Document:

exv10w22

 

Exhibit 10.22

Portions of this Exhibit have been omitted and filed separately pursuant to an application for
confidential treatment filed with the Securities and Exchange Commission pursuant to Rule 24b-2
under the Securities Exchange Act of 1934, as amended. Omissions are designated as [* *].

			
	Contract Number RH6-291357
	 	Page No. 1           No. of Pages 30

	 	 	 	 	 
	CONTRACTOR Name and address
	 
	 	 	 	 
	 

	 	ORBITAL SCIENCES CORPORATION
	 	LOCKHEED MARTIN CORPORATION
	 

	 	21839 Atlantic Boulevard
	 	Space Systems Company
	 

	 	Dulles, VA 20166
	 	P. O. Box 179
	 

	 	 	 	Denver, CO 80201
	 
	 	 	 	 
	 

	 	 	 	This block for Lockheed Martin internal use only
	 
	 	 	 	 
	 

	 	 	 	Requisition No.: 10145403
	 

	 	 	 	Account No.: 51010140-4000W263893904000
	 

	 	 	 	Prime Contract No.: NNJ06TA25C

SCHEDULE A BASIC CONTRACT

CONTRACT PREAMBLE

This Contract is entered into as of the date of the LOCKHEED MARTIN signature identified on the
signature page by and between ORBITAL SCIENCES CORPORATION organized and existing under the laws of
the State of Delaware, herein called CONTRACTOR, and LOCKHEED MARTIN CORPORATION, a Maryland
corporation, acting through its Lockheed Martin Space Systems Company, with offices in Denver,
Colorado, herein called LOCKHEED MARTIN.

WITNESSETH:

All references to “Lockheed”, “Lockheed Missiles & Space Company, Inc.”, “LMSC”, “Lockheed Martin
Missiles & Space,” or “LMMS” in this Purchase Order, its attachments or exhibits, shall mean
“Lockheed Martin Corporation acting by and through Space Systems Company, Sunnyvale Operations with
offices at 1111 Lockheed Martin Way, Sunnyvale, CA 94089.”

This is the definitive Contract contemplated by the Parties under Letter Contract No.
RH6-291357. Upon execution hereof, the Letter Contract and the following changes and modifications
thereto shall be superseded in their entirety;

	 	a)	 	Letter Contract Modifications 01, 02, 03, 04, 05 and 06, 07, and 08; and
	 
	 	b)	 	Change Orders 001, 002, and 004.

Any actions taken and costs incurred and allowable there under, shall be considered as action taken
and costs incurred in the performance of this definitive Contract.

CONTRACTUAL CONTENTS

SECTION 1 — EXHIBITS

SECTION 2 — PERFORMANCE, SCOPE OF WORK, DELIVERY, AND CONSIDERATION

SECTION 3 — QUALITY REQUIREMENTS

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 2 of 30

SECTION 4 — DELIVERY LOCATION AND ACCEPTANCE

SECTION 5 — ADDITIONAL / SPECIAL CONTRACT PROVISIONS

SECTION 6 — MODIFICATIONS

SECTION 7 — CONTRACT SIGNATURES

SECTION 1 — EXHIBITS

The exhibits listed below are attached hereto or available on the Lockheed Martin Supplier Communications system and
by their reference are made a part of this Contract. Unless otherwise limited in this Contract, each document
applies in its entirety. Copies of General Provisions and Special Provisions Documents references in this Contract
may be obtained from Lockheed Martin Space Systems Company -Denver’s Suppliernet site at address:
https://suppliernet.external.lmco.com/suppliernet/main/bu_info/site_7744/trm_denver.cfm

	 	 	 
	Exhibit	 	Description
	 
	 	 
	A.1

	 	[* *]
	 
	 	 
	A.2

	 	[* *]
	 
	 	 
	 

	 	[* *]
	 
	 	 
	B.

	 	[* *]
	 
	 	 
	B.1

	 	[* *]
	 
	 	 
	 

	 	[* *]
	 
	 	 
	C.

	 	[* *]
	 
	 	 
	C.1

	 	[* *]
	 
	 	 
	 

	 	[* *]
	 
	 	 
	D.

	 	CORPDOC4, With Negotiated Modifications for Contract RH6-291357,
Orbital Sciences Corporation, entitled “Cost Reimbursement General
Provisions and FAR Flowdown Provisions for Subcontracts/Purchase
Orders (All Agencies) For Non-Commercial Items Under a U.S.
Government Prime Contract,” CORPDOC 4 (9/06).
	 
	 	 
	E.

	 	CORPDOC4B, With Negotiated Modifications for Contract RH6-291357,
Orbital Sciences Corporation, entitled “Cost Reimbursement
National Aeronautics and Space Administration (NASA) Flowdown
Provisions For Subcontracts/Purchase Orders For Non-Commercial
Items Under a U.S. Government Prime Contract;” CORPDOC 4B (9/06).

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 3 of 30

	 	 	 
	 
	 	 
	F.

	 	ORION 001(03-26-07) Orion Supplemental Flowdowns, entitled
Flowdown Provisions National Aeronautics and Space Administration
(NASA) Orion Program, Prime Contract No. NNJ06TA25C.
	 
	 	 
	G.

	 	Lockheed Martin Special Provisions; Quality Assurance Clauses
Document 253-01 (08/20/07)
	 
	 	 
	H.

	 	Lockheed Martin Special Provisions; Contract Administrative Clauses
Document 253-02 (04/05)
	 
	 	 
	I.

	 	Lockheed Martin document “Special Provisions Control and
Accountability of Property in the Possession of CONTRACTOR s,” Sec
Doc No. 300 (10/96) (As Required)
	 
	 	 
	J

	 	AWARD FEE EVALUATION PLAN, Schedule A, Revision Basic
	 
	 	 
	K.

	 	Reserved
	 
	 	 
	L.

	 	“Proprietary Information Non-Disclosure Agreement”, (Form Number
265c2 Bilateral NDA). Original executed 06 May 2004; Amendment 01,
executed 09 September 2007,
	 
	 	 
	M.

	 	RESERVED
	 
	 	 
	N.

	 	CONTRACT SCHEDULE B (OPTION 1), REVSION BASIC ,dated 9/28/2007.
	 
	 	 
	O.

	 	CONTRACT SCHEDULE C (OPTION 2), REVISION BASIC dated 9/28/ 2007.
	 
	 	 
	P.

	 	GOVERNMENT FURNISHED PROPERTY LIST,Rev. 9/20/07,
	 
	 	 
	Q.

	 	INSTALLATION GOVERNMENT PROPERTY LIST, Rev. 9/20/07
	 
	 	 
	R.

	 	RESERVED
	 
	 	 
	S.

	 	GOVERNMENT SUPPORT EQUIPMENT (GSE),REV. 9/20/07
	 
	 	 
	T.

	 	LIST OF GOVERNMENT FACILITIES, Rev 9/20/07

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 4 of 30

SECTION 2 — SCOPE OF WORK, PERFORMANCE,

DELIVERY, AND CONSIDERATION

	 	 	 
	2.1

	 	SCOPE OF WORK
	 
	 	 
	 

	 	The CONTRACTOR, in the capacity of an independent
contractor, and not as an agent of LOCKHEED MARTIN,
shall, in accordance with the terms and conditions
set forth herein, deliver the hardware, perform the
tasks, furnish the services and provide support to
LOCKHEED MARTIN herein collectively referred to as
“Work”, and as more specifically set forth below and
elsewhere in this Contract, including all referenced
documents, specifications and other requirements.
All deliverable Work set forth herein shall be
delivered in strict accordance with the
delivery/completion schedule shown below. Unless
otherwise provided, delivery dates shall mean receipt
at the LOCKHEED MARTIN facility identified in Section
4 hereof.
	 
