business, the Company shall provide the collateral, deposits or other security or, upon request of the applicable Member, shall replace any collateral, deposits or other
security provided by such Member or any of its Affiliates to the extent related to or arising out of Assumed Liabilities or any activities of the Company. 
  
 Section 5.06 Non-Hire and Nonsolicitation of Certain Employees. 
  
 (a) From and after the date of this Agreement until the Closing Date, neither Lockheed Martin nor Boeing, nor any of their
Subsidiaries, shall, without the prior written approval of the other Member, directly or indirectly solicit any individual who is a Business 
  

 - 15 - 

 Employee of the other Member to terminate his or her employment relationship with the other Member or its respective
Subsidiaries; provided, however, that the foregoing shall not apply to any Business Employee hired as a result of the use of an independent employment agency (so long as the agency was not directed to solicit a particular individual or
a class of individuals that could only be satisfied by employees of the other Member) or as a result of the use of advertisements and other general solicitation (such as an advertisement in newspapers, on Lockheed Martin or Boeing websites or
internet job sites, or on radio or television) not specifically directed to Business Employees of the other Member. For purposes of this Section 5.06(a) only, the Members agree that the Business Employees of Lockheed Martin and its Subsidiaries
shall consist of those employees listed on Schedule 5.06(a) and the Business Employees of Boeing and its Subsidiaries shall consist of those employees listed on Schedule 5.06(b), which schedules are accurate as of April 29, 2005.

  
 (b) From and after the Closing Date until the third
anniversary of the Closing Date, neither Lockheed Martin nor Boeing, nor any of their Subsidiaries, shall, without the prior written approval of the Company, directly or indirectly solicit any individual who is a Transferred Employee to terminate
his or her employment relationship with the Company; provided, however, that the foregoing shall not apply to (x) any Transferred Employee hired as a result of the use of an independent employment agency (so long as the agency was not
directed to solicit a particular individual or a class of individuals that could only be satisfied by employees of the Company) or as a result of the use of advertisements and other general solicitation (such as an advertisement in newspapers, on
Lockheed Martin or Boeing websites or internet job sites, or on radio or television) not specifically directed to Transferred Employees, or (y) any Transferred Employee whose employment is involuntarily terminated by the Company (other than for
cause) after the Closing Date. 
  
 (c) Except as provided in
Section E.01(b) or with respect to excluded Business Employees described on Schedule E.01, or as otherwise may be required to comply with recall rights, if any, under any applicable collective bargaining agreement, from and after the Closing
Date until the second anniversary of the Closing Date, neither Lockheed Martin nor Boeing (nor any of their Subsidiaries), shall (i) rehire or continue the employment following the Closing Date of any individual who was one of its or its
Subsidiaries’ Business Employees at any time between the date of this Agreement and the Closing Date, or (ii) rehire any Transferred Employee who was one of its or its Subsidiaries’ Business Employees at any time between the date of this
Agreement and the Closing Date; provided, however, that the foregoing shall not apply to (x) any Business Employee that the Members mutually agree to exclude from this Section 5.06(c) prior to the Closing Date, (y) any Transferred
Employee whose employment is involuntarily terminated by the Company (other than for cause) after the Closing Date, or (z) any Transferred Employee whom the Company consents to release from his or her assignment with the Company earlier than two
years following the Closing Date. 
  
 (d) Except as provided in
Section E.01(b) or with respect to excluded Business Employees described on Schedule E.01, from and after the Closing Date until the third anniversary of the Closing Date, the Company shall not, without the prior written approval of the
applicable Member, directly or indirectly solicit any individual who (i) is not a Transferred Employee, and (ii) is employed by either Lockheed Martin or Boeing or any of their Subsidiaries, to terminate his or her employment relationship with
Lockheed Martin or Boeing or 
  

 - 16 - 

 their Subsidiaries, as the case may be; provided, however, that the foregoing shall not apply to (x)
individuals hired as a result of the use of an independent employment agency (so long as the agency was not directed to solicit a particular individual or a class of individuals that could only be satisfied by employees of either Lockheed Martin or
Boeing or any of their Subsidiaries) or as a result of the use of advertisements and other general solicitation (such as an advertisement in newspapers, on Company websites or internet job sites, or on radio or television) not specifically directed
to employees of either Lockheed Martin or Boeing or any Subsidiary of Lockheed Martin or Boeing, or (y) individuals whose employment is terminated by Lockheed Martin or Boeing after the Closing. 
  
 Section 5.07 Financial Support Arrangements. 
  
 (a) The Parties shall seek in good faith to have the Members and their
respective Affiliates released from all obligations under any Financial Support Arrangements maintained by the Members or any of their respective Affiliates in connection with the Members’ respective ELV Businesses effective as of the Closing
Date. In furtherance of the foregoing, the Parties agree (i) to use reasonable commercial efforts to arrange for the provision by the Company of substitute Financial Support Arrangements on terms and conditions reasonably satisfactory to the
beneficiaries thereof on the Closing Date, and (ii) to provide financial information concerning the Company and each Member’s ELV Business reasonably requested by those Persons for whose benefit the Financial Support Arrangements were made.

  
 (b) If, at any time after the Closing Date, (i) any amount is
drawn on or paid under any Financial Support Arrangement maintained by the Members or any of their respective Affiliates in connection with the Members’ respective ELV Businesses pursuant to which either of the Members or any of their
respective Affiliates is obligated to reimburse the Person making such payment, or (ii) either of the Members or any of their respective Affiliates pays any amounts under, or any fees, costs or expenses relating to, any such Financial Support
Arrangement, the Company shall reimburse the applicable Member such amounts promptly after receipt from such Member of written notice thereof accompanied by written evidence of the underlying payment obligation. 
  
 Section 5.08 Certain Intellectual Property Matters. 
  
 (a) Effective as of the Closing and subject to (x) any rights of the U.S.
Government in all Intellectual Property licensed to the Company pursuant to this Section 5.08 and (y) any licenses of such Intellectual Property granted prior to the Closing (for purposes of this Section 5.08(a), the term “Field of
Use” means any activity within the scope of the purpose of the Company as set forth in Section 2.08): 
  
 (i) License Grant by Boeing to the Company. Boeing hereby grants to the Company, solely for its use within the Field of Use, a worldwide,
perpetual, irrevocable, non-transferable, no-cost, royalty-free nonexclusive license, with the right to grant sublicenses within the Field of Use and with written notice to Boeing, in the Intellectual Property owned or controlled by Boeing or any of
its Subsidiaries and used by Boeing or any of its Subsidiaries as of the Closing in Boeing’s ELV Business (the “Licensed Boeing Intellectual Property”). This license includes the right of the Company to use the Licensed Boeing
Intellectual Property for 
  

 - 17 - 

 any purpose within the Field of Use, including the right to create derivative works and modifications, to manufacture
products that incorporate Licensed Boeing Intellectual Property and to perform or have performed services which incorporate or otherwise use the Licensed Boeing Intellectual Property. Effective as of the Closing and until the expiration of the
Non-Compete Term, subject to any rights of the U.S. Government in the Licensed Boeing Intellectual Property and any licenses thereof granted prior to the Closing, Boeing shall not (x) license or sublicense any of the Licensed Boeing Intellectual
Property to any other Person within the Field of Use, or (y) transfer, assign, convey or sell any of the Licensed Boeing Intellectual Property to any Person without obtaining a covenant of such Person for the express benefit of the Company that such
Person (together with its successors, assignees, licensees and sublicensees) will not use such Licensed Boeing Intellectual Property within the Field of Use; provided, however, that notwithstanding the foregoing, (A) Boeing may license
or sublicense a Person to use Licensed Boeing Intellectual Property within the Field of Use: (1) to the extent necessary to allow such Person to make products or sell services for use by Boeing in Boeing’s ordinary course of business; or (2) as
part of the sale to such Person of products or services in the ordinary course of Boeing’s business, to the extent the applicable Licensed Boeing Intellectual Property is used in such products or services, and (B) Boeing may, in connection with
the sale of a portion of a business or product line of Boeing to a Person, license, sublicense, transfer, assign, convey or sell Licensed Boeing Intellectual Property used in such business or product line to such Person under terms permitting its
use within the Field of Use, but not in a manner that would violate the provisions of Section 5.13 if used by Boeing in that manner. 
  
 (ii) License Grant by Lockheed Martin to the Company. Lockheed Martin hereby grants to the Company, solely for its use within the Field of Use, a
worldwide, perpetual, irrevocable, non-transferable, no-cost, royalty-free nonexclusive license, with the right to grant sublicenses within the Field of Use and with written notice to Lockheed Martin, in the Intellectual Property owned or controlled
by Lockheed Martin or any of its Subsidiaries and used by Lockheed Martin or any of its Subsidiaries as of the Closing in Lockheed Martin’s ELV Business (the “Licensed Lockheed Martin Intellectual Property”). This license
includes the right of the Company to use the Licensed Lockheed Martin Intellectual Property for any purpose within the Field of Use, including the right to create derivative works and modifications, to manufacture products that incorporate Licensed
Lockheed Martin Intellectual Property and to perform or have performed services which incorporate or otherwise use the Licensed Lockheed Martin Intellectual Property. Effective as of the Closing and until the expiration of the Non-Compete Term,
subject to any rights of the U.S. Government in the Licensed Lockheed Martin Intellectual Property and any licenses thereof granted prior to the Closing, Lockheed Martin shall not (x) license or sublicense any of the Licensed Lockheed Martin
Intellectual Property to any other Person within the Field of Use, or (y) transfer, assign, convey or sell any of the Licensed Lockheed Martin Intellectual Property to any Person without obtaining a covenant of such Person for the express benefit of
the Company that such Person (together with its successors, assignees, licensees and sublicensees) will not use such Licensed Lockheed Martin Intellectual Property within the Field of Use; provided, however, that notwithstanding the
foregoing, (A) Lockheed Martin may license or sublicense a Person to use Licensed Lockheed Martin Intellectual Property within the Field of Use: (1) to the extent necessary to allow such Person to make products or sell services for use by Lockheed
Martin in Lockheed Martin’s ordinary course of business; or (2) as part of the sale to such Person of products or services in the ordinary course of Lockheed Martin’s business, to the extent the applicable Licensed Lockheed Martin

  

 - 18 - 

 Intellectual Property is used in such products or services, and (B) Lockheed Martin may, in connection with the sale of a
portion of a business or product line of Lockheed Martin to a Person, license, sublicense, transfer, assign, convey or sell Licensed Lockheed Martin Intellectual Property used in such business or product line to such Person under terms permitting
its use within the Field of Use, but not in a manner that would violate the provisions of Section 5.13 if used by Lockheed Martin in that manner. 
  
 (b) Covenant Not to Sue. Each Member, on behalf of itself and its Subsidiaries, hereby covenants not to sue or enforce against the Company or the
Company’s customers any rights that a Member or its Subsidiaries may have in such Member’s Intellectual Property licensed under Section 5.08(a), except to the extent the Company or the Company’s customers breach the terms and
conditions of Section 5.08(a)(i) or Section 5.08(a)(ii) of this Agreement. 
  
 (c) Future Licenses in Technology. The Company and the Members shall enter into such commercially reasonable written licensing or other agreements, if any, regarding rights in other Intellectual Property of the
Company or of either Member relating to the business or operations of the Company at such times and upon such terms as shall be deemed necessary or appropriate by mutual agreement of the Members. 
  
 (d) Transferability. The licenses granted pursuant to this Section
5.08 shall be transferable by the Company only with the prior written consent of the Member that licensed the Intellectual Property, which consent may be granted or withheld in the sole discretion of such Member, except that such licenses may be
transferred upon prior written notice to both Members in connection with a merger of the Company with and into another Person or the sale of all or substantially all of the Company’s assets, and provided that the Company may disclose
Intellectual Property licensed hereunder that is Proprietary Information as permitted by (and defined in) Section 10.01 of the Operating Agreement. 
  
 (e) Noncompetition. A Member’s use of, or license to third parties to use, its Intellectual Property licensed under Section 5.08(a) to the
Company shall be consistent with Section 5.13, and nothing in this Section 5.08 shall limit or otherwise modify the application of Section 5.13. 
  
 (f) Limitations. The Parties acknowledge and agree that except as otherwise specifically contemplated by the Transaction Documents, the Company is
not obtaining any rights in, or to use, any Intellectual Property of the Members, and that, except as specified below, the Company is not obtaining any rights in or licenses to use any trademarks or trade names owned by Lockheed Martin or Boeing or
any of their respective Subsidiaries, including the names “Lockheed Martin,” “Boeing,” “Martin Marietta,” “McDonnell Douglas” or any derivatives thereof. The Company further acknowledges and agrees that,
except as specified below and notwithstanding any provision to the contrary in the Transaction Documents, the Company shall not use any trademark, logo or trade name owned or licensed by either Member or any of their respective Affiliates (other
than any such trademark, logo or trade name that is used or planned for use exclusively in either Member’s ELV Business as of the Closing, which trademarks, logos or trade names shall be included in Intellectual Property licensed to the Company
hereunder) or any trademarks, logos or trade names that are confusingly similar thereto 
  

 - 19 - 

 or that are a translation or transliteration thereof into any language or alphabet. As soon as practicable following the
Closing Date, but not later than 90 days after the Closing Date, the Company shall remove and change signage, change and substitute promotional or advertising material in whatever medium, change stationery and packaging and take all such other steps
as may be required or appropriate to cease use of all such Intellectual Property not owned by or licensed to the Company; provided, however, that the Company shall not be deemed to have violated this Section 5.08(f) by reason of (i)
its use after the Closing of any inventory constituting Contributed Assets, (ii) the appearance of any trademarks, logos or trade names of the Members or their Affiliates in or on any tools, dies, equipment, engineering/manufacturing drawings,
manuals, work sheets, operating procedures, other written materials or other Contributed Assets that are used for internal purposes only in connection with the ELV Business; provided that the Company endeavors to remove such trademarks, logos
or trade names in the ordinary course of the operation of the ELV Business where such removal is commercially practicable, and provided further, that all trademarks, logos and trade names of the Members and their Affiliates appearing
on written materials shall be removed therefrom, covered over or otherwise obliterated prior to the one year anniversary of the Closing Date or (iii) its use of the names “Lockheed Martin” and “Boeing” as a historical reference
to the ELV Business for the purpose of identifying the Company as the successor-in-interest thereof. The Company acknowledges and agrees that to the extent it shall use any trademark, logo or trade name of the Members or their respective Affiliates,
the applicable Member shall retain exclusive ownership rights in such trademarks, logos or trade names, as the case may be, and all such uses shall inure to the benefit of the Member that owns such trademark, logo or trade name and shall be in
accordance with the applicable Member’s quality control standards. 
  
 Section 5.09 Novation of Government Contracts. Immediately following the Closing, the Company shall, in accordance with, and to the extent required by the Federal Acquisition Regulation Part 42, Subpart 42.12, submit in writing to
its Defense Contract Executive and each responsible contracting officer a request for the U.S. Government to recognize the Company as the successor in interest to all of the Government Contracts being sold, assigned, transferred and conveyed to the
Company in accordance with the Transaction Documents. Each of the Members shall (i) provide the Company, its Defense Contract Executive and each responsible contracting officer all information necessary to obtain, to the extent required by the
Federal Acquisition Regulation Part 42, Subpart 42.12, the consent of the U.S. Government to recognize the Company as the successor in interest to all of its Government Contracts being sold, assigned, transferred and conveyed to the Company in
accordance with this Agreement and (ii) enter into novation agreements (the “Novation Agreements”) substantially in the form contemplated by such regulations. Each of the Members and the Company shall use reasonable commercial
efforts to obtain all consents, approvals and waivers required for the purpose of processing, entering into and completing the Novation Agreements with regard to the Government Contracts, including responding to any reasonable requests for
information by the U.S. Government with regard to such Novation Agreements. In the event of any delay in entering into such Novation Agreements or any inability to enter into such Novation Agreements, the Parties will treat the applicable Government
Contracts in accordance with Section 3.05. 
  

 - 20 - 

 Section 5.10 Company Financing.  
  
 (a) In order to fund the initial working capital needs of the Company, each
of Lockheed Martin and Boeing shall make available to the Company an amount to be mutually agreed by the Members (each, a “Working Capital Fund”), in cash or immediately available funds and the Company shall have the right to draw
against such Working Capital Funds from time to time upon written notice to the Members together with reasonable documentation of the Company’s requirement therefor and a statement of its then current working capital needs; provided,
that any such draw by the Company shall be made from each Member’s Working Capital Fund in an equal amount. Any amounts drawn by the Company against the Member’s Working Capital Funds shall constitute a capital contribution by the Members
to the Company and the Company shall have no obligation to repay any such amounts to the Members.  
  
 (b) The Company shall use reasonable commercial efforts (and each of the Members shall use reasonable commercial efforts to assist the Company) to enter
into a revolving credit agreement or similar financing arrangement (the “Initial Company Financing Arrangement”) to support the Company’s working capital and other financing needs, the terms of which shall be mutually
acceptable to the Members, at or as soon as possible following the formation of the Company and in any event prior to the Closing. To the extent necessary to obtain the Initial Company Financing Arrangement, each of the Members shall guarantee the
obligations of the Company on a basis proportionate to their respective percentage ownership interest in the Company and on other terms and conditions reasonably acceptable to the Members.  
  
 Section 5.11 Competitive Businesses. Unless and until the Closing of
the Contemplated Transactions is consummated, the Members will continue to operate as competitive businesses and will not collaborate in any manner, including with respect to Bids, or take any other action in violation of Applicable Law. 

 
 Section 5.12 Stay of Civil Proceeding. 
  
 (a) The Members agree that all proceedings and activities (including all
dates established by any order of court, including discovery, appeal or objection deadlines, dates for filing of motions, hearing deadlines, and the date for trial) in the Civil Proceeding should be stayed until the Closing occurs. On or promptly
(but in no event later than three Business Days) after the date of execution of this Agreement, the Members shall jointly advise the District Court before which the Civil Proceeding is pending that the Members have entered into this Agreement which,
upon the occurrence of the Closing, will result in dismissal with prejudice of the Civil Proceeding. The Members shall also jointly request, and thereafter use reasonable efforts to cause, the entry by the District Court of a stipulated order
staying all activities and proceedings in the Civil Proceeding until the Closing. The Members further agree that their jointly requested stipulated order shall include a provision that on the earlier of April 1, 2006 (if the Closing has not occurred
before such date) or the date this Agreement is terminated pursuant to Section 12.01, either Member may apply to the District Court for an order lifting the stay and, upon such application, the Court shall enter an order lifting the stay and
directing that all of said activities and proceedings that have been stayed may be recommenced, with all pretrial and trial dates, including all discovery obligations and deadlines, adjusted by the length of the stay. If pursuant to such application
of either Member the stay is lifted prior to the termination of this Agreement, then either Member may terminate this Agreement upon written notice to the other Member. 
  

 - 21 - 

 The Members further agree that neither shall file any other action or proceeding asserting any of the claims or
counterclaims that are alleged in the Civil Proceeding unless and until the District Court lifts the stay. 
  
 (b) In the event the District Court does not stay all activities and proceedings in the Civil Proceeding or sua sponte lifts the stay prior
to April 1, 2006 or the date of termination of this Agreement pursuant to Section 12.01, promptly (but in no event later than three Business Days) thereafter, the Members shall jointly request the dismissal without prejudice of the Civil Proceeding.
To bring about said dismissal of the Civil Proceeding, Lockheed Martin shall dismiss without prejudice the Amended and Supplemental Complaint filed in the Civil Proceeding and Boeing shall dismiss without prejudice its Counterclaim filed in the
Civil Proceeding. The Members further agree that if the Closing shall not have been consummated before April 1, 2006, or upon termination of this Agreement pursuant to Section 12.01, within 60 days thereafter but not sooner than 30 days thereafter,
Lockheed Martin may re-commence the Civil Proceeding by filing a new complaint (the “Replead Complaint”) and in its response to such Replead Complaint, Boeing may re-file a new counterclaim (the “Replead
Counterclaim”), provided, however, that neither Member may allege any claim that (i) is not presently alleged in the Member’s presently pending pleading or (ii) has been dismissed by the Court as of the date of the
dismissal of the Civil Proceeding pursuant to this Section 5.12(b). The Members agree that any and all statutes of limitations applicable to the claims alleged in the Amended and Supplemental Complaint are tolled as to such claims during the period
of time between the date of the dismissal of Lockheed Martin’s Amended and Supplemental Complaint pursuant to this Section 5.12(b) and the date upon which the Replead Complaint is filed. The Members agree that any and all statutes of
limitations applicable to the claims alleged in the Counterclaim are tolled as to such claims during the period of time between the date of the dismissal of Boeing’s Counterclaim pursuant to this Section 5.12(b) and the date upon which the
Replead Counterclaim is filed. The Members further agree that in the recommenced Civil Proceeding each will not plead or assert any statute of limitations, laches or other defense based upon the passage of time to the causes of action alleged in the
Replead Complaint or in the Replead Counterclaim, except to the extent that such defenses were available to the Member under Applicable Law, including Fed. R. Civ. Proc. 15(c), as of the date any given cause of action was first filed. The Members
further agree that all discovery obtained or produced in connection with the Civil Proceeding may be used by the Members in the recommenced Civil Proceeding, subject to the terms and conditions of the Amended Protective Order for Confidentiality
dated January 26, 2005, until entry of a new protective order or the execution of a confidentiality agreement by the Members applicable to that discovery. 
  
 (c) Each of the Members agrees (for itself and for and on behalf of each of its divisions, Affiliates, Subsidiaries, predecessors, successors and
assigns), from and after the execution of this Agreement, that it will not urge, recommend, advocate or request that any component of the U.S. Government initiate or pursue criminal proceedings against Boeing or Lockheed Martin (or any of their
respective divisions, Affiliates or Subsidiaries) or administrative proceedings with respect to the present responsibility as a U.S. Government contractor of Boeing or Lockheed Martin (or of any of their respective divisions, Affiliates or
Subsidiaries), including investigation, indictment, prosecution, suspension or debarment, based upon or arising out of any actual or alleged past act or omission of any of them in connection with: (i) any U.S. Government or commercial program
(including any related competition, 
  

 - 22 - 

 procurement, award or sale) relating to Delta II, Delta IV, Titan, Proton, Atlas III or Atlas V or any derivative of any
of them; (ii) any event, fact or circumstance alleged in the Civil Proceeding or in the complaint or any amended complaint, counterclaim or other filing made in connection with the Civil Proceeding; (iii) any alleged or actual act or omission by
Darleen Druyun; and/or (iv) any alleged or actual act or omission of either Member relating to Darleen Druyun; provided, however, that nothing herein is intended to interfere with either Member’s right or obligation to provide
evidence and otherwise cooperate fully in connection with any U.S. Government investigation or other U.S. Government proceeding; and provided further that nothing herein is intended to interfere with Boeing’s right to submit
evidence and argument in connection with or defense of any pending or future U.S. Government investigation or other U.S. Government proceeding with respect to Boeing relating to the above-referenced matters; and provided further that nothing herein
is intended to interfere with Boeing’s reporting obligations under the Administrative Agreement. Upon execution of this Agreement, Lockheed Martin agrees not to file any lawsuit in Federal, state or local court naming Boeing as a party in which
it alleges any claim relating to the conduct of Darleen Druyun, or of Boeing relating to Darleen Druyun unless and until this Agreement is terminated pursuant to Section 12.01. 
  
 Section 5.13 Non-Competition Agreement. 
  
 (a) Each Member agrees, on behalf of itself and each of its Subsidiaries, that (i) during the period beginning as of the
Closing Date and ending seven and one-half years thereafter, or such earlier date as provided for in the Operating Agreement (the “Non-Compete Term”), it will not, and it will cause its Subsidiaries not to, directly or indirectly,
either for itself or for any other Person, enter into, engage in, provide managerial, supervisory, administrative or consulting services or assistance to, represent or own any beneficial interest in, any business with operations engaged directly or
indirectly in (A) the manufacture, sale, repair, service or support of Competitive Launch Vehicles for the U.S. Government or (B) providing to the U.S. Government the service of launching payloads into Earth orbit or beyond Earth orbit using
Competitive Launch Vehicles, and (ii) during the period beginning as of the Closing Date and ending five years thereafter, it will not, and it will cause its Subsidiaries not to, directly or indirectly, either for itself or for any other Person,
enter into, engage in, provide managerial, supervisory, administrative or consulting services or assistance to, represent, or own any beneficial interest in, any business with operations engaged directly or indirectly in the design or development of
Competitive Launch Vehicles for the U.S. Government (all such operations described in the foregoing clauses (i) and (ii), for the respective periods set forth therein, collectively, the “Competing Operations”). For purposes of this
Section 5.13, “Competitive Launch Vehicle” means any expendable launch vehicle capable of lifting payloads of up to a maximum of 70 metric tons into low Earth orbit (but excluding expendable launch vehicles capable of lifting no
more than two metric tons into low Earth orbit) and any expendable launch vehicle capable of performance equivalent to such capacity beyond low Earth orbit (with a comparable exclusion). 
  

 - 23 - 

 (b) The provisions of Section 5.13(a) shall not prohibit either Member or any of its Subsidiaries from:

  
 (i) continuing anywhere in the world any type of business
conducted by such Member or any of its Subsidiaries on the date hereof, which is not part of such Member’s ELV Business as conducted on the date hereof; 
  
 (ii) entering into any relationship with a Person not owned, managed, operated or controlled by such Member or any of its Subsidiaries for purposes
primarily unrelated to Competing Operations; 
  
 (iii) acquiring
or holding for investment purposes 10% or less of any class or series of equity securities of any Person, which class or series of equity securities is registered under Section 12 of the Securities Exchange Act of 1934, as amended, even if that
Person is engaged in Competing Operations; 
  
 (iv) acquiring
control of a business or Person (whether through the acquisition of assets, securities or other ownership interests, the effecting of a merger, consolidation, share exchange, business combination, reorganization, recapitalization or other similar
transaction) (an “Acquired Business”) that is engaged in Competing Operations where the revenues of the Competing Operations of the Acquired Business in its most recently completed fiscal year were less than the lowest of (A) 10% of
the total revenues of the Acquired Business for such fiscal year, (B) 20% of the total revenues of the Company for its most recently completed fiscal year (provided that this clause (B) will not apply prior to the end of the Company’s first
full completed fiscal year) and (C) $400,000,000; 
  
 (v)
acquiring control of an Acquired Business that is engaged in Competing Operations where the revenues of the Competing Operations of the Acquired Business in its most recently completed fiscal year were (x) higher than the lowest of (A) 10% of the
total revenues of the Acquired Business for such fiscal year, (B) 20% of the total revenues of the Company for its most recently completed fiscal year (provided that this clause (B) will not apply prior to the end of the Company’s first full
completed fiscal year) and (C) $400,000,000, but (y) lower than 50% of the total revenues of the Acquired Business for its most recently completed fiscal year; provided that such Member shall use commercially reasonable efforts to divest or
discontinue the Competing Operations of the Acquired Business as promptly as practicable and in any event shall complete such divestiture or, subject to the last sentence of this Section 5.13(b)(v), discontinuance not later than 18 months following
such acquisition. It is understood and agreed that, in connection with any such divestiture, the Company will be afforded an opportunity to participate in the Member’s divestiture process and to bid for the Competing Operations of the Acquired
Business on a basis comparable to that afforded by the Member to other potential purchasers (but not on a preferred basis). Notwithstanding the foregoing, nothing in this Section 5.13(b)(v) shall prohibit a Member and its Subsidiaries from
performing their obligations under binding agreements of the Acquired Business with customers, suppliers, employees and other Persons that either (A) were in effect prior to the consummation of the acquisition of the Acquired Business or (B) are
entered into after the acquisition of the Acquired Business for so long as the Member is in good faith attempting to effect a divestiture of the Competing Operations in accordance with this Section 5.13(b)(v); 
  

 - 24 - 

 (vi) the design, development, manufacture, sale, repair, service or support of reusable launch vehicles
(including expendable components of reusable launch vehicles) or the supply of related services to the U.S. Government or any other Person; 
  
 (vii) the design, development, manufacture, sale, repair, service or support of components used in expendable launch vehicles; 
  
 (viii) entering into any business engaged in, engaging in, continuing to
engage in or providing managerial, supervisory, administrative or consulting services or assistance to or representing any business engaged in (x) the design, development, manufacture, sale, repair, service or support of expendable launch vehicles
for launches of payloads into Earth orbit and beyond Earth orbit for Commercial Customers, or (y) providing to Commercial Customers the service of launching payloads into Earth orbit or beyond Earth orbit using such expendable launch vehicles;

  
 (ix) providing any services under a contract with the U.S.
Government where the contract does not include as part of the goods or services provided thereunder an expendable launch vehicle; 
  
 (x) the design, development, manufacture, sale, repair, service or support of satellites and/or related payloads (whether manned or unmanned), for launch
into Earth orbit or beyond Earth orbit or the integration of such satellites or payloads (whether manned or unmanned) with expendable launch vehicles, including pursuant to a DIO Contract; 
  
 (xi) holding any interest in the Company or taking any action, exercising
any right or performing any obligation under the Transaction Documents; or 
  
 (xii) the design, development, manufacture, sale, repair, service or support of missiles that deliver warheads or that act as kinetic or ballistic weapons. 
  
 (c) If the final judgment of a court of competent jurisdiction declares that
any term or provision of this Section 5.13 is invalid or unenforceable, the Parties agree that the court making the determination of invalidity or unenforceability will have the power to reduce the scope, duration or area of the term or provision,
to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or
provision. 
  
 (d) Nothing in this Section 5.13 shall be deemed to
prohibit, limit or restrict in any way any activities of (i) Boeing or its Subsidiaries related to Sea Launch vehicles or any expendable launch vehicles derived from the Space Shuttle or (ii) Lockheed Martin or its Subsidiaries related to the Titan
(but only to the extent required to perform under Contracts existing on the date hereof), Proton, Angara, Falcon, Trident or Athena vehicles, or any expendable launch vehicles derived from the Space Shuttle. 
  
 Section 5.14 Spaceport Lease. The Company covenants and agrees that it
shall at all times conduct its business in compliance with the terms and conditions of the Lease dated as of February 14, 2000 by and between Lockheed Martin, as Lessee and Mortgagor, and Spaceport 
  

 - 25 - 

 Florida Authority, as Lessor and Mortgagee (the “Spaceport Lease”), as if the Company were the original
direct Lessee thereunder. Lockheed Martin covenants and agrees that, in the event the Lease Balance (as defined in the Spaceport Lease) becomes due and payable under the terms of the Spaceport Lease as a result of the occurrence of a Lease Event of
Default (as defined in the Spaceport Lease) under Section 16.1(e) of the Spaceport Lease and such Lease Event of Default is not cured or waived within the applicable grace period, Lockheed Martin will exercise its Early Prepayment Option (as defined
in the Spaceport Lease) and prepay the Lease Balance (as defined in the Spaceport Lease) pursuant to and in accordance with Section 18.1 of the Spaceport Lease. For the remainder of the Term (as defined in the Spaceport Lease) the Company shall pay
to Lockheed Martin the Basic Rent (as defined in the Spaceport Lease) at the times and in the amounts as would have been owed to the Lessor under the Spaceport Lease had Lockheed Martin not exercised the Early Prepayment Option in accordance with
the terms of the lease assignment for the Spaceport Lease to be entered into pursuant to Section 3.01(h). Lockheed Martin further covenants and agrees that it will not take any action to amend the terms of the Spaceport Lease in a manner that is
adverse to the interests of the Company as assignee of the Spaceport Lease without the prior written consent of the Company. Lockheed Martin agrees to cooperate reasonably with the Company in any efforts by the Company to obtain refinancing of the
outstanding Lease Balance under the Spaceport Lease and the related Lessor financing so that the term of the Spaceport Lease may be renewed for a five year term, provided that Lockheed Martin shall not be obligated to remain liable under the
Spaceport Lease beyond February 15, 2010. 
  
 Section 5.15
Compliance with Administrative Agreement. In accordance with the terms and provisions of the Interim Administrative Agreement dated March 4, 2005 (the “Administrative Agreement”) between Boeing and the United States
Department of the Air Force (the “Air Force”), the Company and each of the Members agree that the Company shall, from and after the Closing, (i) maintain throughout the ELV Business, including Boeing’s former ELV Business, an
ethics/compliance program generally comparable to the ethics/compliance program currently in existence at Boeing’s ELV Business and sufficient to establish the continued present responsibility of the Company, including Boeing’s former ELV
Business, to the satisfaction of the Air Force and (ii) be accountable to the Air Force for compliance by the Company with respect to activities following the Closing, including Boeing’s former ELV Business, with other applicable terms of the
Administrative Agreement. Without limiting the foregoing, the Company will appoint and maintain a special compliance officer to oversee the implementation of the applicable measures outlined in the Administrative Agreement, which compliance officer
shall, at Boeing’s request and if permissible under the terms of the Administrative Agreement, be the same person serving as Boeing’s special compliance officer. The costs of compliance with the Administrative Agreement will be paid by the
Company except to the extent any such cost is an Excluded Liability or is not allocable and allowable pursuant to Section 11.05. For the avoidance of doubt, such costs incurred by the Company that are unallowable under the terms of the
Administrative Agreement shall be reimbursed to the Company by Boeing or paid by Boeing. 
  

 - 26 - 

 ARTICLE VI 
 FURTHER COVENANTS AND AGREEMENTS OF THE PARTIES 
  
 Section 6.01 Further Assurances. Subject to the terms and conditions of this Agreement, each Party shall use reasonable commercial efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things necessary or desirable under Applicable Law, to consummate or implement the Contemplated Transactions, including providing information reasonably requested by other Persons necessary for such Persons to evaluate whether to consent
to the assignment of any Contracts, licenses or permits or related rights or obligations. The Parties shall execute and deliver, and shall cause their respective Subsidiaries, as appropriate or required as the case may be, to execute and deliver,
such other documents, certificates, agreements and other writings and to take such other actions as may be necessary or desirable to consummate or implement the Contemplated Transactions. Except as otherwise expressly set forth in the Transaction
Documents, nothing in this Section 6.01 or elsewhere in the Transaction Documents shall require any Party or any of their respective Affiliates to make any payments or issue any guarantee or other Financial Support Arrangements in order to obtain
any consents or approvals necessary or desirable in connection with the consummation of the Contemplated Transactions. 
  
 Section 6.02 Certain Filings; Consents. The Parties shall cooperate with each other (a) in determining whether any action by or in respect of, or
filing with, any Governmental Authority is required, or any actions, consents, approvals or waivers are required to be obtained in respect of any Contracts, licenses or permits constituting Contributed Assets, in connection with the consummation of
the Contemplated Transactions and (b) subject to the terms and conditions of this Agreement, in taking any such actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain any such
actions, consents, approvals or waivers. 
  
 Section 6.03
Public Announcements. On the date of execution and delivery of this Agreement, the Members shall issue a joint press release substantially in the form attached hereto as Attachment X. Prior to the Closing, the Parties shall not (and
shall not permit any Affiliate to) issue any press release or make any public statement with respect to this Agreement or any of the Contemplated Transactions, except as may be required by Applicable Law or any listing agreement with any national
securities exchange, in which case no Party shall issue any such press release or make any such public statement without prior discussion with the other Parties (to the extent reasonably practicable) and without complying with Applicable Law.
Notwithstanding the foregoing, no provision of this Agreement shall (a) relieve either Member from any of its obligations under the Confidentiality Agreement or (b) terminate any of the restrictions imposed upon the Parties by Section 5.03.

  
 Section 6.04 Antitrust Laws. 
  
 (a) The Members shall make the filings required under the HSR Act and any
other Antitrust Laws. The Members shall also comply at the earliest practicable date with any request for additional information, documents or other materials received from the Federal Trade Commission or the Department of Justice or any other
Governmental Authority, including the European Union Competition Commission and other international competition authorities. The Members shall use all reasonable commercial efforts to resolve objections, if any, that may be asserted by any
Governmental Authority with respect to the Contemplated Transactions under any Antitrust Laws, including the HSR Act, the Sherman Act, as amended, the Clayton Act, as 
  

 - 27 - 

 amended, and the Federal Trade Commission Act, as amended. If any judicial or administrative action or proceeding is
initiated (or threatened to be initiated) by a Governmental Authority challenging the Contemplated Transactions as violative of any Antitrust Law or any other Applicable Law, for so long as both Members desire to oppose any such action or
proceeding, the Members shall each cooperate to contest and resist any such action or proceeding, and to have vacated, lifted, reversed or overturned any decree, judgment, injunction, ruling, decision, finding or other order (whether temporary,
preliminary, or permanent) until such time as a final, non-appealable order has been entered. 
  
 (b) Each Member covenants and agrees that, to the extent practicable, prior to engaging in any substantive discussions with any representatives of a Governmental Authority concerning the Contemplated Transactions, the
Member will advise the other Member of the anticipated substance of the discussions, provide the other Member with copies of any written materials it intends to provide to or review with such representatives and afford the other Member a reasonable
opportunity to comment upon the anticipated substance of the discussions or such written materials or to join the Member and participate in such discussions. In the event it is impracticable for a Member to comply with its obligations in the
preceding sentence because the Member is contacted directly by a representative of a Governmental Authority without advance notice, or in any event such a discussion occurs without the presence of Representatives of both Members, as soon as
practicable following any such discussions the Member shall advise the other Member of the discussions, the identity of the parties participating in the discussions and the substance of the discussions, and shall provide the other Member with copies
of any written materials provided to, reviewed with or received from representatives of the Governmental Authority. 
  
 Section 6.05 Agreements Regarding Tax Matters. 
  