	 	 
	 

	 	The CONTRACTOR shall, in a manner consistent with and
subject to the terms and conditions hereof, furnish
all resources necessary to design, test, and deliver
the Crew Exploration Vehicle (CEV) Launch Abort
System (LAS) and associated CEV Safety Support
services that will provide CEV launch pad and ascent
abort capability. Coupled with CEV, transfer stages,
landing vehicles, and surface exploration systems,
the LAS will serve as an essential component of the
architecture that supports human voyages to ISS, the
Moon, and beyond.
Schedule A.2 IDIQ work will be specifically
authorized via delivery orders issued within the
terms and conditions of this contract.
	 
	 	 
	2.2

	 	PERIOD OF PERFORMANCE
	 
	 	 
	 

	 	Subject to the provisions set forth herein, Period of Performance
shall commence and extend through:

	 	 	 	 	 	 	 
	 

	 	Schedule:
	 	Commence:
	 	Extend Through:
	 
	 	 	 	 	 	 
	 

	 	SCHEDULE A.1 DDT&E
	 	08 September 2006
	 	31 December 2011
	 

	 	(completion)	 	 	 	 
	 

	 	SCHEDULE A.2 Engineering
	 	08 September 2006
	 	07 September 2011
	 

	 	Support/Spares (IDIQ)	 	 	 	 

	 	 	 
	2.3

	 	PLACE OF PERFORMANCE
	 
	 

	 	All work hereunder shall be performed at CONTRACTOR ‘s facility and
other locations as mutually may be agreed upon by LOCKHEED MARTIN and
CONTRACTOR.
	 
	2.4

	 	CONSIDERATION
	 
	a.

	 	Contract Type — Cost Plus Award Fee / Fixed Fee (CPAF)
	 
	 

	 	In consideration for the Work performed, the CONTRACTOR shall be reimbursed by LOCKHEED MARTIN for
actual allowable costs incurred in accordance with the terms of the Contract and shall be paid a fee
for such performance in accordance with the provisions herein set forth.

	 	 	 
	 

	 	(i) Award Fee is payable in accordance with Clause 5.16 — Award Fee End for Item Contracts.
	 
	 	 
	 

	 	(ii) Fixed Fee is payable monthly in 63 equal amounts of $[* *] and a final payment of $[* *] starting
30 days after ATP.

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 5 of 30

	 	 	Subject to the provisions of CORPDOC 4, “Limitation of Funds” and “Allowable Cost and Payment”
clauses, the following are the negotiated cost and fees payable hereunder:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(A.1) Completion	 	(A.2) IDIQ:**	 	Total:
	The Estimated Cost of this Contract is:
	 	$	[* *]	 	 	$	[* *]	 	 	$	[* *]	 
	The Award Fee Pool of this Contract is:
	 	$	[* *]	 	 	$	[* *]	 	 	$	[* *]	 
	The Fixed Fee of this Contract is:
	 	 	[* *]	 	 	$	[* *]	 	 	$	[* *]	 
	[CAS
414 - The cost of money for this Contract is:
	 	$	[* *]	 	 	$	[* *]	 	 	$	[* *]	 
	The Total
Estimated Cost, Award Fee, Fixed Fee and COM of this Contract is:
	 	$	262,515,765	 	 	$	0.00	 	 	$	262,515,765	 

 

					
	**

	 	NOTE:
	 	Work subject to IDIQ provisions and separately identified in Exhibit A Statement of
Work amounts for estimated cost and available award fee for cost reimbursable IDIQ delivery
orders issued will be periodically updated unilaterally as these IDIQ delivery orders are
issued/amended. There may be some discrepancy with the total amount for the IDIQ
task/delivery orders issued listed in this clause and the total amount for cost reimbursable
IDIQ delivery orders that have been issued during intervals between periodic updates of this
clause. The IDIQ value shown here identifies the current authorized work. The
maximum potential IDIQ contract value is identified in Clause 5.11 MINIMUM / MAXIMUM IDIQ
POTENTIAL CONTRACT VALUE.

	 	 	 
	b.

	 	Limitation of Funds / Obligation
	 
	 	 
	 

	 	This Contract is incrementally
funded, and subject to the General
Terms and Conditions “Limitation of
Funds” clause, the funds presently
available and allotted toward the
full performance of this Contract,
and the Period of Performance
estimated to be covered by the
allotted amount, are set forth below,
and the stated funding limitation is
the total obligation of LOCKHEED
MARTIN to pay, inclusive of
termination costs.

	 	 	 	 	 
	 

	 	Allotted:
	 	$[* *]
	 

	 	 	 	[* *]
	 
	 	 	 	 
	 

	 	Period Through:
	 	[* *]
	 

	 	 	 	[* *]

	 	 	 
	 

	 	Any expenditures or obligations
incurred by the CONTRACTOR in excess
of said amount in the performance
hereunder shall be at the
CONTRACTOR’s own risk. It is
anticipated that from time to time
additional funds will be allotted to
this Contract until the total price
of the contract items is allotted.
	 
	 	 
	2.5

	 	PAYMENTS
	 
	 	 
	 

	 	Cost:
	 
	 	 
	 

	 	Payments shall be made in accordance with the “Allowable Cost and
Payments” clause of CORPDOC 4, Exhibit “D.1”.
	 
	 	 
	 

	 	Award Fee:
	 
	 	 
	 

	 	Upon determination of the award fee for each period, and notice to
CONTRACTOR, the CONTRACTOR shall be authorized to invoice.
	 
	 	 
	 

	 	Fixed Fee
	 
	 	 
	 

	 	Fixed Fee shall be invoiced and paid monthly at $[* *] per month 08
Sep 2006 thru 30 Nov 2011; and $[* *] for the month of Dec 2011.

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 6 of 30

	 	 	 
	 

	 	Effective as of 16 October 2007, CONTRACTOR is authorized to invoice
all accrued Fixed Fee to the most current month of Contract
performance and monthly thereafter.
	 
	 	 
	2.6

	 	INVOICES
	 
	 	 
	 

	 	The CONTRACTOR shall invoice LOCKHEED MARTIN and the invoice shall
contain the following information: this Contract number, line item,
estimated costs, award fee, and cumulative total.
	 
	 	 
	 

	 	Send all invoices to:
	 
	 	 
	 

	 	Electronic Submittal
	 

	 	Address:
	 
	 	 
	 

	 	Lockheed Martin Subcontract Administrator
	 

	 	[* *]
	 

	 	[* *]
	 

	 	(1) copy)
	 
	 

	 	If other than Electronic Submittal:

	 	 	 	 	 	 	 	 	 
	 	 	Regular Mail / Overnight	 	Courier
	 
	 	 	 	 	 	 	 	 
	 	 	Lockheed Martin Shared Services	 	Lockheed Martin Shared Services
	 

	 	Attn.:
	 	[* *]

[* *]

[* *]
	 	Attn.:
	 	[* *]

[* *]

[* *]
	 	 	(3 Copies)	 	(3 Copies)

SECTION 3 — QUALITY REQUIREMENTS

	 	 	 
	3.1

	 	HIGHER LEVEL-LEVEL CONTRACT QUALITY REQUIREMENT (FAR 52.246-11) FEB
1999)
	 
	 	 
	 

	 	The CONTRACTOR shall comply with the higher-level quality standard of
SAE AS9100, Quality Systems-Aerospace, model for Quality Assurance
in Design, Development, Production, Installation and Servicing.
	 
	 	 
	3.2

	 	QUALITY ASSURANCE PROVISIONS
	 
	 	 
	 

	 	The CONTRACTOR shall comply with the applicable clauses of LOCKHEED
MARTIN Document 253-01, “Special Provisions — Quality Assurance
Clauses” Exhibit “G”, as follows:

	 	 	 	 	 	 	 
	 

	 	•
	 	QA1
	 	Lockheed Martin acceptance at destination
	 
	 	 	 	 	 	 
	 

	 	•
	 	QA7
	 	Special Process Approval
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC02
	 	Quality System Approval (AS9100)

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 7 of 30

	 	 	 	 	 	 	 
	 

	 	•
	 	QAQC03
	 	Right of Access
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC05
	 	Cert of Compliance
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC08
	 	Special Process Certification
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC09
	 	Calibration System
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC13
	 	Govt. Source Inspect
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC14
	 	Customer Source Acceptance
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC15
	 	First article inspect
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC21
	 	Packaging, Handling & Labeling
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC24
	 	GIDEP Processing
	 
	 	 	 	 	 	 
	 

	 	•
	 	QAQC27
	 	EEE Parts date of manufacturer
	 
	 	 	 	 	 	 
	 

	 	•
	 	QC5
	 	Contamination Control
	 
	 	 	 	 	 	 
	 

	 	•
	 	QD3
	 	Class II MRB Authority
	 
	 	 	 	 	 	 
	 

	 	•
	 	QD13
	 	Manned Space Flight Requirements
	 
	 	 	 	 	 	 
	 

	 	•
	 	QM10
	 	Statement of Work
	 
	 	 	 	 	 	 
	 

	 	•
	 	QM16
	 	Drop Shipment
	 
	 	 	 	 	 	 
	 

	 	•
	 	QS5
	 	Foreign Object Damage Control

SECTION 4 — DELIVERY LOCATION AND ACCEPTANCE

	 	 	 
	4.1

	 	DELIVERY LOCATIONS
	 
	 	 
	 

	 	The CONTRACTOR shall address and forward hardware shipments and correspondence,
including data shipments, accompanied by appropriate transmittal documents, as
follows:
	 
	 	 
	 

	 	Delivery Locations are NASA KSC and/or NASA White Sands facilities.
	 
	 	 
	4.2

	 	PACKAGING, HANDLING, AND TRANSPORTATION (NASA 1852.211-70) (SEP 2005)
	 
	 	 
	 

	 	CONTRACTOR shall identify shipping documents with Contract number, line item, part
number, and item serial number (as applicable).
	 
	 	 
	 

	 	Hardware
	 
	 	 
	 

	 	All hardware delivered under this Contract shall be F.O.B. Origin (freight pre-paid
by CONTRACTOR) unless otherwise directed in writing by the cognizant LOCKHEED MARTIN
Subcontract Administrator
	 
	 	 
	 

	 	Data
	 
	 	 
	 

	 	All Data delivered under this Contract shall be shipped via Overnight Mail (Courier)
F.O.B. Origin.
	 
	 	 
	4.3

	 	INSPECTION AND ACCEPTANCE
	 
	 	 
	 

	 	Inspection and acceptance of data shall be in accordance with Exhibit “D”, CORPDOC 4.
Final inspection and acceptance of hardware shall be at NASA KSC and/or NASA White
Sands facilities.
	 
	 	 
	4.4

	 	MATERIAL INSPECTION AND RECEIVING REPORT

	 	 	 	 	 
	 

	 	(a)
	 	At the time of each delivery to LOCKHEED MARTIN under this Contract, the
CONTRACTOR shall furnish a Material Inspection and Receiving Report (DD 250)
prepared in six (including original) copies, an original and five copies.

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 8 of 30

	 	 	 	 	 
	 

	 	(b)
	 	The CONTRACTOR shall enclose the copies of the Material Inspection and Receiving
Report in the package or seal them in a waterproof envelope, which shall be securely
attached to the exterior of the package in the most protected location.
	 
	 	 	 	 
	 

	 	(c)
	 	When more than one package is involved in a shipment, the CONTRACTOR shall
list on the Material Inspection and Receiving Report as additional information, the
quantity of packages and the package numbers. The CONTRACTOR shall forward the
Material Inspection and Receiving Report with the lowest numbered package of the
shipment and print the words “ Material Inspection and Receiving Report” on the
package.

	 	 	 
	4.5

	 	PRELIMINARY INSPECTION AT SOURCE AND FINAL INSPECTION AND ACCEPTANCE
AT DESTINATION (JSC 52.246-91) (JUN 1991)
	 
	 	 
	 

	 	Preliminary inspection for compliance with the contract specifications
and requirements may be performed at origin by an authorized
representative of LOCKHEED MARTIN, and final inspection and acceptance
will be performed by LOCKHEED MARTIN or his/her authorized
representative at the destination.
	 
	 	 
	4.6

	 	FLIGHT ITEM (JSC 52.247-95) (SEP 1989)
	 
	 	 
	 

	 	Block 16 of each Department of Defense Form 250, or CONTRACTOR’s
equivalent form, prepared for hardware or equipment to be shipped
under this contract must be annotated as follows in 1/4-inch letters or
larger by hand printing or rubber stamp:

“THIS IS A FLIGHT ITEM”

or

“THIS IS MISSION ESSENTIAL GROUND SUPPORT EQUIPMENT”

as applicable.

	 	 	 
	4.7

	 	SHIPPING INSTRUCTIONS
	 
	 	 
	 

	 	Specific instructions shall be provided to the Contractor not later
than 30 days prior to the scheduled ship date.
	 
	 	 
	4.8

	 	DELIVERABLES
	 
	 	 
	 

	 	CONTRACTOR shall provide all deliverables in accordance with Exhibit
“B”, Subcontract Data Requirements, and Exhibit “C”, Hardware
Deliverables.

(end of page)

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 9 of 30

SECTION 5 — ADDITIONAL /SPECIAL CONTRACT PROVISIONS

	 	 	 
	5.1

	 	CONTRACTUAL DIRECTION
	 
	 	 
	 

	 	Contractual direction, including any changes,
alterations or modifications to this Contract,
must be made in writing by the designated
LOCKHEED MARTIN Procurement Representative.
Unauthorized changes, alterations or
modifications to this Contract will not be
considered for equitable adjustment. Changes
to this Contract or its scope shall not be made
without the express written authorization of
the designated LOCKHEED MARTIN Subcontract
Administrator. 

Note: The following individuals may be changed
as required by Lockheed Martin and the
CONTRACTOR. Notice shall be provided by
Contract letter to the corresponded party. This
clause shall then be modified appropriately
	 
	 	 
	 

	 	LOCKHEED MARTIN

	 	 	 	 	 
	 

	 	Attn: 

Email: 

Telephone No.
FAX No.
	 	[* *]

[* *]

[* *]

[* *]
	 
	 	 	 	 
	 

	 	Attn:
Telephone No.
Fax No.

E-mail:
	 	[* *]

[* *]

[* *]

[* *]
	 
	 	 	 	 
	 

	 	Attn:
Telephone No.
Fax No. 

E-mail:
	 	[* *]

[* *]

[* *]

[* *]
	 
	 	 	 	 
	 	 	ORBITAL SCIENCES CORPORATION
	 
	 	 	 	 
	 

	 	Attn:
Telephone No:
Fax No.:

E-mail:
	 	[* *]

[* *]

[* *]

[* *]
	 
	 	 	 	 
	 

	 	Attn:
Telephone No.:
Fax No.:

E-mail:
	 	[* *]

[* *]

[* *]

[* *]

	 	 	 
	 

	 	Any technical and/or managerial exchange of
information or advice shall not be construed as
a change to any requirement and/or provision of
this Contract unless the change is expressly
directed by LOCKHEED MARTIN’s Subcontract
Administrator in writing pursuant to the
Changes clause of this Contract or by bilateral
written agreement between the designated
representatives of this Contract.