 (a) Each Member shall (i) provide the Company with such assistance as may be reasonably requested in connection with the preparation of any Tax Return or
any audit or other examination by any Tax Authority or proceeding involving any Governmental Authority relating to liability for Taxes, (ii) retain for a period of six years following the end of the calendar year in which the Closing occurs and
provide to the Company all records and other information that may be relevant to any such Tax Return, audit or examination, proceeding or determination, and (iii) provide the Company with a copy of any final determination of any such audit or
examination, proceeding or determination that affects any amount required to be shown on any Tax Return of the Company for any period. Without limiting the generality of the foregoing, each Member shall retain, until the expiration of the applicable
statutes of limitation (including any extensions thereof), copies of all Tax Returns, supporting work schedules and other records relating to Tax periods or portions thereof ending on or prior to the Closing Date that concern the Contributed Assets
or the Assumed Liabilities. 
  
 (b) The Members agree that the
transactions contemplated by this Agreement constitute a disposition of a trade or business within the meaning of Section 41(f)(3) of the Code. The Members will provide to the Company upon request all information necessary to permit the Company to
apply the provisions of Section 41(f)(3)(A) of the Code. 
  

 - 28 - 

 (c) If either Member receives any refund of Taxes relating to its ELV Business for periods prior to the
Closing Date and the Tax liability to which such refund relates was included as a cost in a cost-reimbursement or fixed-price incentive (cost-redeterminable) Government Contract, then such Member and the Company shall cooperate to determine the
appropriate portion of such Tax refund due to any Governmental Authority pursuant to the applicable provisions of the Federal Acquisition Regulation as if the Company had pursued and obtained an identical Tax refund. Once the appropriate portion due
any Governmental Authority is determined, such Member shall promptly remit such portion directly to such Governmental Authority. 
  
 (d) The Company shall timely prepare and, with the prior written consent of the Members (which consent shall not be unreasonably withheld or delayed),
file all Tax Returns, reports and forms required by any Tax Authority to be filed by the Company. The Company shall timely prepare and, with the prior written consent of the Members (which consent shall not be unreasonably withheld or delayed), file
all Non-Income Tax Returns with respect to the Contributed Assets or the ELV Business for any Tax period beginning before and ending after the Closing Date (a “Straddle Period”). 
  
 (e) The Company shall pay all Non-Income Taxes due with respect to any
Straddle Period; provided, that the Members shall be liable for and, to the extent paid by the Company, shall reimburse the Company for any such Non-Income Taxes attributable to the portion of such Straddle Period beginning before and ending
as of the effective time of the Closing (including Non-Income Taxes resulting from the transactions contemplated by this Agreement but, except as provided in Section 13.03, not including sales Taxes, transfer Taxes or stamp Taxes imposed with
respect to the transfer of the Contributed Assets or the ELV Business pursuant to this Agreement), but only to the extent such Non-Income Taxes are not recoverable by the Company from a Governmental Authority pursuant to the Federal Acquisition
Regulation. Any Non-Income Taxes arising from or with respect to the Contributed Assets or the ELV Business for a Straddle Period shall be apportioned between the Company and the Members by allocating real and personal property taxes between the
Members and the Company based on the ratio of the number of days in the Straddle Period occurring before the Closing Date to the number of days in the Straddle Period occurring on or after the Closing Date and by assuming, with respect to all other
Non-Income Taxes, that the ELV Business had a tax period that ended at the close of business on the day immediately prior to the Closing Date and closed its books as of that time. The Company shall reimburse the Members for any such Non-Income Taxes
paid by the Members for which the Company is liable pursuant to this Section 6.05(e). 
  
 (f) Boeing shall be liable for and, to the extent paid by the Company shall reimburse the Company for, any Income Taxes attributable to the Boeing Contributed Assets and the portion of the ELV Business conducted by
Boeing attributable to any Tax period that begins before and ends either (i) before, or (ii) as of the effective time of the Closing. Lockheed Martin shall be liable for and, to the extent paid by the Company shall reimburse the Company for, any
Income Taxes attributable to the Lockheed Martin Contributed Assets and the portion of the ELV Business conducted by Lockheed Martin attributable to any Tax period that begins before and ends either (i) before, or (ii) as of the effective time of
the Closing. 
  

 - 29 - 

 (g) The Company shall engage an independent accounting firm of national reputation to assist in the
preparation of the Company’s Income Tax Returns. 
  
 (h)
Lockheed Martin shall be designated as the “tax matters partner” within the meaning of Section 6231(a)(7) of the Code and in any similar capacity under Applicable Law. 
  
 (i) The Company and the Members shall make the election under Treasury Regulation Section 301.6231(a)(1)-1(b) to have the
TEFRA unified partnership procedures of Sections 6221 through 6231 of the Code apply with respect to the Company. 
  
 (j) The Company shall reimburse each Member for all state and local Income Taxes paid by such Member that are properly allocable to the Company under the
Federal Acquisition Regulation. 
  
 Section 6.06 Administration
of Accounts. All payments and reimbursements that constitute a Contributed Asset or relate to an Assumed Liability received by either Member after the Closing Date shall be promptly paid over to the Company without right of set-off. All payments
and reimbursements that constitute Excluded Assets or relate to an Excluded Liability received by the Company after the Closing Date shall be promptly paid over to applicable Member without right of set-off. 
  
 Section 6.07 Clearances; Undisclosed Contracts. Promptly after the
date hereof, subject to Applicable Law, each of Lockheed Martin and Boeing shall, with respect to each of the Contracts of its ELV Business that require security clearances and/or special program accesses, or that contain confidentiality or
non-disclosure provisions requiring the specific approval of customers or other Persons for disclosure of the terms thereof (the “Undisclosed Contracts”), subject to national security restrictions, use reasonable commercial efforts
to obtain all required security clearances, special program accesses and/or the approval of customers or other Persons as necessary to enable (i) each Member and its Representatives to conduct a review of the Undisclosed Contracts of the other
Member’s ELV Business to which such Member shall have been denied access prior to the date hereof, and (ii) the Company to conduct the ELV Business from and after the Closing Date. Upon receiving the security clearances, special program
accesses or approvals of customers or other Persons, as the case may be, as contemplated by the preceding clause (i), each Member shall permit the other Member’s Representatives to conduct a review of such Undisclosed Contracts, subject to the
terms and conditions of the clearance, accesses and/or approvals, the provisions of the Confidentiality Agreement and the provisions of Applicable Law. 
  
 Section 6.08 Audits. Following the Closing Date, the Parties shall cooperate reasonably with each other in connection with any audit or review by
any Governmental Authority with respect to the ELV Business and the businesses of the Members and their Subsidiaries (other than their ELV Businesses), provided that any Tax audit shall be governed solely by the terms of Section 6.05.

  

 - 30 - 

 Section 6.09 Certain Environmental Matters. 
  
 (a) Each of the Members covenants and agrees, to the extent necessary for
continuation of the use as of the Closing Date of any real property constituting any of its Contributed Assets, or any real property leased or subleased by it to the Company pursuant to this Agreement, or as required by applicable Environmental Law,
to pay (except to the extent that such obligation constitutes an Assumed Liability) or otherwise resolve, in cooperation with the Company, any Environmental Claim based on its respective Pre-Closing Environmental Conditions and to investigate,
monitor, remediate, or otherwise respond to its respective Pre-Closing Environmental Conditions in accordance with applicable Environmental Laws (“Remediation Programs”). The Company acknowledges and agrees that neither Member shall
have any obligation to (i) conduct or pay for any voluntary actions with respect to the Pre-Closing Environmental Conditions beyond that necessary for continuation of the applicable property’s use as of the Closing Date or otherwise mandated by
applicable Environmental Laws or (ii) accelerate its respective Remediation Programs ahead of any legally mandated schedule. The Company acknowledges and agrees that each of the Members shall, in cooperation with the Company, have primary
responsibility with regard to its respective Remediation Programs and related activities. The Company shall fully cooperate with the Members in connection with performance of the Remediation Programs and related activities and the Company shall use
commercially reasonable efforts not to disturb, damage, delay, hinder or otherwise interfere with the Members’ Remediation Programs or related activities. Each of the Members will cooperate in good faith prior to the Closing to have prepared a
Phase I environmental study of each of their respective Contributed Leased Real Properties and Contributed Owned Real Properties and, with respect to Lockheed Martin, the portion of the Denver Facility to be leased to the Company under the Denver
Lease Agreement, and shall provide to the other Member the results of such Phase I studies prior to the Closing. 
  
 (b) The Company acknowledges and agrees that each of the Members shall be primarily responsible, in cooperation with the Company, for determining and
developing the extent, contents, timetable and all other aspects of its respective Remediation Programs. The Members shall be responsible for all negotiations and other discussions with Governmental Authorities relating to compliance with
Environmental Laws concerning the Pre-Closing Environmental Conditions, the Remediation Programs and any related matters, and the Company will not initiate or otherwise engage in any communications with any Governmental Authorities relating to
compliance with Environmental Laws concerning Pre-Closing Environmental Conditions, the Remediation Programs or any related matters without the prior written consent of the applicable Member, which consent may be conditioned on such Member’s
active participation in such communications. The Company shall promptly advise the applicable Member of any such communications initiated by a Governmental Authority relating to compliance with Environmental Laws and shall promptly provide such
Member with copies of all documents received from a Governmental Authority relating to compliance with Environmental Laws concerning any such matters. Each of the Members shall promptly inform the Company of the substance and outcome of any
negotiations between such Member and a Governmental Authority relating to compliance with Environmental Laws concerning any Pre-Closing Environmental Condition, Remediation Program or related matter. The Company acknowledges and agrees that the
Members shall have primary responsibility, in cooperation with the Company, for all decisions regarding the selection and implementation of the Remediation Programs and any related matters. 
  

 - 31 - 

 (c) The Company shall provide each Member and its respective Representatives and contractors with access
to any and all portions of any property that have been or may have been affected by Pre-Closing Environmental Conditions that the applicable Member reasonably determines are necessary or appropriate to enter for conducting Remediation Programs, or
that such Member reasonably determines are necessary or appropriate to enter to satisfy any applicable requirement of Environmental Law. To accomplish the foregoing, the Company hereby grants each of the Members and its respective Representatives
and contractors an irrevocable license and right to enter upon any such property and to engage in all activities reasonably related to such tasks, including the right to collect environmental samples, install, operate, repair, and maintain wells,
piping, treatment devices and other equipment, the right to review, copy or otherwise use the Company’s documents, computer files or other information reasonably related to such Member’s Pre-Closing Environmental Conditions and associated
matters and the right to interview or otherwise consult with the Company’s Representatives and contractors concerning such Pre-Closing Environmental Conditions and associated matters. Such license shall be a covenant running with the land and
shall be transferable to any party succeeding to the interests of the Members with respect to the performance of any Remediation Programs. The Company further agrees to execute any documentation in recordable form evidencing such license in favor of
a Member as reasonably appropriate. Upon a Member’s request, the Company shall promptly provide such Member with copies of any documents, computer files or other information that the Member reasonably determines would be relevant to its ability
to carry out its Remediation Programs or any related activities. Upon the Company’s or a Member’s request, a Member shall promptly provide the Company or the other Member with an annual remediation plan summarizing the anticipated remedial
activities to be taken over the course of the following year and with copies of any documents, computer files or other information that the Company or the other Member reasonably determines would be relevant to its evaluation of a Remediation
Program or any related activities, to support any filings with or submissions to Governmental Authorities or to confirm that the Remediation Program is being conducted in compliance with Applicable Law. Except in emergency situations, the Members
and their Representatives and contractors agree to provide advance written or telephonic notice to the Company prior to entering any property of the Company. Upon satisfaction of the notice requirement and upon presentation of their credentials to
the Company, the Company covenants and agrees to provide the Members and their Representatives and contractors with all reasonably required access to the relevant property, the Company’s information, and the Company’s personnel.

  
 (d) The Company shall provide the Members with all water and
utilities reasonably necessary to develop, implement and complete the Remediation Programs or other requirements of applicable Environmental Laws. The Company covenants and agrees to provide appropriate parking, administrative space, storage
facilities, sanitary facilities and other support services that the Members may reasonably require to accomplish the foregoing. 
  
 (e) To the extent the Company’s consent, signature, authorization or other cooperation is necessary to obtain a permit from or the authorization or
approval of any Governmental Authority to enable the Members to develop or implement the Remediation Program or to otherwise satisfy any applicable Environmental Laws, the Company hereby covenants and agrees promptly and fully to provide the same.

  

 - 32 - 

 (f) The Company acknowledges that the Members’ respective activities related to their Remediation
Programs and/or compliance with applicable Environmental Laws may interfere with the Company’s use of some or all of the Company’s properties, may alter the properties or may limit future uses of the properties. To the extent permitted by
the Remediation Programs and applicable Environmental Laws, the Members covenant and agree to make commercially reasonable efforts to minimize such interference, alteration or limitation and to consult with and seek the approval of the Company of
any Remediation Programs, which approval shall not be unreasonably withheld. The Members and their Representatives and contractors shall make commercially reasonable efforts to prevent their activities from unreasonably interfering with or impeding
the Company’s uses of the respective properties as of the Closing Date and to control dust, noise, vibration or other visible effects of their activities. Upon completion of the Remediation Programs, the Members shall remove their materials,
equipment and debris promptly from the property and shall use reasonable efforts to restore the property to substantially its original condition. The Company shall not, without the applicable Member’s advance written consent, construct, modify,
remove or install any equipment, building, paving or other item on any part of any properties previously designated by either of the Members as a Remediation Program area that could unreasonably interfere with or significantly increase the cost of
the Members’ respective obligations arising under the Remediation Programs or any applicable Environmental Law. 
  
 (g) Each of the Members shall, in consultation with the Company if the Company so requests, have absolute discretion concerning the selection of its
respective Representatives and/or contractors designated to perform the Remediation Programs and/or other obligations under applicable Environmental Laws. 
  
 (h) Each of the Members shall have authority, in cooperation with the Company, to resolve all issues and settle all matters relating to its respective
Pre-Closing Environmental Conditions, and the Company agrees not to interfere with any such efforts by the Members and further agrees to join in and abide by any Member decisions regarding the foregoing. The Members shall keep the Company informed
concerning the existence and nature of such issues and matters and any proposed decisions or settlements relating to the foregoing. 
  
 (i) In addition to complying with the other provisions of this Section 6.09 to the extent applicable to the Rancho Cordova Property, the Company and
Boeing also will cooperate in continuing to implement the ongoing Remediation Program in respect of the Rancho Cordova Property, including by means of an agreement on mutually acceptable terms pursuant to which Boeing will administer the Remediation
Program on behalf of the Company. Boeing and the Company agree that to the extent permitted by existing applicable agreements and administrative orders, they will keep each other fully informed about such Remediation Program, including allowing each
other a reasonable opportunity to review and comment on all submissions to regulators prior to submission, and will cooperate with each other and take appropriate actions to ensure that there is full compliance with the existing agreements and
administrative orders and other requirements of Applicable Laws. Upon the reasonable request of the Company, Boeing shall use reasonable commercial efforts to grant the Company access to the Rancho Cordova Property, it being understood that Boeing
is not the current owner of the Rancho Cordova Property and therefore cannot assure such access. 
  

 - 33 - 

 (j) The Company covenants and agrees not to transfer or assign any interest in any real property, whether
constituting a Contributed Asset or leased or subleased to the Company, unless the transferee or assignee agrees, for the benefit of the Members and any of their successors, transferees or assignees, to comply with the provisions of this Section
6.09, as if such transferee or assignee was the Company under this Agreement. 
  
 (k) Nothing in this Section 6.09 shall be deemed to limit or otherwise modify any other provision of this Agreement, including clause (vii) of each of the definitions of Boeing Assumed Liabilities and Lockheed Martin
Assumed Liabilities. 
  
 Section 6.10 Payments Relating to
Certain Pre-Closing Activities. Promptly after receipt thereof, the Company will pay (i) to Lockheed Martin any amounts received by the Company from the U.S. Government with respect to Assured Access to Space infrastructure sustainment relating
to an Atlas V to the extent relating to periods ending on or before the Closing Date and (ii) to Boeing any amounts received by the Company from the U.S. Government with respect to Assured Access to Space infrastructure sustainment relating to a
Delta IV to the extent relating to periods ending on or before the Closing Date. 
  
 ARTICLE VII 
 TRANSACTION DOCUMENTS 
  
 Section 7.01 Transaction Documents. Each Party covenants and agrees,
as an inducement to the others to enter into this Agreement and to consummate the Contemplated Transactions, to execute and deliver and to cause its respective Subsidiaries to execute and deliver each Transaction Document to which each is a party.

  
 ARTICLE VIII 
 EMPLOYEE AND EMPLOYEE BENEFIT MATTERS 
  
 Section 8.01 Employee and Employee Benefit Matters. The Parties agree as to employee and employee benefit matters as set forth in Exhibit E.

  
 ARTICLE IX 
 REAL PROPERTY AND RELATED MATTERS 
  
 Section 9.01 Certain Real Property and Related Matters. The Parties shall cooperate with each other and use reasonable commercial efforts to obtain
any consents or approvals required in connection with the assignment of the leases to the Contributed Leased Real Property to the Company and to obtain from applicable landlords or other third parties the release of the applicable Member and its
Affiliates from all liabilities and obligations under the leases in respect of the Contributed Leased Real Property; provided, however, that if any landlord of any Contributed Leased Real Property is unwilling either to release the
applicable Member or its Affiliated Transferor from all liabilities and obligations under the lease relating to such Contributed Leased Real Property or to include in the consent to any such assignment a recapture provision that would allow such
Member or its Affiliated Transferor to take back the lease in the event of a default by the Company under the lease, at the option of such Member, in lieu thereof, such Member or its applicable Affiliated Transferor, as the case may be, and the
Company shall execute and deliver a sublease agreement for the sublease by the Company of such Contributed 
  

 - 34 - 

 Leased Real Property on terms and conditions to be mutually agreed between the Members. In addition, (a) Lockheed Martin
and the Company agree to enter into the Denver Lease Agreement, and (b) each of the Members and the Company agree to take such actions as necessary to transfer the Contributed Owned Real Property to the Company, in each case effective as of the
Closing. Notwithstanding the foregoing, except as otherwise expressly set forth in the Transaction Documents, nothing in this Section 9.01 shall require any Party to make any payments in order to obtain such consents, approvals or releases, except
for reasonable and customary costs to cover actual expenses incurred by landlords to process any requests for assignment. 
  
 ARTICLE X 
 CONDITIONS TO CLOSING

  
 Section 10.01 Conditions to Obligations of Each
Member. The obligations of each Member to consummate the Closing are subject to the satisfaction (or waiver by each Member) of the following conditions: 
  
 (a) any applicable waiting period (and any extension thereof) under any Antitrust Law (including the HSR Act) relating to the Contemplated Transactions
shall have expired or been terminated and any necessary approvals under any Antitrust Law shall have been obtained, and there shall not be (i) any pending action or proceeding in which a Governmental Authority is seeking to enjoin the Contemplated
Transactions, or (ii) a final, nonappealable order entered by a Governmental Authority that enjoins or otherwise prohibits the Contemplated Transactions; 
  
 (b) no provision of any Applicable Law and no judgment, injunction, order or decree issued by a court or other Governmental Authority of competent
jurisdiction shall prohibit the Closing; 
  
 (c) no action or
proceeding shall be pending before any court or other Governmental Authority that seeks to prohibit the Closing, or impose damages or obtain other relief in connection with the Contemplated Transactions that (i) is brought by any Governmental
Authority having jurisdiction in respect thereof or (ii) is brought by any Person (other than a Governmental Authority) if in the case of this clause (ii) such action or proceeding reasonably could be expected to prohibit the Closing or result in a
Material Adverse Effect on either of the Members or the ELV Business; 
  
 (d) all actions by or in respect of, or filings with, any Governmental Authority (other than actions or filings in connection with the Novation Agreements) required to permit the consummation of the Closing shall have been taken or made,
and the Company and the Members shall have entered into one or more advance agreements, in form and substance reasonably satisfactory to the Members, with the appropriate Governmental Authority concerning matters relating to the formation of the
Company and the concept of its operations; 
  
 (e) neither Member
nor the Company shall have received any official written notification from the Office of the Secretary of Defense of the United States Department of Defense (“DOD”) or the Administrator of the National Aeronautics and Space
Administration 
  

 - 35 - 

 (“NASA”) that either the DOD and/or NASA objects to or intends to seek to prevent consummation of the
Contemplated Transactions or intends to oppose the novation of Government Contracts from the Members to the Company; 
  
 (f) clearance under the federal rules and regulations relating to the National Industrial Security Program, in the form of approvals and agreement
prescribed by the DOD, shall have been obtained from the DOD for the Company to own and operate those portions of the ELV Business that are governed by such program, and the Company shall have obtained all such security clearances and/or special
program accesses as are necessary in order to enable the Company to continue the ELV Businesses of each of the Members as of the Closing Date; 
  
 (g) the Company shall have in place the Initial Company Financing Arrangement; 
  
 (h) the Members shall have obtained the consents, approvals or permits contemplated by Attachment XI; and 

 
 (i) the representations and warranties of the Company contained in this
Agreement shall be true and correct at and as of the date of the Joinder and as of the Closing Date, as if made at and as of each such date, except that those representations and warranties that by their express terms are made as of a specific date
shall be required to be true and correct only as of such date, in each case except for inaccuracies that could not reasonably be expected to have a Material Adverse Effect on the Company. 
  
 Section 10.02 Conditions to Obligations of Lockheed Martin. The individual obligations of Lockheed Martin to
consummate the Closing are subject to the satisfaction (or waiver by Lockheed Martin) of the following further conditions: 
  
 (a) (i) Boeing shall have performed in all material respects all of its obligations under this Agreement required to be performed by it at or prior to the
Closing, (ii) the representations and warranties of Boeing contained in this Agreement shall be true and correct at and as of the date of this Agreement and as of the Closing Date, as if made at and as of each such date, except that those
representations and warranties that by their express terms are made as of a specific date shall be required to be true and correct only as of such date, in each case except for inaccuracies that could not reasonably be expected to have a Material
Adverse Effect on Boeing’s ELV Business or the Company, and (iii) Lockheed Martin shall have received a certificate signed by an officer of Boeing to the foregoing effect; 
  
 (b) except as contemplated in Schedule C.06, since the date of this Agreement, no event shall have occurred that has
had or reasonably could be expected to have a Material Adverse Effect on Boeing’s ELV Business; 
  
 (c) Boeing and the Company shall have entered into an agreement pursuant to which each shall (i) agree to flow through to the other, to the extent
applicable, the protections of the CSLA, and (ii) waive all claims against the other and the U.S. Government, on behalf of itself and its contractors, subcontractors, suppliers and customers, and the contractors, subcontractors and suppliers of its
customers, of a nature covered under the reciprocal waiver requirements of the CSLA, including claims for death, bodily injury or property damage or loss resulting from the supply of ELV Systems and related Launch Services; and 
  

 - 36 - 

 (d) Boeing (or its applicable Subsidiaries) shall have executed and delivered, on or before the Closing
Date, each of the Transaction Documents that are required to be executed by Boeing or its Subsidiaries. 
  
 Section 10.03 Conditions to Obligations of Boeing. The individual obligations of Boeing to consummate the Closing are subject to the
satisfaction (or waiver by Boeing) of the following further conditions: 
  
 (a) (i) Lockheed Martin shall have performed in all material respects all of its obligations under this Agreement required to be performed by it at or prior to the Closing, (ii) the representations and warranties of
Lockheed Martin contained in this Agreement shall be true and correct at and as of the date of this Agreement and as of the Closing Date, as if made at and as of each such date, except that those representations and warranties that by their express
terms are made as of a specific date shall be required to be true and correct only as of such date, in each case except for inaccuracies that could not reasonably be expected to have a Material Adverse Effect on Lockheed Martin’s ELV Business
or the Company, and (iii) Boeing shall have received a certificate signed by an officer of Lockheed Martin to the foregoing effect; 
  
 (b) except as contemplated in Schedule B.06, since the date of this Agreement, no event shall have occurred that has had or reasonably could be
expected to have a Material Adverse Effect on Lockheed Martin’s ELV Business; 
  
 (c) Lockheed Martin and the Company shall have entered into an agreement pursuant to which each shall (i) agree to flow through to the other, to the extent applicable, the protections of the CSLA, and (ii) waive all
claims against the other and the U.S. Government, on behalf of itself and its contractors, subcontractors, suppliers and customers, and the contractors, subcontractors and suppliers of its customers, of a nature covered under the reciprocal waiver
requirements of the CSLA, including claims for death, bodily injury or property damage or loss resulting from the supply of ELV Systems and related Launch Services; and 
  
 (d) Lockheed Martin (or its applicable Subsidiaries) shall have executed and delivered, on or before the Closing Date, each
of the Transaction Documents that are required to be executed by Lockheed Martin or its Subsidiaries. 
  
 Section 10.04 Updated Disclosure Schedules. At any time prior to the Closing, each Member shall be entitled to deliver to the other Member updates
to, or substitutions of, such Member’s Disclosure Schedules; provided, that such updates or substitutions are clearly marked as such and are addressed to the other Member at the addresses listed in Section 13.01. In the event any Member
delivers updated or substitute Disclosure Schedules within three days of any date scheduled for Closing, the other Member shall be entitled to extend, by written notice to the updating Member, the scheduled date for Closing to the third day after it
receives the updated or substitute Disclosure Schedules, or if such day is not a Business Day, to the next Business Day. The delivery by a Member of updated or substitute Disclosure Schedules shall not prejudice any rights of the other Member under
this Agreement, including the right to claim that the 
  

 - 37 - 

 representations and warranties of the updating Member, when made on the date of this Agreement or as of the Closing Date,
were untrue, or that any condition to Closing (without regard to any such updates or substitutions) was unfulfilled. 
  
 Section 10.05 MAE Exceptions. It is acknowledged and agreed that the occurrence of one or more of the events that arguably could constitute a
Material Adverse Effect on a Member’s ELV Business but for the application of subsections (v), (x), (y) and (z) of the proviso to the definition of “Material Adverse Effect” hereunder (the “MAE Exceptions”) shall not
give rise to the right of either Member to terminate this Agreement pursuant to Section 12.01, or otherwise to assert that the closing conditions set forth in Section 10.02 or 10.03 have not been satisfied. In the event of the occurrence of one or
more events constituting a MAE Exception, the Parties shall cooperate in good faith to minimize the impact of such MAE Exception on the Company and the ELV Business to be performed by the Company after the Closing Date. 
  
 ARTICLE XI 
 SURVIVAL; INDEMNIFICATION 
  
 Section 11.01 Survival. None of the representations, warranties, covenants or agreements of the Parties contained in this Agreement shall survive the Closing, except that: 
  
 (a) solely for purposes of the indemnification provided in Sections
11.02(a)(i)(1) and 11.02(b)(i)(1) and 11.02(c)(i): 
  
 (i) the
representations and warranties in Sections B.01, B.02, C.01, C.02, D.01, D.02 and D.07 shall survive the Closing indefinitely; 
  
 (ii) the representations and warranties in Sections B.16 and C.16 shall survive the Closing for a period ending upon the later of three years from the
Closing Date or the date on which the applicable statute of limitations expires; and 
  
 (iii) the representations and warranties in Exhibit B, Exhibit C and Exhibit D (other than those Sections referenced in the preceding clauses (i) and (ii), which shall survive solely to the extent
provided by such clauses (i) and (ii)) shall survive the Closing for a period of two years from the Closing Date; and 
  
 (b) those covenants and agreements set forth in this Agreement that, by their terms, are to have effect after the Closing Date shall survive for the
period contemplated by the covenants and agreements, or if no period is so contemplated, indefinitely. 
  
 The representations, warranties, covenants and agreements referenced in the preceding clauses (a) and (b) as surviving the Closing are referred to herein as the “Surviving Representations or
Covenants.” It is understood and agreed that (x) after the Closing, the sole and exclusive remedy with respect to any breach of any Surviving Representation or Covenant shall be a claim for Damages (whether by contract, in tort or
otherwise, and whether in law, in equity or both) made pursuant to this Article XI; provided, that notwithstanding the foregoing, nothing in this Article XI shall limit the right of any Party (A) to pursue an action for or to seek remedies
with respect to claims for fraud or (B) to seek specific performance or other equitable relief; and (y) before the Closing, the Parties shall be entitled to the termination and other remedies set forth in Article 
  

 - 38 - 

 XII and indemnification under this Article XI shall not apply. Without limiting the foregoing, it is understood that
except to the extent provided in this Article XI, neither Lockheed Martin nor Boeing shall have any liability to the other for any diminishment in value of the other’s ownership interest (or the ownership interest of the other’s
Subsidiaries) in the Company as a result of any matters giving rise to a claim for indemnification under this Article XI. 
  
 Section 11.02 Indemnification. 
  
 (a) Effective as of the Closing and subject to the limitations set forth in Section 11.04(a), Lockheed Martin hereby indemnifies each of (x) Boeing, its
Affiliates and its Representatives (together with their respective successors and permitted assigns) (the “Boeing Indemnified Parties”), and (y) the Company, its Affiliates and its Representatives (together with their respective
successors and permitted assigns) (the “Company Indemnified Parties”) against, and agrees to defend and hold them harmless from, any and all Damages incurred or suffered by any of them (i) arising out of, resulting from or related
to (1) any breach of any Surviving Representation or Covenant made or to be performed by Lockheed Martin or its Subsidiaries pursuant to this Agreement (for purposes of this clause (i)(1), all representations and warranties shall be read without
reference to materiality, Material Adverse Effect or similar qualifications), (2) any Lockheed Martin Excluded Liabilities (including Lockheed Martin’s or any of its Subsidiaries’ failure to perform or in due course pay or discharge any
Lockheed Martin Excluded Liability), or (3) any matters for which indemnification is provided by Lockheed Martin under Exhibit E (it being understood that the terms of such indemnification shall be governed by and subject to the terms of
Exhibit E to the extent such terms differ from the provisions of this Article XI), and (ii) as contemplated in Schedule 11.02(a); provided, that Lockheed Martin shall have no obligation to indemnify the Boeing Indemnified
Parties for breaches of representations and warranties under Section 11.02(a)(i)(1). 
  
 (b) Effective as of the Closing and subject to the limitations set forth in Section 11.04(b), Boeing hereby indemnifies each of (x) Lockheed Martin, its Affiliates and its Representatives (together with their
respective successors and permitted assigns) (the “Lockheed Martin Indemnified Parties”), and (y) the Company Indemnified Parties, against, and agrees to defend and hold them harmless from, any and all Damages incurred or suffered
by any of them (i) arising out of, resulting from or related to (1) any breach of any Surviving Representation or Covenant made or to be performed by Boeing or its Subsidiaries pursuant to this Agreement (for purposes of this clause (i)(1), all
representations and warranties shall be read without reference to materiality, Material Adverse Effect or similar qualifications), (2) any Boeing Excluded Liabilities (including Boeing’s or any of its Subsidiaries’ failure to perform or in
due course pay or discharge any Boeing Excluded Liability), or (3) any matters for which indemnification is provided by Boeing under Exhibit E (it being understood that the terms of such indemnification shall be governed by and subject to the
terms of Exhibit E to the extent such terms differ from the provisions of this Article XI), and (ii) as contemplated in Schedule 11.02(b); provided, that Boeing shall have no obligation to indemnify the Lockheed Martin
Indemnified Parties for breaches of representations and warranties under Section 11.02(b)(i)(1). 
  
 (c) Effective as of the Closing, the Company hereby indemnifies the Lockheed Martin Indemnified Parties and the Boeing Indemnified Parties against, and
agrees to defend and hold them harmless from, any and all Damages incurred or suffered by any of them 
  

 - 39 - 

 arising out of, resulting from or related to (i) any breach of any Surviving Representation or Covenant made or to be
performed by the Company pursuant to this Agreement, (ii) any Assumed Liabilities (including the Company’s failure to perform or in due course pay or discharge any Assumed Liability), (iii) any Financial Support Arrangement, (iv) any matters
for which indemnification is provided by the Company under Exhibit E (it being understood that the terms of such indemnification shall be governed by and subject to the terms of Exhibit E to the extent such terms differ from the
provisions of this Article XI) or (v) any liabilities or obligations arising in connection with, resulting from or relating to (A) the ELV Business (but only to the extent conducted on or after the Closing Date), or (B) a facility the possession of
which is transferred to the Company at Closing (but only to the extent relating to a period on or after the Closing Date), or (C) the use, ownership, lease or operation by the Company, an Affiliate of the Company or a successor of the Company or
such Affiliate, of any facility the possession of which is transferred to the Company at Closing, whether vested or unvested, contingent or fixed, actual or potential, liability for which arises under or relates to Environmental Laws to the extent
such liabilities or obligations arise out of, relate to, are based on or result from any action taken by the Company (or a failure by the Company to take action) or any event occurring on or after the Closing Date, including liabilities or
obligations related to (1) Remedial Actions, (2) personal injury, wrongful death, economic loss or property damage, (3) natural resource damages, (4) violations of Applicable Law or (5) any other Damages with respect to Environmental Laws.

  
 Section 11.03 Procedures. 
  
 (a) If any Party or any of the Parties’ respective Affiliates or
Representatives shall seek indemnification pursuant to Section 11.02, the Person seeking indemnification (the “Indemnified Party”) shall give written notice to the Party from whom such indemnification is sought (the
“Indemnifying Party”) promptly (and in any event within 30 days) after the Indemnified Party (or, if the Indemnified Party is a corporation, any officer or director of the Indemnified Party) becomes aware of the facts giving rise to
such claim for indemnification (an “Indemnified Claim”) specifying in reasonable detail the factual basis of the Indemnified Claim, stating the amount of the Damages, if known, the method of computation thereof, containing a
reference to the provision of this Agreement in respect of which such Indemnified Claim arises and demanding indemnification therefor. The failure of an Indemnified Party to provide notice in accordance with this Section 11.03, or any delay in
providing such notice, shall not constitute a waiver of that Party’s claims to indemnification pursuant to Section 11.02, except to the extent that (i) any such failure or delay in giving notice causes the amounts paid or to be paid by the
Indemnifying Party to be greater than they otherwise would have been or otherwise results in prejudice to the Indemnifying Party or (ii) such notice is not delivered to the Indemnifying Party prior to the expiration of the applicable survival period
set forth in Section 11.01. If the Indemnified Claim arises from the assertion of any claim, or the commencement of any suit, action, proceeding or Remedial Action brought by a Person that is not a Party hereto (a “Third Party
Claim”), any such notice to the Indemnifying Party shall be accompanied by a copy of any papers theretofore served on or delivered to the Indemnified Party in connection with such Third Party Claim. 
  
 (b) Upon receipt of notice of a Third Party Claim from an Indemnified Party
pursuant to Section 11.03(a), the Indemnifying Party shall be entitled to assume the defense and control of such Third Party Claim subject to the provisions of this Section 11.03 by providing 
  

 - 40 - 

 
notice of such election to the Indemnified Party within 30 days of its receipt of notice of such Third Party Claim; provided, that any such assumption
of the defense and control of a Third Party Claim shall constitute an acknowledgement and acceptance by the Indemnifying Party of its obligation to indemnify the Indemnified Party for all Damages arising out of such Third Party Claim under this
Article XI. If the Indemnifying Party elects to assume the defense of a Third Party Claim, the Indemnifying Party will not be liable to the Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Party in
connection with the defense thereof as long as the Indemnifying Party is conducting its defense in accordance with this Section 11.03(b); provided, that if in the written opinion of counsel to any Indemnified Party a conflict of interest
exists in respect of such claim, such Indemnified Party will have the right to employ separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnified Party and in that event the reasonable fees and expenses of such
separate counsel will be paid by the Indemnifying Party; provided that in the event there are multiple Indemnified Parties, the Indemnifying Party shall only have an obligation to pay the fees and expenses of one separate counsel for all
Indemnified Parties. If the Indemnifying Party does not assume the defense and control of a Third Party Claim within such 30 day period, the Indemnified Party shall have the right to defend such Third Party Claim in such manner as it may deem
appropriate and the Indemnifying Party shall be liable for all Damages arising out of such Third Party Claim, to the extent that such Damages are subject to indemnification by the Indemnifying Party hereunder, and shall promptly pay or reimburse the
Indemnified Party for all reasonable fees and expenses incurred in the defense by the Indemnified Party of such Third Party Claim. Whether the Indemnifying Party or the Indemnified Party is defending and controlling any such Third Party Claim, it
shall select counsel, contractors, experts and consultants of recognized standing and competence, shall take all steps necessary in the investigation, defense or settlement thereof, and shall at all times diligently and promptly pursue the
resolution thereof. The Party conducting the defense thereof shall at all times act as if all Damages relating to the Third Party Claim were for its own account and shall act in good faith and with reasonable prudence to minimize Damages therefrom.
Each of the Indemnified Party and the Indemnifying Party shall, and shall cause each of its respective Affiliates and Representatives to, reasonably cooperate with the other in connection with any Third Party Claim at the request of the other and at
the expense of the Indemnifying Party. In addition, the Party not conducting the defense shall have the right to participate in the defense of such Third Party Claim at its own expense. 
  
 (c) The Indemnifying Party shall be authorized to consent to a settlement of, or the entry of any judgment arising from, any
Third Party Claims, and the Indemnified Party shall consent to a settlement of, or the entry of any judgment arising from, such Third Party Claims if (i) the Indemnifying Party shall pay or cause to be paid all amounts arising out of such settlement
or judgment concurrently with the effectiveness thereof, (ii) such settlement shall not encumber any of the assets of the Indemnified Party or contain any restriction or condition that would apply to such Indemnified Party or to the conduct of that
Party’s business, (iii) such settlement contains as a condition thereto a complete and unconditional release of the Indemnified Party, and (iv) such settlement does not contain any admission of wrongdoing by the Indemnified Party. Except for
the foregoing, no settlement or entry of judgment in respect of any Third Party Claim shall be consented to by any Indemnifying Party without the express written consent of the Indemnified Party, which consent shall not be unreasonably withheld or
delayed. Whether or not the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party will not consent to a settlement of, or the entry of any judgment arising from, a Third Party Claim without the express written consent
of the Indemnifying Party, which consent shall not be unreasonably withheld or delayed. 
  