 

 

			
	CONTRACT RH6-291357
	SCHEDULE A	Page 10 of 30

	 	 	 
	5.2

	 	RESERVED
	 
	 	 
	5.3

	 	CHANGES — “NOT-TO-EXCEED” SUBMITTAL
	 
	 	 
	 

	 	Prior to the issuance of a change order under this Contract, LOCKHEED
MARTIN may solicit from the CONTRACTOR written agreement as to the
maximum (in the case of an increase) adjustments to be made in the
price and/or in the delivery schedule (or time of performance), by
reason of the change. LOCKHEED MARTIN may also solicit such agreement
on limitations on the adjustments to any other provisions of the
Contract which may be subject to equitable adjustment by reason of the
change. The CONTRACTOR shall promptly submit a “not-to-exceed” amount
or maximum schedule adjustment when so requested by LOCKHEED MARTIN.
Any such written agreement shall then be cited in the change order and
upon its issuance shall be deemed to become part of the Contract. In
no event shall the definitive equitable adjustment exceed the maximum
price and/or delivery schedule (or time of performance) adjustments so
established, nor otherwise be inconsistent with other adjustment
limitations so established. Except with respect to such limitations,
nothing contained herein shall affect the right of the Parties to an
equitable adjustment by reason of the change, pursuant to this clause.
	 
	 	 
	5.4

	 	ADMINISTRATIVE PROVISIONS
	 
	 	 
	 

	 	The CONTRACTOR shall comply with the applicable clauses of Exhibit H,
LOCKHEED MARTIN Document 253-02, “Special Provisions — Contract
Administrative Clauses,” as follows:
	 
	 

	 	Clause 84    Subcontractor List
	 
	 

	 	Clause 90     Sales Tax
	 
	 	 
	5.5

	 	CONTRACTOR RESIDENT REPRESENTATIVES
	 
	 	 
	 

	 	In the event CONTRACTOR personnel are assigned in residence at
LOCKHEED MARTIN, office space, furniture, and telephone services will
be furnished at no cost to the CONTRACTOR.
	 
	 	 
	 

	 	The CONTRACTOR Resident Team personnel agree to abide by and obey all
LOCKHEED MARTIN rules and regulations, including without limitation,
those related to safety, insurance, and access limitations that are
imposed.
	 
	 	 
	5.6

	 	COST ACCOUNTING STANDARDS — FULL COVERAGE
	 
	 	 
	 

	 	This Contract is subject to the Cost Accounting Standards clause as
provided in FAR 52.230-2 set forth in Exhibit “D”, CORPDOC 4.
	 
	 	 
	5.7

	 	DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM REQUIREMENTS (52.211-15)
(Sep 1990)
	 
	 	 
	 

	 	This is a rated order certified for national defense use, and the
CONTRACTOR shall follow all the requirements of the Defense Priorities
and Allocations System regulation (15 CFR 700). The rating of this
Contract is DO-C9.
	 
	 	 
	5.8

	 	 GOVERNMENT AND/OR LOCKHEED MARTIN FURNISHED PROPERTY
	 

	 	(Applicable if GFP, ST, STE, or Lockheed Martin furnished property.)

 

 

					
	CONTRACT RH6-291357 
	 	SCHEDULE A
	 	 Page 11 of 30

	 	 	 	CONTRACTOR shall comply with Exhibit I, SEC DOC #300 “Special
Provisions — Control and Accountability of Property in the Procession
of CONTRACTOR” for the administration of all Government and/or
LOCKHEED MARTIN owned or developed property as listed in Exhibit P
entitled Government Furnished Property List during the performance of
this Contract. The GFP shall not be modified nor cannibalized by
CONTRACTOR without the express written authorization of the LOCKHEED
MARTIN Procurement Representative.
	 
	 	 	 	LOCKHEED MARTIN shall make every effort to provide the identified
Government and/or LOCKHEED MARTIN Furnished Property on or before the
dates indicated. However, in the event LOCKHEED MARTIN experiences
unforeseeable delays, the CONTRACTOR and LOCKHEED MARTIN shall
cooperate in good faith to avoid and/or minimize schedule delays.
CONTRACTOR shall use all reasonable means to avoid schedule impacts or
claims for adjustment on Contract price.
	 
	 	 	 	If the Government and/or LOCKHEED MARTIN owned tooling, test equipment
and hardware provided to the CONTRACTOR hereunder on a rent-free basis
are increased or decreased, or do not remain available during the
performance of this Contract, or if any change is made in the terms
and conditions under which they are made available, such equitable
adjustment as may be appropriate will be made to the terms of this
Contract, unless such increase or decrease was contemplated in the
establishment of the price of this Contract.
	 
	 	 	 	Under no circumstances shall CONTRACTOR design, fabricate, or acquire
any Special Test Equipment (STE) to be paid under this Contract
without prior written authorization from the LOCKHEED MARTIN
Procurement Representative. A Notice of Intent (NOI) to procure STE
would be required.

	5.9	 	FAX SIGNATURES
	 
	 	 	This agreement may be executed in duplicate with each party signing
one original and providing a facsimile (fax) copy of the signature
page to the other party. The party receiving the fax signature shall
acknowledge receipt of the fax signature. Each party agrees to make
its document with original signature available to the other party upon
request.
The parties further agree that the fax signature shall be treated as
if it were an original signature and neither party shall contest the
validity of this agreement based on the use of fax signatures.
	 
	5.10	 	ELECTRONIC SIGNATURES
	 
	 	 	Contractual data may be transmitted via the Internet between the
Parties, with a signature format as identified in Clause 5.1. Other
data may be transmitted between the Parties for coordination, etc.;
however, nothing in this provision shall affect the requirement that
contractual direction may only be provided by the duly authorized
LOCKHEED MARTIN Procurement Representative.
	 
	5.11	 	MINIMUM/MAXIMUM IDIQ POTENTIAL CONTRACT VALUE
	 
	 	 	In accordance with Clause 5.43, “Indefinite Quantity”, the guaranteed
minimum amount of work which may be required under this contract
Schedule A.2 is $50,000 and the maximum amount of work which may be
required under this contract is $75,000,000 (seventy-five million).
This amount includes both cost and fee. The maximum amount is an
estimate and does not reflect an obligation of the LOCKHEED MARTIN.
LOCKHEED

 

 

					
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	 	 	 	MARTIN’s obligation hereunder shall be based on that
specified in the delivery orders issued during the period of the
contract.

	5.12	 	Reserved
	 
	5.13	 	OPTION TO EXTEND ORDERING PERIOD — SCHEDULE A-2
	 
	 	 	LOCKHEED MARTIN may exercise the option listed below by issuance of a
unilateral contract modification 30 days or more before the end of
the period as set forth in clause 2.2 Period of Performance (A-2).
Should the option be exercised, the resultant contact will include
all terms and conditions of the contract as it exists immediately
prior to the exercise of the option, except for the following change:
In part (a) of clause 5.41 “Ordering” shall be changed to show that
orders may be issued from ATP to 10 August 2013.
	 
	5.14	 	PRODUCTION AND SUSTAINING ENGINEERING OPTION
	 
	 	 	LOCKHEED MARTIN may require the CONTRACTOR to accomplish Production
deliveries in Schedule B (Option 1) and/or Sustaining Engineering
activities described in Schedule C (Option 2). LOCKHEED MARTIN may
exercise either option by issuance of a unilateral contract modification
no later than 60 days prior to the beginning of the ordering period set
forth in Schedule B, Clause 5.11,“Method of Placing Delivery Orders,” or
Schedule C, Clause 5.37, “Ordering”. Should either or both options be
exercised, this Contract will include all terms and conditions as
currently contained in the Basic Contract Schedule A, and incorporate
Schedule B and/or Schedule C Exhibits. The exercising of either of these
options will assure the placement of the minimum order set forth in
Schedule A., Clause 5.11, “Minimum / Maximum IDIQ Potential Contract
Value”, and Schedule C, Clause 5.39 “Order Limitations”.
	 
	 	 	In the event LOCKHEED MARTIN elects to exercise either option pursuant to
the terms of this Contract, the Contract structure is as follows:

	 	 	 	 	 
	 

	 	Schedule A.1
	 	DDT&E
	 

	 	Schedule A.2
	 	Engineering Support / Spares (IDIQ)
	 

	 	Schedule B
	 	Production
	 

	 	Schedule C
	 	Sustaining Engineering and Operations Support

	5.15	 	SECURITY/BADGING REQUIREMENTS FOR FOREIGN NATIONAL VISITORS AND
EMPLOYEES/REPRESENTATIVES OF FOREIGN CONTRACTORS. (JSC 52.204-91)
(JAN 2006)

	 	(a)	 	An employee of a domestic Johnson Space Center (JSC) contractor
or its subcontractor who is not a U.S. citizen (foreign national) may
not be admitted to the JSC site for purposes of performing work
without special arrangements. In addition, all employees or
representatives of a foreign JSC contractor /subcontractor may not be
admitted to the JSC site without special arrangements. For employees
as described above, advance notice must be given to the Security
Office of the host installation [JSC or White Sands Test Facility
(WSTF)] at least 3 weeks prior to the scheduled need for access to
the site so that instructions on obtaining access may be provided.
Contractors should be aware that approval for access to the site and
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	 	 	 	weeks and
sufficient lead time must be allowed to accommodate the approval
process.

	 	(b)	 	All visit/badge requests for persons described in (a) above must
be entered in the NASA Foreign National Management System (NFNMS) for
acceptance, review, concurrence and approval purposes. When an
authorized company official requests a JSC or WSTF badge for site
access, he/she is certifying that steps have been taken to ensure
that its contractor or subcontractor employees, visitors, or
representatives will not be given access to export-controlled or
classified information for which they are not authorized. The
authorized company officials shall serve as the CONTRACTOR’s
representative(s) in certifying that all visit/badge request forms
are processed in accordance with JSC and WSTF security and export
control procedures. No foreign national, representative, or resident
alien contractor/subcontractor employee shall be granted access into
JSC or WSTF until approved and processed through the NFNMS.
Unescorted access will not be granted unless a favorable National
Agency Check (NAC) has been completed by the JSC Security Office, and
an approved NASA Foreign National Visitor Security/Technology Control
Plan (STTCP), (previously called the Access Control Plan) has been
submitted and approved.
	 
	 	(c)	 	The CONTRACTOR agrees that it will not employ for the performance
of work onsite at the JSC or WSTF any individuals who are not legally
authorized to work in the United States. If the JSC or WSTF
Industrial Security Specialist or the contracting officer has reason
to believe that any employee of the CONTRACTOR may not be legally
authorized to work in the United States and/or on the contract, the
contractor may be required to furnish copies of Form I-9 (Employment
Eligibility Verification), U.S. Department of Labor Application for
Alien Employment Certification, and any other type of employment
authorization document.

	 	 	 	The CONTRACTOR agrees to provide the information requested by the JSC
or WSTF Security Office in order to comply with NASA policy
directives and guidelines related to foreign visits to NASA
facilities so that (1) the visitor/employee/ representative may be
allowed access to JSC or other NASA Centers for performance of this
contract, (2) required investigations can be conducted, and (3)
required annual or revalidation reports can be submitted to NASA
Headquarters. All requested information must be submitted in a
timely manner
in accordance with instructions provided by JSC or any
other Center to be visited.

	5.16	 	 AWARD FEE / FIXED FEE
	 
	5.16.1	 	 Award Fee for End Item Contracts

	 	(1)	 	(a) The CONTRACTOR can earn award fee from a minimum of zero dollars
to the maximum stated in paragraph 2.4 of this Contract. All award fee
evaluations, with the exception of the last evaluation, will be interim
evaluations. At the last evaluation, which is final, the CONTRACTOR’s
performance for the entire Contract will be evaluated to determine total
earned award fee. No award fee will be paid to the CONTRACTOR if the
final award fee evaluation is “poor / unsatisfactory.”
	 
	 	b)	 	LOCKHEED MARTIN will evaluate the CONTRACTOR’s interim performance
to monitor performance prior to Contract completion and to provide
feedback to the CONTRACTOR. The evaluation will be performed in
accordance with Exhibit “J”, Award Fee Evaluation Plan, to this
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	 	 	 	evaluation of performance for
each period under consideration. These self-evaluations will be
considered by LOCKHEED MARTIN in its evaluation. LOCKHEED MARTIN will
advise the CONTRACTOR in writing of the evaluation results. The plan may
be revised unilaterally by LOCKHEED MARTIN prior to the beginning of any
rating period to redirect emphasis.

	 	(2)	 	Interim award fee payments will be made to the CONTRACTOR based on
each interim evaluation. The amount of the interim award fee payment is
limited to the lesser of the interim evaluation score or 80 percent of
the fee allocated to that period made during the period. All interim
award fee payments will be superseded by the final award fee
determination.
	 
	 	(3)	 	All interim award fee payments will be superseded by the fee
determination made in the final award fee evaluation. LOCKHEED MARTIN
will then pay the CONTRACTOR, or the CONTRACTOR will refund to LOCKHEED
MARTIN the difference between the final award fee determination and the
cumulative interim award fee payments. If the final award fee evaluation
is “poor / unsatisfactory”, any award fee paid will be refunded to
LOCKHEED MARTIN.
	 
	 	(4)	 	Provisional award fee payments will not be made under this Contract.
	 
	 	(5)	 	Award fee determinations are unilateral decisions made solely at the
discretion of LOCKHEED MARTIN.
	 
	 	(6)	 	Payment of award fee will be made by LOCKHEED MARTIN based on an
issuance of a unilateral modification by the LOCKHEED MARTIN Subcontract
Administrator.

	5.16.2	 	Fixed Fee

	 	(1)	 	Fixed Fee shall be paid on costs incurred and invoiced in
accordance with paragraph 2.5 “PAYMENTS”, “Fixed Fee”. Fixed fee under
this contract is not subject to re-determination.
	 
	 	(2)	 	Payment of fixed fee will be made based on submission of an invoice
by the CONTRACTOR.

	5.17	 	DESIGNATION OF NEW TECHNOLOGY REPRESENTATIVE AND PATENT
REPRESENTATIVE (NASA 1852.227-72) (JUL 1997)

	 	(a)	 	For purposes of administration of the clause of this contract
entitled “New Technology” or “Patent Rights — Retention by the
CONTRACTOR (Short Form)”, whichever is included, the following named
representatives are hereby designated by the Contracting Officer to
administer such clause:
	 
	 	 	 	AT/Technology Transfer & Commercialization Office

AL/Patent Representative

NASA Lyndon B. Johnson Space Center

2101 NASA Parkway

Houston, TX 77058
	 
	 	(b)	 	Reports of reportable items, and disclosure of subject
inventions, interim reports, final reports, utilization reports, and
other reports required by the clause, as well as any correspondence
with respect to such matters, should be directed to the New
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	 	 	 	correspondence or request from the Patent Representative. Inquiries
or requests regarding disposition of rights, election of rights, or
related matters should be directed to the Patent Representative.
This clause shall be included in any subcontract hereunder requiring
a “New Technology” clause or “Patent Rights—Retention by the
CONTRACTOR (Short Form)” clause, unless otherwise authorized or
directed by the Contracting Officer. The respective responsibilities
and authorities of the above-named representatives are set forth in
1827.305-370 of the NASA FAR Supplement.