 - 41 - 

 (d) If an Indemnifying Party makes any payment on an Indemnified Claim, the Indemnifying Party shall be
subrogated, to the extent of such payment, to all rights and remedies of the Indemnified Party to any insurance benefits or other claims or benefits of the Indemnified Party with respect to such claim. Such Indemnified Party will cooperate with the
Indemnifying Party in a reasonable manner, at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim. 
  
 (e) In the event that the Company is the Indemnified Party, the Member that is not the Indemnifying Party may elect to assert the Indemnified Claim on
behalf of the Company and each of the Company and such Member shall be deemed an Indemnified Party for purposes of the procedural provisions of this Section 11.03. In such event, the Company shall reasonably cooperate with the Member deemed an
Indemnified Party, which Member shall control the pursuit of the Indemnified Claim and shall do so in good faith and in a manner reasonably believed to be in the best interests of the Company. If and to the extent that the Indemnifying Party is
successful in the defense of any such Indemnified Claim, the Member asserting the Indemnified Claim on behalf of the Company will promptly reimburse the Indemnifying Party for its reasonable fees and expenses incurred in the defense of the
Indemnified Claim. 
  
 Section 11.04 Limitations.
Notwithstanding anything to the contrary in this Agreement or in any of the Transaction Documents: 
  
 (a) Lockheed Martin shall have liability to the Company Indemnified Parties with respect to breaches of the representations and warranties described in
Section 11.02(a)(i)(1) to the extent (and only to the extent) (i) the aggregate Damages of all Company Indemnified Parties (taken as a whole) shall exceed $8,000,000 (it being understood that such $8,000,000 shall be a deductible amount and shall
not be recoverable by the Company Indemnified Parties) and (ii) such matters were the subject of a written notice given by the Indemnified Party pursuant to Section 11.03(a) within the period following the Closing Date specified for each respective
matter in Section 11.01. In addition, Lockheed Martin will not be responsible for making any payments with respect to Damages for any individual items relating to the representations and warranties described in Section 11.02(a)(i)(1) where Damages
relating thereto are less than $25,000 (or, in the case of representations and warranties that include materiality, Material Adverse Effect or similar qualifications, $1,000,000) and such items shall not be aggregated for purposes of determining
whether Damages incurred by Company Indemnified Parties exceed the deductible amount set forth in clause (i) above. 
  
 (b) Boeing shall have liability to the Company Indemnified Parties with respect to breaches of the representations and warranties described in Section
11.02(b)(i)(1) to the extent (and only to the extent) (i) the aggregate Damages of all Company Indemnified Parties (taken as a whole) shall exceed $8,000,000 (it being understood that such $8,000,000 shall be a deductible amount and shall not be
recoverable by the Company Indemnified Parties) and (ii) such matters were the subject of a written notice given by the Indemnified Party pursuant to Section 11.03(a) within the period following the Closing Date specified for each respective matter
in Section 11.01. In addition, Boeing will not be responsible for making any payments 
  

 - 42 - 

 
with respect to Damages for any individual items relating to the representations and warranties described in Section 11.02(b)(i)(1) where Damages relating
thereto are less than $25,000 (or, in the case of representations and warranties that include materiality, Material Adverse Effect or similar qualifications, $1,000,000) and such items shall not be aggregated for purposes of determining whether
Damages incurred by Company Indemnified Parties exceed the deductible amount set forth in clause (i) above. 
  
 (c) If and to the extent the Company shall assert a claim for indemnification against Lockheed Martin pursuant to Sections 11.02(a)(i)(1) (in respect of a
breach of a covenant or agreement), 11.02(a)(i)(2), 11.02(a)(i)(3) or 11.02(a)(ii) for any matter, the Company shall not be required first to seek indemnification pursuant to Section 11.02(a)(i)(1) in respect of any breach of a representation or
warranty arising from such matter. If and to the extent the Company shall assert a claim for indemnification against Boeing pursuant to Sections 11.02(b)(i)(1) (in respect of a breach of a covenant or agreement), 11.02(b)(i)(2), 11.02(b)(i)(3) or
11.02(b)(ii) for any matter, the Company shall not be required first to seek indemnification pursuant to Section 11.02(b)(i)(1) in respect of any breach of a representation or warranty arising from such matter. 
  
 (d) Notwithstanding anything to the contrary contained herein, although a
Party may be entitled to make a claim for indemnification pursuant to more than one provision of this Article XI, no Party shall be entitled to recover indemnification for the same claim under more than one provision of this Article XI. 

 
 Section 11.05 Recovery under Contracts. 
  
 (a) Except as otherwise provided in this Agreement, for purposes of any
indemnification claim by a Company Indemnified Party, the amount of Damages payable by Lockheed Martin or Boeing, as the case may be, will be reduced by amounts deemed recoverable in accordance with this Section 11.05. 
  
 (b) For purposes of this Agreement, except as otherwise provided herein, any
costs of the Company potentially indemnifiable by Lockheed Martin or Boeing under Section 11.02 will be deemed recoverable except to the extent such costs are (i) unallowable (whether or not by agreement with the U.S. Government or pursuant to the
Federal Acquisition Regulation), or (ii) allowable, reasonable and allocable to definitized fixed price contracts between the Company and the U.S. Government, or options thereunder, or (iii) allocable to definitized contracts between the Company and
any Person other than the U.S. Government, or options thereunder, in each case in accordance with the Company’s established cost accounting practices and the applicable provisions of the Federal Acquisition Regulation. Such calculation will be
made as soon as practicable after the Damages subject to indemnification are identified and will be based on the Company’s best estimates of the then current and future costs and business base, consistent, to the extent possible, with the
Company’s then current rate proposals used for pricing U.S. Government contracts. 
  
 (c) (i) Prior to asserting any claim for indemnification from a Member under this Agreement, the Company shall, subject to clause (ii) below, use commercially reasonable efforts and exhaust available administrative
and judicial remedies to have any costs giving rise to 
  

 - 43 - 

 
such potential claim for indemnification treated as allowable, allocable and reasonable costs under its contracts with the U.S. Government and shall
cooperate with the indemnifying Member in taking reasonable actions to obtain a determination from the U.S. Government that such costs can be treated as allowable, allocable and reasonable. The indemnifying Member shall be responsible and pay for
any out of pocket costs and expenses as reasonably incurred by the Company in connection with such actions. To the extent the Company incurs or has incurred costs that are the subject of a dispute or that are not reimbursed by the U.S. Government
within 90 days (other than for administrative reasons) of the Company’s initial billing of such costs to the U.S. Government, the indemnifying Member shall advance funds to the Company within 30 days of receipt of a properly documented invoice
in an amount sufficient to cover such costs. Any such funds that are advanced by the indemnifying Member shall be repaid to the indemnifying Member, without interest (except to the extent that interest is recoverable from the U.S. Government),
within 30 days of receipt of payment from the U.S. Government. 
  
 (ii) In the event the management of the Company determines in good faith that seeking a determination that costs giving rise to a potential claim for indemnification may be treated as allowable, allocable and reasonable costs under its
Contracts with the U.S. Government would not be in the best interests of the Company, the Company shall promptly notify the indemnifying Member. If, after receiving such notice, the indemnifying Member provides the Company with an opinion of a law
firm experienced in U.S. Government Contract matters on the list of approved law firms contemplated by Section 7.02(b)(xv) of the Operating Agreement that the costs claimed are not clearly unallowable costs under the Federal Acquisition Regulation,
and that it is more likely than not that the Company will prevail on its claim, the Company shall continue to perform its obligations under Section 11.05(c)(i), unless and until the Members shall otherwise unanimously agree; provided,
however, that in such event, the Company shall only be obligated to seek available administrative and judicial remedies through the level of the appropriate Board of Contract Appeals or the Court of Federal Claims; and provided,
further, that the Company shall not be required to appeal any decision of the appropriate Board of Contract Appeals or the Court of Federal Claims unless the Members shall otherwise unanimously agree. If the indemnifying Member does not
provide to the Company the opinion referred to in the immediately preceding sentence reasonably promptly after receiving such notice, the Company may elect not to continue to pursue the remedies provided for in Section 11.05(c)(i). 
  
 (d) If the amount of an indemnification by a Member is reduced by costs
deemed recoverable in accordance with the foregoing, and it is later determined that such costs are actually unallowable after compliance with the provisions of Section 11.05(c), except to the extent that funds have already been advanced pursuant to
Section 11.05(c)(i), the indemnifying Member will pay the Company the amount previously deemed recoverable to the extent later determined to be unallowable with simple interest thereon from the date applicable costs are incurred to the date of
payment, at a rate per annum equal to the per annum interest rate announced from time to time by JPMorgan Chase Bank as its prime rate in effect. 
  
 (e) Nothing in this Section 11.05 shall prohibit the indemnifying Member from seeking recovery as an allowable, reasonable and allocable cost any such
cost that is not deemed recoverable under this Section 11.05 (or that is initially deemed recoverable but later determined to be actually unallowable under Section 11.05(c)) under its own contracts, at its own election and expense.

  

 - 44 - 

 ARTICLE XII 
 TERMINATION 
  
 Section
12.01 Termination. This Agreement may be terminated at any time prior to the Closing: 
  
 (a) by mutual written agreement of the Members; 
  
 (b) by either Member if the Closing shall not have been consummated by March 31, 2006; provided, however, that neither Member may terminate this Agreement pursuant to this clause (b) if the Closing shall
not have been consummated by such date by reason of the failure of such Member to perform, or to cause its Affiliates to perform, in all material respects any of its or their respective covenants or agreements contained in this Agreement;

  
 (c) by either Member if there shall be any Applicable Law that
makes consummation of the Contemplated Transactions illegal or otherwise prohibited, if consummation of the Contemplated Transactions would violate any nonappealable final order, decree or judgment of any Governmental Authority having competent
jurisdiction over such Member or if a Governmental Authority has filed suit to enjoin or otherwise prohibit the Contemplated Transactions; 
  
 (d) by either Member in the event of a breach by the other Member of any representation, warranty, covenant or agreement under this Agreement, where the
effect of such breach would be to cause the conditions to the obligation to consummate the Closing of the terminating Member not to be capable of being satisfied, and such breach is not cured by the breaching Party within 30 days of receiving
written notice from the terminating Party of the breach or alleged breach, which written notice shall state that unless such breach is cured in accordance with this Section 12.01(d) the terminating Party intends to terminate this Agreement (it being
understood that such 30 day cure period shall not under any circumstances extend the date set forth in Section 12.01(b)); and 
  
 (e) by either Member if the Closing shall not have been consummated by March 31, 2006 and either (i) the stay of the Civil Proceeding contemplated by
Section 5.12(a) shall have been lifted or (ii) a Replead Complaint shall have been filed in accordance with Section 5.12(b). 
  
 Any Member desiring to terminate this Agreement pursuant to this Section 12.01 shall give written notice of such termination to the other Member. 
  
 Section 12.02 Effect of Termination. If this Agreement is terminated
as permitted by Section 12.01: 
  
 (a) this Agreement shall
forthwith become void and of no further force or effect, except for the following provisions, which shall remain in full force and effect: (i) the 
  

 - 45 - 

 
representations and warranties set forth in Sections B.12, C.12 and D.05 (relating to finders’ fees), (ii) Section 5.03 (relating to confidentiality),
(iii) Section 6.03 (relating to publicity), (iv) this Section 12.02, (v) Section 13.03 (relating to expenses and certain Taxes), (vi) Section 13.07 (Entire Agreement), (vii) Section 13.08 (Governing Law), (viii) Section 13.15 (Jurisdiction), (ix)
Section 13.16 (Consequential Damages) and (x) Section 13.17 (Performance); 
  
 (b) such termination shall be without liability of any Party (or any Affiliate, stockholder, consultant or Representative of such Party) to the other Parties to this Agreement; provided, however, that if
the Contemplated Transactions fail to close as a result of a breach of any representation, warranty, covenant or agreement under this Agreement by any Member, or if, at the time of a termination of this Agreement pursuant to Section 12.01(e), any
Member shall be in breach of any representation, warranty, covenant or agreement under this Agreement, then in either case such Member shall be fully liable for any and all damages or losses incurred or suffered by the other Member as a result of
all such breaches if the other Member is ready, willing and able to otherwise satisfy its obligations under this Agreement; and 
  
 (c) the Members shall cause the termination and dissolution of the Company. 
  
 Section 12.03 Non-Exclusive Remedies. Notwithstanding any provision in this Article XII or elsewhere in this
Agreement to the contrary, the rights and remedies provided in Section 12.02 shall be in addition to, and not exclusive of, any rights or remedies to which the Parties may be entitled under Applicable Law as a result of a termination of this
Agreement. 
  
 ARTICLE XIII 
 MISCELLANEOUS 
  
 Section 13.01 Notices. All notices, requests and other communications to any Party hereunder shall be in writing (including telecopy or similar
writing) and shall be given, 
  
 if to Lockheed Martin:

  
 Lockheed Martin Corporation 
 6801 Rockledge Drive 
 Bethesda, MD 20816 
 Attention: Senior Vice President and General Counsel 
 Telecopy: (301) 897-6791 
  
 with copies (which shall not constitute notice) to: 
  
 Lockheed Martin Space Systems Company 
 12257 S. Wadsworth Blvd. MS-5120 
 Littleton, CO 80125-8500 
 Attention: Vice President and General Counsel 
 Telecopy: (303) 971-4684 
  
 and to 
  

 - 46 - 

 Lockheed Martin Corporation 
 6801 Rockledge Drive 
 Bethesda, MD 20816 
 Attention: Marian S. Block 
 Telecopy: (301) 897-6587 
  
 and to: 
  
 King & Spalding LLP 
 1700 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20006 
 Attention: Glenn C. Campbell 
 Telecopy: (202) 626-3737 
  
 if to
Boeing: 
  
 The Boeing Company 
 100 N. Riverside 
 Chicago, IL 60606 
 Attention: Vice President, Corporate and Strategic Development 
 Telecopy: (312) 544-2755 
  
 with copies (which shall not constitute notice) to: 
  
 The Boeing Company 
 100 N. Riverside 
 Chicago, IL 60606 
 Attention: Senior Vice President and General Counsel 
 Telecopy: (312) 544-2829 
  
 and to: 
  
 Chadbourne & Parke LLP 
 30 Rockefeller Plaza 
 New York, New York 10112 
 Attention: Peter R. Kolyer 
 Telecopy: (212) 541-5369 
  
 if to the Company: 
  
 [The Company]

 12257 S. Wadsworth Blvd. 
 Littleton, Colorado 80125 
 Attention: Chief Executive Officer 
 Telecopy: (303) 977-1145 
  

 - 47 - 

 
with copies (which shall not constitute notice) to: 
  
 [The Company] 
 12257 S. Wadsworth Blvd. 
 Littleton, Colorado 80125 
 Attention: General Counsel 
 Telecopy: (303) 977-1145 
  
 or to such
other address or telecopy number and with such other copies, as such Party may hereafter specify in writing for the purpose by notice to the other Parties. Each such notice, request or other communication shall be effective (i) if given by telecopy,
when such telecopy is transmitted to the telecopy number specified in this Section 13.01 and evidence of receipt is received or (ii) if given by any other means, upon delivery or refusal of delivery at the address specified in this Section 13.01.

  
 Section 13.02 Amendments; Waivers. 
  
 (a) No provision of this Agreement may be amended or waived unless such
amendment or waiver is in writing and signed, in the case of an amendment, by the Members, or in the case of a waiver, by the Party against whom the waiver is to be effective. 
  
 (b) No failure or delay by any Party in exercising any right, power or privilege under this Agreement shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
  
 Section 13.03 Expenses; Taxes. Except as otherwise provided in this Agreement, all costs and expenses incurred in
connection with the preparation and negotiation of this Agreement and the Contemplated Transactions shall be paid by the Party incurring such cost or expense. Notwithstanding the foregoing, all transfer taxes and similar fees and governmental
charges and all sales, use and similar taxes and governmental charges resulting from or relating to the contribution of the Contributed Assets to the Company by the Members or any of the Affiliated Transferors or resulting from or relating to the
Contemplated Transactions, shall be borne by the Company. The Company shall promptly reimburse the Members for such fees, taxes or governmental charges contemplated by the preceding sentence and paid by the Members upon presentation of a demand
therefor consistent with this Section 13.03. Notwithstanding the foregoing, all filing fees payable in connection with filings required under any Antitrust Laws shall be shared equally by Lockheed Martin and Boeing. 
  
 Section 13.04 Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. No Party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the prior written
consent of the other Parties; provided, that any Party may assign its rights under this Agreement without the other Parties’ prior written consent upon written notice to the other Parties (i) to any of its direct or indirect wholly owned
domestic Subsidiaries (provided, that if any such Subsidiary assignee, delegatee or transferee shall at any time cease to be a direct or indirect wholly owned domestic Subsidiary of the assignor, delegator or transferor, as the case may be,
the exception set forth in this clause (i) shall no longer apply and such assignment, delegation or transfer shall be void unless otherwise permitted under this 
  

 - 48 - 

 
Section 13.04) or (ii) in connection with the transfer or sale of all or substantially all of its assets or business or its merger or consolidation with
another Person. Notwithstanding the foregoing, no assignment, delegation or other transfer of rights under this Agreement shall relieve the assignor of any liability or obligation hereunder. Any attempted assignment, delegation or transfer in
violation of this Section 13.04 shall be void. 
  
 Section 13.05
Disclosure. Certain information set forth in the Disclosure Schedules has been included and disclosed solely for informational purposes and may not be required to be disclosed pursuant to the terms and conditions of this Agreement. The
disclosure of any such information shall not be deemed to constitute an acknowledgement or agreement that the information is required to be disclosed in connection with the representations and warranties made in this Agreement or that the
information is material, nor shall any information so included and disclosed be deemed to establish a standard of materiality or otherwise be used to determine whether any other information is material. 
  
 Section 13.06 Construction. As used in this Agreement, any reference
to the masculine, feminine or neuter gender shall include all genders, the plural shall include the singular, and singular shall include the plural. Unless the context otherwise requires, the term “party” when used in this Agreement means
a party to this Agreement. References in this Agreement to a party or other Person include their respective successors and permitted assigns. The words “include,” “includes” and “including” when used in this Agreement
shall be deemed to be followed by the phrase “without limitation” unless such phrase otherwise appears. Unless the context otherwise requires, references in this Agreement to Articles, Sections, Exhibits, Schedules and Attachments shall be
deemed references to Articles and Sections of, and Exhibits, Schedules and Attachments to, this Agreement. Unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning
when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. With regard to each and every term and condition of this Agreement, the Parties understand and agree that
the same have or has been mutually negotiated, prepared and drafted, and that if at any time the Parties desire or are required to interpret or construe any such term or condition or any agreement or instrument subject thereto, no consideration
shall be given to the issue of which Party actually prepared, drafted or requested any term or condition of this Agreement. 
  
 Section 13.07 Entire Agreement. 
  
 (a) This Agreement and the other Transaction Documents (including, to the extent contemplated herein, the Confidentiality Agreement) constitute the entire
agreement among the Parties with respect to the subject matter of such documents and supersede all prior agreements, understandings and negotiations, both written and oral, among the Parties with respect to the subject matter thereof. 
  
 (b) THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT NO REPRESENTATION,
WARRANTY, PROMISE, INDUCEMENT, UNDERSTANDING, COVENANT OR AGREEMENT HAS BEEN MADE OR RELIED UPON BY ANY PARTY HERETO OTHER THAN THOSE EXPRESSLY SET FORTH IN THE TRANSACTION DOCUMENTS. WITHOUT LIMITING THE GENERALITY OF THE DISCLAIMER SET 

 

 - 49 - 

 
FORTH IN THE PRECEDING SENTENCE, (I) NO MEMBER NOR ANY OF ITS AFFILIATES HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATIONS OR WARRANTIES, IN ANY
PRESENTATION OR WRITTEN INFORMATION RELATING TO ITS ELV BUSINESS GIVEN OR TO BE GIVEN IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS, OR IN ANY FILING MADE OR TO BE MADE BY OR ON BEHALF OF SUCH MEMBER OR ANY OF ITS AFFILIATES WITH ANY GOVERNMENTAL
AUTHORITY, AND NO STATEMENT MADE IN ANY SUCH PRESENTATION OR WRITTEN MATERIALS, MADE IN ANY SUCH FILING OR CONTAINED IN ANY SUCH OTHER INFORMATION SHALL BE DEEMED A REPRESENTATION OR WARRANTY HEREUNDER OR OTHERWISE, AND (II) EACH OF THE MEMBERS, ON
ITS OWN BEHALF AND ON BEHALF OF ITS RESPECTIVE SUBSIDIARIES, EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES, INCLUDING WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES OF MERCHANTABILITY. EACH MEMBER ACKNOWLEDGES THAT THE OTHER MEMBER HAS
INFORMED IT THAT NO PERSON HAS BEEN AUTHORIZED BY SUCH MEMBER OR ANY OF ITS AFFILIATES TO MAKE ANY REPRESENTATION OR WARRANTY IN RESPECT OF ITS ELV BUSINESS OR IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS, UNLESS IN WRITING AND CONTAINED IN THIS
AGREEMENT OR IN ANY OF THE OTHER TRANSACTION DOCUMENTS TO WHICH SUCH MEMBER IS A PARTY. 
  
 (c) Except as expressly provided herein this Agreement is not intended to and does not confer upon any Person other than the Parties (and their successors and permitted assigns) any rights or remedies hereunder.

  
 Section 13.08 Governing Law. This Agreement shall be
construed in accordance with and governed by the laws of the State of Delaware (without regard to the choice of law provisions thereof). 
  
 Section 13.09 Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be deemed an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each Member shall have received a counterpart hereof signed by the other Member. 
  
 Section 13.10 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction. To the extent any provision of this Agreement is determined to be prohibited or unenforceable in any jurisdiction, the Parties agree to use reasonable commercial efforts, and agree to cause
their Subsidiaries to use reasonable commercial efforts, to substitute one or more valid, legal and enforceable provisions that, insofar as practicable, implement the purposes and intent of the prohibited or unenforceable provision. 
  
 Section 13.11 Captions. The captions herein are included for
convenience of reference only and shall be ignored in the construction or interpretation hereof. 
  

 - 50 - 

 Section 13.12 Bulk Sales. The Company hereby waives compliance by the Members and each Affiliated
Transferor, in connection with the Contemplated Transactions, with the provisions of Article 6 of the Uniform Commercial Code as adopted in the States of Colorado, California, Alabama, Florida, Illinois, Texas and Maryland, and as adopted in any
other states or jurisdictions where any of the Contributed Assets are located, and any other applicable bulk sales laws with respect to or requiring notice to the Members’ (or any Affiliated Transferor’s) creditors, as the same may be in
effect on the Closing Date. The Members shall indemnify and hold the Company harmless against any and all liabilities (other than in respect of Assumed Liabilities) that may be asserted by third parties against the Company as a result of
noncompliance with any such bulk sales law. 
  
 Section 13.13
Disclaimer of Agency. This Agreement shall not constitute any Party as a legal representative or agent of any other Party, nor shall a Party have the right or authority to assume, create or incur any liability or any obligation of any kind,
expressed or implied, against or in the name or on behalf of any other Party, unless otherwise expressly permitted under the Operating Agreement or pursuant to an agreement in writing between or among any of the Parties. 
  
 Section 13.14 Dispute Resolution. 
  
 (a) Except as otherwise contemplated in Section 3.04, from and after the
Closing, in the event of any controversy or claim between or among any of the Parties arising out of, relating to or in connection with any provision of this Agreement, or the rights or obligations of the Parties hereunder, the Parties shall try to
settle their differences amicably between or among themselves. 
  
 (b) Any Party may initiate such informal dispute resolution by sending written notice of the dispute to the other Parties, and within 10 days after such notice, senior management level representatives of Lockheed Martin and Boeing shall
meet, in person or by telephone, for attempted resolution by good faith negotiations. Such representatives shall be empowered and authorized to bind their respective companies with respect to the matter in dispute, and to settle the issue on behalf
of their respective companies. If such representatives do not resolve such dispute within 30 days of receipt of the dispute notice for any reason, the Parties agree to submit the dispute to the Chief Executive Officers of Lockheed Martin and Boeing
for resolution. If the Chief Executive Officers do not resolve the dispute within 30 days after submittal, then the Parties agree to submit the dispute to final and binding arbitration before a panel of three arbitrators in New York, New York under
the Commercial Arbitration Rules of the American Arbitration Association (the “AAA Rules”). 
  
 (c) Arbitration will be commenced by any Party filing a demand for arbitration pursuant to the AAA Rules (an “Arbitration Demand”). That
Party also shall send a copy of the Arbitration Demand to the other Parties. Each of Lockheed Martin and Boeing shall select an arbitrator within 10 days of the date of the Arbitration Demand and shall so notify the other Parties in writing, or, if
Lockheed Martin or Boeing fails to select an arbitrator within such 10 day period, the American Arbitration Association (the “AAA”) shall make such appointment within five days thereafter and shall notify the Parties in writing.
Within 10 days from their appointment, the two arbitrators thus appointed shall select a third arbitrator, who shall act as the 
  

 - 51 - 

 chairman of the panel, and shall notify the Parties in writing of his or her selection. If the two arbitrators fail to
agree on a third arbitrator within 10 days of their selection, the AAA shall make the appointment within five days thereafter and shall notify the Parties in writing. If an arbitrator so selected becomes unable to serve, his or her successors shall
be similarly selected or appointed. 
  
 (d) The arbitration shall
be conducted pursuant to the Federal Arbitration Act and such procedures as Lockheed Martin and Boeing may agree, or, in the absence of such agreement, pursuant to the AAA Rules. The arbitrators will agree to comply with the Federal Arbitration Act
and the procedures agreed to by Lockheed Martin and Boeing, or if applicable, the AAA Rules (including without limitation any and all of the time deadlines governing the arbitrators’ conduct set forth in the Federal Arbitration Act, the
procedures agreed to by Lockheed Martin and Boeing and the AAA Rules, as applicable) and the terms of this Section 13.14. The arbitrators shall have case management authority and shall resolve the dispute in final within 180 days from the
commencement of the arbitration. In the event the arbitrators fail to resolve the dispute in final within 180 days from the commencement of the arbitration, either Lockheed Martin or Boeing may serve a written notice to the arbitrators and to the
other Parties that requires the arbitrators to resolve the dispute in final within 30 days of service of such written notice, provided that if the Member not serving the written notice asserts that the failure to resolve the dispute within
such 180-day period was due to delay by the Member serving the written notice, such 30-day period shall be extended by the number of days, if any, that the arbitrators (by written decision issued within such 30-day period) determine the Member
serving the written notice was dilatory. If the arbitrators fail to resolve the dispute within such 30 (or extended)—day period, any Party may remove the case from arbitration and file the action as a lawsuit in accordance with Section 13.15.
In the event a Party removes the case from arbitration pursuant to the provisions hereof, each Party hereby waives any objection that it may now or hereafter have to such removal or that such dispute continues to be subject to arbitration. For
purposes of calculating the effects of any statutes of limitations, any lawsuit initiated pursuant to this provision will be deemed to have been filed on the date that the arbitration was commenced, as established by the Federal Arbitration Act or
the AAA Rules, if applicable. 
  
 (e) The Parties agree that
Lockheed Martin and Boeing shall have the right to conduct discovery and present evidence in accordance with the following rules. Each of Lockheed Martin and Boeing shall be allowed to conduct reasonable discovery through written document requests
and depositions, the nature and extent of which discovery shall be determined by Lockheed Martin and Boeing; provided, that if Lockheed Martin and Boeing cannot agree on the terms of discovery, the nature and extent thereof will be determined
by the arbitrators who will take into account the needs of the Parties and the purposes of arbitration to make discovery expeditious and cost effective. Access to any confidential or proprietary financial or other information produced in discovery
will be limited to the discovering Member’s lawyers and other experts and a limited number (to be agreed by Lockheed Martin and Boeing) of senior managers of the discovering Member, who will be obligated to preserve the confidentiality of such
information on reasonable and customary terms. Each Party shall provide to the others, reasonably in advance of the hearing, copies of all documents which such Party intends to present at the hearing. Each of Lockheed Martin and Boeing shall be
entitled to make an oral presentation to the arbitrators. 
  

 - 52 - 

 (f) The Parties agree that a judgment may be entered on the arbitrators’ award in any court of
competent jurisdiction. The arbitrators in reviewing any claim under this Agreement shall have the exclusive authority to determine any issues as to the arbitrability of any such claim or related disputes hereunder. In reaching a decision, the
arbitrators shall interpret, apply and be bound by this Agreement and by Applicable Law. The arbitrators shall have no authority to add to, detract from or modify this Agreement or any Applicable Law in any respect. The arbitrators may grant any
remedy or relief that a court of competent jurisdiction could grant, except that the arbitrators may not grant any relief or remedy greater than that sought by the Parties, nor any special, indirect, punitive or consequential damages, including lost
profits and opportunity costs (except in each case to the extent assessed in connection with claims by other Persons). 
  
 (g) Any up-front costs of the arbitrators shall be borne equally by the Parties engaged in such dispute; provided, however, that the
non-prevailing Party in any such arbitration shall pay, and to the extent applicable reimburse the prevailing Party for, the costs and expenses of the arbitrators, including costs and expenses payable to the AAA and to the arbitrators; and
provided further, that in the event each Party prevails as to certain claims in connection with any such arbitration, the fees of the arbitrators shall be paid and/or reimbursed in accordance with the decision of the arbitrators.
Except as otherwise provided in Article XI, each Party shall bear its own costs incurred in connection with attorneys’ fees and related expenses. 
  
 (h) Notwithstanding the provisions of this Section 13.14, (i) nothing in this Agreement shall limit or in any way restrict the ability of any Party to
seek injunctive or other equitable relief in a court or other judicial body and (ii) the Parties shall have no obligation to submit any matter prior to the Closing to arbitration in accordance with this Section 13.14, including any disputes as to
whether the conditions to Closing set forth in Article X have been satisfied or whether a Member has the right to terminate this Agreement. 
  
 Section 13.15 Jurisdiction. Without limiting the provisions of Section 13.14, any suit, action or proceeding seeking to enforce any provision of,
or based on any matter arising out of or in connection with, this Agreement or the Contemplated Transactions shall be brought in the United States District Court for the District of Delaware (or, if subject matter jurisdiction is unavailable, in the
state courts of the State of Delaware), and each of the Parties hereby consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid
therein. Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the State of Delaware. Without limiting the foregoing, the Parties agree that service of process upon such Party at
the address referred to in Section 13.01, together with written notice of such service to such Party, shall be deemed effective service of process upon such Party. 
  
 Section 13.16 Consequential Damages. Notwithstanding any other provision of this Agreement or any other Transaction
Document to the contrary, no Party shall be liable to any other Party (or its Affiliates) for special, indirect, punitive or consequential damages, including lost profits and opportunity costs (except in each case to the extent assessed in
connection with claims by other Persons), resulting from or arising out of a breach of this Agreement or any other Transaction Document.  
  
 Section 13.17 Performance. Each Party will cause to be performed and hereby guarantees the performance of all actions, agreements and obligations
set forth herein to be performed by any Subsidiary of such Party.  
  

 - 53 - 

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

			
	 LOCKHEED MARTIN CORPORATION

		
	 By:
	 	 /s/ Jeffrey D. MacLauchlan

	 Name:
	 	Jeffrey D. MacLauchlan
	 Title:
	 	Vice President, Financial Strategies
	
	 THE BOEING COMPANY

		
	 By:
	 	 /s/ Joseph T. Lower

	 Name:
	 	Joseph T. Lower
	 Title:
	 	 Vice President, Corporate and
 Strategic
Development

  

 - 54 - 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its authorized officer
on this      day of              2005, and hereby joins in this Agreement as of that date. 
  

			
	[LLC TO BE FORMED]
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 - 55 - 

 EXHIBIT A 
  

DEFINITIONS 
  
 (a) The following terms have the following meanings: 
  
 “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by, or under common control with
such specified Person. For purposes of determining whether a Person is an Affiliate, the term “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of securities, contract or otherwise. For purposes of this Agreement and the Contemplated Transactions, no Party shall be deemed an Affiliate of any other Party or of any of the other Parties’ Subsidiaries.

  
 “Affiliated Transferors” means, with respect
to each of Lockheed Martin and Boeing, a Subsidiary of Lockheed Martin or Boeing, respectively, that either (i) owns any of the assets that would constitute Contributed Assets if owned, held or used by Lockheed Martin or Boeing or their respective
Subsidiaries, as the case may be, on the Closing Date or (ii) is liable for any of the Assumed Liabilities. 
  
 “Antitrust Laws” means all United States Federal and state, and any foreign, statutes, rules, regulations, orders, decrees,
administrative and judicial doctrines, and other laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade. 
  
 “Applicable Law” means, with respect to any Person, any
statute, treaty, law, ordinance, rule, regulation, order, writ, injunction, judicial decision, decree or other legally binding requirement of any Governmental Authority (including any Environmental Law) applicable to such Person or any of its
respective properties, assets, officers, directors, employees, consultants or agents (in connection with such officer’s, director’s, employee’s, consultant’s or agent’s activities on behalf of such Person). 
  
 “Assumed Liabilities” means, collectively, the Lockheed
Martin Assumed Liabilities and the Boeing Assumed Liabilities. 
  
 “Atlas Commercial Sales and Marketing Agreement” means the Atlas Commercial Sales and Marketing Agreement to be entered into by Lockheed Martin and the Company on terms and conditions consistent with the terms and
conditions summarized in Attachment VII hereto, as the same may be amended, supplemented or otherwise modified from time to time. 
  
 “Atlas Derivative” means an expendable launch vehicle that is not an Atlas V or Atlas III but is launched from a launch pad that is a
Lockheed Martin Contributed Asset; provided, that an expendable launch vehicle that consists of a lower stage substantially similar to an Atlas V or Atlas III lower stage and an upper stage substantially similar to a Delta IV or Delta II
upper stage, or vice versa, shall not be an Atlas Derivative.  
  
 “Benefit Arrangements” means, with respect to each Member, all fringe benefit plans, holiday or vacation pay, profit sharing, incentive compensation, cafeteria plans, seniority, and 

 other policies, practices, agreements or statements of terms and conditions providing employee or executive compensation
or benefits to employees of such Member’s ELV Business or any of their dependents, maintained by such Member, other than an Employee Plan. 
  
 “Bid” means, with respect to any Person, any firm quotation, bid or proposal made by such Person that if accepted or awarded would lead
to a Contract with the U.S. Government or any other Person. 
  
 “BLS” means Boeing Launch Services, Inc. 
  
 “Board” has the meaning set forth in the Operating Agreement. 
  