	5.18	 	IDENTIFICATION OF EMPLOYEES. (JSC 52.242-92) (JAN 2006)

	 	 	 	At all times while on Government property, the CONTRACTOR,
subcontractors, their employees and agents shall wear badges which
will be issued by the NASA Badging & Visitor Control Office, located
in Building 110 at the Johnson Space Center (JSC), or at the Main
Gate at the White Sands Test Facility (WSTF). JSC employee and
visitor badges will be issued only between the hours of 6:00 a.m. to
7:30 p.m., Monday through Friday, and 7:00 am to 4:00 pm on Saturday
and Sunday. WSTF employee badges will be issued only between the
hours of 8 a.m. to 2 p.m., Monday through Friday. WSTF visitor
badges will be issued on a 7-day a week, 24-hour a day basis.
Resident aliens and foreign nationals/representatives shall be issued
green foreign national badges.
	 
	 	 	 	Each individual who wears a badge shall be required to sign
personally for the badge. The CONTRACTOR shall be held accountable
for issued badges and all other related items and must assure that
they are returned to the NASA Badging & Visitor Control Offices upon
completion of work under the contract in accordance with Security
Management Directive (SMD) 500-15, “Security Termination Procedures.”
Failure to comply with the NASA contractor termination procedures
upon completion of the work (e.g., return of badges, keys, CAA cards,
clearance terminations, JSC Public Key Infrastructure (PKI)/special
program deletions, etc.) may result in final payment being delayed.

	5.19	 	INSTALLATION-ACCOUNTABLE GOVERNMENT PROPERTY (NFS 1852.245-71) (Alt
I) (NOV 2004)

	 	(a)	 	The Government property described in the clause at 1852.245-77,
(G.11), ¶5.22, “List of Installation- Accountable Property and
Services”, shall be made available to the CONTRACTOR on a no-charge
basis for use in performance of this contract. This property shall be
utilized only within the physical confines of the NASA installation
that provided the property. Under this clause, the Government retains
accountability for, and title to, the property, and the CONTRACTOR
assumes the following user responsibilities:

	 	 	 	The CONTRACTOR shall establish and adhere to a system of written
procedures for compliance with these user responsibilities. Such
procedures must include holding employees liable, when appropriate,
for loss, damage, or destruction of Government property.

	 	(b)	 	(1) The official accountable recordkeeping, physical inventory,
financial control, and reporting of the property subject to this
clause shall be retained by the Government and accomplished by the
installation Supply and Equipment Management Officer (SEMO) and
Financial Management Officer. If this contract provides for the
CONTRACTOR to acquire property, title to which will vest in the
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	 	(i)	 	The CONTRACTOR shall not utilize the installation’s central
receiving facility for receipt of CONTRACTOR acquired property.
However, the CONTRACTOR shall provide listings suitable for
establishing accountable records of all such to the Contracting
Officer and the Supply and Equipment Management Officer.
	 
	 	(ii)	 	The CONTRACTOR shall furnish a copy of each purchase order,
prior to delivery by the vendor, to the installation central
receiving area:
	 
	 	(iii)	 	The CONTRACTOR shall establish a record of the property as
required by FAR 45.5 and 1845.5 and furnish to the Industrial
Property Officer a DD Form 1149 Requisition and Invoice/Shipping
Document (or installation equivalent) to transfer accountability to
the Government within 5 working days after receipt of the property by
the CONTRACTOR. The CONTRACTOR is accountable for all CONTRACTOR
acquired property until the property is transferred to the
Government’s accountability.
	 
	 	(iv)	 	CONTRACTOR use of Government property at an off-site location
and off-site subcontractor use require advance approval of the
contracting officer and notification of the SEMO. The CONTRACTOR
shall assume accountability and financial reporting responsibility
for such property installation. The CONTRACTOR shall establish
records and property control procedures and maintain the property in
accordance with the requirements of FAR Part 45.5 until its return to
the installation

	 	(2)	 	After transfer of accountability to the Government, the CONTRACTOR shall
continue to maintain such internal records as are necessary to execute the user
responsibilities identified in paragraph (a) and document the acquisition,
billing, and disposition of the property. These records and supporting
documentation shall be made available, upon request, to the SEMO and any other
authorized representatives of the contracting officer.

	5.20	 	RESERVED
	 
	5.21	 	LIST OF GOVERNMENT — FURNISHED PROPERTY (NASA 1852.245.76) (OCT 1988)

	 	 	 	The Government Property identified in Exhibit “P” to the extent they
are available will be made available to the CONTRACTOR.

	5.22	 	INSTALLATION ACCOUNTABLE PROPERTY AND SERVICES (NFS) 1852.245-77)
(Jul 1997)

	 	 	 	The Installation-Accountable Government Property identified in
Exhibit “Q”, to the extent they are available will be made available
to the CONTRACTOR:

	5.23	 	REPRESENTATIONS AND CERTIFICATIONS, AND OTHER STATEMENTS (JSC
52.209-90

	 	 	 	This contract incorporates CONTRACTOR Representations and
Certifications, Exhibit “K”, and Other Statements of CONTRACTOR, as
certified by CONTRACTOR on 14 August 2006 with the same force and
effect as if it were given in full text.

	5.24	 	SPECIAL PROVISIONS FOR CONTRACT CHANGES

	 	 	 	The parties agree that, notwithstanding the provisions of the
“Changes” clause and the “Government Property” clause, no change made
pursuant to the “Changes” clause shall give rise to an equitable
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	 	 	 	provision when said change causes an increase or decrease of $[* *]
or less in the estimated cost of this contract. Each change shall be
controlling in making this determination, and such change shall not,
for purposes of determining the applicability of this clause, be
added to any other changes(s).
	 
	 	 	 	The parties recognize that several changes may be grouped together in
a bilateral modification for definitization; however, the dollar
value of each individual change will be controlling in determining
whether or not an equitable adjustment is in order.

	5.25	 	SUBCONTRACTING WITH RUSSIAN ENTITIES FOR GOODS OR SERVICES

(Not applicable to Schedule A.2, IDIQ)

	 	 	 	Refer to Clause 3, entitled “SUBCONTRACTING WITH RUSSIAN ENTITIES FOR
GOODS OR SERVICES” of Contract Exhibit F,” LOCKHEED MARTIN Document
Orin, dated 03/26/07, entitled “NASA FLOWDOWN PROVISIONS,CREW
EXPLORATION VEHICLE”.

	5.26	 	COMPLIANCE WITH APPLICABLE CENTER POLICIES AND PROCEDURES

	 	 	 	CONTRACTOR and subcontractor personnel (regardless of tier) working
on-site at NASA Centers shall comply with all applicable center
policies and procedures. The CONTRACTOR shall keep itself and
pertinent subcontractors up-to-date with the latest revisions of
these policies and procedures. The CONTRACTOR shall promptly take
corrective action upon receipt of notice from the Contracting Officer
of noncompliance with any applicable center policy or procedure.

	5.27	 	MODIFIED DATA RIGHTS (Reference Representations and Certifications “K.16”)

	 	 	 	The following data items are authorized to use the following modified Limited Rights
Notice and Restricted Rights Notice (FAR 52.227-14).
	 
	 	 	 	The following data items are authorized to use the following modified Limited Rights
Notice and Restricted Rights Notice (FAR 52.227-14)

	 	 	 	 	 	 	 
	a.

	 	[* *]
	 	 
	 

	 	[* *]
	 	 
	 

	 	1.
	 	[* *]
	b.

	 	[* *]
	 	 
	 

	 	[* *]
	 	 
	 

	 	 	1.	 	 	[* *]
	 

	 	 	2.	 	 	[* *]
	 

	 	 	3.	 	 	[* *]
	 

	 	 	4.	 	 	[* *]
	 

	 	 	5.	 	 	[* *]
	 

	 	 	6.	 	 	[* *]
	 

	 	 	7.	 	 	[* *]
	 

	 	 	8.	 	 	[* *]

	 	 	 	Note: “Limited rights data” and “Restricted computer software” are defined in the
contract clause entitled “Rights in Data— General.
	 