 “Boeing Assumed Liabilities” means the following liabilities and obligations of Boeing and its Subsidiaries, whether liquidated or unliquidated, known or unknown, fixed or contingent, accrued or
unaccrued, matured or unmatured, absolute, determined, determinable or indeterminable, or otherwise, whether presently in existence or arising hereafter:  
  
 (i) all liabilities and obligations that (A) are set forth on or reflected in Boeing’s Opening Statement, (B) are taken
into account in the calculation of Boeing’s Adjusted Net Working Capital Amount as determined in accordance with Section 3.04, or (C) are otherwise a liability or obligation of Boeing or its Affiliates that the Company is expressly assuming
pursuant to this Agreement; 
  
 (ii) all liabilities and
obligations arising under Boeing’s Contracts constituting Contributed Assets that have not been completed or terminated prior to the Closing Date, whether arising prior to, on or after the Closing Date, including liabilities and obligations
arising from or relating to the performance or nonperformance of such Contracts by the Company or any other Person, but excluding liabilities and obligations contemplated by clauses (iii), (v), (vi), (vii), (x), (xv) and (xvi) of the definition of
Boeing Excluded Liabilities; 
  
 (iii) all liabilities and
obligations in respect of Transferred Employees who are employees of Boeing’s ELV Business immediately prior to the Closing, and beneficiaries of Transferred Employees who are employees of Boeing’s ELV Business immediately prior to the
Closing, including liabilities and obligations under or relating to WARN or any similar state or local law, to the extent relating to or arising out of any actions taken by the Company on or after the Closing Date; 
  
 (iv) all liabilities and obligations under Boeing Employee Plans and Benefit
Arrangements (A) in respect of Transferred Employees who are employees of Boeing’s ELV Business immediately prior to the Closing and dependents and beneficiaries of Transferred Employees who are employees of Boeing’s ELV Business
immediately prior to the Closing, but only to the extent provided in Exhibit E to be assumed by the Company, and (B) in respect of any other Person, to the extent provided in Exhibit E; 
  
 (v) all liabilities and obligations relating to errors or omissions or
allegations of errors or omissions or claims of design or other defects with respect to any launch of an ELV System on or after the Closing Date (except as may otherwise be agreed under the Delta Commercial Sales and Marketing Agreement or any other
Contract between the Company and Boeing or any of its Affiliates); 
  

 A-2 

 (vi) all liabilities and obligations relating to warranty obligations or services with respect to any
launch of an ELV System on or after the Closing Date (except as may otherwise be agreed under the Delta Commercial Sales and Marketing Agreement or any other Contract between the Company and Boeing or any of its Affiliates); 
  
 (vii) (A) all liabilities and obligations in connection with Remedial Actions
in respect of any Boeing Contributed Leased Real Property or any Boeing Contributed Owned Real Property, whether arising prior to, on or after the Closing Date; provided, that Boeing Assumed Liabilities shall not include (subject to clause
(C) below): (x) any Environmental Liabilities in respect of tort claims (including claims for personal injury, wrongful death, economic loss or property damage) to the extent arising out of actions taken or omitted by any Person prior to the Closing
Date or (y) any Environmental Liabilities to the extent arising out of actions taken or omitted by (I) any Person prior to the Closing Date, or (II) Boeing or any of its Affiliates on or after the Closing Date, that in each case do not constitute
costs that are allowable, allocable and recoverable by the Company from the U.S. Government based on the assumptions and procedures contemplated by Section 11.05; 
  
 (B) all liabilities and obligations in connection with Remedial Actions in respect of the Rancho Cordova Property, whether
arising prior to, on or after the Closing Date; provided, that Boeing Assumed Liabilities shall not include (x) any Environmental Liabilities in respect of tort claims (including claims for personal injury, wrongful death, economic loss or
property damage) or (y) any Environmental Liabilities that do not constitute costs that are allowable, allocable and recoverable by the Company from the U.S. Government based on the assumptions and procedures contemplated by Section 11.05; and

  
 (C) all Environmental Liabilities in respect of Boeing’s
ELV Business arising out of actions taken or omitted after the Closing, or increases in such Environmental Liabilities arising out of actions taken or omitted by any Person after the Closing due to the operation or the use of the Boeing Contributed
Leased Real Property or the Boeing Contributed Owned Real Property by the Company or any other Person after the Closing; 
  
 (viii) all liabilities and obligations for any Taxes arising from or with respect to the Boeing Contributed Assets or the operations of Boeing’s ELV
Business prior to, on or after the Closing Date, other than Income Taxes in respect of any period (or portion thereof) ending on or before the Closing Date; provided, however, that Income Taxes for periods (or portions thereof) ending
prior to or on the Closing Date that are not taken into account in the calculation of Boeing’s Adjusted Net Working Capital Amount shall be Boeing Assumed Liabilities to the extent such Income Taxes are recoverable by the Company from a
Governmental Authority pursuant to the applicable provisions of the Federal Acquisition Regulation (e.g., 48 C.F.R. § 9904.403-61) governing the apportionment of such Income Taxes to operating businesses; 
  
 (ix) all liabilities and obligations (except to the extent they constitute
Environmental Liabilities, which shall be governed by clause (vii) above) relating to the Occupational Safety and Health Act of 1970, as amended, and any regulations, decisions or 
  

 A-3 

 orders promulgated thereunder, together with any state or local law, regulation or ordinance pertaining to worker,
employee or occupational safety or health in effect as the same may be amended, supplemented or superseded, to the extent arising out of actions taken or omitted on or after the Closing Date; 
  
 (x) all civil liabilities and obligations (other than fines, penalties,
restitution or other settlement amounts payable to the U.S. Government) arising out of or relating to the Civil Proceeding or the Boeing Government Investigation, whether arising prior to, on or after the Closing Date, but only to the extent such
liabilities or obligations constitute costs that are allowable, allocable and recoverable by the Company from the U.S. Government based on the assumptions and procedures contemplated by Section 11.05; 
  
 (xi) all liabilities and obligations arising from Proceedings directly or
indirectly relating to Boeing’s ELV Business or any Boeing Contributed Asset, to the extent and only to the extent arising out of actions taken or omitted on or after the Closing Date, except for liabilities and obligations of a type
contemplated by the foregoing clauses (ii) through (x), which shall be governed by such clauses; and 
  
 (xii) all liabilities and obligations created or incurred on or after the Closing Date in connection with the operation of the Company’s ELV Business
on or after the Closing Date, including such liabilities and obligations relating to the ownership by the Company or any of its successors of the Boeing Contributed Assets, the lease of the Boeing Contributed Leased Real Property or the lease,
sublease or use of any other properties in accordance with this Agreement and including, in each case, any and all Proceedings in respect thereof, except for liabilities and obligations of a type contemplated by the foregoing clauses (ii) through
(xi), which shall be governed by such clauses. 
  
 “Boeing
Contributed Assets” means, other than the Boeing Excluded Assets, all of the assets, properties, rights, licenses, permits, Contracts (except for leases of real property, which shall be a Boeing Contributed Asset only to the extent provided
in clause (ii) below), real property, causes of action and business of every kind and description as the same shall exist on the Closing Date wherever located, real, personal or mixed, tangible or intangible, owned by, leased by or in the possession
of Boeing or any of its Affiliated Transferors, whether or not reflected in the books and records thereof, and held or used primarily in the conduct of Boeing’s ELV Business as the same shall exist on the Closing Date, and including, except as
otherwise specified herein, all direct or indirect right, title and interest of Boeing or any of its Affiliated Transferors in, to and under:  
  
 (i) Boeing’s Delta II and Delta IV launch vehicles, together with associated engineering, design, manufacturing, integration, assembly, test and
launch operations used primarily in connection with Delta II and Delta IV; 
  
 (ii) the rights and interests of Boeing and its Subsidiaries pursuant to the assignment or sublease of the Boeing Contributed Leased Real Property in accordance with Section 3.01(h); 
  

 A-4 

 (iii) the rights and interests of Boeing and its Subsidiaries in the Boeing Contributed Owned Real
Property and any Government-Furnished Items granted pursuant to Contracts constituting Contributed Assets; 
  
 (iv) other than Intellectual Property and rights and interests therein (except software as set forth in clause (xviii) below), and except for the Excluded
Inventory, all personal property and interests therein, including machinery, equipment, furniture, office equipment, communications equipment, vehicles, storage tanks, spare and replacement parts, fuel and other property (and interests in any of the
foregoing) owned by Boeing or any of its Subsidiaries that are used primarily in connection with Boeing’s ELV Business; 
  
 (v) all Contracts (other than Intellectual Property licenses, which licenses constitute Boeing Contributed Assets only to the extent set forth in clause
(xviii) below, and the leases of real property relating to the Boeing Contributed Leased Real Property, which leases constitute Boeing Contributed Assets only to the extent set forth in clause (ii) above) to which Boeing or any of its Subsidiaries
is a party and which are related primarily to Boeing’s ELV Business; 
  
 (vi) all accounts receivable and notes receivable, whether or not billed, accrued or otherwise recognized in the Boeing Opening Statement or taken into account in the determination of the Boeing Adjusted Net Working
Capital Amount, together with any unpaid interest or fees accrued thereon or other amounts due with respect thereto of Boeing or its Subsidiaries that relate primarily to Boeing’s ELV Business, and any security or collateral for any of the
foregoing; 
  
 (vii) all expenses (other than in respect of Income
Taxes) that have been prepaid by Boeing or any of its Subsidiaries relating primarily to the operation of Boeing’s ELV Business, including lease and rental payments; 
  
 (viii) all of Boeing’s or any of its Subsidiaries’ rights, claims, credits, causes of action or rights of set-off
against Persons other than Boeing and its Subsidiaries relating primarily to Boeing’s ELV Business or the Boeing Contributed Assets, including unliquidated rights under manufacturers’ and vendors’ warranties (except to the extent
relating to Boeing Excluded Assets or Boeing Excluded Liabilities); 
  
 (ix) all transferable franchises, licenses, permits or other authorizations issued by a Governmental Authority owned by or granted to, or held or used by, Boeing or any of its Subsidiaries and primarily related to Boeing’s ELV
Business; 
  
 (x) except to the extent Boeing or any of its
Subsidiaries is required to retain the originals pursuant to any Applicable Law (in which case copies shall be provided to the Company upon request), all business books, records, files and papers, whether in hard copy or computer format, of Boeing
or any of its Subsidiaries used primarily in Boeing’s ELV Business, including books of account, invoices, engineering information, sales and promotional literature, manuals and data, sales and purchase correspondence, lists of present and
former suppliers, lists of present and former customers, personnel and employment records of present employees (except to the extent Business Employees do not consent to the release of copies of such records 
  

 A-5 

 to the Company), documentation developed or used for accounting, marketing, engineering, manufacturing, or any other
purpose relating primarily to the conduct of Boeing’s ELV Business at any time prior to the Closing; 
  
 (xi) the right to represent to third parties that the Company is the successor to Boeing’s ELV Business in accordance with Section 5.08; 

 
 (xii) all insurance proceeds (except to the extent relating to Boeing
Excluded Assets or Boeing Excluded Liabilities), net of any retrospective premiums, deductibles, retention or similar amounts, arising out of or related to damage, destruction or loss of any property or asset used primarily in connection with
Boeing’s ELV Business to the extent of any damage or destruction that remains unrepaired, or to the extent any property or asset remains unreplaced at the Closing Date and such proceeds were taken into account in the calculation of the Boeing
Adjusted Net Working Capital Amount; 
  
 (xiii) all assets
relating to Boeing Employee Plans and Benefit Arrangements to the extent but only to the extent Exhibit E provides for the contribution of such assets to the Company or to a trust associated with an Employee Plan or Benefit Arrangement
sponsored by the Company; 
  
 (xiv) except for the Excluded
Inventory, all raw materials, work-in-process, finished goods, supplies, parts, spare parts and other inventories that are held, used or intended by Boeing or its Subsidiaries for use primarily in connection with Boeing’s ELV Business;

  
 (xv) all Bids that are attributable to Boeing’s ELV
Business (with any contracts awarded to Boeing or any of its Subsidiaries on or prior to the Closing Date in respect of such Bids being deemed Contracts under clause (v) above); 
  
 (xvi) all goodwill generated by or associated with Boeing’s ELV Business; 
  
 (xvii) except as set forth in Schedule C.05, all other assets,
properties and rights that (A) are set forth on or reflected in Boeing’s Opening Statement and are owned by Boeing as of the Closing, or (B) are taken into account in the calculation of Boeing’s Adjusted Net Working Capital Amount as
determined in accordance with Section 3.04; and 
  
 (xviii) to the
extent transferable, and subject to Section 3.05, all software programs, documentation and other related materials, including licenses from the licensor of the software, for (A) software embedded in any hardware or equipment that is a Boeing
Contributed Asset or that is used in a separate computer to operate such hardware or equipment, and (B) operating system software and COTS software installed in any computer, workstation, personal digital assistant, cell phone or other
communications device that is a Boeing Contributed Asset. 
  
 “Boeing Contribution and Assumption Agreement” means the Contribution and Assumption Agreement to be entered into by Boeing and the Company in the form contemplated by Attachment V-B hereto, as the same may be
amended, supplemented or otherwise modified from time to time. 
  

 A-6 

 “Boeing Excluded Assets” means the following assets: 
  
 (i) all cash and cash equivalents of Boeing and its Subsidiaries, including
cash and cash equivalents used as collateral for Financial Support Arrangements and deposits with utilities, insurance companies and other Persons, except to the extent included in the calculation of the Boeing Adjusted Net Working Capital Amount;

  
 (ii) all original books and records that Boeing and its
Subsidiaries shall be required to retain pursuant to any Applicable Law (in which case copies of such books and records to the extent relating to Boeing’s ELV Business shall be provided to the Company upon request), or that contain information
relating to any business or activity of Boeing or any of its Subsidiaries not forming a part of Boeing’s ELV Business, or any employee of Boeing or any of its Subsidiaries that is not a Transferred Employee; 
  
 (iii) except to the extent that the following amounts are included in the
calculation of the Boeing Adjusted Net Working Capital Amount or are reimbursable by the Company to a Governmental Authority pursuant to the Federal Acquisition Regulation, all refunds of Income Taxes and all prepaid Income Taxes arising from or
with respect to the Boeing Contributed Assets prior to the Closing or arising from or with respect to the operations of Boeing’s ELV Business for periods (or portions thereof) ending on or prior to the Closing Date, including all refunds of
Taxes for Straddle Periods properly allocable to amounts paid by Boeing pursuant to Section 6.05; 
  
 (iv) except to the extent included in the calculation of the Boeing Adjusted Net Working Capital Amount, all assets of Boeing and its Subsidiaries (other
than Intellectual Property, which is governed by clause (viii) below) not held, owned or used primarily in connection with Boeing’s ELV Business; 
  
 (v) all rights and claims of Boeing and its Subsidiaries under any of the Transaction Documents and the agreements and instruments delivered to Boeing and
its Subsidiaries by Lockheed Martin and the Company pursuant to any of the Transaction Documents; 
  
 (vi) all notes receivable (including intercompany promissory notes) or similar claims or rights (whether or not billed or accrued) of Boeing’s ELV
Business from Boeing or any of its Subsidiaries relating to or arising out of the financing of Boeing’s ELV Business or the transfer of cash to or from Boeing’s ELV Business; 
  
 (vii) all capital stock or any other securities of Boeing or any of its Subsidiaries or any other Person; 
  
 (viii) all Boeing Intellectual Property (other than software as set forth in
clause (xviii) of the definition of Boeing Contributed Assets), and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom, and all rights to obtain
renewals, continuations, divisions or other extensions of legal protections pertaining thereto; 
  
 (ix) except as otherwise contemplated in the Transaction Documents, all Intracompany Work Agreements and all quotations, bids or proposals submitted by
Boeing or any of its Subsidiaries in response to requests for intra Boeing quotations and all rights and 
  

 A-7 

 benefits in respect of other inter-division or intra-Boeing agreements or arrangements such as intra-division work
orders, memoranda of agreement, memoranda of understanding and teaming agreements in respect of Boeing’s ELV Business;  
  
 (x) Boeing’s and its Affiliates’ businesses (other than Boeing’s ELV Business and all assets related primarily thereto), including BLS and
all assets related primarily to BLS; 
  
 (xi) all launch vehicles
and related equipment, hardware, software and other Intellectual Property used for launches of payloads, whether into Earth orbit, beyond Earth orbit or otherwise, of Boeing and its Affiliates, other than (A) the ELV Systems and (B) inventory
(including parts and work in process inventory) of Boeing’s ELV Business (other than the Excluded Inventory);  
  
 (xii) all rights, claims, credits, causes of action, rights of set-off or other assets related to any other Boeing Excluded Asset or to any Boeing
Excluded Liabilities; 
  
 (xiii) all assets relating to Boeing
Employee Plans and Benefit Arrangements, except to the extent Exhibit E provides for the contribution of such assets to the Company or to a trust associated with an Employee Plan or Benefit Arrangement sponsored by the Company; and

  
 (xiv) the Excluded Inventory; and 
  
 (xv) Boeing’s right to payments relating to certain pre-Closing activity
pursuant to Section 6.10. 
  
 “Boeing Excluded
Liabilities” means all liabilities of Boeing and its Affiliates other than the Boeing Assumed Liabilities. Without limiting the foregoing, Boeing Excluded Liabilities include: 
  
 (i) all liabilities and obligations for any Income Taxes in respect of any
period (or portion thereof) ending on or before the Closing Date, other than Income Taxes to the extent recoverable by the Company from a Governmental Authority pursuant to the applicable provisions of the Federal Acquisition Regulation
(e.g., 48 C.F.R. § 9904.403-61) governing the apportionment of such Income Taxes to operating businesses; 
  
 (ii) all liabilities and obligations, whether presently in existence or arising after the date of the Agreement, in respect of notes payable (including
intercompany promissory notes) or similar obligations (whether or not billed or accrued) to Boeing or any of its Subsidiaries relating to or arising out of the financing of Boeing’s ELV Business or the transfer of cash to or from Boeing’s
ELV Business; 
  
 (iii) except as otherwise contemplated in the
Transaction Documents, all liabilities and obligations in respect of Intracompany Work Agreements and all quotations, bids or proposals submitted by Boeing or any of its Subsidiaries in response to requests for intra-Boeing quotations and all
liabilities and obligations in respect of inter-division or intra-Boeing agreements or arrangements such as intra-division work orders, memoranda of agreement, memoranda of understanding and teaming agreements in respect of Boeing’s ELV
Business; 
  

 A-8 

 (iv) all liabilities and obligations, whether presently in existence or arising after the date of the
Agreement, relating to fees, commissions or expenses owed to any broker, finder, investment banker, accountant, attorney or other intermediary or advisor employed by Boeing or any of its Subsidiaries in connection with the Contemplated Transactions;

  
 (v) all liabilities and obligations under Boeing Employee
Plans and Benefit Arrangements, except to the extent Exhibit E provides for the assumption by the Company of such liabilities and obligations; 
  
 (vi) all liabilities and obligations relating to errors and omissions or allegations of errors or omissions or claims of design or other defects with
respect to any launch of an ELV System prior to the Closing Date; 
  
 (vii) all liabilities and obligations relating to warranty obligations or services with respect to any launch of an ELV System prior to the Closing Date; 
  
 (viii) all Environmental Liabilities arising in connection with or relating to Boeing’s ELV Business or Boeing’s
or any of its Affiliates’ use or ownership thereof that arise out of conditions existing or actions taken or omitted prior to the Closing Date, except to the extent such Environmental Liabilities constitute Boeing Assumed Liabilities pursuant
to clause (vii) of the definition of Boeing Assumed Liabilities; 
  
 (ix) all liabilities and obligations of Boeing and its Subsidiaries arising out of indemnity obligations for the benefit of directors, officers, employees and agents of Boeing and its Subsidiaries; 
  
 (x) all liabilities and obligations arising out of or relating to the results
of any audits by the United States Defense Contract Audit Agency or any other Governmental Authority having jurisdiction over Government Contracts entered into by Boeing or any of its Subsidiaries, including liabilities and obligations in respect of
inappropriate charges, allocations or expenses or any inaccurate disclosures, representations or certifications made by Boeing or any of its Subsidiaries in connection with any such Government Contracts or alleged violations of the Procurement
Integrity Act, to the extent that such liabilities and obligations relate to actions taken or omitted prior to the Closing Date, except to the extent provided in clause (x) of the definition of Boeing Assumed Liabilities;  
  
 (xi) all criminal liabilities of Boeing and its Subsidiaries (whether arising
out of actions of directors, officers, employees, agents or Affiliates) in connection with Boeing’s ELV Business, including civil, administrative or similar sanctions or penalties related thereto, arising prior to, on or after the Closing Date;

  
 (xii) all liabilities and obligations of Boeing and its
Subsidiaries arising out of allegations that actions taken prior to the Closing Date infringed the Intellectual Property rights of other Persons; 
  
 (xiii) all liabilities and obligations, whether presently in existence or arising after the date of this Agreement, relating to or arising out of Boeing
Excluded Assets or any business of Boeing or any of its Subsidiaries other than Boeing’s ELV Business (including all 
  

 A-9 

 liabilities and obligations in respect of the Rancho Cordova Property, and any agreements or arrangements between Boeing
or any of its Affiliates and any other Person relating to the Rancho Cordova Property), except to the extent provided in clause (vii) of the definition of Boeing Assumed Liabilities; 
  
 (xiv) all liabilities and obligations of Boeing and its Subsidiaries arising out of any Launch Failure of Boeing or any of
its Affiliates prior to the Closing; 
  
 (xv) all liabilities and
obligations of Boeing and its Subsidiaries arising out of allegations that Boeing or any of its Subsidiaries has breached or is in default of any lease agreement governing the Boeing Contributed Leased Real Property; and 
  
 (xvi) all liabilities and obligations arising out of or relating to the Civil
Proceeding or the Boeing Government Investigation (including all liabilities and obligations in respect of the Administrative Agreement and the implementation by the Company of the provisions of Section 5.15), to the extent such liabilities and
obligations do not constitute costs that are allowable, allocable and recoverable by the Company from the U.S. Government based upon the assumptions and procedures contemplated in Section 11.05, and all fines, penalties, restitution or other
settlement amounts payable to the U.S. Government arising out of or relating to the Civil Proceeding or the Boeing Government Investigation. 
  
 “Boeing Government Investigation” means, individually and collectively, the ongoing investigations, whether criminal, civil or
administrative, by the United States Department of Justice and the DOD concerning alleged wrongdoing relating to the alleged possession of Lockheed Martin information during the Evolved Expendable Launch Vehicle Program source selection in 1998 and
thereafter, and any similar investigation now existing or hereafter commenced by any Governmental Authority relating to such allegations. 
  
 “Business Day” means a day, other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or
required by law to close. 
  
 “Business Employee”
means an individual employed primarily in connection with a Member’s ELV Business. An employee shall be considered to be employed primarily in connection with a Member’s ELV Business (i) if such employee is badge- assigned (for purposes of
this definition, “badge-assigned” shall mean any employee whose Human Resources or Accounting Department number is assigned to the Member’s ELV Business) to the Member’s ELV Business; or (ii) if 70% or more of such
employee’s charging or regular work assignment is attributed to or has been attributed to a Member’s ELV Business over the six months preceding the date of this Agreement; provided that, such employees described in this clause (ii)
shall not be considered Business Employees if such work assignment is on a temporary basis; and provided further that employees performing services under an Interdivisional Work Authorization at Boeing’s El Paso site and
Rocketdyne business or out of Boeing’s Huntsville facility shall not be considered Business Employees. 
  
 “Civil Proceeding” means the proceeding captioned Lockheed Martin v. Boeing, Case No. 6:03 CV 796 ORL28KRS filed in the United States
District Court for the Middle District of Florida. 
  

 A-10 

 “Closing Date” means the date of the Closing. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Commercial Customer” means any Person other
than the U.S. Government, but does not include any Person providing ELV Systems and related Launch Services to the U.S. Government pursuant to a DIO Contract. 
  

“Commercial Sales and Marketing Agreements” means, collectively, the Atlas Commercial Sales and Marketing Agreement and the Delta
Commercial Sales and Marketing Agreement. 
  
 “Company
Benefit Arrangements” means, with respect to the Company, all fringe benefit plans, holiday or vacation pay, profit sharing, incentive compensation, cafeteria plans, seniority, and other policies, practices, agreements or statements of
terms and conditions providing employee or executive compensation or benefits to Transferred Employees or any of their dependents, maintained by the Company, other than a Company Employee Plan. 
  
 “Company Employee Plans” means, with respect to the Company,
each “employee benefit plan” as defined in Section 3(3) of ERISA, maintained or contributed to by the Company which provides benefits to Transferred Employees or their dependents or beneficiaries. 
  
 “Confidentiality Agreement” means, collectively, (i) the
Confidentiality Agreement by and between the Members dated November 27, 2002, (ii) the Supplemental Confidentiality Agreement Governing the Establishment of “Clean Teams” by and between the Members dated February 23, 2004, as amended as of
June 21, 2004, August 9, 2004, and September 1, 2004, (iii) the letter agreement by and between the Members dated March 24, 2005, and (iv) any amendments to the foregoing, whether executed prior to, on or after the date of this Agreement, and any
designation by either Member of information provided to the other Member as “Clean Team Evaluation Materials.” 
  
 “Contemplated Transactions” means the transactions contemplated by the Transaction Documents. 
  
 “Contracts” means, with respect to any Person, all
contracts, agreements, consulting arrangements, leases and subleases (including leases and subleases of real property), licenses, commitments, sales and purchase orders, and other undertakings of any kind, whether written or oral, to which such
Person is a party, under which such Person is otherwise entitled to benefits or by which such Person otherwise is bound. 
  
 “Contributed Assets” means, collectively, the Lockheed Martin Contributed Assets and the Boeing Contributed Assets. 
  
 “Contributed Leased Real Property” means, with respect to
each Member, the real property leased or subleased to such Member or any of its Affiliated Transferors as set forth on Schedule A-1, as the same may be amended and supplemented from time to time, including the interests of such Member or its
Affiliated Transferor in any related facilities, fixtures and improvements located therein and any other real property leased or subleased to such Member or 
  

 A-11 

 Affiliated Transferor pursuant to leases or subleases entered into after the date of this Agreement and on or prior to
the Closing Date, in each case exclusively for the benefit of such Member’s ELV Business. 
  
 “Contributed Owned Real Property” means, with respect to each Member, the real property owned by such Member or any of its Affiliated Transferors as set forth on Schedule A-2, as the same may
be amended and supplemented from time to time, including any facilities and related fixtures and improvements located therein and any other real property acquired by such Member or Affiliated Transferor after the date of this Agreement and on or
prior to the Closing Date, in each case exclusively for the benefit of such Member’s ELV Business.  
  
 “Contribution and Assumption Agreements” means, collectively, the Lockheed Martin Contribution and Assumption Agreement and the Boeing
Contribution and Assumption Agreement. 
  
 “CSLA”
means the Commercial Space Launch Act, 49 U.S.C. §§ 70101-70121, as amended, and its implementing regulations at 14 C.F.R. Parts 440-450, as amended. 
  

“Damages” means, except as otherwise provided in Schedule 11.02(a) or Schedule 11.02(b), all demands, claims, actions or
causes of action, assessments, losses, damages, costs, expenses, liabilities, judgments, awards, fines, sanctions, penalties, charges and amounts paid in settlement, including reasonable costs, fees and expenses of attorneys, experts, accountants,
appraisers, consultants, witnesses, investigators and any other agents or representatives of such Person (with such amounts to be determined net of any resulting Tax benefit actually received or realized and net of any refund or reimbursement of any
portion of such amounts actually received or realized, including reimbursement by way of insurance or third party indemnification), but specifically excluding (i) any costs incurred by or allocated to an Indemnified Party with respect to time spent
by employees of the Indemnified Party or any of its Affiliates, (ii) any special, indirect, punitive or consequential damages, including lost profits or opportunity costs (except in each case to the extent assessed in connection with a Third Party
Claim with respect to which the Person against which such damages are assessed is entitled to indemnification hereunder), (iii) the decrease in the value of any Contributed Asset to the extent that such valuation is based on any use of the
Contributed Asset other than its use as of the Closing Date or any other prior use of such Contributed Asset, (iv) any amount based on or taking into account the use of any Contributed Asset other than its use as of the Closing Date or any other
prior use of such Contributed Asset, (v) any amount that constitutes, with respect to the Person claiming indemnification, an allowable, allocable and recoverable cost based on the assumptions and procedures contemplated in Section 11.05, and (vi)
any amount included in the calculation of the Boeing Adjusted Net Working Capital Amount or the Lockheed Martin Adjusted Net Working Capital Amount. 
  
 “Delta Commercial Sales and Marketing Agreement” means the Delta Commercial Sales and Marketing Agreement to be entered into by
Boeing and the Company on terms and conditions consistent with the terms and conditions summarized in Attachment VIII hereto, as the same may be amended, supplemented or otherwise modified from time to time. 
  

 A-12 

 “Delta Derivative” means an expendable launch vehicle that is not a Delta IV or Delta II
but is launched from a launch pad that is a Boeing Contributed Asset; provided, that an expendable launch vehicle that consists of a lower stage substantially similar to a Delta IV or Delta II lower stage and an upper stage substantially
similar to an Atlas V or Atlas III upper stage, or vice versa, shall not be a Delta Derivative. 
  
 “Denver Facility” means the facility owned by Lockheed Martin and located at 12257 S. Wadsworth Blvd., Littleton, Colorado 80125, a
portion of which will be leased to the Company as of the Closing Date in accordance with a lease agreement on terms and conditions consistent with the terms and conditions summarized in Attachment IX. 
  
 “DIO Contract” means a Contract between the U.S. Government
and any Person other than the Company for the delivery of one or more satellites in orbit, with respect to which the U.S. Government has not separately contracted for the delivery of an ELV System or provision of a Launch Service. 
  
 “Disclosure Schedules” means, with respect to each Party,
the Disclosure Schedules of such Party dated the date of this Agreement relating to this Agreement, as they may be amended from time to time in accordance with the terms of this Agreement. 
  
 “ELV Business” means (i) with respect to each Member and its
Subsidiaries, the business of designing, developing and manufacturing ELV Systems for, and providing Launch Services using such ELV Systems to, the U.S. Government conducted by such Member as of the date of this Agreement, and (ii) with respect to
the Company, the business of designing, developing and manufacturing ELV Systems for, and providing Launch Services using such ELV Systems to, the U.S. Government, and to other Persons to the extent contemplated in this Agreement, the Operating
Agreement or the other Transaction Documents, to be conducted by the Company from and after the Closing in accordance with this Agreement, the Operating Agreement and the other Transaction Documents. 
  
 “ELV Systems” means Atlas V, Atlas III, Delta IV, Delta II,
the Galex Launch Vehicle, any Atlas Derivatives and/or Delta Derivatives developed by the Company after the Closing Date and any other expendable launch vehicles developed by the Company after the Closing Date, in each case used for launches of
payloads into Earth orbit and beyond Earth orbit and including in each case related equipment, hardware, software and other Intellectual Property, it being understood that “ELV Systems” shall not include the Athena, Titan, Proton, Angara,
Falcon, Trident and Sea Launch vehicles, any expendable launch vehicles derived from the Space Shuttle or any components of a launch vehicle (except to the extent such components are incorporated into a launch vehicle).  
  
 “Employee Plans” means, with respect to each Member, each
“employee benefit plan” as defined in Section 3(3) of ERISA, maintained or contributed to by such Member or any of its Affiliates, which provides benefits to employees or former employees of such Member’s ELV Business or their
dependents or beneficiaries. 
  
 “Environmental
Claim” means any written or oral notice, claim, demand, action, suit, complaint, proceeding or other communication by any third Person alleging liability or potential 
  

 A-13 

 liability (including liability or potential liability for investigatory costs, cleanup costs, governmental response
costs, natural resource damages, property damage, personal injury, fines or penalties) arising out of, relating to, based on or resulting from (i) the presence, discharge, emission, release or threatened release of any Hazardous Substances at any
location, (ii) circumstances forming the basis of any violation or alleged violation of any Environmental Laws, or (iii) otherwise relating to obligations or liabilities under any Environmental Laws. 
  
 “Environmental Laws” means any and all past, present or
future federal, state, local and foreign statutes, laws, regulations, ordinances, orders, injunctions, judicial decisions, permits, common laws or agreements with any Governmental Authority or other third party that relate to protection of the
environment or that impose liability for, or standards of conduct concerning, the manufacture, processing, generation, distribution, use, treatment, storage, disposal, discharge, release, emission, cleanup, transport or handling of Hazardous
Substances including the Resource Conservation and Recovery Act of 1976, as amended, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization Act of 1984, as amended,
the Toxic Substances Control Act, as amended, and any other so-called “Superfund” or “Superlien” laws, and similar state laws, but excluding the Occupational Safety and Health Act of 1970, as amended, and similar state laws.

  
 “Environmental Liabilities” means all
liabilities, whether vested or unvested, contingent or fixed, actual or potential, that arise under or relate to Environmental Laws, including (i) Remedial Actions, (ii) personal injury, wrongful death, economic loss or property damage claims, (iii)
claims for natural resource damages, (iv) violations of law or (v) any damages with respect thereto. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Excluded Assets” means, collectively, the Lockheed Martin
Excluded Assets and the Boeing Excluded Assets. 
  
 “Excluded Inventory” means the inventory that will be retained by Boeing and that will be subject to the terms of the Delta Inventory Supply Agreement, as more fully described in Attachment XIII hereto, which
inventory shall have the agreed upon value reflected on Schedule A-4. 
  
 “Excluded Liabilities” means, collectively, the Lockheed Martin Excluded Liabilities and the Boeing Excluded Liabilities. 
  
 “FAA” means the U.S. Federal Aviation Administration, including the Office of the Associate Administrator
for Commercial Space Transportation, and any successor agency, office or organization. 
  
 “Federal Acquisition Regulation” means Title 48, Chapter 1, of the United States Code of Federal Regulations. 
  

“Financial Support Arrangements” means any liabilities or obligations, contingent or otherwise, of a Person in respect of any
indebtedness, obligation or liability (including assumed indebtedness, obligations or liabilities) of another Person (and, in the case of the Members, 
  

 A-14 

 another division or business of the Members), including remaining obligations or liabilities associated with
indebtedness, obligations or liabilities that are assigned, transferred or otherwise delegated to another Person, if any, letters of credit and standby letters of credit (including any related reimbursement or indemnity agreements), direct or
indirect guarantees, endorsements (except for collection or deposit in the ordinary course of business), notes co-made or discounted, recourse agreements, take-or-pay agreements, keep-well agreements, agreements to purchase or repurchase such
indebtedness, obligation or liability or any security therefor or to provide funds for the payment or discharge thereof, agreements to maintain solvency, assets, level of income or other financial condition, agreements to make payment other than for
value received and any other financial accommodations. 
  
 “Foreign Export and Import Laws” means the laws and regulations of a foreign government regulating the provision of services to parties not of the foreign country or the export and import of articles and information from
and to the foreign country and to parties not of the foreign country. 
  
 “GAAP” means United States Generally Accepted Accounting Principles as in effect on the date of the Agreement. 
  
 “Galex” means Galaxy Express Corporation, a Japanese corporation. 
  
 “Galex Contract” means, collectively, the GX Program Phase C Contract Restructure, JIU-02-0002, dated April
1, 2004 between Lockheed Martin Overseas Corporation and Galex, and the GX Program Phase D1, Stage I Delivery Contract, GX-03-0001, dated April 1, 2004 between Lockheed Martin Overseas Corporation and Ishikawajima-Harima Heavy Industries Co., Ltd.
of Tokyo. 
  
 “Galex Launch Vehicle” means the
expendable launch vehicle manufactured and delivered pursuant to the Galex Contract. 
  
 “Galex Royalties” means, collectively, each of the $1,000,000 payments to be made by Galex to Lockheed Martin or its Subsidiaries for each of the first fifteen Atlas III Stage I launch vehicle units
delivered by Lockheed Martin or its Subsidiaries together with certain other contingent royalty payments due upon certain termination conditions, pursuant to the Galex Contract. 
  
 “Government Contract” means, with respect to any Person, any Contract, including any prime contract,
subcontract, facility contract, teaming agreement or arrangement, joint venture, basic ordering agreement, pricing agreement, letter contract, purchase order, delivery order, change order or other contractual arrangement of any kind, between such
Person and (i) the U.S. Government (acting on its own behalf or on behalf of another country or international organization), (ii) any prime contractor of the U.S. Government or (iii) any subcontractor with respect to any contract of a type described
in clauses (i) or (ii) above. 
  
 “Governmental
Authority” means any foreign, domestic, federal, territorial, state or local governmental authority, quasi-governmental authority, instrumentality, court, government or self-regulatory organization, commission, tribunal or organization or
any regulatory, administrative or other agency, or any political or other subdivision, department or branch of any of the foregoing. 
  

 A-15 

 “Hazardous Substances” means (i) substances defined as “hazardous substances”
or “hazardous waste” pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, or the Resource Conservation and Recovery Act of 1976, as amended, (ii) substances defined as “hazardous
substances” or “hazardous waste” in the regulations adopted pursuant to any of said laws, (iii) substances defined as “toxic substances” in the Toxic Substances Control Act, as amended, and (iv) petroleum, petroleum
derivatives, petroleum products, asbestos and asbestos-containing materials and any other substances or materials as regulated pursuant to Environmental Laws.  
  
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
  
 “Income Taxes” means Taxes on net income or gain and
franchise Taxes where the amount of such franchise Taxes is measured by reference to net income or gain. 
  
 “Intellectual Property” means all (i) issued patents and all provisional and pending patent applications, copyrights, technology,
know-how, processes, trade secrets, inventions (including inventions conceived prior to the Closing Date but not documented as of the Closing Date), proprietary data, formulae, research and development data and computer software programs, (ii)
trademarks, trade names, service marks and service names, (iii) registrations, applications, recordings, licenses and common-law rights relating thereto, and (iv) other United States, state and foreign intellectual property. 
  
 “Launch Failure” means the failure to successfully complete
any launch in accordance with contractual or other obligations. 
  
 “Launch Services” means the service of launching payloads (whether manned or unmanned) into Earth orbit or beyond Earth orbit using ELV Systems; provided, that such services are delivered in connection with or
ancillary to a contract for the delivery of an ELV System.  
  
 “Lien” means, (i) with respect to any asset, any mortgage, lien, claim, pledge, charge, security interest or other encumbrance of any kind in respect of such asset, and (ii) with respect to real property, any title defects,
encumbrances, easements and restrictions, invalidities or irregularities. 
  
 “LMCLS” means, collectively, Lockheed Martin Commercial Launch Services, Inc. and International Launch Services, Inc. 
  
 “Lockheed Martin Assumed Liabilities” means the following liabilities and obligations of Lockheed Martin
and its Subsidiaries, whether liquidated or unliquidated, known or unknown, fixed or contingent, accrued or unaccrued, matured or unmatured, absolute, determined, determinable or indeterminable, or otherwise, whether presently in existence or
arising hereafter:  
  
 (i) all liabilities and
obligations that (A) are set forth on or reflected in Lockheed Martin’s Opening Statement, (B) are taken into account in the calculation of Lockheed Martin’s Adjusted Net Working Capital Amount as determined in accordance with Section
3.04, or (C) are otherwise a liability or obligation of Lockheed Martin or its Affiliates that the Company is expressly assuming pursuant to this Agreement; 
  

 A-16 

 (ii) all liabilities and obligations arising under Lockheed Martin’s Contracts constituting
Contributed Assets that have not been completed or terminated prior to the Closing Date, whether arising prior to, on or after the Closing Date, including liabilities and obligations arising from or relating to the performance or nonperformance of
such Contracts by the Company or any other Person, but excluding liabilities and obligations contemplated by clauses (iii), (v), (vi), (vii), (x) and (xv) of the definition of Lockheed Martin Excluded Liabilities; 
  
 (iii) all liabilities and obligations in respect of Transferred Employees who
are employees of Lockheed Martin’s ELV Business immediately prior to the Closing, and beneficiaries of Transferred Employees who are employees of Lockheed Martin’s ELV Business immediately prior to the Closing, including liabilities and
obligations under or relating to WARN or any similar state or local law, to the extent relating to or arising out of any actions taken by the Company on or after the Closing Date; 
  
 (iv) all liabilities and obligations under Lockheed Martin Employee Plans and Benefit Arrangements (A) in respect of
Transferred Employees who are employees of Lockheed Martin’s ELV Business immediately prior to the Closing and dependents and beneficiaries of Transferred Employees who are employees of Lockheed Martin’s ELV Business immediately prior to
the Closing, but only to the extent provided in Exhibit E to be assumed by the Company, and (B) in respect of any other Person, to the extent provided in Exhibit E; 
  
 (v) all liabilities and obligations relating to errors or omissions or allegations of errors or omissions or claims of
design or other defects with respect to any launch of an ELV System on or after the Closing Date (except as may otherwise be agreed under the Atlas Commercial Sales and Marketing Agreement or any other Contract between the Company and Lockheed
Martin or any of its Affiliates); 
  
 (vi) all liabilities and
obligations relating to warranty obligations or services with respect to any launch of an ELV System on or after the Closing Date (except as may otherwise be agreed under the Atlas Commercial Sales and Marketing Agreement or any other Contract
between the Company and Lockheed Martin or any of its Affiliates); 
  
 (vii) (A) all liabilities and obligations in connection with Remedial Actions in respect of any Lockheed Martin Contributed Leased Real Property or any Lockheed Martin Contributed Owned Real Property, whether arising prior to, on or after
the Closing Date; provided, that Lockheed Martin Assumed Liabilities shall not include (subject to clause (B) below): (x) any Environmental Liabilities in respect of tort claims (including claims for personal injury, wrongful death, economic
loss or property damage) to the extent arising out of actions taken or omitted by any Person prior to the Closing Date or (y) any Environmental Liabilities to the extent arising out of actions taken or omitted by (I) any Person prior to the Closing
Date, or (II) Lockheed Martin or any of its Affiliates on or after the Closing Date, that in each case do not constitute costs that are allowable, allocable and recoverable by the Company from the U.S. Government based on the assumptions and
procedures contemplated by Section 11.05; and 
  

 A-17 

 (B) all Environmental Liabilities in respect of Lockheed Martin’s ELV Business arising out of
actions taken or omitted after the Closing, or increases in such Environmental Liabilities arising out of actions taken or omitted by any Person after the Closing due to the operation or the use of the Lockheed Martin Contributed Leased Real
Property or the Lockheed Martin Contributed Owned Real Property by the Company or any other Person after the Closing; 
  
 (viii) all liabilities and obligations for any Taxes arising from or with respect to the Lockheed Martin Contributed Assets or the operations of Lockheed
Martin’s ELV Business prior to, on or after the Closing Date, other than Income Taxes in respect of any period (or portion thereof) ending on or before the Closing Date; provided, however, that Income Taxes for periods (or
portions thereof) ending prior to or on the Closing Date that are not taken into account in the calculation of Lockheed Martin’s Adjusted Net Working Capital Amount shall be Lockheed Martin Assumed Liabilities to the extent such Income Taxes
are recoverable by the Company from a Governmental Authority pursuant to the applicable provisions of the Federal Acquisition Regulation (e.g., 48 C.F.R. § 9904.403-61) governing the apportionment of such Income Taxes to operating
businesses; 
  
 (ix) all liabilities and obligations (except to
the extent they constitute Environmental Liabilities, which shall be governed by clause (vii) above) relating to the Occupational Safety and Health Act of 1970, as amended, and any regulations, decisions or orders promulgated thereunder, together
with any state or local law, regulation or ordinance pertaining to worker, employee or occupational safety or health in effect as the same may be amended, supplemented or superseded, to the extent arising out of actions taken or omitted on or after
the Closing Date; 
  
 (x) all liabilities and obligations arising
from Proceedings directly or indirectly relating to Lockheed Martin’s ELV Business or any Lockheed Martin Contributed Asset, to the extent and only to the extent arising out of actions taken or omitted on or after the Closing Date, except for
liabilities and obligations of a type contemplated by the foregoing clauses (ii) through (ix), which shall be governed by such clauses; and 
  
 (xi) all liabilities and obligations created or incurred on or after the Closing Date in connection with the operation of the Company’s ELV Business
on or after the Closing Date, including such liabilities and obligations relating to the ownership by the Company or any of its successors of the Lockheed Martin Contributed Assets, the lease of the Lockheed Martin Contributed Leased Real Property
or the lease, sublease or use of any other properties in accordance with this Agreement and including, in each case, any and all Proceedings in respect thereof, except for liabilities and obligations of a type contemplated by the foregoing clauses
(ii) through (x), which shall be governed by such clauses. 
  
 “Lockheed Martin Contributed Assets” means, other than the Lockheed Martin Excluded Assets, all of the assets, properties, rights, licenses, permits, Contracts (except for leases of real property, which shall be a Lockheed
Martin Contributed Asset only to the extent provided in 
  

 A-18 

 clause (ii) below), causes of action and business of every kind and description as the same shall exist on the Closing
Date wherever located, personal or mixed, tangible or intangible, owned by, leased by or in the possession of Lockheed Martin or any of its Affiliated Transferors, whether or not reflected in the books and records thereof, and held or used primarily
in the conduct of Lockheed Martin’s ELV Business as the same shall exist on the Closing Date, and including, except as otherwise specified herein, all direct or indirect right, title and interest of Lockheed Martin or any of its Affiliated
Transferors in, to and under:  
  
 (i) Lockheed
Martin’s Atlas V and Atlas III launch vehicles, together with associated engineering, design, manufacturing, integration, assembly, test and launch operations used primarily in connection with Atlas V and Atlas III;  
  
 (ii) the rights and interests of Lockheed Martin and its Subsidiaries
pursuant to the assignment or sublease of the Lockheed Martin Contributed Leased Real Property in accordance with Section 3.01(h); 
  
 (iii) the rights and interests of Lockheed Martin and its Subsidiaries in the Lockheed Martin Contributed Owned Real Property and any Government-Furnished
Items granted pursuant to Contracts constituting Contributed Assets; 
  
 (iv) other than Intellectual Property and rights and interests therein (except software as set forth in clause (xix) below), all personal property and interests therein, including machinery, equipment, furniture, office equipment,
communications equipment, vehicles, storage tanks, spare and replacement parts, fuel and other property (and interests in any of the foregoing) owned by Lockheed Martin or any of its Subsidiaries that are used primarily in connection with Lockheed
Martin’s ELV Business; 
  
 (v) all Contracts (other than
Intellectual Property licenses, which licenses constitute Lockheed Martin Contributed Assets only to the extent set forth in clause (xviii) below, and the leases of real property relating to the Lockheed Martin Contributed Leased Real Property,
which leases constitute Lockheed Martin Contributed Assets only to the extent set forth in clause (ii) above) to which Lockheed Martin or any of its Subsidiaries is a party and which are related primarily to Lockheed Martin’s ELV Business,
including the Galex Contract; 
  
 (vi) all accounts receivable and
notes receivable, whether or not billed, accrued or otherwise recognized in the Lockheed Martin Opening Statement or taken into account in the determination of the Lockheed Martin Adjusted Net Working Capital Amount, together with any unpaid
interest or fees accrued thereon or other amounts due with respect thereto of Lockheed Martin or its Subsidiaries that relate primarily to Lockheed Martin’s ELV Business, and any security or collateral for any of the foregoing; 
  
 (vii) all expenses (other than in respect of Income Taxes) that have been
prepaid by Lockheed Martin or any of its Subsidiaries relating primarily to the operation of Lockheed Martin’s ELV Business, including lease and rental payments; 
  
 (viii) all of Lockheed Martin’s or any of its Subsidiaries’ rights, claims, credits, causes of action or rights of
set-off against Persons other than Lockheed Martin and its Subsidiaries relating primarily to Lockheed Martin’s ELV Business or the Lockheed Martin 
  

 A-19 

 Contributed Assets, including unliquidated rights under manufacturers’ and vendors’ warranties (except to the
extent relating to Lockheed Martin Excluded Assets or Lockheed Martin Excluded Liabilities); 
  
 (ix) all transferable franchises, licenses, permits or other authorizations issued by a Governmental Authority owned by or granted to, or held or used by, Lockheed Martin or any of its Subsidiaries and primarily
related to Lockheed Martin’s ELV Business; 
  
 (x) except to
the extent Lockheed Martin or any of its Subsidiaries is required to retain the originals pursuant to any Applicable Law (in which case copies shall be provided to the Company upon request), all business books, records, files and papers, whether in
hard copy or computer format, of Lockheed Martin or any of its Subsidiaries used primarily in Lockheed Martin’s ELV Business, including books of account, invoices, engineering information, sales and promotional literature, manuals and data,
sales and purchase correspondence, lists of present and former suppliers, lists of present and former customers, personnel and employment records of present employees (except to the extent Business Employees do not consent to the release of copies
of such records to the Company), documentation developed or used for accounting, marketing, engineering, manufacturing, or any other purpose relating primarily to the conduct of Lockheed Martin’s ELV Business at any time prior to the Closing;

  
 (xi) the right to represent to third parties that the Company
is the successor to Lockheed Martin’s ELV Business in accordance with Section 5.08; 
  
 (xii) all insurance proceeds (except to the extent relating to Lockheed Martin Excluded Assets or Lockheed Martin Excluded Liabilities), net of any retrospective premiums, deductibles, retention or similar amounts,
arising out of or related to damage, destruction or loss of any property or asset used primarily in connection with Lockheed Martin’s ELV Business to the extent of any damage or destruction that remains unrepaired, or to the extent any property
or asset remains unreplaced at the Closing Date and such proceeds were taken into account in the calculation of the Lockheed Martin Adjusted Net Working Capital Amount; 
  
 (xiii) all assets relating to Lockheed Martin Employee Plans and Benefit Arrangements to the extent but only to the extent
Exhibit E provides for the contribution of such assets to the Company or to a trust associated with an Employee Plan or Benefit Arrangement sponsored by the Company; 
  
 (xiv) all raw materials, work-in-process, finished goods, supplies, parts, spare parts and other inventories that are held,
used or intended by Lockheed Martin or its Subsidiaries for use primarily in connection with Lockheed Martin’s ELV Business; 
  
 (xv) all Bids that are attributable to Lockheed Martin’s ELV Business (with any contracts awarded to Lockheed Martin or any of its Subsidiaries on or
prior to the Closing Date in respect of such Bids being deemed Contracts under clause (v) above); 
  
 (xvi) all shares of capital stock of Galex owned by Lockheed Martin and its Subsidiaries; 
  

 A-20 

 (xvii) all goodwill generated by or associated with Lockheed Martin’s ELV Business; 
  
 (xviii) except as set forth in Schedule B.05, all other assets,
properties and rights that (A) are set forth on or reflected in Lockheed Martin’s Opening Statement and are owned by Lockheed Martin as of the Closing, or (B) are taken into account in the calculation of Lockheed Martin’s Adjusted Net
Working Capital Amount as determined in accordance with Section 3.04; 
  
 (xix) to the extent transferable, and subject to Section 3.05, all software programs, documentation and other related materials, including licenses from the licensor of the software, for (A) software embedded in any hardware or equipment
that is a Lockheed Martin Contributed Asset or that is used in a separate computer to operate such hardware or equipment, and (B) operating system software and COTS software installed in any computer, workstation, personal digital assistant, cell
phone or other communications device that is a Lockheed Martin Contributed Asset; and 
  
 (xx) to the extent permitted by the U.S. Government, the right to use items of the Lockheed Martin Titan program Government-Furnished Items in connection with the operation of Lockheed Martin’s ELV Business.

  
 “Lockheed Martin Contribution and Assumption
Agreement” means the Contribution and Assumption Agreement to be entered into by Lockheed Martin and the Company in the form contemplated by Attachment V-A hereto, as the same may be amended, supplemented or otherwise modified from
time to time. 
  
 “Lockheed Martin Excluded
Assets” means the following assets: 
  
 (i) all cash and
cash equivalents of Lockheed Martin and its Subsidiaries, including cash and cash equivalents used as collateral for Financial Support Arrangements and deposits with utilities, insurance companies and other Persons, except to the extent included in
the calculation of the Lockheed Martin Adjusted Net Working Capital Amount; 
  
 (ii) all original books and records that Lockheed Martin and its Subsidiaries shall be required to retain pursuant to any Applicable Law (in which case copies of such books and records to the extent relating to
Lockheed Martin’s ELV Business shall be provided to the Company upon request), or that contain information relating to any business or activity of Lockheed Martin or any of its Subsidiaries not forming a part of Lockheed Martin’s ELV
Business, or any employee of Lockheed Martin or any of its Subsidiaries that is not a Transferred Employee; 
  
 (iii) except to the extent that the following amounts are included in the calculation of the Lockheed Martin Adjusted Net Working Capital Amount or are
reimbursable by the Company to a Governmental Authority pursuant to the Federal Acquisition Regulation, all refunds of Income Taxes and all prepaid Income Taxes arising from or with respect to the Lockheed Martin Contributed Assets prior to the
Closing or arising from or with respect to the operations of Lockheed Martin’s ELV Business for periods (or portions thereof) ending on or prior to the Closing Date, including all refunds of Taxes for Straddle Periods properly allocable to
amounts paid by Lockheed Martin pursuant to Section 6.05; 
  

 A-21 

 (iv) except to the extent included in the calculation of the Lockheed Martin Adjusted Net Working Capital
Amount, all assets of Lockheed Martin and its Subsidiaries (other than Intellectual Property, which is governed by clause (viii) below) not held, owned or used primarily in connection with Lockheed Martin’s ELV Business; 
  
 (v) all rights and claims of Lockheed Martin and its Subsidiaries under any
of the Transaction Documents and the agreements and instruments delivered to Lockheed Martin and its Subsidiaries by Boeing and the Company pursuant to any of the Transaction Documents; 
  
 (vi) all notes receivable (including intercompany promissory notes) or similar claims or rights (whether or not billed or
accrued) of Lockheed Martin’s ELV Business from Lockheed Martin or any of its Subsidiaries relating to or arising out of the financing of Lockheed Martin’s ELV Business or the transfer of cash to or from Lockheed Martin’s ELV
Business; 
  
 (vii) all capital stock or any other securities of
Lockheed Martin or any of its Subsidiaries or any other Person, except for all shares of capital stock of Galex owned by Lockheed Martin and its Subsidiaries; 
  

(viii) all Lockheed Martin Intellectual Property (other than software as set forth in clause (xix) of the definition of Lockheed Martin Contributed
Assets), and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom, and all rights to obtain renewals, continuations, divisions or other extensions
of legal protections pertaining thereto; 
  
 (ix) except as
otherwise contemplated in the Transaction Documents, all Intra-Lockheed Martin Work Transfer Agreements and all quotations, bids or proposals submitted by Lockheed Martin or any of its Subsidiaries in response to Requests for Intra-Lockheed Martin
Quotations and all rights and benefits in respect of other inter-division or Intra-Lockheed Martin agreements or arrangements such as intra-division work orders, memoranda of agreement, memoranda of understanding and teaming agreements in respect of
Lockheed Martin’s ELV Business; 
  
 (x) Lockheed
Martin’s and its Affiliates’ businesses (other than Lockheed Martin’s ELV Business and all assets related primarily thereto), including LMCLS and all assets related primarily to LMCLS; 
  
 (xi) all launch vehicles and related equipment, hardware, software and other
Intellectual Property used for launches of payloads, whether into Earth orbit, beyond Earth orbit or otherwise, of Lockheed Martin and its Affiliates other than (A) the ELV Systems and (B) inventory (including parts and work in process inventory) of
Lockheed Martin’s ELV Business; 
  
 (xii) all rights, claims,
credits, causes of action, rights of set-off or other assets related to any other Lockheed Martin Excluded Asset or to any Lockheed Martin Excluded Liabilities; 
  

(xiii) all assets relating to Lockheed Martin Employee Plans and Benefit Arrangements, except to the extent Exhibit E provides for the
contribution of such assets to the Company or to a trust associated with an Employee Plan or Benefit Arrangement sponsored by the Company; 
  

 A-22 

 (xiv) Lockheed Martin’s and its Subsidiaries’ ownership interests in all real property owned by
Lockheed Martin or any of its Subsidiaries (other than the Lockheed Martin Contributed Owned Real Property), whether or not used in Lockheed Martin’s ELV Business; 
  
 (xv) Lockheed Martin’s right to payments relating to certain pre-Closing activity pursuant to Section 6.10; and

  
 (xvi) all Galex Royalties. 
  
 “Lockheed Martin Excluded Liabilities” means all liabilities
of Lockheed Martin and its Affiliates other than the Lockheed Martin Assumed Liabilities. Without limiting the foregoing, Lockheed Martin Excluded Liabilities include: 
  
 (i) all liabilities and obligations for any Income Taxes in respect of any period (or portion thereof) ending on or before
the Closing Date, other than Income Taxes to the extent recoverable by the Company from a Governmental Authority pursuant to the applicable provisions of the Federal Acquisition Regulation (e.g., 48 C.F.R. § 9904.403-61) governing the
apportionment of such Income Taxes to operating businesses; 
  
 (ii) all liabilities and obligations, whether presently in existence or arising after the date of the Agreement, in respect of notes payable (including intercompany promissory notes) or similar obligations (whether or not billed or accrued)
to Lockheed Martin or any of its Subsidiaries relating to or arising out of the financing of Lockheed Martin’s ELV Business or the transfer of cash to or from Lockheed Martin’s ELV Business; 
  
 (iii) except as otherwise contemplated in the Transaction Documents, all
liabilities and obligations in respect of Intra-Lockheed Martin Work Transfer Agreements and all quotations, bids or proposals submitted by Lockheed Martin or any of its Subsidiaries in response to Requests for Intra-Lockheed Martin Quotations and
all liabilities and obligations in respect of inter-division or intra-Lockheed Martin agreements or arrangements such as intra-division work orders, memoranda of agreement, memoranda of understanding and teaming agreements in respect of Lockheed
Martin’s ELV Business; 
  
 (iv) all liabilities and
obligations, whether presently in existence or arising after the date of the Agreement, relating to fees, commissions or expenses owed to any broker, finder, investment banker, accountant, attorney or other intermediary or advisor employed by
Lockheed Martin or any of its Subsidiaries in connection with the Contemplated Transactions; 
  
 (v) all liabilities and obligations under Lockheed Martin Employee Plans and Benefit Arrangements, except to the extent Exhibit E provides for the assumption by the Company of such liabilities and obligations;

  
 (vi) all liabilities and obligations relating to errors and
omissions or allegations of errors or omissions or claims of design or other defects with respect to any launch of an ELV System prior to the Closing Date; 
  

 A-23 

 (vii) all liabilities and obligations relating to warranty obligations or services with respect to any
launch of an ELV System prior to the Closing Date; 
  
 (viii) all
Environmental Liabilities arising in connection with or relating to Lockheed Martin’s ELV Business or Lockheed Martin’s or any of its Affiliates’ use or ownership thereof that arise out of conditions existing or actions taken or
omitted prior to the Closing Date, except to the extent such Environmental Liabilities constitute Lockheed Martin Assumed Liabilities pursuant to clause (vii) of the definition of Lockheed Martin Assumed Liabilities; 
  
 (ix) all liabilities and obligations of Lockheed Martin and its Subsidiaries
arising out of indemnity obligations for the benefit of directors, officers, employees and agents of Lockheed Martin and its Subsidiaries; 
  
 (x) all liabilities and obligations arising out of or relating to the results of any audits by the United States Defense Contract Audit Agency or any
other Governmental Authority having jurisdiction over Government Contracts entered into by Lockheed Martin or any of its Subsidiaries, including liabilities and obligations in respect of inappropriate charges, allocations or expenses or any
inaccurate disclosures, representations or certifications made by Lockheed Martin or any of its Subsidiaries in connection with any such Government Contracts or alleged violations of the Procurement Integrity Act, to the extent that such liabilities
and obligations relate to actions taken or omitted prior to the Closing Date; 
  
 (xi) all criminal liabilities of Lockheed Martin and its Subsidiaries (whether arising out of actions of directors, officers, employees, agents or Affiliates) in connection with Lockheed Martin’s ELV Business,
including civil, administrative or similar sanctions or penalties related thereto, arising prior to, on or after the Closing Date; 
  
 (xii) all liabilities and obligations of Lockheed Martin and its Subsidiaries arising out of allegations that actions taken prior to the Closing Date
infringed the Intellectual Property rights of other Persons; 
  
 (xiii) all liabilities and obligations, whether presently in existence or arising after the date of this Agreement, relating to or arising out of Lockheed Martin Excluded Assets or any business of Lockheed Martin or any of its Subsidiaries
other than Lockheed Martin’s ELV Business; 
  
 (xiv) all
liabilities and obligations of Lockheed Martin and its Subsidiaries arising out of any Launch Failure of Lockheed Martin or any of its Affiliates prior to the Closing; and 
  
 (xv) all liabilities and obligations of Lockheed Martin and its Subsidiaries arising out of allegations that Lockheed Martin
or any of its Subsidiaries has breached or is in default of any lease agreement governing the Lockheed Martin Contributed Leased Real Property. 
  
 “Material Adverse Effect” means (i) with respect to the ELV Business of a Member, a material adverse effect on the assets, condition
(financial or otherwise) or results of operations of 
  

 A-24 

 
the ELV Business of that Member, taken as a whole, or (ii) with respect to any other Person, a material adverse effect on the assets, condition (financial or
otherwise) or results of operations of such Person and its Subsidiaries, taken as a whole; provided, however, no (v) occurrence or failure to occur of any event, action or circumstance described in Schedule 11.02(a) or
Schedule 11.02(b), (w) effect, whether actual or prospective, arising from or relating to general economic or industry conditions, (x) effect of any report or recommendation of any Governmental Authority related to the launch services
industry (including the Moorman Report and any supplements thereto that may be issued after the date of this Agreement) or actions taken by the U.S. Government as a result of any report or recommendation of any Governmental Authority, (y) award by
the U.S. Government of any contract with respect to ELV Systems or Launch Services, reallocation of any award of any contract for ELV Systems or Launch Services, or similar announcement, indication or other activity of the U.S. Government with
respect to ELV Systems or Launch Services to be performed by any Person (including Lockheed Martin, Boeing and their respective Affiliates), or (z) Launch Failure of Lockheed Martin, Boeing or any of their respective Affiliates after the date of
this Agreement and prior to Closing, shall be deemed to constitute a Material Adverse Effect, or shall be taken into account in determining whether a Material Adverse Effect has occurred, with respect to the ELV Business of a Member or any other
Person. 
  
 “Moorman Report” means any report
issued by General Thomas Moorman at the request of the DOD relating to the procurement of Launch Services by the U.S. Government. 
  
 “Net Assets” means, with respect to each Member, (i) all Contributed Assets of such Member, minus (ii) all (A) Assumed Liabilities of
such Member and (B) goodwill, in each case calculated in accordance with the accounting principles, policies, practices, methods and procedures utilized in the preparation of such Member’s Opening Statement as described in the Notes thereto.

  
 “Net Working Capital” means, with respect to
each Member, (i) all Contributed Assets of such Member characterized as “current assets,” minus (ii) all Assumed Liabilities of such Member characterized as “current liabilities,” in each case calculated in accordance with the
accounting principles, policies, practices, methods and procedures utilized in the preparation of such Member’s Opening Statement as described in the Notes thereto. 
  
 “Non-Income Taxes” means all Taxes other than Income Taxes. 
  
 “Permitted Liens” means any of the following: 
  
 (i) Liens for Taxes that (x) are not yet due or delinquent or (y) are being
contested in good faith by appropriate proceedings; 
  
 (ii)
statutory Liens or landlords’, carriers’, warehousemen’s, mechanics’, suppliers’, materialmen’s, or other like Liens arising in the ordinary course of business with respect to amounts not yet overdue for a period of 60
days or amounts being contested in good faith by appropriate proceedings; 
  
 (iii) leases or subleases granted to others that do not materially interfere with the ordinary conduct of the ELV Business; 
  

 A-25 

 (iv) with respect to real property, any Liens that do not in the aggregate materially impair the use of
such real property for its current use; 
  
 (v) Liens in favor of
a customer of the ELV Business arising in the ordinary course of business; 
  
 (vi) rights and licenses granted to others in Intellectual Property; 
  
 (vii) with respect to any of the Contributed Leased Real Property, any Lien affecting the interest of the landlord thereunder; 
  
 (viii) Liens that have not had, and could not reasonably be expected to have,
a Material Adverse Effect on a Member’s ELV Business; 
  
 (ix) Liens disclosed in the Disclosure Schedules; and 
  
 (x) rights of third party licensors in software licensed to a Party. 
  
 “Person” means an individual, a corporation, a general partnership, a limited partnership, a limited liability company, a limited liability partnership, an association, a trust or any other entity or
organization, including a Governmental Authority. 
  
 “Pre-Closing Environmental Conditions” means all Environmental Liabilities arising out of conditions existing or actions taken or omitted prior to the Closing, whether or not such Environmental Liabilities are Assumed
Liabilities or Excluded Liabilities. 
  
 “Proceedings” means governmental, judicial or adversarial proceedings (public or private), litigation, suits, arbitration, disputes, claims, causes of action or investigations. 
  
 “Procurement Integrity Act” means the Procurement Integrity
Act, 41 U.S.C. § 423, as amended. 
  
 “Public Law
85-804” means the Act to Authorize the Making, Amendment, and Modification of Contracts to Facilitate the National Defense, August 28, 1958, 50 U.S.C. §§ 1431-1435, as amended, and Executive Order 10789 of November 14, 1958, as
amended. 
  
 “Rancho Cordova Property” means the
former McDonnell Douglas Corporation site in Rancho Cordova, California that is described in and the subject of the Imminent and Substantial Endangerment Order dated June 30, 1994 issued by the California Department of Toxic Substances Control, and
Clean Up and Abatement Order No. 97-093 dated June 19, 1997 issued by the California Regional Water Quality Control Board, Central Valley Region, as revised and modified. 
  
 “Remedial Action” means the investigation, clean-up or remediation of contamination or environmental damage
caused by, related to or arising from the generation, use, handling, treatment, storage, transportation, disposal, discharge, release, or emission of Hazardous Substances, including investigations, response, removal and remedial actions under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 
  

 A-26 

 
corrective action under the Resource Conservation and Recovery Act of 1976, as amended, clean up requirements under the Toxic Substances Control Act, and
clean-up requirements under similar state Environmental Laws. 
  
 “Representatives” means, with respect to a Person, each of its respective directors, officers, attorneys, accountants, employees, advisors or agents. 
  
 “Settlement Agreement” means the Agreement of Mutual Release to be entered into by Lockheed Martin, Boeing
and certain Subsidiaries of Boeing in the form contemplated by Attachment XII hereto, as the same may be amended, supplemented or otherwise modified from time to time. 
  
 “Space Act” means section 203(c)(13) of the National Aeronautics and Space Act of 1958, 42 U.S.C. §
2473(c)(13), as amended. 
  
 “Subsidiary” as it
relates to any Person, means with respect to such Person, any other Person of which the specified Person, either directly or through or together with any other of its Subsidiaries, owns more than 50% of the voting power in the election of directors
or their equivalents, other than as affected by events of default; provided, that the Company shall not be considered a Subsidiary of either of the Members for purposes of this Agreement. 
  
 “Tax Authority” means a Governmental Authority having
jurisdiction over the assessment, determination, collection or imposition of any Tax. 
  
 “Tax Returns” means all returns (including information returns), declarations, reports, estimates and statements regarding Taxes required to be filed with any Tax Authority. 
  
 “Taxes” means all taxes, and any charges, fees, imposts or
other assessments with respect thereto, including all gross receipts, net income, sales, use, ad valorem, value added, transfer, franchise, license, withholding, payroll, employment, excise, estimated, severance, stamp, occupation and property
taxes, tariffs and customs duties, together with any interest and any penalties, additions to tax or additional amounts imposed by any Tax Authority. 
  
 “TEFRA” means the Tax Equity and Fiscal Responsibility Act of 1982. 
  
 “Transaction Documents” means this Agreement, the Operating Agreement, the Contribution and Assumption
Agreements, the Transition Services Agreements, the Commercial Sales and Marketing Agreements, the Denver Lease Agreement, the Settlement Agreement, the Delta Inventory Supply Agreement, the Interim Operating Agreement, the assignment agreements
and/or subleases contemplated by Section 3.01(h), the agreements contemplated by Section 3.01(k), any other written agreement signed by the Parties that is expressly identified as a “Transaction Document” hereunder and any exhibits
or attachments to any of the foregoing, as the same may be amended from time to time. 
  
 “Transition Services Agreement (Boeing)” means a transition services agreement on terms and conditions reasonably acceptable to the Parties pursuant to which Boeing will continue to provide certain
services to the Company on a transition basis following the Closing, which services shall be of the same type as those services provided to Boeing’s ELV Business by other businesses of Boeing prior to the Closing and for which Boeing shall be
paid an amount sufficient to cover its direct and indirect costs of providing such services. 
  

 A-27 

 “Transition Services Agreement (Lockheed Martin)” means a transition services agreement
on terms and conditions reasonably acceptable to the Parties pursuant to which Lockheed Martin will continue to provide certain services to the Company on a transition basis following the Closing, which services shall be of the same type as those
services provided to Lockheed Martin’s ELV Business by other businesses of Lockheed Martin prior to the Closing and for which Lockheed Martin shall be paid an amount sufficient to cover its direct and indirect costs of providing such services.

  
 “Transition Services Agreements” means,
collectively, the Transition Services Agreement (Lockheed Martin) and the Transition Services Agreement (Boeing). 
  
 “U.S. Export and Import Laws” means the Arms Export Control Act (22 U.S.C. § 2778), the International Traffic in Arms Regulations
(ITAR) (22 C.F.R. § 120-130), the Export Administration Act of 1979, as amended (50 U.S.C. §§ 2401-2420), the Export Administration Regulations (EAR) (15 C.F.R. § 730-774), and all other laws and regulations of the U.S.
Government regulating the provision of services to non-U.S. parties or the export and import of articles or information from and to the United Sates of America and non-U.S. parties. 
  
 “U.S. Government” means the federal government of the United States of America and any agencies,
instrumentalities and departments thereof. 
  
 “WARN” means the Worker Adjustment Retraining and Notification Act, as amended. 
  
 (b) “To the knowledge,” “known by,” “known” or “knowingly” (and any similar phrase) means (i) with respect to
Lockheed Martin, to the actual knowledge of the Lockheed Martin individuals listed in Schedule A-3 and, when used in a representation and warranty, shall be deemed to include a representation that a reasonable investigation or inquiry of the
subject matter thereof has been made of such individuals, (ii) with respect to Boeing, to the actual knowledge of the Boeing individuals listed in Schedule A-3, and, when used in a representation and warranty, shall be deemed to include a
representation that a reasonable investigation or inquiry of the subject matter thereof has been made of such individuals. 
  
 (c) Each of the following terms is defined in the Section set forth opposite such term: 
  

			
	 Term

	  	Section

	 AAA
	  	13.14
	 AAA Rules
	  	13.14
	 Accrued Vacation
	  	E.08
	 Acquired Business
	  	5.13
	 Active Employees
	  	E.01
	 Active Lockheed Martin Participants
	  	E.05
	 Adjusted Net Working Capital Amount
	  	3.04
	 Administrative Agreement
	  	5.15
	 Agreement
	  	Preamble

  

 A-28 

			
	 Air Force
	  	5.15
	 Arbitration Demand
	  	13.14
	 Boeing
	  	Preamble
	 Boeing Indemnified Parties
	  	11.02
	 Boeing Leased Real Property
	  	C.07
	 Boeing Owned Real Property
	  	C.07
	 Boeing Threshold Amount
	  	3.04
	 Boeing’s Union Pension Plan I
	  	E.05
	 Boeing’s Union Pension Plan II
	  	E.05
	 Certificate of Formation
	  	2.01
	 Closing
	  	3.02
	 Company
	  	Preamble
	 Company Indemnified Parties
	  	11.02
	 Company Pension Plan
	  	E.05
	 Company Savings Plan
	  	E.06
	 Company VEBA
	  	E.11
	 Company’s Union Pension Plan I
	  	E.05
	 Company’s Union Pension Plan II
	  	E.05
	 Company’s Union Pension Plan III
	  	E.05
	 Company’s Union Pension Plans
	  	E.05
	 Competing Operations
	  	5.13
	 Competitive Launch Vehicle
	  	5.13
	 Consent Failure
	  	3.05
	 COTS
	  	3.05
	 DDTC
	  	D.06
	 Delta Inventory Supply Agreement
	  	3.01
	 Denver Lease Agreement
	  	3.01
	 DOD
	  	10.01
	 Environmental Permits
	  	B.13
	 Field of Use
	  	5.08
	 FSAs
	  	E.07
	 Government Bid
	  	B.18
	 Government-Furnished Items
	  	B.19
	 Inactive Employees
	  	E.01
	 Initial Company Financing Arrangement
	  	5.10
	 Indemnified Claim
	  	11.03
	 Indemnified Party
	  	11.03
	 Indemnifying Party
	  	11.03
	 Insurance Liabilities
	  	5.05
	 Interim Operating Agreement
	  	2.02
	 ITAR
	  	D.06
	 Joinder
	  	2.01
	 Launch Operations Employee
	  	E.01
	 Launch Operations Transfer Date
	  	E.01
	 Licensed Boeing Intellectual Property
	  	5.08
	 Licensed Lockheed Martin Intellectual Property
	  	5.08

  

 A-29 

			
	 Lockheed Martin
	  	Preamble
	 Lockheed Martin Harlingen Pension Plan
	  	E.05
	 Lockheed Martin Indemnified Parties
	  	11.02
	 Lockheed Martin Leased Real Property
	  	B.07
	 Lockheed Martin Owned Real Property
	  	B.07
	 Lockheed Martin Threshold Amount
	  	3.04
	 MAE Exceptions
	  	10.05
	 Member
	  	Preamble
	 Members
	  	Preamble
	 Member’s Union Pension Plans
	  	E.05
	 NASA
	  	10.01
	 Non-Compete Term
	  	5.13
	 Novation Agreements
	  	5.09
	 Opening Statement
	  	3.03
	 Operating Agreement
	  	2.02
	 Parties
	  	Preamble
	 Party
	  	Preamble
	 PBGC
	  	B.17
	 Properties Participants
	  	E.05
	 Proposed Adjusted Net Working Capital Amount
	  	3.04
	 Remediation Programs
	  	6.09
	 Replead Complaint
	  	5.12
	 Replead Counterclaim
	  	5.12
	 Service Credit
	  	E.03
	 Spaceport Lease
	  	5.14
	 Straddle Period
	  	6.05
	 Surviving Representations or Covenants
	  	11.01
	 Tax Counsel
	  	2.10
	 Third Party Claim
	  	11.03
	 Transferred Employee
	  	E.01
	 Transferred Union Employees
	  	E.05
	 Unaffiliated Firm
	  	3.04
	 Undisclosed Contracts
	  	6.07
	 Working Capital Fund
	  	5.10

  

 A-30 

 EXHIBIT B 
  

REPRESENTATIONS AND WARRANTIES OF LOCKHEED MARTIN 
  
 Lockheed Martin hereby represents and warrants to Boeing and the Company, as of the date of this Agreement and as of the Closing Date, that: 

 
 B.01 Corporate Existence and Power. Each of Lockheed Martin and
each of its Affiliated Transferors is a corporation duly incorporated, validly existing and in good standing under the laws of the state or jurisdiction of its incorporation and has all corporate power and authority required to carry on Lockheed
Martin’s ELV Business as now conducted. Each of Lockheed Martin and each of its Affiliated Transferors is duly qualified to do business as a foreign corporation or other entity and is in good standing in each jurisdiction where the character of
the property owned or leased by it or the nature of its activities make such qualification necessary to carry on Lockheed Martin’s ELV Business as now conducted, except where the failure to be so qualified or in good standing has not had, and
could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business. 
  
 B.02 Corporate Authorization. The execution, delivery and performance by Lockheed Martin and its Subsidiaries of the Transaction Documents to which
Lockheed Martin or any of its Subsidiaries is a party and the consummation by Lockheed Martin and its Subsidiaries of the Contemplated Transactions are within Lockheed Martin’s and its Subsidiaries’ respective corporate powers and have
been (or in respect to Lockheed Martin’s Subsidiaries, as of Closing shall have been) duly authorized by all necessary corporate action on Lockheed Martin’s and its Subsidiaries’ respective parts. This Agreement constitutes and each
of the other Transaction Documents to which Lockheed Martin or any of its Subsidiaries is a party constitutes or shall constitute at Closing a legal, valid and binding agreement of Lockheed Martin or its applicable Subsidiary, enforceable against it
in accordance with its terms (i) except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally,
including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and (ii) subject to the limitations imposed by general equitable principles regardless of whether such enforceability is considered in a
proceeding at law or in equity. 
  
 B.03 Governmental
Authorization. The execution, delivery and performance by Lockheed Martin and each of its Subsidiaries of the Transaction Documents to which Lockheed Martin or any of its Subsidiaries is a party require no action by or in respect of, or consent
or approval of, or filing with, any Governmental Authority other than: 
  
 (a) compliance with any applicable requirements of the Antitrust Laws; 
  
 (b) the actions, consents, approvals, permits or filings set forth in Schedule B.03 or otherwise expressly referred to in this Agreement; and 
  
 (c) such other consents, approvals, authorizations, permits and filings the failure to obtain or make of which would not
have, individually or in the aggregate, a Material Adverse Effect on Lockheed Martin’s ELV Business. 