	 	 	 	Limited Rights Notice (June 1987)(Modified)

 

 

					
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	 	 	 	These data are submitted with limited rights under Government Contract No. NNJ06TA25C,
and subcontract RH6-291357. These data may be reproduced and used by the Government
with the express limitation that they will not, without written permission of the
CONTRACTOR, be used for purposes of manufacture nor disclosed outside the Government;
except that the Government may disclose these data outside the Government for the
following purposes, if any; provided that the Government makes such disclosure subject
to prohibition against further use and disclosure:
Use (except for Manufacture) by Government personnel and Government Support
Contractors supporting Exploration Programs and Projects directly or indirectly on a
need to know basis. Government Support Contractors will be identified by the
Contracting Officer, thus allowing the CONTRACTOR and Support contractor to execute
separate non-disclosure agreements (NDA) or No-Cost License Agreements, if applicable.
If applicable, these separate agreements will be between the Contracting Companies
and not incorporated into this Government contract.
Emergency repair or overhaul work.
	 
	 	(b)	 	This Notice shall be marked on any reproduction of these data, in whole or in part.
Restricted Rights Notice (June 1987) (Modified)
(End of notice)
	 
	 	(a)	 	This computer software is submitted with restricted rights under Government
Contract No NNJ06TA25C, and subcontract RH6-291357, if appropriate). It may not be
used, reproduced, or disclosed by the Government except as provided in paragraph (b)
of this Notice or as otherwise expressly stated in the contract.
	 
	 	(b)	 	 This computer software may be-
	 
	 	 	 	(1)  Used or copied for use in or with the computer or computers for which it was
acquired, including use at any Government installation to which such computer or
computers may be transferred;

	 
	 	 	 	(2)  Used or copied for use in a backup computer if any computer for which it was
acquired is inoperative;
	 
	 	 	 	(3)  Reserved.
	 
	 	 	 	(4)  Modified, adapted, or combined with other computer software, provided that the
modified, combined, or adapted portions of the derivative software incorporating
restricted computer software are made subject to the same restricted rights;

	 
	 	(5)	 	Disclosed to and reproduced for use by Government personnel and Government support
service contractors on a need to know basis in accordance with paragraphs (b)(1)
through (4) of this clause, provided the Government makes such disclosure or
reproduction subject to these restricted rights and the Contracting Officer identifies
the Government Support Contractors thus allowing the CONTRACTOR and Support
Contractor to execute separate non-disclosure agreements (NDA) or No-Cost License
Agreements, if applicable. If applicable, these separate agreements will be between
the Contracting Companies and not incorporated into this Government contract; and
	 
	 	6)	 	Used or copied for use in or transferred to a replacement computer.
	 
	 	(c)	 	Notwithstanding the foregoing, if this computer software is published copyrighted
computer software, it is licensed to the Government, without disclosure prohibitions,
with the minimum rights set forth in paragraph (b) of this clause.
	 
	 	(d)	 	Any other rights or limitations regarding the use, duplication, or disclosure of
this computer software are to be expressly stated in, or incorporated in, the
contract.

 

 

					
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	 	(e)	 	This Notice shall be marked on any reproduction of this computer software, in
whole or in part.

	5.28	 	INDEMNIFICATION FOR UNUSUALLY HAZARDOUS RISKS

	 	(a)	 	LOCKHEED MARTIN recognizes that the CONTRACTOR ‘s approach to fulfill the
requirements of this contract may involve conditions considered to constitute
unusually hazardous risks resulting in potential third party liability that exceeds
insurance coverage the CONTRACTOR could reasonably be expected to purchase and
maintain, considering the availability, cost, and terms and conditions of such
insurance. In the event that the CONTRACTOR believes such conditions exist and
necessitate indemnification by the Government, it shall, in accordance with FAR
50.403-1 and NASA FAR Supplement 1850.403, provide documentation and rationale
adequate to substantiate processing of such requests in accordance with applicable
laws and regulations. The rationale should identify the legal authority under which
the Government would be authorized to indemnify the CONTRACTOR.

	 	 	 	LOCKHEED MARTIN agrees to forward to the Government the CONTRACTOR’s request for
indemnification for unusually hazardous risks in accordance with the foregoing
paragraph. In the event the Government denies the CONTRACTOR’s request for
indemnification, the parties will enter into good faith negotiations to determine the
appropriate course of action concerning potential third party liability. In view of
the unusually hazardous risks associated with the performance of the contract the
parties understand the critical importance of negotiating indemnity coverage on a
mutually satisfactory basis.

	5.29	 	PATENT RIGHTS

	 	 	 	This contract includes the New Technology Clause 1852.227-70. It is
anticipated that the CONTRACTOR may have CONTRACTOR background
inventions that could be applied to Contract research and
incorporated into deliverables under the Contract. The Government
may need rights to use such CONTRACTOR background inventions in order
to practice technologies produced under this Contract in other
Government contracts. Thus, Contracting Officer permission is
required before CONTRACTOR background inventions may be included in
Contract deliverables. To the extent a CONTRACTOR background
invention has been Federally funded, the Government will receive its
government-purpose license rights to practice the background
invention. Where there is no Federal funding of the background
invention, the CONTRACTOR will identify to the Contracting Officer
the rights that it proposes to grant the Government to use such
invention in other Government contracts. The Government shall
receive a government-purpose license to practice any CONTRACTOR
background invention where such Contracting Officer permission is not
obtained prior to incorporating its background inventions into
CONTRACTOR work. This clause or a clause substantially the same
shall be included in all subcontracts at any tier.

	5.30	 	TASK ORDERING PROCEDURE (NFS 1852.216-80) (OCT 1996)

 

 

					
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	 	(a)	 	Only the LOCKHEED MARTIN Subcontract Administrator may issue task orders to the
CONTRACTOR, providing specific authorization or direction to perform work within the
scope of the contract and as specified in the schedule. The CONTRACTOR may incur costs
under this contract in performance of task orders and task order modifications issued in
accordance with this clause. No other costs are authorized unless otherwise specified in
the contract or expressly authorized by the LOCKHEED MARTIN Procurement Representative.
	 
	 	(b)	 	Prior to issuing a delivery/task order, LOCKHEED MARTIN shall provide the CONTRACTOR
with the following data:
	 
	 	(b)(1)	 	A functional description of the work identifying the objectives or results
desired from the contemplated delivery/task order.
	 
	 	(b)(2)	 	Proposed performance standards to be used as criteria for determining whether the
work requirements have been met.
	 
	 	(b)(3)	 	A request for a delivery/task order plan from the CONTRACTOR to include the
technical approach, period of performance, appropriate cost information, and any other
information required to determine the reasonableness of the Contractors’ proposal.
	 
	 	(c)	 	Within 20 calendar days after receipt of the LOCKHEED MARTIN Procurement
Representative’s request, the CONTRACTOR shall submit a delivery/task plan conforming to
the request.

	 	(d)	 	After review and any necessary discussions, the LOCKHEED MARTIN Procurement
Representative may issue a delivery /task order to the CONTRACTOR containing, as a
minimum, the following:

	 	(1)	 	Date of the order.
	 
	 	(2)	 	Contract number and order number.
	 
	 	(3)	 	Functional description of the work identifying the objectives or results desired
from the delivery/task order, including special instructions or other information
necessary for performance of the deliver/task.
	 
	 	(4)	 	Performance standards, and where appropriate, quality assurance standards.
	 