 B.04 Non-Contravention. Except as set forth in Schedule B.04, the execution, delivery and
performance of the Transaction Documents by Lockheed Martin and its Subsidiaries do not and shall not (i)(A) contravene or conflict with the charter, bylaws or other organizational documents of Lockheed Martin or any of its Subsidiaries, (B)
assuming compliance with the matters referred to in Section B.03, contravene or conflict with, or constitute a violation of, any provisions of any Applicable Law binding upon Lockheed Martin or any of its Subsidiaries that is applicable to Lockheed
Martin’s ELV Business, or (C) assuming compliance with the matters referred to in Section B.03, constitute a default under, or give rise to any right of termination, cancellation or acceleration of, or to a loss of any benefit relating
primarily to Lockheed Martin’s ELV Business to which Lockheed Martin or any of its Affiliated Transferors is entitled under, any Contract binding upon Lockheed Martin or any of its Affiliated Transferors and relating primarily to Lockheed
Martin’s ELV Business or by which any of the Lockheed Martin Contributed Assets is or may be bound (including any Contract included in the Lockheed Martin Contributed Assets) or any license, franchise, permit or similar authorization held by
Lockheed Martin or any of its Affiliated Transferors relating primarily to Lockheed Martin’s ELV Business except, in the case of clauses (B) and (C), for any such contravention, conflict, violation, default, termination, cancellation,
acceleration or loss that could not reasonably be expected to have a Material Adverse Effect on Lockheed Martin’s ELV Business or (ii) result in the creation or imposition of any Lien on any Lockheed Martin Contributed Asset, other than
Permitted Liens. 
  
 B.05 Opening Statement. Except as set
forth in the Notes thereto, the Lockheed Martin Opening Statement presents fairly, in all material respects, the Net Assets of Lockheed Martin’s ELV Business as of December 31, 2004, in conformity with Lockheed Martin’s historical
practices and procedures applied on a basis consistent in all material respects with the manner in which Lockheed Martin’s ELV Business reported its financial position for inclusion in the audited consolidated financial statements of Lockheed
Martin as of that date. Except as set forth in Schedule B.05, the Lockheed Martin Opening Statement reflects the Lockheed Martin Contributed Assets and the Lockheed Martin Assumed Liabilities to the extent the same are contemplated to be
presented in accordance with the Notes thereto, and the Lockheed Martin Opening Statement does not reflect any Lockheed Martin Excluded Assets or Lockheed Martin Excluded Liabilities. 
  
 B.06 Absence of Certain Changes. Except as set forth in Schedule B.06, from December 31, 2004 to the date of
this Agreement, Lockheed Martin has conducted its ELV Business in all material respects in accordance with the historical and customary operating practices relating to the conduct of such ELV Business and there has not been:  
  
 (a) any event or occurrence that has had a Material Adverse Effect on
Lockheed Martin’s ELV Business, other than events or occurrences resulting from changes, whether actual or prospective, in general conditions applicable to the industries in which Lockheed Martin’s ELV Business is involved or general
economic conditions; 
  
 (b) any damage, destruction or other
casualty loss affecting Lockheed Martin’s ELV Business or any assets that would constitute Lockheed Martin Contributed Assets if owned, held or used by Lockheed Martin or any of its Affiliated Transferors on the Closing Date that has had a
Material Adverse Effect on Lockheed Martin’s ELV Business; 
  

 B-2 

 (c) (i) any transaction or commitment made, or any Contract entered into, by Lockheed Martin or any of
its Affiliated Transferors relating primarily to Lockheed Martin’s ELV Business or to any assets that would constitute Lockheed Martin Contributed Assets if owned, held or used by Lockheed Martin or any of its Affiliated Transferors on the
Closing Date (including the acquisition or disposition of any assets), or (ii) any termination or amendment by Lockheed Martin or any of its Affiliated Transferors of any Contract or other right that would constitute Lockheed Martin Contributed
Assets if owned, held or used by Lockheed Martin or any of its Affiliated Transferors on the Closing Date, in either case that is material to Lockheed Martin’s ELV Business taken as a whole, other than transactions and commitments in the
ordinary course of business and those contemplated by this Agreement; 
  
 (d) any transaction or commitment made, or any Contract entered into, by Lockheed Martin or any of its Affiliated Transferors requiring Lockheed Martin’s ELV Business to “take or pay” for a minimum number or volume of goods,
or to purchase a minimum number or volume of goods used in the manufacture of ELV Systems in excess of requirements under applicable customer Contracts or otherwise guaranteeing any of the foregoing; 
  
 (e) any sale or other disposition of more than an aggregate of $5,000,000 of
assets (other than any sale made in the ordinary course of business) that would constitute Lockheed Martin Contributed Assets if owned, held or used by Lockheed Martin or any of its Subsidiaries on the Closing Date; 
  
 (f) any increase in the compensation of any current employee of Lockheed
Martin’s ELV Business at a level of director or above, other than compensation increases or bonus awards in the ordinary course of business or nondiscretionary increases pursuant to Employee Plans or Benefit Arrangements disclosed in
Schedule B.17 or referenced in Exhibit E; or 
  
 (g)
any cancellation, compromise, waiver or release by Lockheed Martin or any of its Subsidiaries of any claim or right (or a series of related claims or rights) related to Lockheed Martin Contributed Assets or assets of Lockheed Martin that would
constitute Lockheed Martin Contributed Assets if owned, held or used by Lockheed Martin or any of its Affiliated Transferors on the Closing Date, other than cancellations, compromises, waivers or releases in the ordinary course of business.

  
 B.07 Sufficiency of and Title to the Contributed
Assets. 
  
 (a) Except as set forth in Schedule B.07,
the Lockheed Martin Contributed Assets, together with the services to be provided to the Company by Lockheed Martin pursuant to the Transition Services Agreement (Lockheed Martin), the Licensed Lockheed Martin Intellectual Property to be licensed
pursuant to the Transaction Documents and the leases and subleases contemplated in the Transaction Documents, constitute, and on the Closing Date shall constitute, all of the assets and services that are necessary to permit the operation of Lockheed
Martin’s ELV Business in substantially the same manner as such operations have heretofore been conducted. 
  
 (b) Except as set forth in Schedule B.07, subject to the receipt of any consents or approvals of any other Person, upon consummation of the
Contemplated Transactions, the 
  

 B-3 

 
Company shall have acquired good and marketable title in and to, or a valid leasehold interest in or a valid license to use, each of the Lockheed Martin
Contributed Assets, free and clear of all Liens, except for Permitted Liens. Except as set forth in Schedule B.07, all tangible property and assets included in the Lockheed Martin Contributed Assets are in good operating condition (normal
wear and tear excepted), and normal maintenance and repair on such tangible property and assets has not been deferred. 
  
 (c) Schedule B.07 includes a true and complete list of all real property owned by Lockheed Martin and its Subsidiaries that is used primarily in
Lockheed Martin’s ELV Business (collectively, the “Lockheed Martin Owned Real Property”). Schedule B.07 sets forth the address of each parcel of Lockheed Martin Owned Real Property and the owner of such Lockheed Martin
Owned Real Property.  
  
 (d) Schedule B.07 includes
a true and complete list of all agreements (together with any amendments thereof) pursuant to which Lockheed Martin and its Subsidiaries lease, sublease or otherwise occupy (whether as landlord, tenant, subtenant or other occupancy arrangement) any
real property that is used primarily in Lockheed Martin’s ELV Business (collectively, the “Lockheed Martin Leased Real Property”). Schedule B.07 sets forth the address of each parcel of Lockheed Martin Leased Real
Property and the owner of the leasehold, subleasehold or occupancy interest for each parcel of Lockheed Martin Leased Real Property. 
  
 B.08 No Undisclosed Liabilities. There are no liabilities of Lockheed Martin or any of its Affiliated Transferors relating to Lockheed
Martin’s ELV Business that constitute Lockheed Martin Assumed Liabilities of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, other than: 
  
 (a) liabilities disclosed (or provided for) in the Lockheed Martin Opening
Statement and liabilities for matters taken into account in the determination of the Lockheed Martin Adjusted Net Working Capital Amount; 
  
 (b) liabilities (i) disclosed in Schedule B.08, (ii) related to any Contract disclosed in Lockheed Martin’s Disclosure Schedules or (iii)
related to any Lockheed Martin Employee Plan or Benefit Arrangements identified in Exhibit E or disclosed in Schedule B.17; 
  
 (c) liabilities incurred in the ordinary course of business since December 31, 2004; 
  
 (d) contingent liabilities not required to be accrued for or reserved against in accordance with GAAP or the accounting
principles, policies, practices, methods and procedures utilized in the preparation of Lockheed Martin’s Opening Statement, as disclosed in the Notes to Lockheed Martin’s Opening Statement; 
  
 (e) with respect to the bring down of this representation and warranty as of
the Closing Date, liabilities not required to be accrued for or reserved against in accordance with GAAP or the accounting principles, policies, practices, methods and procedures utilized in the preparation of Lockheed Martin’s Opening
Statement, as disclosed in the Notes to Lockheed Martin’s Opening Statement; and 
  

 B-4 

 (f) liabilities in addition to those referenced in the foregoing clauses (a) through (e), that,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect on Lockheed Martin’s ELV Business. 
  
 B.09 Litigation. Except as set forth in Schedule B.09 or reserved against or referred to in the Lockheed Martin Opening Statement and except
for matters arising under or related to Environmental Laws, there is no action, suit, investigation or proceeding pending, or to the knowledge of Lockheed Martin, threatened against or affecting, Lockheed Martin’s ELV Business or any Lockheed
Martin Contributed Asset before any Governmental Authority that could reasonably be expected to have a Material Adverse Effect on Lockheed Martin’s ELV Business. 
  
 B.10 Material Contracts. 
  
 (a) Except as set forth in Schedule B.10 and except for Contracts that do not constitute Lockheed Martin Contributed Assets or Lockheed Martin
Assumed Liabilities, Lockheed Martin and its Subsidiaries, with respect to Lockheed Martin’s ELV Business, are not parties to or otherwise bound by or subject to: 
  
 (i) any written employment, severance, consulting or sales representative Contract that contains an obligation (excluding
commissions) to pay more than $50,000 per year, any collective bargaining agreement or other agreement with a labor union or any other agreement that contains an obligation either to employ a specified number of employees or to make a payment to any
other Person in lieu thereof; 
  
 (ii) any Contract containing any
covenant limiting the freedom of Lockheed Martin or any of its Subsidiaries, in respect of Lockheed Martin’s ELV Business or the operations of Lockheed Martin’s ELV Business, to compete with any Person in any geographic area in any
material respect if such Contract will be binding on the Company after the Closing; 
  
 (iii) any Contract requiring Lockheed Martin’s ELV Business to “take or pay” for a minimum number or volume of goods, or to purchase a minimum number or volume of goods used in the manufacture of ELV
Systems in excess of requirements under applicable customer Contracts or otherwise guaranteeing any of the foregoing; 
  
 (iv) any Contract in effect on the date of this Agreement relating to the disposition or acquisition of the assets of, or any interest in, any business
enterprise that relates to Lockheed Martin’s ELV Business other than in the ordinary course of business; 
  
 (v) any Financial Support Arrangements; 
  
 (vi) any indebtedness for borrowed money of Lockheed Martin’s ELV Business that would constitute a Lockheed Martin Assumed Liability if in existence
on the Closing Date, with a principal amount in excess of $100,000; 
  
 (vii) any Contract (it being understood that for purposes of this representation, a purchase order issued under an existing master agreement will not constitute a separate Contract) with a supplier, vendor, or subcontractor with an
aggregate contract value in excess of $10,000,000; 
  

 B-5 

 (viii) any teaming agreement or partnership, joint venture or similar agreement; or 
  
 (ix) any Contract with a foreign Governmental Authority. 
  
 (b) Schedule B.10 sets forth any Contract (other than a Government
Contract) with a customer to which Lockheed Martin or any of its Subsidiaries is a party or otherwise bound for the provision of Launch Services using ELV Systems with an aggregate contract value in excess of $50,000,000. 
  
 (c) Except as disclosed in Schedule B.10, each Contract disclosed in
Schedule B.10 or Schedule B.07 is in full force and effect and constitutes a legal, valid and binding obligation of Lockheed Martin (or the applicable Affiliated Transferor) enforceable against Lockheed Martin (or the applicable
Affiliated Transferor) in accordance with its terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors’
rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and subject to the limitations imposed by general equitable principles regardless of whether such enforceability is
considered in a proceeding at law or in equity), and Lockheed Martin (or the applicable Affiliated Transferor) is not in default and has not failed to perform any obligation thereunder, and, to the knowledge of Lockheed Martin, there does not exist
any event, condition or omission that would constitute a breach or default (whether by lapse of time or notice or both) by any other Person, except for any such default, failure or breach as has not had, and could not reasonably be expected to have,
a Material Adverse Effect on Lockheed Martin’s ELV Business. 
  
 B.11 Licenses and Permits. To the knowledge of Lockheed Martin, except as set forth in Schedule B.11, Lockheed Martin (or the appropriate Affiliated Transferor) has all licenses, franchises, permits and other similar
authorizations affecting, or relating in any way to, Lockheed Martin’s ELV Business required by Applicable Law (other than Environmental Laws) to be obtained by Lockheed Martin (or the appropriate Affiliated Transferor) to permit Lockheed
Martin to conduct Lockheed Martin’s ELV Business in substantially the same manner as Lockheed Martin’s ELV Business has heretofore been conducted, except where the failure to have such licenses, franchises, permits and similar
authorizations has not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business. 
  
 B.12 Finders’ Fees. There is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on
behalf of Lockheed Martin or any of its Affiliated Transferors who might be entitled to any fee or commission from the Company or any of its Affiliates upon consummation of the Contemplated Transactions. 
  
 B.13 Environmental Compliance. 
  
 (a) Except as disclosed in Schedule B.13, to the knowledge of
Lockheed Martin, Lockheed Martin’s ELV Business is and has been in material compliance with all applicable 
  

 B-6 

 Environmental Laws, and has obtained all material permits, licenses and other authorizations that are required under
applicable Environmental Laws (“Environmental Permits”), except where the failure to be in compliance or to have obtained all Environmental Permits has not had, and could not reasonably be expected to have, a Material Adverse Effect
on Lockheed Martin’s ELV Business. Except as set forth in Schedule B.13 and except as reserved against or referred to in the Lockheed Martin Opening Statement, to the knowledge of Lockheed Martin, (i) Lockheed Martin’s ELV Business
is and has been in material compliance with the terms and conditions under which Environmental Permits were issued or granted, (ii) Lockheed Martin and its Subsidiaries hold all permits required by Environmental Laws that are appropriate to conduct
Lockheed Martin’s ELV Business as presently conducted in all material respects and to operate the Lockheed Martin Contributed Assets in all material respects as they are presently operated; (iii) no suspension, cancellation or termination of
any permit referred to in clause (ii) is pending or threatened; (iv) Lockheed Martin has not received written notice of any material Environmental Claim relating to or affecting Lockheed Martin’s ELV Business or the Lockheed Martin Contributed
Assets, and there is no such threatened Environmental Claim; and (v) Lockheed Martin, in connection with its ELV Business or the Lockheed Martin Contributed Assets, has not entered into, agreed in writing to, and is not subject to any judgment,
decree order or other similar requirement of any Governmental Authority under any Environmental Laws, except in the case of clauses (i) through (v) where such failure or other circumstances has not had, and could not reasonably be expected to have,
a Material Adverse Effect on Lockheed Martin’s ELV Business. 
  
 (b) Notwithstanding any other provision of this Exhibit B, this Section B.13 sets forth the sole and exclusive representations and warranties governing matters arising under or relating to Environmental Laws, and no other
representations or warranties shall be deemed to address or cover any matter arising under or relating to any Environmental Laws. 
  
 B.14 Compliance with Laws. Except as set forth in Schedule B.14, for matters arising under or related to Environmental Laws, and for
violations or infringements that have not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business, to the knowledge of Lockheed Martin, the operation of Lockheed Martin’s ELV Business
and condition of the Lockheed Martin Contributed Assets have not violated or infringed, and do not violate or infringe, in any respect any Applicable Law or any order, writ, injunction or decree of any Governmental Authority. 
  
 B.15 Intellectual Property. With respect to the Licensed Lockheed
Martin Intellectual Property to be licensed by Lockheed Martin to the Company in connection with the Contemplated Transactions, except as set forth in Schedule B.15, to the knowledge of Lockheed Martin: 
  
 (a) Lockheed Martin (or an Affiliated Transferor) either (i) owns, free and
clear of all Liens other than Permitted Liens, all right, title and interest in, or (ii) has the right to license, sublicense or assign, such Licensed Lockheed Martin Intellectual Property, in each case subject to any licenses and other rights
granted by Lockheed Martin and its Subsidiaries in such Licensed Lockheed Martin Intellectual Property prior to the Closing Date; 
  

 B-7 

 (b) the use of such Licensed Lockheed Martin Intellectual Property in connection with the operation of
Lockheed Martin’s ELV Business as heretofore conducted does not conflict with, infringe upon or violate the intellectual property rights of any other Persons, except to the extent that such conflict, infringement or violation has not had, and
could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business; 
  
 (c) Lockheed Martin (or an Affiliated Transferor) has the right to use all such Licensed Lockheed Martin Intellectual Property used by Lockheed
Martin’s ELV Business and necessary for the continued operation of Lockheed Martin’s ELV Business in substantially the same manner as its operations have heretofore been conducted, except where the failure to have the right to use any such
Licensed Lockheed Martin Intellectual Property has not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business; and 
  
 (d) notwithstanding the provisions of this Section B.15, Lockheed Martin makes no representation or warranty, and no such
representation or warranty shall be implied, that any of such Licensed Lockheed Martin Intellectual Property is valid or enforceable. 
  
 B.16 Taxes. Except as set forth in Schedule B.16 or as could not reasonably be expected to have a Material Adverse Effect on Lockheed
Martin’s ELV Business, (i) all Tax Returns required to be filed on or before the Closing Date by Lockheed Martin and its Subsidiaries with any Tax Authority in respect of the Lockheed Martin Contributed Assets or the operations of Lockheed
Martin’s ELV Business have been filed or shall be filed in accordance with all Applicable Laws and are in all material respects complete and accurate, and (ii) all Taxes due and owing by Lockheed Martin or any of its Subsidiaries that relate to
the Lockheed Martin Contributed Assets or the operations of Lockheed Martin’s ELV Business have been paid; provided, however, that the foregoing representations and warranties are made only to the extent of Taxes that are or may
become Liens (other than Permitted Liens) on the Lockheed Martin Contributed Assets. Lockheed Martin is not a party to any tax allocation or tax-sharing agreement with respect to Lockheed Martin’s ELV Business. 
  
 B.17 Employee Benefit Matters.  
  
 (a) To the knowledge of Lockheed Martin, Schedule B.17 lists each
Lockheed Martin Employee Plan or material Benefit Arrangement that covers Lockheed Martin Business Employees. 
  
 (b) Except as set forth in Schedule B.17, with respect to Lockheed Martin’s ELV Business: 
  
 (i) since January 1, 2001, neither Lockheed Martin nor any member of its
“Controlled Group” (defined as any organization that is a member of a controlled group of organizations within the meaning of Code Sections 414(b), (c), (m) or (o)) has contributed to or had any liability to a “multi-employer
plan,” as defined in Section 3(37) of ERISA, that could reasonably be expected to have a Material Adverse Effect on Lockheed Martin’s ELV Business; 
  
 (ii) to the knowledge of Lockheed Martin, no fiduciary of any Lockheed Martin Employee Plan has engaged in a nonexempt “prohibited transaction”
(as that term is defined in Section 4975 of the Code and Section 406 of ERISA) that could subject the Company to an excise tax imposed by Section 4975 of the Code; 
  

 B-8 

 (iii) no Lockheed Martin Employee Plan that is subject to Section 412 of the Code has incurred an
“accumulated funding deficiency” within the meaning of Section 412 of the Code, whether or not waived; 
  
 (iv) to the knowledge of Lockheed Martin, each Lockheed Martin Employee Plan and Benefit Arrangement has been established and administered in all material
respects in accordance with its terms and in compliance with Applicable Law, except where a failure to do so would not have a Material Adverse Effect on Lockheed Martin’s ELV Business; 
  
 (v) to the knowledge of Lockheed Martin, no Lockheed Martin Employee Plan
subject to Title IV of ERISA has incurred any material liability under such title other than for the payment of premiums to the Pension Benefit Guaranty Corporation (“PBGC”), all of which to the knowledge of Lockheed Martin have
been paid when due; 
  
 (vi) there have been no “reportable
events” (as that term is defined in Section 4043 of ERISA and the regulations thereunder), other than reportable events arising directly from the Contemplated Transactions, that would present a risk that a Lockheed Martin Employee Plan would be
terminated by the PBGC in a distress termination; 
  
 (vii) each
Lockheed Martin Employee Plan intended to qualify under Section 401 of the Code has received a determination letter from the Internal Revenue Service that it is so qualified and, to the knowledge of Lockheed Martin, no event has occurred with
respect to any such Employee Plan that could reasonably be expected to result in the loss of such qualification; 
  
 (viii) with respect to each Lockheed Martin Employee Plan listed in Schedule B.17, Lockheed Martin has made available to Boeing the most recent
copy, if any (where available), of (1) the plan document; (2) the summary plan description; and (3) Form 5500; and 
  
 (ix) there are no actions, claims or investigations by a Governmental Authority pending or, to the knowledge of Lockheed Martin threatened, against any
Lockheed Martin Employee Plan, Benefit Arrangement, or any administrator, fiduciary or sponsor thereof with respect to Lockheed Martin’s ELV Business, other than benefit claims arising in the normal course of operation of such Employee Plan or
Benefit Arrangement and periodic audits by Governmental Authorities. 
  
 B.18 Government Contracts and Government Bids. 
  
 (a) Except (i) as set forth in Schedule B.18, (ii) as has not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business and (iii) for any Government Contract or a Bid that, if
accepted, would result in a Government Contract (a “Government Bid”) containing classified information or requiring special security clearances for access, with respect to each Government Contract and each Government Bid to which
Lockheed Martin or any of its Affiliated Transferors is a party with respect to Lockheed Martin’s ELV Business, (A) Lockheed Martin (or the applicable Affiliated Transferor) has 
  

 B-9 

 complied with the terms and conditions of such Government Contract or Government Bid; (B) Lockheed Martin (or the
Affiliated Transferor) has complied with all requirements of all Applicable Laws or agreements pertaining to such Government Contract or Government Bid; (C) all representations and certifications set forth in or pertaining to such Government
Contract or Government Bid were complete and correct as of their effective date, and Lockheed Martin (or the applicable Affiliated Transferor) has complied in all material respects with all such representations and certifications; (D) neither the
U.S. Government nor any prime contractor, subcontractor or other Person has notified Lockheed Martin (or the applicable Affiliated Transferor) in writing that Lockheed Martin (or the applicable Affiliated Transferor) has breached or violated any
Applicable Law pertaining to such Government Contract or Government Bid; (E) no termination for convenience or termination for default has occurred since January 1, 1998, and no cure notice or show cause notice is currently in effect pertaining to
such Government Contract or Government Bid; (F) no cost incurred by Lockheed Martin (or the applicable Affiliated Transferor) pertaining to such Government Contract or Government Bid is the subject of an investigation or has been disallowed by the
U.S. Government since January 1, 1998; (G) no money due to Lockheed Martin (or the applicable Affiliated Transferor) pertaining to such Government Contract or Government Bid has been withheld or set off, and (H) each Government Contract is valid and
subsisting. 
  
 (b) Except as set forth in Schedule B.18
and except as has not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business, with respect to Lockheed Martin’s ELV Business: (i) to the knowledge of Lockheed Martin, none of Lockheed
Martin’s respective employees, consultants or agents is (or during the last five years has been) under administrative, civil or criminal investigation, indictment or information by any Governmental Authority, or any audit or investigation by
Lockheed Martin with respect to any alleged irregularity, misstatement or omission arising under or relating to any Government Bid, and (ii) during the last five years, Lockheed Martin has not conducted or initiated any internal investigation or, to
Lockheed Martin’s knowledge, had reason to conduct, initiate or report any internal investigation, or made a voluntary disclosure to the U.S. Government, with respect to any alleged irregularity, misstatement or omission arising under or
relating to a Government Contract or Government Bid. 
  
 (c)
Except as set forth in Schedule B.18 and except as has not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business, there exist no outstanding claims against Lockheed Martin or any
of its Affiliated Transferors, either by the U.S. Government or by any prime contractor, subcontractor, vendor or other third party, arising under or relating to any Government Contract or Government Bid referred to in Schedule B.18.

  
 (d) Except as set forth in Schedule B.18 and except as
has not had, and could not reasonably be expected to have, a Material Adverse Effect on Lockheed Martin’s ELV Business, all test and inspection results Lockheed Martin (or any Affiliated Transferor) has provided to the U.S. Government pursuant
to any Government Contract or to any other Person pursuant to any such Government Contract or as a part of the delivery to the U.S. Government pursuant to any such Government Contract of any article designed, engineered or manufactured in Lockheed
Martin’s ELV Business were complete and correct as of the date so provided. Except as set forth in Schedule B.18 and except as has not had, and could not reasonably be expected to have, a 
  

 B-10 

 Material Adverse Effect on Lockheed Martin’s ELV Business, Lockheed Martin (or an Affiliated
Transferor) has provided all test and inspection results to the U.S. Government pursuant to any such Government Contract as required by Applicable Law and the terms of the applicable Government Contracts. 
  
 (e) Schedule B.18 contains a complete list of all Government Contracts
(as to subcontracts, with an aggregate contract value in excess of $10,000,000) in force and effect as of the date of this Agreement relating to the ELV Business and to which Lockheed Martin or any of its Subsidiaries is a party. 
  
 B.19 Government-Furnished Property or Equipment. Schedule B.19
identifies, as of December 31, 2004, all personal property, equipment and fixtures loaned, bailed or otherwise furnished by or on behalf of the U.S. Government (“Government-Furnished Items”) to Lockheed Martin or any of its
Subsidiaries that (i) relate to Lockheed Martin’s ELV Business, (ii) are being used in the conduct of Lockheed Martin’s ELV Business and (iii) are or should be in the possession of Lockheed Martin for use in Lockheed Martin’s ELV
Business. Schedule B.19 identifies each Government Contract to which each such item of Government-Furnished Items relates. Lockheed Martin or its applicable Affiliated Transferor has complied in all material respects with all of its
obligations relating to the Government-Furnished Items and, upon the return thereof to the U.S. Government in the condition thereof on the date hereof, would have no liability to the U.S. Government with respect thereto. 
  
 B.20 Backlog. Schedule B.20 sets forth, with respect to each
“fixed price” and “cost plus” Government Contract of Lockheed Martin or any of its Subsidiaries relating to the ELV Business having unfilled backlog as of December 31, 2004 in excess of $10,000,000, the backlog of Lockheed Martin
or its applicable Affiliated Transferor thereunder as of such date, the name of the customer and a brief description of the products and services to be provided. All of the Contracts constituting the backlog of Lockheed Martin or any of its
Subsidiaries as it relates to Lockheed Martin’s ELV Business were entered into in the ordinary course of business and based upon assumptions believed by the management of Lockheed Martin’s ELV Business to be reasonable. 
  
 B.21 Labor and Employment Matters. Except as set forth in Schedule
B.21, in connection with Lockheed Martin’s ELV Business: (i) neither Lockheed Martin nor any of its Affiliated Transferors is engaged in, nor since January 1, 2001, has engaged in, unfair labor practices, and there is no labor strike,
dispute (other than routine individual grievances), slowdown or stoppage pending or threatened against or directly affecting Lockheed Martin’s ELV Business or the Lockheed Martin Contributed Assets, (ii) no union representation question or
union or other organizational activity that would be subject to the National Labor Relations Act (29 U.S.C. §§ 151 et seq.) exists in respect of any employees of Lockheed Martin’s ELV Business, (iii) no collective bargaining agreement
exists which is binding on Lockheed Martin or any of its Subsidiaries with respect to Lockheed Martin’s ELV Business and (iv) neither Lockheed Martin nor any of its Affiliated Transferors is delinquent in any material respect in payments to any
of its current or former officers, directors, employees, consultants or agents of Lockheed Martin’s ELV Business for any wages, salaries, commissions or other direct compensation for an services performed by them or amounts required to be
reimbursed to such officers, directors, employees, consultants or agents. 
  

 B-11 

 B.22 Product Warranties. Except as set forth in Schedule B.22, Lockheed Martin’s and
its Subsidiaries’ Government Contracts set forth in Schedule B.18 and other customer Contracts set forth in Schedule B.10 contain all of the product warranties and guarantees extended by Lockheed Martin or any of its Subsidiaries
currently in effect with respect to such Contracts. Except as set forth in Schedule B.22, there have not been any amendments to or deviations from such warranties and guarantees contained in such Contracts. Except as set forth on Schedule
B.22, no written claims, or claims threatened in writing, exist against Lockheed Martin with respect to product warranties and guarantees on products or services provided in Lockheed Martin’s ELV Business. 
  
 B.23 Insurance. Schedule B.23 sets forth a complete and correct
list of all material insurance policies (other than title insurance policies) currently in force with respect to Lockheed Martin or any of its Subsidiaries exclusively relating to Lockheed Martin’s ELV Business, including a description of
whether such policies are “claims made” or “occurrence based” policies. Except as set forth in Schedule B.23, the policies of insurance described in Schedule B.23 are in full force and effect and are valid,
outstanding and enforceable, all premiums due thereon have been paid in full, and Lockheed Martin or the applicable Affiliated Transferor has complied in all material respects with the provisions of all such policies. Except as set forth in
Schedule B.23, no insurer under any such policy has cancelled or generally disclaimed liability under any of the policies listed in Schedule B.23 or indicated any intent to do so or not renew any such policy. Except as set forth in
Schedule B.23, all claims in respect of Lockheed Martin’s ELV Business under any policies listed in Schedule B.23 have been filed in a timely fashion. Except as set forth in Schedule B.23, Lockheed Martin has in place, in
respect of all ELV System launches under Contract as of the date of this Agreement, insurance in such amounts and of such types as is sufficient to provide the maximum liability limitation available under the CSLA, Public Law 85-804, the Space Act
and launch licenses issued by the FAA, or otherwise required under the terms and conditions of any lease from the U.S. Government for a launch pad. 
  
 B.24 Clearances. Except to the extent prohibited by Applicable Law, Schedule B.24 sets forth with respect to the Lockheed Martin Contributed
Assets or Lockheed Martin’s ELV Business, any and all facility security clearances held by Lockheed Martin and its Subsidiaries. 
  
 B.25 Foreign Corrupt Practices Act. Except as set forth in Schedule B.25, neither Lockheed Martin nor any of its Subsidiaries nor, to the
knowledge of Lockheed Martin, any director, officer, agent, employee or other person associated with or acting on behalf of Lockheed Martin or any of its Subsidiaries, has with respect to Lockheed Martin’s ELV Business (i) used any funds for
any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any unlawful payment or offered anything of value to any foreign or domestic government official or employee or to any foreign or
domestic political parties or campaigns; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any Applicable Law of similar effect; or (iv) made any unlawful bribe, rebate, payoff, influence
payment, kickback or transfer of value to another Person. 
  

 B-12 

 B.26 Export Control Laws. Except as set forth in Schedule B.26, with respect to Lockheed
Martin’s ELV Business: 
  
 (a) Lockheed Martin and each of
its Subsidiaries is in material compliance with all currently applicable U.S. Export and Import Laws. There are no claims, complaints, charges, investigations or proceedings pending or expected or, to the knowledge of Lockheed Martin, threatened
between Lockheed Martin or any of its Subsidiaries and the U.S. Government under any U.S. Export and Import Laws. 
  
 (b) Lockheed Martin and each of its Subsidiaries is in material compliance with all currently applicable Foreign Export and Import Laws. There are no
claims, complaints, charges, investigations or proceedings pending or expected or, to the knowledge of Lockheed Martin, threatened between Lockheed Martin or any of its Subsidiaries and a foreign government under any Foreign Export and Import Laws.

  
 (c) Lockheed Martin and each of its Subsidiaries has prepared
and timely applied for all import and export licenses required in accordance with U.S. Export and Import Laws and Foreign Export and Import Laws, for the conduct of its current ELV Business. 
  
 (d) Lockheed Martin has made available to Boeing true and complete copies of
all issued and pending import and export licenses, and all documentation required by, and necessary to evidence compliance with, all U.S. Export and Import Laws and all Foreign Export and Import Laws. 
  
 B.27 Disclosure and Internal Controls. 
  
 (a) Lockheed Martin and each of its Subsidiaries maintains accurate books
and records reflecting its assets and liabilities and maintains proper and adequate internal accounting controls that provide assurance that (i) transactions are executed with management’s authorization; (ii) transactions are recorded as
necessary to permit preparation of the consolidated financial statements of Lockheed Martin and its Subsidiaries and to maintain accountability for Lockheed Martin’s and each of its Subsidiaries’ consolidated assets; (iii) access to the
assets of Lockheed Martin and its Subsidiaries is permitted only in accordance with management’s authorization; (iv) the reporting of assets of Lockheed Martin and its Subsidiaries is compared with existing assets at regular intervals; and (v)
accounts, notes and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the collection of accounts, notes and other receivables on a current and timely basis. 
  
 (b) Lockheed Martin and each of its Subsidiaries maintains disclosure
controls and procedures required by the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder; such controls and procedures are effective to ensure that all material information concerning Lockheed Martin
and its Subsidiaries is made known on a timely basis to the individuals responsible for the preparation of Lockheed Martin’s filings with the Securities and Exchange Commission and other public disclosure documents. 
  
 B.28 Galex. Neither Lockheed Martin nor any of its Affiliates is
obligated, pursuant to any securities, options, warrants, calls, demands, contracts or other rights or otherwise, now or in the future, contingently or otherwise, to deliver, sell, purchase or redeem any shares of capital stock of Galex to or from
any Person. Without limiting the foregoing, neither Lockheed Martin 
  

 B-13 

 nor any of its Affiliates has any liability or obligation to invest any capital in Galex (other than the initial
investment in the Contributed Galex Shares), make loans to Galex, guaranty any debt of Galex or undertake any form of financial support of Galex. 
  
 B.29 Undisclosed Contracts. Except as set forth on Schedule B.29: 
  
 (a) No undisclosed portions of the Government Contracts constituting Undisclosed Contracts of Lockheed Martin (i) involve
the performance of work by Lockheed Martin’s ELV Business of a materially different nature than work currently performed by Lockheed Martin’s ELV Business pursuant to Government Contracts to which Boeing has been provided access prior to
the date of this Agreement, (ii) have terms which would result in total contract costs determined in accordance with GAAP indicating a loss (except that costs shall be based on the average costs of Lockheed Martin’s ELV Business for the
applicable accounting year), (iii) include expressly unallowable termination costs, or (iv) contain any material terms that are not consistent with industry practice. 
  
 (b) No undisclosed portions of the Galex Contract constituting an Undisclosed Contract of Lockheed Martin (i) impose any
material unindemnified or uninsured liability on Lockheed Martin’s ELV Business that is not substantially similar in nature and scope to the liabilities under the portions of the Galex Contract or other Contracts to which Boeing has been
provided access prior to the date of this Agreement, (ii) involve potential risks to Lockheed Martin’s ELV Business that are not comparable in nature and scope to the risks specified in the portions of the Galex Contract or other Contracts to
which Boeing has been provided access prior to the date of this Agreement, (iii) involve the performance of work by Lockheed Martin’s ELV Business of a materially different nature than work currently performed by Lockheed Martin’s ELV
Business pursuant to the portions of the Galex Contract or other Contracts to which Boeing has been provided access prior to the date of this Agreement; (iv) have terms which would result in total contract costs determined in accordance with GAAP
indicating a loss (except that costs shall be based on the average costs of Lockheed Martin’s ELV Business for the applicable accounting year) or (v) contain any material terms that are not consistent with industry practice. 
  
 (c) No undisclosed portions of the Contracts (other than Government Contracts
and the Galex Contract) constituting Undisclosed Contracts of Lockheed Martin (i) involve the performance of work by Lockheed Martin’s ELV Business of a materially different nature than work currently performed by Lockheed Martin’s ELV
Business pursuant to Contracts (other than Government Contracts and the Galex Contract) to which Boeing has been provided access prior to the date of this Agreement, (ii) have terms which would result in total contract costs determined in accordance
with GAAP indicating a loss (except that costs shall be based on the average costs of Lockheed Martin’s ELV Business for the applicable accounting year), (iii) contain any material terms that are not consistent with industry practice or (iv)
require Lockheed Martin’s ELV Business to “take or pay” for a minimum number or volume of goods, or to purchase a minimum number or volume of goods used in the manufacture of ELV Systems in excess of the current requirements of
Lockheed Martin’s ELV Business under existing Contracts. 
  

 B-14 

 EXHIBIT C 
  

REPRESENTATIONS AND WARRANTIES OF BOEING 
  
 Boeing hereby represents and warrants to Lockheed Martin and the Company, as of the date of this Agreement and as of the Closing Date, that: 

 
 C.01 Corporate Existence and Power. Each of Boeing and each of its
Affiliated Transferors is a corporation duly incorporated, validly existing and in good standing under the laws of the state or jurisdiction of its incorporation and has all corporate power and authority required to carry on Boeing’s ELV
Business as now conducted. Each of Boeing and each of its Affiliated Transferors is duly qualified to do business as a foreign corporation or other entity and is in good standing in each jurisdiction where the character of the property owned or
leased by it or the nature of its activities make such qualification necessary to carry on Boeing’s ELV Business as now conducted, except where the failure to be so qualified or in good standing has not had, and could not reasonably be expected
to have, a Material Adverse Effect on Boeing’s ELV Business. 
  
 C.02 Corporate Authorization. The execution, delivery and performance by Boeing and its Subsidiaries of the Transaction Documents to which Boeing or any of its Subsidiaries is a party and the consummation by Boeing and its
Subsidiaries of the Contemplated Transactions are within Boeing’s and its Subsidiaries’ respective corporate powers and have been (or in respect to Boeing’s Subsidiaries, as of Closing shall have been) duly authorized by all necessary
corporate action on Boeing’s and its Subsidiaries’ respective parts. This Agreement constitutes and each of the other Transaction Documents to which Boeing or any of its Subsidiaries is a party constitutes or shall constitute at Closing a
legal, valid and binding agreement of Boeing or its applicable Subsidiary, enforceable against it in accordance with its terms (i) except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and (ii) subject to the limitations
imposed by general equitable principles regardless of whether such enforceability is considered in a proceeding at law or in equity. 
  
 C.03 Governmental Authorization. The execution, delivery and performance by Boeing and each of its Subsidiaries of the Transaction Documents to
which Boeing or any of its Subsidiaries is a party require no action by or in respect of, or consent or approval of, or filing with, any Governmental Authority other than: 
  
 (a) compliance with any applicable requirements of the Antitrust Laws;  
  
 (b) the actions, consents, approvals, permits or filings set forth in
Schedule C.03 or otherwise expressly referred to in this Agreement; and 
  
 (c) such other consents, approvals, authorizations, permits and filings the failure to obtain or make of which would not have, individually or in the aggregate, a Material Adverse Effect on Boeing’s ELV Business.

 C.04 Non-Contravention. Except as set forth in Schedule C.04, the execution, delivery and
performance of the Transaction Documents by Boeing and its Subsidiaries do not and shall not (i)(A) contravene or conflict with the charter, bylaws or other organizational documents of Boeing or any of its Subsidiaries, (B) assuming compliance with
the matters referred to in Section C.03, contravene or conflict with, or constitute a violation of, any provisions of any Applicable Law binding upon Boeing or any of its Subsidiaries that is applicable to Boeing’s ELV Business, or (C) assuming
compliance with the matters referred to in Section C.03, constitute a default under, or give rise to any right of termination, cancellation or acceleration of, or to a loss of any benefit relating primarily to Boeing’s ELV Business to which
Boeing or any of its Affiliated Transferors is entitled under, any Contract binding upon Boeing or any of its Affiliated Transferors and relating primarily to Boeing’s ELV Business or by which any of the Boeing Contributed Assets is or may be
bound (including any Contract included in the Boeing Contributed Assets) or any license, franchise, permit or similar authorization held by Boeing or any of its Affiliated Transferors relating primarily to Boeing’s ELV Business except, in the
case of clauses (B) and (C), for any such contravention, conflict, violation, default, termination, cancellation, acceleration or loss that could not reasonably be expected to have a Material Adverse Effect on Boeing’s ELV Business or (ii)
result in the creation or imposition of any Lien on any Boeing Contributed Asset, other than Permitted Liens. 
  
 C.05 Opening Statement. Except as set forth in the Notes thereto, the Boeing Opening Statement presents fairly, in all material respects, the Net
Assets of Boeing’s ELV Business as of December 31, 2004, in conformity with Boeing’s historical practices and procedures applied on a basis consistent in all material respects with the manner in which Boeing’s ELV Business reported
its financial position for inclusion in the audited consolidated financial statements of Boeing as of that date. Except as set forth in Schedule C.05, the Boeing Opening Statement reflects the Boeing Contributed Assets and the Boeing Assumed
Liabilities to the extent the same are contemplated to be presented in accordance with the Notes thereto, and the Boeing Opening Statement does not reflect any Boeing Excluded Assets or Boeing Excluded Liabilities. 
  
 C.06 Absence of Certain Changes. Except as set forth in Schedule
C.06, from December 31, 2004 to the date of this Agreement, Boeing has conducted its ELV Business in all material respects in accordance with the historical and customary operating practices relating to the conduct of such ELV Business and there
has not been: 
  
 (a) any event or occurrence that has had a
Material Adverse Effect on Boeing’s ELV Business, other than events or occurrences resulting from changes, whether actual or prospective, in general conditions applicable to the industries in which Boeing’s ELV Business is involved or
general economic conditions; 
  
 (b) any damage, destruction or
other casualty loss affecting Boeing’s ELV Business or any assets that would constitute Boeing Contributed Assets if owned, held or used by Boeing or any of its Affiliated Transferors on the Closing Date that has had a Material Adverse Effect
on Boeing’s ELV Business; 
  
 (c) (i) any transaction or
commitment made, or any Contract entered into, by Boeing or any of its Affiliated Transferors relating primarily to Boeing’s ELV Business or to any assets that would constitute Boeing Contributed Assets if owned, held or used by Boeing or any
of its 
  

 C-2 

 Affiliated Transferors on the Closing Date (including the acquisition or disposition of any assets), or (ii) any
termination or amendment by Boeing or any of its Affiliated Transferors of any Contract or other right that would constitute Boeing Contributed Assets if owned, held or used by Boeing or any of its Affiliated Transferors on the Closing Date, in
either case that is material to Boeing’s ELV Business taken as a whole, other than transactions and commitments in the ordinary course of business and those contemplated by this Agreement; 
  
 (d) any transaction or commitment made, or any Contract entered into, by
Boeing or any of its Affiliated Transferors requiring Boeing’s ELV Business to “take or pay” for a minimum number or volume of goods, or to purchase a minimum number or volume of goods used in the manufacture of ELV Systems in excess
of requirements under applicable customer Contracts or otherwise guaranteeing any of the foregoing; 
  
 (e) any sale or other disposition of more than an aggregate of $5,000,000 of assets (other than any sale made in the ordinary course of business) that
would constitute Boeing Contributed Assets if owned, held or used by Boeing or any of its Subsidiaries on the Closing Date; 
  
 (f) any increase in the compensation of any current employee of Boeing’s ELV Business at a level of director or above, other than compensation
increases or bonus awards in the ordinary course of business or nondiscretionary increases pursuant to Employee Plans or Benefit Arrangements disclosed in Schedule C.17 or referenced in Exhibit E; or 
  
 (g) any cancellation, compromise, waiver or release by Boeing or any of its
Subsidiaries of any claim or right (or a series of related claims or rights) related to Boeing Contributed Assets or assets of Boeing that would constitute Boeing Contributed Assets if owned, held or used by Boeing or any of its Affiliated
Transferors on the Closing Date, other than cancellations, compromises, waivers or releases in the ordinary course of business. 
  
 C.07 Sufficiency of and Title to the Contributed Assets. 
  

(a) Except as set forth in Schedule C.07, the Boeing Contributed Assets, together with the services to be provided to the Company by Boeing
pursuant to the Transition Services Agreement (Boeing), the Licensed Boeing Intellectual Property to be licensed pursuant to the Transaction Documents and the leases and subleases contemplated in the Transaction Documents, constitute, and on the
Closing Date shall constitute, all of the assets and services that are necessary to permit the operation of Boeing’s ELV Business in substantially the same manner as such operations have heretofore been conducted. 
  
 (b) Except as set forth in Schedule C.07, subject to the receipt of
any consents or approvals of any other Person, upon consummation of the Contemplated Transactions, the Company shall have acquired good and marketable title in and to, or a valid leasehold interest in or a valid license to use, each of the Boeing
Contributed Assets, free and clear of all Liens, except for Permitted Liens. Except as set forth in Schedule C.07, all tangible property and assets included in the Boeing Contributed Assets are in good operating condition (normal wear and
tear excepted), and normal maintenance and repair on such tangible property and assets has not been deferred. 
  

 C-3 

 (c) Schedule C.07 includes a true and complete list of all real property owned by Boeing and its
Subsidiaries that is used primarily in Boeing’s ELV Business (collectively, the “Boeing Owned Real Property”). Schedule C.07 sets forth the address of each parcel of Boeing Owned Real Property and the owner of such
Boeing Owned Real Property. 
  
 (d) Schedule C.07 includes
a true and complete list of all agreements (together with any amendments thereof) pursuant to which Boeing and its Subsidiaries lease, sublease or otherwise occupy (whether as landlord, tenant, subtenant or other occupancy arrangement) any real
property that is used primarily in Boeing’s ELV Business (collectively, the “Boeing Leased Real Property”). Schedule C.07 sets forth the address of each parcel of Boeing Leased Real Property and the owner of the
leasehold, subleasehold or occupancy interest for each parcel of Boeing Leased Real Property. 
  
 C.08 No Undisclosed Liabilities. There are no liabilities of Boeing or any of its Affiliated Transferors relating to Boeing’s ELV Business that constitute Boeing Assumed Liabilities of any kind whatsoever,
whether accrued, contingent, absolute, determined, determinable or otherwise, other than: 
  
 (a) liabilities disclosed (or provided for) in the Boeing Opening Statement and liabilities for matters taken into account in the determination of the Boeing Adjusted Net Working Capital Amount; 
  
 (b) liabilities (i) disclosed in Schedule C.08, (ii) related to any
Contract disclosed in Boeing’s Disclosure Schedules or (iii) related to any Boeing Employee Plan or Benefit Arrangements identified in Exhibit E or disclosed in Schedule C.17; 
  
 (c) liabilities incurred in the ordinary course of business since December
31, 2004; 
  
 (d) contingent liabilities not required to be
accrued for or reserved against in accordance with GAAP or the accounting principles, policies, practices, methods and procedures utilized in the preparation of Boeing’s Opening Statement, as disclosed in the Notes to Boeing’s Opening
Statement; 
  
 (e) with respect to the bring down of this
representation and warranty as of the Closing Date, liabilities not required to be accrued for or reserved against in accordance with GAAP or the accounting principles, policies, practices, methods and procedures utilized in the preparation of
Boeing’s Opening Statement, as disclosed in the Notes to Boeing’s Opening Statement; and 
  
 (f) liabilities in addition to those referenced in the foregoing clauses (a) through (e), that, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect on Boeing’s ELV Business. 
  
 C.09 Litigation. Except as set forth in Schedule C.09 or reserved against or referred to in the Boeing Opening Statement and except for matters arising under or related to Environmental Laws, there is no
action, suit, investigation or proceeding pending, or to the knowledge of Boeing, threatened against or affecting, Boeing’s ELV Business or any Boeing Contributed Asset before any Governmental Authority that could reasonably be expected to have
a Material Adverse Effect on Boeing’s ELV Business. 
  

 C-4 

 C.10 Material Contracts. 
  
 (a) Except as set forth in Schedule C.10 and except for Contracts that do not constitute Boeing Contributed Assets or
Boeing Assumed Liabilities, Boeing and its Subsidiaries, with respect to Boeing’s ELV Business, are not parties to or otherwise bound by or subject to: 
  
 (i) any written employment, severance, consulting or sales representative Contract that contains an obligation (excluding commissions) to pay more than
$50,000 per year, any collective bargaining agreement or other agreement with a labor union or any other agreement that contains an obligation either to employ a specified number of employees or to make a payment to any other Person in lieu thereof;

  
 (ii) any Contract containing any covenant limiting the freedom
of Boeing or any of its Subsidiaries, in respect of Boeing’s ELV Business or the operations of Boeing’s ELV Business, to compete with any Person in any geographic area in any material respect if such Contract will be binding on the Company
after the Closing; 
  
 (iii) any Contract requiring Boeing’s
ELV Business to “take or pay” for a minimum number or volume of goods, or to purchase a minimum number or volume of goods used in the manufacture of ELV Systems in excess of requirements under applicable customer Contracts or otherwise
guaranteeing any of the foregoing; 
  
 (iv) any Contract in effect
on the date of this Agreement relating to the disposition or acquisition of the assets of, or any interest in, any business enterprise that relates to Boeing’s ELV Business other than in the ordinary course of business; 
  
 (v) any Financial Support Arrangements; 
  
 (vi) any indebtedness for borrowed money of Boeing’s ELV Business that
would constitute a Boeing Assumed Liability if in existence on the Closing Date, with a principal amount in excess of $100,000; 
  
 (vii) any Contract (it being understood that for purposes of this representation, a purchase order issued under an existing master agreement will not
constitute a separate Contract) with a supplier, vendor, or subcontractor with an aggregate contract value in excess of $10,000,000; 
  
 (viii) any teaming agreement or partnership, joint venture or similar agreement; or 
  
 (ix) any Contract with a foreign Governmental Authority. 
  
 (b) Schedule C.10 sets forth any Contract (other than a Government Contract) with a customer to which Boeing or any
of its Subsidiaries is a party or otherwise bound for the provision of Launch Services using ELV Systems with an aggregate contract value in excess of $50,000,000. 
  

 C-5 

 (c) Except as disclosed in Schedule C.10, each Contract disclosed in Schedule C.10 or
Schedule C.07 is in full force and effect and constitutes a legal, valid and binding obligation of Boeing (or the applicable Affiliated Transferor) enforceable against Boeing (or the applicable Affiliated Transferor) in accordance with its
terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, including the effect of
statutory and other laws regarding fraudulent conveyances and preferential transfers, and subject to the limitations imposed by general equitable principles regardless of whether such enforceability is considered in a proceeding at law or in
equity), and Boeing (or the applicable Affiliated Transferor) is not in default and has not failed to perform any obligation thereunder, and, to the knowledge of Boeing, there does not exist any event, condition or omission that would constitute a
breach or default (whether by lapse of time or notice or both) by any other Person, except for any such default, failure or breach as has not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business.

  
 C.11 Licenses and Permits. To the knowledge of Boeing,
except as set forth in Schedule C.11, Boeing (or the appropriate Affiliated Transferor) has all licenses, franchises, permits and other similar authorizations affecting, or relating in any way to, Boeing’s ELV Business required by
Applicable Law (other than Environmental Laws) to be obtained by Boeing (or the appropriate Affiliated Transferor) to permit Boeing to conduct Boeing’s ELV Business in substantially the same manner as Boeing’s ELV Business has heretofore
been conducted, except where the failure to have such licenses, franchises, permits and similar authorizations has not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business. 
  
 C.12 Finders’ Fees. There is no investment banker, broker, finder
or other intermediary that has been retained by or is authorized to act on behalf of Boeing or any of its Affiliated Transferors who might be entitled to any fee or commission from the Company or any of its Affiliates upon consummation of the
Contemplated Transactions. 
  
 C.13 Environmental
Compliance. 
  
 (a) Except as disclosed in Schedule
C.13, to the knowledge of Boeing, Boeing’s ELV Business is and has been in material compliance with all applicable Environmental Laws, and has obtained all Environmental Permits, except where the failure to be in compliance or to have
obtained all Environmental Permits has not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business. Except as set forth in Schedule C.13 and except as reserved against or referred to in the
Boeing Opening Statement, to the knowledge of Boeing, (i) Boeing’s ELV Business is and has been in material compliance with the terms and conditions under which Environmental Permits were issued or granted, (ii) Boeing and its Subsidiaries hold
all permits required by Environmental Laws that are appropriate to conduct Boeing’s ELV Business as presently conducted in all material respects and to operate the Boeing Contributed Assets in all material respects as they are presently
operated; (iii) no suspension, cancellation or termination of any permit referred to in clause (ii) is pending or threatened; (iv) 
  

 C-6 

 Boeing has not received written notice of any material Environmental Claim relating to or affecting Boeing’s ELV
Business or the Boeing Contributed Assets, and there is no such threatened Environmental Claim; and (v) Boeing, in connection with its ELV Business or the Boeing Contributed Assets, has not entered into, agreed in writing to, and is not subject to
any judgment, decree order or other similar requirement of any Governmental Authority under any Environmental Laws, except in the case of clauses (i) through (v) where such failure or other circumstances has not had, and could not reasonably be
expected to have, a Material Adverse Effect on Boeing’s ELV Business. 
  
 (b) Notwithstanding any other provision of this Exhibit C, this Section C.13 sets forth the sole and exclusive representations and warranties governing matters arising under or relating to Environmental Laws,
and no other representations or warranties shall be deemed to address or cover any matter arising under or relating to any Environmental Laws. 
  
 C.14 Compliance with Laws. Except as set forth in Schedule C.14, for matters arising under or related to Environmental Laws, and for
violations or infringements that have not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business, to the knowledge of Boeing, the operation of Boeing’s ELV Business and condition of the Boeing
Contributed Assets have not violated or infringed, and do not violate or infringe, in any respect any Applicable Law or any order, writ, injunction or decree of any Governmental Authority. 
  
 C.15 Intellectual Property. With respect to the Licensed Boeing
Intellectual Property to be licensed by Boeing to the Company in connection with the Contemplated Transactions, except as set forth in Schedule C.15, to the knowledge of Boeing: 
  
 (a) Boeing (or an Affiliated Transferor) either (i) owns, free and clear of all Liens other than Permitted Liens, all right,
title and interest in, or (ii) has the right to license, sublicense, or assign, such Licensed Boeing Intellectual Property, in each case subject to any licenses and other rights granted by Boeing and its Subsidiaries in such Licensed Boeing
Intellectual Property prior to the Closing Date; 
  
 (b) the use
of such Licensed Boeing Intellectual Property in connection with the operation of Boeing’s ELV Business as heretofore conducted does not conflict with, infringe upon or violate the intellectual property rights of any other Persons, except to
the extent that such conflict, infringement or violation has not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business; 
  
 (c) Boeing (or an Affiliated Transferor) has the right to use all such Licensed Boeing Intellectual Property used by
Boeing’s ELV Business and necessary for the continued operation of Boeing’s ELV Business in substantially the same manner as its operations have heretofore been conducted, except where the failure to have the right to use any such Licensed
Boeing Intellectual Property has not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business; and 
  

 C-7 

 (d) notwithstanding the provisions of this Section C.15, Boeing makes no representation or warranty, and
no such representation or warranty shall be implied, that any of such Licensed Boeing Intellectual Property is valid or enforceable. 
  
 C.16 Taxes. Except as set forth in Schedule C.16 or as could not reasonably be expected to have a Material Adverse Effect on Boeing’s
ELV Business, (i) all Tax Returns required to be filed on or before the Closing Date by Boeing and its Subsidiaries with any Tax Authority in respect of the Boeing Contributed Assets or the operations of Boeing’s ELV Business have been filed or
shall be filed in accordance with all Applicable Laws and are in all material respects complete and accurate, and (ii) all Taxes due and owing by Boeing or any of its Subsidiaries that relate to the Boeing Contributed Assets or the operations of
Boeing’s ELV Business have been paid; provided, however, that the foregoing representations and warranties are made only to the extent of Taxes that are or may become Liens (other than Permitted Liens) on the Boeing Contributed
Assets. Boeing is not a party to any tax allocation or tax-sharing agreement with respect to Boeing’s ELV Business. 
  
 C.17 Employee Benefit Matters. 
  
 (a) To the knowledge of Boeing, Schedule C.17 lists each Boeing Employee Plan or material Benefit Arrangement that covers Boeing Business
Employees. 
  
 (b) Except as set forth in Schedule C.17,
with respect to Boeing’s ELV Business: 
  
 (i) since January
1, 2001, neither Boeing nor any member of its “Controlled Group” (defined as any organization that is a member of a controlled group of organizations within the meaning of Code Sections 414(b), (c), (m) or (o)) has contributed to or had
any liability to a “multi-employer plan,” as defined in Section 3(37) of ERISA, that could reasonably be expected to have a Material Adverse Effect on Boeing’s ELV Business; 
  
 (ii) to the knowledge of Boeing, no fiduciary of any Boeing Employee Plan has
engaged in a nonexempt “prohibited transaction” (as that term is defined in Section 4975 of the Code and Section 406 of ERISA) that could subject the Company to an excise tax imposed by Section 4975 of the Code; 
  
 (iii) no Boeing Employee Plan that is subject to Section 412 of the Code has
incurred an “accumulated funding deficiency” within the meaning of Section 412 of the Code, whether or not waived; 
  
 (iv) to the knowledge of Boeing, each Boeing Employee Plan and Benefit Arrangement has been established and administered in all material respects in
accordance with its terms and in compliance with Applicable Law, except where a failure to do so would not have a Material Adverse Effect on Boeing’s ELV Business; 
  
 (v) to the knowledge of Boeing, no Boeing Employee Plan subject to Title IV of ERISA has incurred any material liability
under such title other than for the payment of premiums to the PBGC, all of which to the knowledge of Boeing have been paid when due; 
  

 C-8 

 (vi) there have been no “reportable events” (as that term is defined in Section 4043 of ERISA
and the regulations thereunder), other than reportable events arising directly from the Contemplated Transactions, that would present a risk that a Boeing Employee Plan would be terminated by the PBGC in a distress termination; 
  
 (vii) each Boeing Employee Plan intended to qualify under Section 401 of the
Code has received a determination letter from the Internal Revenue Service that it is so qualified and, to the knowledge of Boeing, no event has occurred with respect to any such Employee Plan that could reasonably be expected to result in the loss
of such qualification; 
  
 (viii) with respect to each Boeing
Employee Plan listed in Schedule C.17, Boeing has made available to Lockheed Martin the most recent copy, if any (where available), of (1) the plan document; (2) the summary plan description; and (3) Form 5500; and 
  
 (ix) there are no actions, claims or investigations by a Governmental
Authority pending or, to the knowledge of Boeing threatened, against any Boeing Employee Plan, Benefit Arrangement, or any administrator, fiduciary or sponsor thereof with respect to Boeing’s ELV Business, other than benefit claims arising in
the normal course of operation of such Employee Plan or Benefit Arrangement and periodic audits by Governmental Authorities. 
  
 C.18 Government Contracts and Government Bids. 
  
 (a) Except (i) as set forth in Schedule C.18, (ii) as has not had, and could not reasonably be expected to have, a Material Adverse Effect on
Boeing’s ELV Business and (iii) for any Government Contract or Government Bid containing classified information or requiring special security clearances for access, with respect to each Government Contract and each Government Bid to which
Boeing or any of its Affiliated Transferors is a party with respect to Boeing’s ELV Business, (A) Boeing (or the applicable Affiliated Transferor) has complied with the terms and conditions of such Government Contract or Government Bid; (B)
Boeing (or the Affiliated Transferor) has complied with all requirements of all Applicable Laws or agreements pertaining to such Government Contract or Government Bid; (C) all representations and certifications set forth in or pertaining to such
Government Contract or Government Bid were complete and correct as of their effective date, and Boeing (or the applicable Affiliated Transferor) has complied in all material respects with all such representations and certifications; (D) neither the
U.S. Government nor any prime contractor, subcontractor or other Person has notified Boeing (or the applicable Affiliated Transferor) in writing that Boeing (or the applicable Affiliated Transferor) has breached or violated any Applicable Law
pertaining to such Government Contract or Government Bid; (E) no termination for convenience or termination for default has occurred since January 1, 1998, and no cure notice or show cause notice is currently in effect pertaining to such Government
Contract or Government Bid; (F) no cost incurred by Boeing (or the applicable Affiliated Transferor) pertaining to such Government Contract or Government Bid is the subject of an investigation or has been disallowed by the U.S. Government since
January 1, 1998; (G) no money due to Boeing (or the applicable Affiliated Transferor) pertaining to such Government Contract or Government Bid has been withheld or set off, and (H) each Government Contract is valid and subsisting. 
  

 C-9 

 (b) Except as set forth in Schedule C.18 and except as has not had, and could not reasonably be
expected to have, a Material Adverse Effect on Boeing’s ELV Business, with respect to Boeing’s ELV Business: (i) to the knowledge of Boeing, none of Boeing’s respective employees, consultants or agents is (or during the last five
years has been) under administrative, civil or criminal investigation, indictment or information by any Governmental Authority, or any audit or investigation by Boeing with respect to any alleged irregularity, misstatement or omission arising under
or relating to any Government Bid, and (ii) during the last five years, Boeing has not conducted or initiated any internal investigation or, to Boeing’s knowledge, had reason to conduct, initiate or report any internal investigation, or made a
voluntary disclosure to the U.S. Government, with respect to any alleged irregularity, misstatement or omission arising under or relating to a Government Contract or Government Bid. 
  
 (c) Except as set forth in Schedule C.18 and except as has not had, and could not reasonably be expected to have, a
Material Adverse Effect on Boeing’s ELV Business, there exist no outstanding claims against Boeing or any of its Affiliated Transferors, either by the U.S. Government or by any prime contractor, subcontractor, vendor or other third party,
arising under or relating to any Government Contract or Government Bid referred to in Schedule C.18. 
  
 (d) Except as set forth in Schedule C.18 and except as has not had, and could not reasonably be expected to have, a Material Adverse Effect on
Boeing’s ELV Business, all test and inspection results Boeing (or any Affiliated Transferor) has provided to the U.S. Government pursuant to any Government Contract or to any other Person pursuant to any such Government Contract or as a part of
the delivery to the U.S. Government pursuant to any such Government Contract of any article designed, engineered or manufactured in Boeing’s ELV Business were complete and correct as of the date so provided. Except as set forth in Schedule
C.18 and except as has not had, and could not reasonably be expected to have, a Material Adverse Effect on Boeing’s ELV Business, Boeing (or an Affiliated Transferor) has provided all test and inspection results to the U.S. Government
pursuant to any such Government Contract as required by Applicable Law and the terms of the applicable Government Contracts. 
  
 (e) Schedule C.18 contains a complete list of all Government Contracts (as to subcontracts, with an aggregate contract value in excess of
$10,000,000) in force and effect as of the date of this Agreement relating to the ELV Business and to which Boeing or any of its Subsidiaries is a party. 
  
 C.19 Government-Furnished Property or Equipment. Schedule C.19 identifies, as of December 31, 2004, all Government-Furnished Items to Boeing
or any of its Subsidiaries that (i) relate to Boeing’s ELV Business, (ii) are being used in the conduct of Boeing’s ELV Business and (iii) are or should be in the possession of Boeing for use in Boeing’s ELV Business. Schedule
C.19 identifies each Government Contract to which each such item of Government-Furnished Items relates. Boeing or its applicable Affiliated Transferor has complied in all material respects with all of its obligations relating to the
Government-Furnished Items and, upon the return thereof to the U.S. Government in the condition thereof on the date hereof, would have no liability to the U.S. Government with respect thereto. 
  
 C.20 Backlog. Schedule C.20 sets forth, with respect to each
“fixed price” and “cost plus” Government Contract of Boeing or any of its Subsidiaries relating to the ELV Business 
  

 C-10 

 having unfilled backlog as of December 31, 2004 in excess of $10,000,000, the backlog of Boeing or its applicable
Affiliated Transferor thereunder as of such date, the name of the customer and a brief description of the products and services to be provided. All of the Contracts constituting the backlog of Boeing or any of its Subsidiaries as it relates to
Boeing’s ELV Business were entered into in the ordinary course of business and based upon assumptions believed by the management of Boeing’s ELV Business to be reasonable. 
  
 C.21 Labor and Employment Matters. Except as set forth in Schedule C.21, in connection with Boeing’s ELV
Business: (i) neither Boeing nor any of its Affiliated Transferors is engaged in, nor since January 1, 2001, has engaged in, unfair labor practices, and there is no labor strike, dispute (other than routine individual grievances), slowdown or
stoppage pending or threatened against or directly affecting Boeing’s ELV Business or the Boeing Contributed Assets, (ii) no union representation question or union or other organizational activity that would be subject to the National Labor
Relations Act (29 U.S.C. §§ 151 et seq.) exists in respect of any employees of Boeing’s ELV Business, (iii) no collective bargaining agreement exists which is binding on Boeing or any of its Subsidiaries with respect to Boeing’s
ELV Business and (iv) neither Boeing nor any of its Affiliated Transferors is delinquent in any material respect in payments to any of its current or former officers, directors, employees, consultants or agents of Boeing’s ELV Business for any
wages, salaries, commissions or other direct compensation for an services performed by them or amounts required to be reimbursed to such officers, directors, employees, consultants or agents.  
  
 C.22 Product Warranties. Except as set forth in Schedule C.22,
Boeing’s and its Subsidiaries’ Government Contracts set forth in Schedule C.18 and other customer Contracts set forth in Schedule C.10 contain all of the product warranties and guarantees extended by Boeing or any of its
Subsidiaries currently in effect with respect to such Contracts. Except as set forth in Schedule C.22, there have not been any amendments to or deviations from such warranties and guarantees contained in such Contracts. Except as set forth on
Schedule C.22, no written claims, or claims threatened in writing, exist against Boeing with respect to product warranties and guarantees on products or services provided in Boeing’s ELV Business. 
  
 C.23 Insurance. Schedule C.23 sets forth a complete and correct
list of all material insurance policies (other than title insurance policies) currently in force with respect to Boeing or any of its Subsidiaries exclusively relating to Boeing’s ELV Business, including a description of whether such policies
are “claims made” or “occurrence based” policies. Except as set forth in Schedule C.23, the policies of insurance described in Schedule C.23 are in full force and effect and are valid, outstanding and enforceable,
all premiums due thereon have been paid in full, and Boeing or the applicable Affiliated Transferor has complied in all material respects with the provisions of all such policies. Except as set forth in Schedule C.23, no insurer under any
such policy has cancelled or generally disclaimed liability under any of the policies listed in Schedule C.23 or indicated any intent to do so or not renew any such policy. Except as set forth in Schedule C.23, all claims in respect of
Boeing’s ELV Business under any policies listed in Schedule C.23 have been filed in a timely fashion. Except as set forth in Schedule C.23, Boeing has in place, in respect of all ELV System launches under Contract as of the date
of this Agreement, insurance in such amounts and of such types as is sufficient to provide the maximum liability limitation available under the CSLA, Public Law 85-804, the Space Act and launch licenses issued by the FAA, or otherwise required under
the terms and conditions of any lease from the U.S. Government for a launch pad. 
  

 C-11 

 C.24 Clearances. Except to the extent prohibited by Applicable Law, Schedule C.24 sets
forth with respect to the Boeing Contributed Assets or Boeing’s ELV Business, any and all facility security clearances held by Boeing and its Subsidiaries. 
  

C.25 Foreign Corrupt Practices Act. Except as set forth in Schedule C.25, neither Boeing nor any of its Subsidiaries nor, to the
knowledge of Boeing, any director, officer, agent, employee or other person associated with or acting on behalf of Boeing or any of its Subsidiaries, has with respect to Boeing’s ELV Business (i) used any funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity; (ii) made any unlawful payment or offered anything of value to any foreign or domestic government official or employee or to any foreign or domestic political parties or
campaigns; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any Applicable Law of similar effect; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or transfer
of value to another Person. 
  
 C.26 Export Control Laws.
Except as set forth in Schedule C.26, with respect to Boeing’s ELV Business: 
  
 (a) Boeing and each of its Subsidiaries is in material compliance with all currently applicable U.S. Export and Import Laws. There are no claims, complaints, charges, investigations or proceedings pending or expected
or, to the knowledge of Boeing, threatened between Boeing or any of its Subsidiaries and the U.S. Government under any U.S. Export and Import Laws. 
  
 (b) Boeing and each of its Subsidiaries is in material compliance with all currently applicable Foreign Export and Import Laws. There are no claims,
complaints, charges, investigations or proceedings pending or expected or, to the knowledge of Boeing, threatened between Boeing or any of its Subsidiaries and a foreign government under any Foreign Export and Import Laws. 
  
 (c) Boeing and each of its Subsidiaries has prepared and timely applied for
all import and export licenses required in accordance with U.S. Export and Import Laws and Foreign Export and Import Laws, for the conduct of its current ELV Business. 
  
 (d) Boeing has made available to Lockheed Martin true and complete copies of all issued and pending import and export
licenses, and all documentation required by, and necessary to evidence compliance with, all U.S. Export and Import Laws and all Foreign Export and Import Laws. 
  

C.27 Disclosure and Internal Controls. 
  
 (a) Boeing and each of its Subsidiaries maintains accurate books and records reflecting its assets and liabilities and maintains proper and adequate
internal accounting controls that provide assurance that (i) transactions are executed with management’s authorization; (ii) transactions are recorded as necessary to permit preparation of the consolidated financial 
  

 C-12 

 statements of Boeing and its Subsidiaries and to maintain accountability for Boeing’s and each of its
Subsidiaries’ consolidated assets; (iii) access to the assets of Boeing and its Subsidiaries is permitted only in accordance with management’s authorization; (iv) the reporting of assets of Boeing and its Subsidiaries is compared with
existing assets at regular intervals; and (v) accounts, notes and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the collection of accounts, notes and other receivables on a
current and timely basis. 
  
 (b) Boeing and each of its
Subsidiaries maintains disclosure controls and procedures required by the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder; such controls and procedures are effective to ensure that all material
information concerning Boeing and its Subsidiaries is made known on a timely basis to the individuals responsible for the preparation of Boeing’s filings with the Securities and Exchange Commission and other public disclosure documents.

  
 C.28 Undisclosed Contracts. Except as set forth on
Schedule C.28: 
  
 (a) No undisclosed portions of the
Government Contracts constituting Undisclosed Contracts of Boeing (i) impose any material unindemnified or uninsured liability on Boeing’s ELV Business that is not substantially similar in nature and scope to the liabilities under Government
Contracts to which Lockheed Martin has been provided access prior to the date of this Agreement, (ii) involve potential risks to Boeing’s ELV Business that are not comparable in nature and scope to the risks specified in the Government Contacts
to which Lockheed Martin has been provided access prior to the date of this Agreement, (iii) involve the performance of work by Boeing’s ELV Business of a materially different nature than work currently performed by Boeing’s ELV Business
pursuant to Government Contracts to which Lockheed Martin has been provided access prior to the date of this Agreement, (iv) have terms which would result in total contract costs determined in accordance with GAAP indicating a loss (except that
costs shall be based on the average costs of Boeing’s ELV Business for the applicable accounting year), (v) include expressly unallowable termination costs, or (vi) contain any material terms that are not consistent with industry practice.

  
 (b) No undisclosed portions of the Contracts (other than
Government Contracts) constituting Undisclosed Contracts of Boeing (i) impose any material unindemnified or uninsured liability on Boeing’s ELV Business that is not substantially similar in nature and scope to the liabilities under Contracts
(other than Government Contracts) to which Lockheed Martin has been provided access prior to the date of this Agreement, (ii) involve potential risks to Boeing’s ELV Business that are not comparable in nature and scope to the risks specified in
the Contracts (other than Government Contracts) to which Lockheed Martin has been provided access prior to the date of this Agreement, (iii) involve the performance of work by Boeing’s ELV Business of a materially different nature than work
currently performed by Boeing’s ELV Business pursuant to Contracts (other than Government Contracts) to which Lockheed Martin has been provided access prior to the date of this Agreement, (iv) have terms which would result in total contract
costs determined in accordance with GAAP indicating a loss (except that costs shall be based on the average costs of Boeing’s ELV Business for the applicable accounting year), (v) contain any material terms that are not consistent with industry
practice or (vi) require Boeing’s ELV Business to “take or pay” for a minimum number or volume of goods, or to purchase a minimum number or volume of goods used in the manufacture of ELV Systems in excess of the current requirements
of Boeing’s ELV Business under existing Contracts. 
  

 C-13 

 EXHIBIT D 
  

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 The Company hereby represents and warrants to Lockheed Martin and Boeing, as of the date of its formation and as of the Closing Date, that: 
  
 D.01 Corporate Existence and Power. The Company is a limited
liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all limited liability company power and authority required to carry on the ELV Business as conducted by the Members as of the
Closing Date. As of the Closing Date, the Company will be duly qualified to do business as a foreign corporation in each jurisdiction where the character of the property owned or leased by the ELV Business or the nature of the activities of the ELV
Business make such qualification necessary to carry on the ELV Business as conducted by the Members as of the Closing Date, except where the failure to be so qualified has not had, and could not reasonably be expected to have, a Material Adverse
Effect on the ELV Business. 
  
 D.02 Corporate
Authorization. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party and the consummation by the Company of the Contemplated Transactions are within the Company’s limited liability
company powers and as of Closing shall have been duly authorized by all necessary limited liability company action on the Company’s part. Each of the Transaction Documents to which the Company is a party constitutes or shall constitute at
Closing a legal, valid and binding agreement of the Company, enforceable against it in accordance with its terms (i) except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now
or hereafter in effect relating to or affecting creditors’ rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and (ii) subject to the limitations imposed by general
equitable principles regardless of whether such enforceability is considered in a proceeding at law or in equity. 
  
 D.03 Governmental Authorization. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party require
no action by or in respect of, or consent or approval of, or filing with, any Governmental Authority other than: 
  
 (a) compliance with any applicable requirements of the HSR Act;  
  
 (b) the actions, consents, approvals, permits or filings set forth in Schedule D.03 or otherwise expressly referred
to in this Agreement; and 
  
 (c) such other consents, approvals,
authorizations, permits and filings the failure to obtain or make of which would not have, in the aggregate, a Material Adverse Effect on the ELV Business. 
  
 D.04 Non-Contravention. Except as set forth in Schedule D.04, the execution, delivery and performance of the Transaction Documents by the
Company do not and shall not (i)(A) contravene or conflict with the Certificate of Formation or Operating Agreement of the Company, (B) assuming compliance with the matters referred to in Section D.03, contravene or 

 conflict with, or constitute a violation of, any provisions of any Applicable Law binding upon the Company, or (C)
assuming compliance with the matters referred to in Section D.03, constitute a default under, or give rise to any right of termination, cancellation or acceleration of, or to a loss of any benefit to which the Company is entitled except, in the case
of clauses (B) and (C), for any such contravention, conflict, violation, default, termination, cancellation, acceleration or loss that could not reasonably be expected to have a Material Adverse Effect on the Company or (ii) result in the creation
or imposition of any Lien on any asset of the Company, including the Contributed Assets, other than Permitted Liens. 
  
 D.05 Finders’ Fees. There is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on
behalf of the Company who might be entitled to any fee or commission from the Members or any of their Affiliates upon consummation of the Contemplated Transactions. 
  
 D.06 Security Clearances; ITAR Registration. 
  
 (a) As of Closing, the Company will control facilities classified for U.S. Government security purposes as high as the level
of top secret and employ individuals holding U.S. Government security clearances as high as the level of top secret. 
  
 (b) As of Closing, the Company will be registered with the Directorate of Defense Trade Controls, U.S. Department of State (“DDTC”) as an
entity that engages in the United States in the business of either manufacturing or exporting “defense articles” or furnishing “defense services,” as those terms are defined in the International Traffic in Arms Regulations
(“ITAR”), and will hold such registration with DDTC as a “U.S. Person” and not as a subsidiary, division or affiliate of a “Foreign Person” as those terms are defined in the ITAR at 22 C.F.R. Part 120.

  
 D.07 Membership Interests. As of the date of the
formation of the Company, Lockheed Martin is the holder of 50% of the membership interests in the Company, and Boeing is the holder of 50% of the membership interests in the Company. Immediately after the Closing and as a result of the Contemplated
Transactions, Lockheed Martin or one or more direct or indirect wholly owned domestic Subsidiaries of Lockheed Martin will be the holder of 50% of the membership interests in the Company and Boeing or one or more direct or indirect wholly owned
domestic Subsidiaries of Boeing will be the holder of 50% of the membership interests in the Company, which entities will be, immediately after the Closing, the sole members of the Company. All of the issued and outstanding membership interests of
the Company (i) are duly authorized, validly issued, fully paid and nonassessable; (ii) are, and immediately prior to the Closing will be, free and clear of all Liens, and (iii) were not issued in violation of and (except as set forth in the
Operating Agreement) are not subject to the preemptive rights of any Person or any agreement or Applicable Laws of any Governmental Authority by which the Company at the time of issuance was bound. There are no outstanding options, warrants, rights,
calls, commitments, conversion rights, rights of exchange, subscriptions, claims of any character, agreements, obligations, convertible or exchangeable securities or other plans or commitments, contingent or otherwise, relating to the membership
interests of the Company and there are no contracts or other agreements of the Company or any member of the Company to purchase, redeem or otherwise acquire any membership interests of the Company, or securities or obligations of any kind
convertible into any membership interests in the Company. There are no distributions which have accrued or been declared but are unpaid on the membership interests of the Company. 
  

 D-2Form of 9.00% Guaranteed Notes due 2007

 Exhibit 4.3 
  

FORM OF 9.00% NEW NOTES 
  
 The issue of the Guaranty of this Note was approved by the Ministry of Finance and Public Credit of Mexico on November 16, 2004 pursuant to
Official Communication No. 305-I.2.1-1180 and has been given Registration No. 74-2004-FPG. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, 55 WATER STREET, NEW YORK, NEW YORK 10004, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE OR ANY PORTION HEREOF IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
CEDE & CO. (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CEDE & CO.), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON OTHER THAN DTC
OR A NOMINEE THEREOF IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THIS NOTE IS A U.S. GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. THIS NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN PART, FOR
A NOTE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN SECTION 3.05(a) OF THE INDENTURE. 

 PEMEX PROJECT FUNDING MASTER TRUST 
  
 U.S. $[    ] 
  
 9.00% Guaranteed Notes due 2007 
  
 Unconditionally and Irrevocably Guaranteed by 
 PETROLEOS MEXICANOS 
 (A Decentralized Public Entity of the 
 Federal Government of the United Mexican States) 
  
 REGISTERED 
 NO. [    ] 
  
 The following summary of terms is subject to the information set forth on the
reverse hereof and Schedule I hereto. 
  

			
	PRINCIPAL AMOUNT:	  	U.S. $[    ]
		
	SPECIFIED CURRENCY:	  	U.S. dollars (“U.S. $” or “$”)
		
	STATED MATURITY:	  	June 1, 2007
		
	ISSUE DATE:	  	[     ]
		
	CUSIP NO.:	  	706451AY7
		
	 INTEREST PAYMENT
 DATES:
	  	June 1 and December 1 of each year, commencing December 1, 2005
		
	 PRINCIPAL PAYING
 AGENT AND TRANSFER
AGENT:
	  	Deutsche Bank Trust Company Americas, New York
		
	PAYING AGENTS AND	  	 
	TRANSFER AGENTS:	  	 Deutsche Bank AG, London Branch
 Deutsche Bank
Luxembourg S.A.

  
 Pemex Project Funding
Master Trust (herein called “Pemex Project Funding Master Trust” or the “Issuer,” which terms include any successor entity under the Indenture hereinafter referred to), a statutory trust organized under the laws of the State of
Delaware, for value received, hereby promises, in accordance with and subject to the provisions set forth on the face and reverse hereof and in the Indenture referred to below, to pay to Cede & Co. or registered assigns, the principal amount of
[    ] United States dollars (U.S. $ [    ]) on June 1, 2007 (the “Maturity Date”), or on such earlier date as the same may become payable in accordance with the terms hereof, and to pay interest
thereon from June 1, 2005 or from the most recent Interest 
  

 F-2 

 Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on June 1 and December 1 of
each year (each, an “Interest Payment Date”), commencing December 1, 2005, at the rate of 9.00% per annum, until the principal amount hereof is paid or made available for payment. 
  
 Unless defined herein, capitalized terms used herein shall have the meanings
assigned to them on the reverse hereof and in the indenture dated as of December 30, 2004 (the “Indenture”), among the Issuer, Petróleos Mexicanos, as Guarantor, and Deutsche Bank Trust Company Americas, as Trustee (the
“Trustee”, which expression shall include any successor to Deutsche Bank Trust Company Americas, in its capacity as such). 
  
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place. 
  
 Unless the
certificate of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  
 IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

  
 Dated: [    ] 
  

			
	 PEMEX PROJECT FUNDING MASTER TRUST

	 by
	 	THE BANK OF NEW YORK not in its individual capacity, but solely as Managing Trustee
		
	 By:
	 	  

	 Name:
	 	[    ]
	 Title:
	 	[    ]

  
 CERTIFICATE OF
AUTHENTICATION 
  
 This is one of the series of Securities
designated herein issued under the within-mentioned Indenture. 
  
 Dated:
[    ] 

			
	 DEUTSCHE BANK TRUST COMPANY AMERICAS

	     as Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory

  

 F-3 

 REVERSE OF NOTE 
  

1. This Note is one of a duly authorized series of Securities of Pemex Project Funding Master Trust (the “Issuer”) designated as its 9.00%
Guaranteed Notes due 2007 (the “Notes”), issued and to be issued in accordance with an indenture, dated as of December 30, 2004 (herein called the “Indenture”), among the Issuer, Petróleos Mexicanos, as Guarantor (the
“Guarantor”), and Deutsche Bank Trust Company Americas, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), copies of which Indenture are on file and available for inspection
at the Corporate Trust Office of the Trustee in the Borough of Manhattan, The City of New York and, so long as the Notes are listed on the Luxembourg Stock Exchange and such Exchange shall so require, at the office of the Paying Agent in Luxembourg.
Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer and the Holders of the Notes and of the terms upon which the Notes are, and are to be,
authenticated and delivered. The Notes represented hereby will be consolidated to form a single series with, and be fully fungible with, the U.S. $[    ] principal amount of 9.00% Guaranteed Notes due 2007 issued by the Issuer on
[    ], 2005. The Notes are initially limited to an aggregate initial principal amount of U.S. $250,000,000 subject to increase as provided in Paragraph 10 below. Capitalized terms not otherwise defined herein or on the face of
this Note shall have the meanings assigned to them in the Indenture. 
  
 The Notes are direct, unsecured and unsubordinated Public External Indebtedness (as defined in Paragraph 8 below) of the Issuer for money borrowed and will rank pari passu with each other and with all other present and future
unsecured and unsubordinated Public External Indebtedness for money borrowed of the Issuer. The Notes are not obligations of, or guaranteed by, the United Mexican States (“Mexico”). 
  
 Each of the Notes will have the benefit of the unconditional guaranty
endorsed hereon (the “Guaranty”) as to punctual payment when due of all amounts of principal of and interest (including Additional Amounts) on the Notes, and any other amounts payable by the Issuer under the Notes or the Indenture. The
Guarantor’s payment obligations under the Guaranty and the Indenture will have the benefit of an unconditional guaranty as to payment of principal and interest (including Additional Amounts) jointly and severally from each of
Pemex-Exploración y Producción, Pemex-Refinación and Pemex-Gas y Petroquímica Básica (each, a “Subsidiary Guarantor” and together, the “Subsidiary Guarantors”), pursuant to a Guaranty Agreement,
dated July 29, 1996 (the “Subsidiary Guaranty”), among the Guarantor and the Subsidiary Guarantors. The Guarantor has designated its Guaranty of each of the Notes and the Indenture as obligations of the Guarantor entitled to the benefits
of the Subsidiary Guaranty, pursuant to certificates of designation, each dated [    ], 2005 (the “Certificates of Designation”). 
  

The Notes are denominated in U.S. dollars. The Notes are issuable only in fully registered form, without interest coupons. The Notes are issuable in
authorized denominations of U.S. $10,000 and integral multiples of U.S. $1,000 in excess thereof. 
  
 2. (a) The Notes will bear interest from the date specified on the face hereof or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, at the interest rate per annum specified on the face hereof, until the principal hereof has been 
  

 R-1 

 paid or duly made available for payment. The interest on this Note shall be payable in arrears on each Interest Payment
Date specified on the face hereof, and shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Any payment on this Note due on any day which is not a Business Day in The City of New York or the place of payment need not
be made on such day, but may be made on the next succeeding Business Day with the same force and effect as if made on the due date, and no interest shall accrue for the period from and after such due date. “Business Day,” as used herein
with respect to any particular location, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in such location are authorized or obligated by law to close in such location. 
  
 (b) The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will be paid to the person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the 15th day (whether or not a Business Day) (the “Regular Record Date”) next preceding such Interest Payment Date; provided that interest payable on the Maturity Date will be payable to the
person to whom principal shall be payable; and provided, further, that if this Note is a Global Security, any payment of interest on this Note shall be made to the applicable Depositary or its nominee, as the registered owner
hereof. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than 10 days prior to such special record date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange. 
  
 (c) Payment of principal and any interest due with respect to the Notes on
the Maturity Date will be made in immediately available funds upon surrender of such Notes at the corporate trust office of the Trustee in the Borough of Manhattan, The City of New York, or at the specified office of any other Paying Agent,
provided that the Note is presented to the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of principal and any interest in respect of this Note to be made other
than on the Maturity Date or upon redemption will be made by check mailed on or before the due date for such payments to the address of the persons entitled thereto as they appear in the Security Register, provided that (i) the applicable
Depositary, as Holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds and (ii) a Holder of U.S. $10,000,000 in aggregate principal or face amount of Notes having the same
Interest Payment Date shall be entitled to receive payments of interest by wire transfer to an account maintained by such Holder at a bank located in the United States as may have been appropriately designated by such person to the Paying Agent in
writing no later than the relevant Regular Record Date. Unless such designation is revoked, any such designation made by such Holder with respect to such Note shall remain in effect with respect to any further payments with respect to such Note
payable to such Holder. 
  
 3. (a) The Issuer shall maintain in
the Borough of Manhattan, The City of New York, an office or agency where Notes may be surrendered for registration of transfer or exchange. The Issuer has initially appointed the corporate trust office of the Trustee as its agent 
  

 R-2 

 in the Borough of Manhattan, The City of New York, for such purpose and has agreed to cause to be kept at such office a
register in which, subject to such reasonable regulations as it may prescribe, the Issuer will provide for the registration of Notes and registration of transfers of Notes. The Issuer reserves the right to vary or terminate the appointment of the
Trustee as security registrar or of any Transfer Agent or to appoint additional or other registrars or Transfer Agents or to approve any change in the office through which any security registrar or any Transfer Agent acts, provided that there will
at all times be a security registrar in the Borough of Manhattan, The City of New York and, so long as the Notes are listed on the Luxembourg Stock Exchange and such Exchange shall so require, a Transfer Agent in Luxembourg. 
  
 (b) The transfer or exchange of a Note is registrable on the aforementioned
register upon surrender of such Note at the corporate trust office of the Trustee or any Transfer Agent duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee duly executed by the
Holder thereof or his attorney duly authorized in writing. Upon such surrender of a Note for registration of transfer, the Issuer shall execute one or more new Notes of any authorized denominations and of a like form, tenor and terms and a like
aggregate principal amount, the Guarantor shall execute the Guaranty endorsed thereon, and the Trustee shall authenticate and deliver in the name of the designated transferee or transferees, such new Notes, dated the date of authentication thereof.
At the option of the Holder upon request confirmed in writing, Notes may be exchanged for Notes of any authorized denominations and of a like form, tenor and terms and a like aggregate principal amount upon surrender of the Notes to be exchanged at
the office of any Transfer Agent or at the corporate trust office of the Trustee. Whenever any Notes are so surrendered for exchange, the Issuer and shall execute the Notes which the Holder making the exchange is entitled to receive, the Guarantor
shall execute the Guaranty endorsed thereon, and the Trustee shall authenticate and deliver such Notes. 
  
 (c) Any registration of transfer or exchange will be effected upon the Transfer Agent or the Trustee, as the case may be, being satisfied with the
documents of title and identity of the person making the request and subject to such reasonable regulations as the Issuer may from time to time agree with any Transfer Agents and the Trustee. 
  
 (d) All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits, as the Notes surrendered upon such registration of transfer or exchange. No service charge shall be made for any registration of transfer or
exchange, but the Issuer may require payment of a sum sufficient to cover any stamp tax or other governmental charge payable in connection therewith, other than an exchange in connection with a partial redemption of a Note not involving any
registration of a transfer. 
  
 Prior to due presentment of this
Note for registration of transfer, the Issuer, the Guarantor, each Subsidiary Guarantor, the Trustee and any agent of the Issuer, the Guarantor, any Subsidiary Guarantor or the Trustee may treat the person in whose name this Note is registered as
the owner hereof for all purposes, whether or not this Note shall be overdue, and neither the Issuer, the Guarantor, any Subsidiary Guarantor, the Trustee nor any such agent shall be affected by any notice to the contrary. 
  

 R-3 

 4. The Issuer shall pay to the Trustee at its principal office in the Borough of Manhattan, The City of
New York, on or prior to 11:00 a.m., New York City time, on each Interest Payment Date, any redemption date and at the Maturity Date of the Notes, in such amounts sufficient (with any amounts then held by the Trustee and available for the purpose)
to pay the interest on, the redemption price of and accrued interest (if the redemption date is not an Interest Payment Date) on, and the principal of, the Notes due and payable on such Interest Payment Date, redemption date or Maturity Date, as the
case may be. The Trustee shall apply the amounts so paid to it to the payment of such interest, redemption price and principal in accordance with the terms of the Notes. Any monies paid by the Issuer to the Trustee for the payment of the principal
of or interest on any Notes and remaining unclaimed at the end of two years after such principal or interest shall have become due and payable (whether on the Maturity Date, upon call for redemption or otherwise) shall then be repaid to the Issuer
upon its written request, and upon such repayment all liability of the Trustee with respect thereto shall cease, without, however, limiting in any way any obligation the Issuer may have to pay the principal of and interest on each Note as the same
shall become due. Notwithstanding the foregoing, the right of the Holders to receive any payment of principal of (whether on the Maturity Date, upon call for redemption or otherwise) or interest on the Notes will become void at the end of five years
after the due date for such payment.  
  
 5. (a) The Issuer
will pay all stamp and other duties, if any, which may be imposed by the United States or any political subdivision thereof or taxing authority of or in the foregoing with respect to the Indenture or the issuance of this Note. Except as otherwise
provided herein, the Issuer shall not be required to make any payment with respect to any tax, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein. 
  
 (b) The Issuer, or, in the case of a payment by the Guarantor or a Subsidiary
Guarantor, such Guarantor or Subsidiary Guarantor, will pay to the Holder of this Note such additional amounts (“Additional Amounts”) as may be necessary in order that every net payment made by the Issuer, the Guarantor or a Subsidiary
Guarantor on this Note after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such payment by Mexico or any political subdivision or taxing authority
thereof or therein (“Mexican Withholding Taxes”), will not be less than the amount then due and payable on this Note. The foregoing obligation to pay Additional Amounts, however, will not apply to (i) any Mexican Withholding Taxes that
would not have been imposed or levied on the Holder of this Note but for the existence of any present or former connection between such Holder and Mexico or any political subdivision or territory or possession thereof or area subject to its
jurisdiction, including, without limitation, such Holder (A) being or having been a citizen or resident thereof, (B) maintaining or having maintained an office, permanent establishment or branch therein, or (C) being or having been present or
engaged in trade or business therein, except for a connection solely arising from the mere ownership of, or receipt of payment under, this Note; (ii) except as otherwise provided, any estate, inheritance, gift, sales, transfer or personal property
or similar tax, assessment or other governmental charge; (iii) any Mexican Withholding Taxes that are imposed or levied by reason of the failure by such Holder to comply with any certification, identification, information, documentation, declaration
or other reporting requirement that is required or imposed by a statute, treaty, regulation, general rule or administrative practice as a precondition to exemption 
  

 R-4 

 from, or reduction in the rate of, the imposition, withholding or deduction of any Mexican Withholding Taxes;
provided that at least 60 days prior to (A) the first payment date with respect to which the Issuer, the Guarantor or a Subsidiary Guarantor shall apply this clause (iii) and, (B) in the event of a change in such certification,
identification, information, documentation, declaration or other reporting requirement, the first payment date subsequent to such change, the Issuer, the Guarantor or a Subsidiary Guarantor, as the case may be, shall have notified the Trustee in
writing that the Holders of Notes will be required to provide such certification, identification, information or documentation, declaration or other reporting; (iv) any Mexican Withholding Taxes imposed at a rate in excess of 4.9% in the event that
such Holder has failed to provide on a timely basis, at the reasonable request of the Issuer, information or documentation (not described in clause (iii) above) concerning such Holder’s eligibility for benefits under an income tax treaty that
is in effect to which Mexico is a party that is necessary to determine the appropriate rate of deduction or withholding of Mexican taxes under any such treaty; (v) any Mexican Withholding Taxes that would not have been so imposed but for the
presentation by such Holder of this Note for payment on a date more than 15 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; (vi) any payment on this
Note to any Holder who is a fiduciary or partnership or other than the sole beneficial owner of any such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of
such payment would not have been entitled to the Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Holder of this Note; or (vii) any withholding tax or deduction imposed on a payment to an individual and required
to be made pursuant to European Council Directive 2003/48/EC or any other European Union Directive implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 on the taxation of savings income, or any law implementing or
complying with, or introduced in order to conform to, such a directive or presented for payment by or on behalf of a Holder who would have been able to avoid such withholding or deduction by presenting the relevant Note to another Paying Agent in a
Member State of the European Union. All references in this Note or in the Indenture to principal of and interest on the Notes shall, unless the context otherwise requires, be deemed to mean and include all Additional Amounts, if any, payable in
respect thereof as set forth in this paragraph (b). 
  
 (c)
Notwithstanding the foregoing, the limitations on the Issuer’s, the Guarantor’s and the Subsidiary Guarantors’ obligation to pay Additional Amounts set forth in clauses (iii) and (iv) above shall not apply if the provision of the
certification, identification, information, documentation, declaration or other evidence described in such clauses (iii) and (iv) would be materially more onerous, in form, in procedure or in the substance of information disclosed, to a Holder or
beneficial owner of this Note (taking into account any relevant differences between United States and Mexican law, regulation or administrative practice) than comparable information or other applicable reporting requirements imposed or provided for
under United States federal income tax law (including the United States-Mexico Income Tax Treaty), regulation (including proposed regulations) and administrative practice. In addition, the limitations on the Issuer’s, the Guarantor’s and
the Subsidiary Guarantors’ obligation to pay Additional Amounts set forth in clauses (iii) and (iv) above shall not apply if Article 195, Section II, paragraph a) of the Mexican Income Tax Law, or a substantially similar successor of such
provision is in effect, unless (A) the provision of the certification, identification, information, documentation, declaration or other evidence described in clauses (iii) and (iv) is expressly 
  

 R-5 

 required by statute, regulation, general rules or administrative practice in order to apply Article 195, Section II,
paragraph a) (or a substantially similar successor of such provision), the Issuer, the Guarantor or the applicable Subsidiary Guarantor cannot obtain such certification, identification, information, documentation, declaration or evidence, or satisfy
any other reporting requirements, on its own through reasonable diligence and the Issuer, the Guarantor or the applicable Subsidiary Guarantor otherwise would meet the requirements for application of Article 195, Section II, paragraph a) (or such
successor of such provision) or (B) in the case of a Holder or beneficial owner of a Note that is a pension fund or other tax-exempt organization, such Holder or beneficial owner would be subject to Mexican Withholding Taxes at a rate less than that
provided by Article 195, Section II, paragraph a) if the information, documentation or other evidence required under clause (iv) above were provided. In addition, clauses (iii) and (iv) above shall not be construed to require that a non-Mexican
pension or retirement fund, a non-Mexican tax-exempt organization or a non-Mexican financial institution or any other Holder or beneficial owner of this Note register with the Ministry of Finance and Public Credit of Mexico for the purpose of
establishing eligibility for an exemption from or reduction of Mexican Withholding Taxes. 
  
 (d) The Issuer, the Guarantor or a Subsidiary Guarantor, as the case may be, will, upon written request, provide the Trustee, the Holders and the Paying Agents with a duly certified or authenticated copy of an
original receipt of the payment of Mexican Withholding Taxes which such Issuer, Guarantor or Subsidiary Guarantor has withheld or deducted in respect of any payments made under or with respect to the Notes, the Guaranty or the Subsidiary Guaranty,
as the case may be. 
  
 (e) In the event that Additional Amounts
actually paid with respect to this Note are based on rates of deduction or withholding of Mexican Withholding Taxes in excess of the appropriate rate applicable to the Holder of this Note, and, as a result thereof, such Holder is entitled to make a
claim for a refund or credit of such excess, then such Holder shall, by accepting this Note, be deemed to have assigned and transferred all right, title and interest to any such claim for a refund or credit of such excess to the Issuer, the
Guarantor or the applicable Subsidiary Guarantor, as the case may be. However, by making such assignment, the Holder makes no representation or warranty that the Issuer, the Guarantor or the applicable Subsidiary Guarantor, as the case may be, will
be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto. 
  
 6. (a) The Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time, at par, together with, if applicable, interest
accrued to but excluding the date fixed for redemption, on giving not less than 30 nor more than 60 days’ notice to the Holders of the Notes (which notice shall be irrevocable), if (i) the Issuer or the Guarantor certifies to the Trustee
immediately prior to the giving of such notice that it has or will become obligated to pay Additional Amounts in excess of the Additional Amounts that it would be obligated to pay if payments (including payments of interest) on the Notes (or
payments under the Guaranties with respect to interest on the Notes) were subject to Mexican Withholding Tax at a rate of 10%, as a result of any change in, amendment to, or lapse of, the laws, rules or regulations of Mexico or any political
subdivision or any taxing authority thereof or therein affecting taxation, or any change in, or amendment to, an official interpretation or application of such laws, rules or regulations, which change or amendment becomes effective on or after the
date of issuance of 
  

 R-6 

 the Notes and (ii) prior to the publication of any notice of redemption, the Issuer or the Guarantor shall deliver to the
Trustee an Officer’s Certificate stating that the obligation referred to in (i) above cannot be avoided by the Issuer or the Guarantor, as the case may be, taking reasonable measures available to it, and the Trustee shall be entitled to accept
such certificate as sufficient evidence of the satisfaction of the condition precedent set out in (i) above in which event it shall be conclusive and binding on the Holders of the Notes; provided that no such notice of redemption shall be
given earlier than 90 days prior to the earliest date on which the Issuer or the Guarantor, as the case may be, would be obligated but for such redemption to pay such Additional Amounts were a payment in respect of the Notes then due and, at the
time such notice is given, such obligation to pay such Additional Amounts remains in effect. 
  
 (b) The Issuer, the Guarantor or any Subsidiary Guarantor may at any time purchase Notes at any price in the open market or otherwise. Notes so purchased by the Issuer, the Guarantor or any Subsidiary Guarantor may be
held, resold (subject to compliance with applicable securities and tax laws) or surrendered to the Trustee for cancellation. 
  
 7. The Notes are not redeemable at the option of the Issuer, except as provided in Paragraph 6, and are not repayable at the option of the Holder, except
as provided in Paragraph 8 in the event of acceleration. 
  
 8. If
any of the following events (each, an “Event of Default”) occurs and is continuing, the Trustee, if so requested in writing by Holders of at least 20% in principal amount of the Notes then outstanding, shall give notice to the Issuer and
the Guarantor that the Notes are, and they shall immediately become, due and payable at their principal amount together with accrued interest: 
  
 (a) Non-Payment: default is made in payment of principal (or any part thereof) of or any interest on, any of the Notes when
due and such failure continues, in the case of non-payment of principal for seven days, and of interest for fourteen days after the due date; or 
  
 (b) Breach of Other Obligations: the Issuer or the Guarantor defaults in performance or observance of or compliance with any
of its other obligations set out in the Notes or the Guaranties or (insofar as it concerns the Notes or the Guaranties) the Indenture which default is incapable of remedy or, if capable of remedy, is not remedied within 30 days after written notice
of such default shall have been given to the Issuer, the Guarantor and the Subsidiary Guarantors by the Trustee; or 
  
 (c) Cross-Default: default by the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries (as defined
below) or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries in the payment of the principal of, or interest on, any Public External Indebtedness (as defined below) of, or guaranteed by, the Issuer, the
Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries, in an aggregate principal amount exceeding U.S. $40,000,000 or its equivalent, when and as
the same shall become due and payable, if such default shall continue for more than the period of grace, if any, originally applicable thereto; or 
  

 R-7 

 (d) Enforcement Proceedings: a distress or execution or other legal process
is levied or enforced or sued out upon or against any substantial part of the property, assets or revenues of the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their
respective Material Subsidiaries and is not discharged or stayed within 60 days of having been so levied, enforced or sued out; or 
  
 (e) Security Enforced: an encumbrancer takes possession or a receiver, manager or other similar officer is appointed of the
whole or any substantial part of the undertaking, property, assets or revenues of the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material
Subsidiaries; or 
  
 (f) Insolvency: the
Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries becomes insolvent or is generally unable to pay its debts as they mature or
applies for or consents to or suffers the appointment of an administrator, liquidator, receiver or similar officer of the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any
of their respective Material Subsidiaries or the whole or any substantial part of the undertaking, property, assets or revenues of the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of
them or any of their respective Material Subsidiaries or takes any proceeding under any law for a readjustment or deferment of its obligations or any part of them for insolvency, bankruptcy, concurso mercantil, reorganization, dissolution or
liquidation or makes or enters into a general assignment or an arrangement or composition with or for the benefit of its creditors or stops or threatens to cease to carry on its business or any substantial part of its business; or 
  
 (g) Winding-up: an order is made or an
effective resolution passed for winding up the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries; or 
  
 (h) Moratorium: a general moratorium is agreed
or declared in respect of any External Indebtedness (as defined below) of the Issuer, the Guarantor or any of the Guarantor’s Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries; or

  
 (i) Authorization and Consents:
any action, condition or thing (including the obtaining or effecting of any necessary consent, approval, authorization, exemption, filing, license, order, recording or registration) at any time required to be taken, fulfilled or done in order
(i) to enable the Issuer lawfully to enter into, exercise its rights and perform and comply with its obligations under the Notes or the Indenture, (ii) to enable the Guarantor lawfully to enter into, exercise its rights and perform and comply with
its obligations under the Guaranties relating to the Notes, the Indenture or the Subsidiary Guaranty Agreement in relation to the Notes and the related Guaranties, (iii) to enable 
  

 R-8 

 any of the Subsidiary Guarantors lawfully to enter into, perform and comply with its obligations under
the Subsidiary Guaranty Agreement in relation to the Notes, the related Guaranties or the Indenture and (iv) to ensure that those obligations are legally binding and enforceable, is not taken, fulfilled or done within 30 days of its being so
required; or 
  
 (j) Illegality: it
is or becomes unlawful for (i) the Issuer to perform or comply with one or more of its obligations under any of the Notes or the Indenture, (ii) the Guarantor to perform or comply with any of its obligations under the Indenture, the Guaranties or
the Subsidiary Guaranty Agreement with respect to the Notes, the related Guaranties or the Indenture, or (iii) the Subsidiary Guarantors or any of them to perform or comply with one or more of its obligations under the Subsidiary Guaranty Agreement
with respect to the Notes, the related Guaranties or the Indenture; or 
  
 (k) Control: the Guarantor ceases to be a decentralized public entity of the Mexican Government or the Mexican Government otherwise ceases to control the Guarantor or any Subsidiary Guarantor; or the Issuer,
the Guarantor or any of the Subsidiary Guarantors is dissolved, disestablished or suspends its respective operations, and such dissolution, disestablishment or suspension of operations is material in relation to the business of the Issuer, the
Guarantor and the Subsidiary Guarantors taken as a whole; or the Guarantor and the Subsidiary Guarantors cease to be the entities which have the exclusive right and authority to conduct on behalf of Mexico the activities of exploration,
exploitation, refining, transportation, storage, distribution and first-hand sale of crude oil and exploration, exploitation, production and first-hand sale of natural gas, as well as the transportation and storage inextricably linked with such
exploitation and production; or the Issuer ceases to be controlled by the Guarantor; or 
  
 (l) Disposals: 
  
 (i) the Guarantor ceases to carry on all or a substantial part of its business, or sells, transfers or otherwise disposes (whether
voluntarily or involuntarily) of all or substantially all of its assets (whether by one transaction or a series of transactions whether related or not) other than (A) solely in connection with the implementation of the Organic Law or (B) to a
Subsidiary Guarantor; or 
  
 (ii) any Subsidiary
Guarantor ceases to carry on all or a substantial part of its business, or sells, transfers or otherwise disposes (whether voluntarily or involuntarily) of all or substantially all of its assets (whether by one transaction or a series of
transactions whether related or not) and such cessation, sale, transfer or other disposal is material in relation to the business of the Guarantor and the Subsidiary Guarantors taken as a whole; or 
  
 (m) Analogous Events: any event occurs which
under the laws of Mexico has an analogous effect to any of the events referred to in paragraphs (d) to (g) above; or 
  
 (n) Guaranties: the Guaranties or the Subsidiary Guaranty Agreement is not (or is claimed by the Guarantor or any of the
Subsidiary Guarantors not to be) in full force and effect. 
  

 R-9 

 “External Indebtedness” means Indebtedness which is payable, or at the option
of its holder may be paid, (i) in a currency or by reference to a currency other than the currency of Mexico, (ii) to a person resident or having its head office or its principal place of business outside Mexico and (iii) outside the territory of
Mexico. 
  
 “Guarantee” means any
obligation of a person to pay the Indebtedness of another person, including without limitation: 
  
 (i) an obligation to pay or purchase such Indebtedness; or 
  
 (ii) an obligation to lend money or to purchase or subscribe for shares or other securities or to purchase
assets or services in order to provide funds for the payment of such Indebtedness; or 
  
 (iii) any other agreement to be responsible for such Indebtedness. 
  
 “Indebtedness” means any obligation (whether present or future, actual or contingent) for the
payment or repayment of money which has been borrowed or raised (including money raised by acceptances and leasing). 
  
 “Material Subsidiaries” means, at any time, each of the Subsidiary Guarantors and any Subsidiary of the Guarantor or any of the
Subsidiary Guarantors having, as of the end of the most recent fiscal quarter of the Guarantor, total assets greater than 12% of the total assets of the Guarantor, the Subsidiary Guarantors and their Subsidiaries on a consolidated basis. 

 
 “Public External Indebtedness” means any
External Indebtedness which is in the form of, or represented by, notes, bonds or other securities which are for the time being quoted, listed or ordinarily dealt in on any stock exchange. 
  
 “Subsidiary” means, in relation to any person, any
other person (whether or not now existing) which is controlled directly or indirectly by, or more than 50 percent of whose issued equity share capital (or equivalent) is then held or beneficially owned by, the first person and/or any one or more of
the first person’s Subsidiaries, and “control” means the power to appoint the majority of the members of the governing body or management of, or otherwise to control the affairs and policies of, that person. 
  
 After any such acceleration has been made, but before a judgment or decree
for the payment of money due based on acceleration has been obtained by the Trustee, the Holders of a majority in aggregate principal amount of the Notes then outstanding may rescind and annul such acceleration if all Events of Default, other than
the non-payment of the principal of the Notes that have become due solely by such declaration of acceleration have been cured or waived as provided in the Indenture. 
  
 9. (a) The Indenture permits, with certain exceptions as therein provided, amendments, modifications and supplements of the
rights and obligations of the Issuer and the Guarantor and the rights of the Holders of the Notes under the Indenture and the Notes at any time to be made by the Issuer, the Guarantor and the Trustee with the consent of the Holders of 
  

 R-10 

 specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes.
The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive compliance by the Issuer or the Guarantor with certain
provisions of the Indenture and certain past defaults under the Indenture or the Notes and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
  
 (b) For purposes of voting on amendments, waivers, modifications, acceleration and other actions by the Holders of the
Notes, the Notes will be considered a single series with the Issuer’s 9.00% Guaranteed Notes due 2007 issued on December 30, 2004. 
  
 10. The Issuer may from time to time without the consent of any Holder of Notes create and issue additional notes having the same terms and conditions as
Notes previously issued (or the same except the first payment of interest or the issue price), which additional notes may be consolidated to form a single series with the outstanding Notes; provided that such additional notes do not have, for
purposes of U.S. federal income taxation, a greater amount of original issue discount than the Notes have as of the date of the issue of such additional notes. 
  

11. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligations of the Issuer or the
Guarantor, which are absolute and unconditional, to pay the principal of and interest on this Note (as such Notes may be amended, modified, supplemented or waived, as provided in the Indenture) at the times, place and rate, and in the coin or
currency, herein prescribed. 
  
 12. The Bank of New York is
executing this Note not in its individual capacity but solely as Managing Trustee of the Issuer and in no event shall The Bank of New York have any liability for the representations, warranties, covenants, agreements or other obligations of the
Issuer or the Guarantor hereunder, as to which recourse shall be had solely to the assets of the Issuer or the Guarantor, and under no circumstances shall The Bank of New York be personally liable for the payment of any indebtedness due under this
Note. This Note does not represent interests in or obligations of The Bank of New York. 
  
 13. THIS NOTE SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA. 
  

 R-11 

 *** 
  
 GUARANTY 
  
 1. The Guarantor hereby unconditionally and irrevocably guarantees the punctual payment when due, whether on the Maturity Date, upon redemption, upon
acceleration or otherwise, of all payments of principal of and interest (including Additional Amounts) on the Notes, and any other amounts payable by the Issuer under the Notes or the Indenture (the “Obligations”). If the Issuer shall fail
to pay punctually any Obligation, the Guarantor shall forthwith pay such Obligation when and as the same shall be due and payable to the person entitled thereto in the manner specified in the Notes or the Indenture. All payments hereunder shall be
made in currency specified in the Notes in same day funds (or such other funds as may, at the time of payment, be customary for the settlement in New York City of international banking transactions in the such currency) as if such payment were made
by the Issuer in accordance with the terms of the Notes and the Indenture. 
  
 2. The obligations of the Guarantor set forth herein shall constitute a guaranty of payment and not of collection, and shall be absolute and unconditional. This Guaranty shall be continuing and remain in full force
and effect and be binding upon the Guarantor and its successors and assigns and inure to the benefit of the Holders of the Notes and the Trustee (each, a “Beneficiary,” and collectively, the “Beneficiaries”) until all Obligations
of the Issuer have been discharged in full. The Guarantor hereby waives, to the extent permitted by applicable law, all claims of waiver, exchange, release, surrender, alteration or compromise and all set-offs, counterclaims and recoupments which it
may have or assert against the Beneficiaries. The Guarantor hereby waives promptness, diligence, presentment, demand for payment, notice of acceptance of this Guaranty, protest of any kind whatsoever, any requirement that a Beneficiary exhaust any
right or take any action against the Issuer or any other person or entity or any property or collateral, as well as any right to require a proceeding first against the Issuer or the Issuer’s property or the exercise by a Holder of the Notes of
its rights upon the occurrence and continuation of an Event of Default. 
  
 3. This Guaranty shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guaranty is endorsed shall have been executed by the Trustee under the Indenture by the manual signature
of one of its authorized signatories. 
  
 4. The obligations of
the Guarantor to the Beneficiaries pursuant to this Guaranty and the Indenture, and the rights of the Guarantor with respect thereto, are expressly set forth in the Indenture and reference is hereby made to the Indenture for the precise terms of
this Guaranty, which are incorporated herein by reference and made a part hereof. 
  
 5. Capitalized terms used herein and not otherwise defined herein have the meanings specified in the Indenture. 
  

 R-12 

 THIS GUARANTY SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, UNITED STATES OF AMERICA, EXCEPT THAT ALL MATTERS RELATING TO THE AUTHORIZATION AND EXECUTION BY THE GUARANTOR OF THIS GUARANTY SHALL BE GOVERNED BY THE LAWS OF MEXICO. 
  
 IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed. 
  
 Dated: [    ] 
  

			
	 PETROLEOS MEXICANOS

		
	By:	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 R-13 

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations: 
  

					
	 TEN COM -
	  	 as tenants
 in common
	  	 UNIF GIFT MIN ACT -              Custodian
            
 (Cust)                  (Minor)

			
	 TEN ENT -
	  	 as tenants by
 the entireties
	  	 Under Uniform Gifts           
 to
Minors                            

			
	 JT TEN -
	  	 as joint tenants with
 right of survivorship
and
 not as tenants in common
	  	

	 	  	 	  	State

  
 Additional
abbreviations may also be used though not in the above list. 
  
 FOR VALUE RECEIVED the undersigned hereby sell(s), 
 assign(s) and transfer(s) unto 
  

	
	 PLEASE INSERT SOCIAL SECURITY OR OTHER
   IDENTIFYING NUMBER OF ASSIGNEE

  
 __________________________________________________________________________________________________________________________________________ 

	
	 Please print or typewrite name and address

	 including postal zip code of assignee

  
 __________________________________________________________________________________________________________________________________________ 

	
	 the within note and all rights thereunder,

	 hereby irrevocably constituting and appointing

  
                                       
                                        
                               attorney to transfer said note on the books of Pemex Project
Funding Master Trust, with full power of substitution in the premises. 
  
 Dated:
                                        
                                        
                 
  
 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever. 
  

 R-14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]