	 	(5)	 	Maximum dollar amount authorized (cost and fee or price). This includes allocation
of award fee among award fee periods, if applicable.
	 
	 	(6)	 	Any other resources (travel, materials, equipment, facilities, etc.) authorized.
	 
	 	(7)	 	Delivery/performance schedule including start and end dates.
	 
	 	(8)	 	If contract funding is by individual delivery/task order, accounting and
appropriation data.

	 	(e)	 	The CONTRACTOR shall provide acknowledgment of receipt to the LOCKHEED
MARTIN Procurement Representative within 5 calendar days after receipt of the
delivery /task order.
	 
	 	(f)	 	If time constraints do not permit issuance of a fully defined delivery/task
order in accordance with the procedures described in paragraphs (a) through
(d), a delivery /task order which includes a ceiling price may be issued.
	 
	 	(g)	 	LOCKHEED MARTIN may amend tasks in the same manner in which they were
issued.

 

 

					
	 	 	 	 	 
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	 	 	(h) In the event of a conflict between the requirements of the delivery/task
order and the CONTRACTOR’s approved delivery/task plan, the task order shall
prevail.

	5.31	 	SPACE FLIGHT MOTIVATION AWARENESS PROGRAM
	 
	 	 	The CONTRACTOR shall establish a program for Space Flight Awareness (SFA).
The Program’s goals and objectives are to:

	 	•	 	Ensure every employee involved in human space flight is aware of
the importance of their role in promoting safety, quality and mission
success.
	 
	 	•	 	Participation in NASA-Industry Space Flight Awareness Program.
	 
	 	•	 	Increase awareness of the Human Space Flight Program
accomplishments, milestones and objectives with a focus on safety and
mission success.
	 
	 	•	 	Conduct events and products that motivate and recognize the
workforce, and enhance employee morale.
	 
	 	•	 	Function as an internal communications team to disseminate key
educational, program/management safety, quality, and mission success
messages and themes.

	5.32	 	SMALL BUSINESS SUBCONTRACTING GOALS
	 
	 	 	In meeting the intent of Small /Disadvantaged business participation
under this contract, the CONTRACTOR agrees to flow down to all of its
first tier large business subcontractors, as percentages (with
corresponding dollar amounts) of their total contract value the same
socioeconomic goals as contained in Exhibit F, Orin001 dated 3/26/07,
paragraph B, subparagraph 7, entitled “SMALL BUSINESS SUBCONTRACTING
GOALS”
	 
	5.33	 	SUBCONTRACTOR SMALL BUSINESS REPORTING
	 
	 	 	CONTRACTOR shall require its large business subcontractors to report
Small Business Concern subcontracting dollars on a semi-annual basis.
This reporting is conducted through the Electronic Subcontracting
Reporting Systems (eSRS) located at http://www.esrs.gov.
	 
	5.34	 	KEY PERSONNEL AND FACILITIES
	 
	 	 	Personnel

	 	(a)	 	The personnel and/or facilities listed below (or specified in the
contract Schedule) are considered essential to the work being performed
under this contract. Before removing, replacing, or diverting any of
the listed or specified personnel or facilities, the CONTRACTOR shall;

	 	(1)	 	notify the LOCKHEED MARTIN Procurement Representative reasonably in
advance, and
	 
	 	(2)	 	submit justification (including proposed substitutions) in
sufficient detail to permit evaluation of the impact on this contract.

	 	(b)	 	The list of personnel and/or facilities (shown below or as
specified in the contract Schedule) may, with the consent of the
contracting parties, be amended from time to time during the course of
the contract to add or delete personnel and/or facilities.

 

 

					
	 	 	 	 	 
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	 	 	 	Name
	 	Title
	 
	 

	 	[* *]
	 	 	 	[* *]

	5.35	 	ASSOCIATE CONTRACTOR AGREEMENTS

	 	(a)	 	The associate contractors contemplated by this clause have not
been established at the time of contract award, but will be added by
contract bilateral modification to this paragraph as required. The
associate contractors will supply other elements of the Constellation
program, such as a launch vehicle, earth departure stage, or lunar
surface access module
	 
	 	 	 	In order to achieve the requirements of this contract, the CONTRACTOR
shall establish, in conjunction with the NASA Orion Project Office,
the means for coordination and exchange of information with associate
contractors. The information to be exchanged shall be that required
by the contractors in the execution of their respective contract
requirements.
	 
	 	(b)	 	The CONTRACTOR shall document agreements with other associate
CONTRACTOR s described in (a) above via Associate Contractor
Agreements (ACAs). LOCKHEED MARTIN will not be a party in such ACAs.
A copy of each such agreement shall be provided to LOCKHEED MARTIN.
All reasonable and foreseeable costs associated with such agreements
are included in the negotiated cost of this contract.
	 
	 	(c)	 	The CONTRACTOR is not relieved of any contract requirements or
entitled to any adjustments to the contract terms because of the
failure to resolve a disagreement with an associate CONTRACTOR.
Liability for the improper disclosure of any proprietary data
contained in or referenced by any agreement shall rest with the
parties to the agreement, and not LOCKHEED MARTIN.

	5.36	 	DATA DELIVERABLE MARKING REQUIREMENTS FOR EXPORT CONTROL

	 	(a)	 	The CONTRACTOR shall perform an export control assessment for
all data deliverable items shown in Exhibit “B”, Subcontract Data
Requirements Document.
	 
	 	(b)	 	If a product is determined to contain information controlled by
the International Traffic in Arms Regulations, the following
statement shall be included on the product cover page.

	 	 	International Traffic in Arms Regulations (ITAR) Notice
	 
	 	 	This document contains information on paragraphs [CONTRACTOR to list
specific pages subject to ITAR control] falls under the purview of
the U.S. Munitions List (USML), as defined in the International
Traffic in Arms Regulations (ITAR), 22 CFR 120-130, and is export
controlled. It shall not be transferred to foreign nationals in the
U.S. or abroad, without specific approval of a knowledgeable NASA
export control official, and/or unless an export license/license
exemption is obtained/available from the United States Department of
State. Violations of these regulations are punishable by fine,
imprisonment, or both.

 

 

					
	 	 	 	 	 
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	 	(c)	 	If a product is determined to contain information controlled by
the Export Administration Regulations and which requires a license or
exception prior to export, the following statement shall be included
on the product cover page:

	 	 	Export Administration Regulations (EAR) Notice
	 
	 	 	This document contains information on [CONTRACTOR to list specific
pages subject to the EAR] within the purview of the Export
Administration Regulations (EAR), 15 CFR 730-744, and is export
controlled. It may not be transferred to foreign nationals in the
U.S. or abroad, without specific approval of a knowledgeable NASA
export control official, and/or unless an export license/license
exception is obtained/available from the Bureau of Industry and
Security (BIS), United States Department of Commerce. Violations of
these regulations are punishable by fine, imprisonment, or both.

	 	d)	 	If a product has been determined to be suitable for public
release, it shall be so labeled.

	5.37	 	LIMITATION OF FUTURE CONTRACTING (NFS 1852.209-71) (DEC 1988)

	 	(a)	 	The Contracting Officer has determined that this acquisition may
give rise to a potential organizational conflict of interest.
Accordingly, the attention of prospective offerors is invited to FAR
Subpart 9.5—Organizational Conflicts of Interest.
	 
	 	(b)	 	The nature of this conflict is the CONTRACTOR may be in a
position to favor its own products and capabilities and may have an
unfair competitive advantage.
	 
	 	(c)	 	The restrictions upon future contracting are as follows:

	 	(1)	 	If the CONTRACTOR, under the terms of this contract, or through
the performance of tasks pursuant to this contract, is required to
develop specifications or statements of work that are to be
incorporated into a solicitation, the CONTRACTOR shall be ineligible
to perform the work described in that solicitation as a prime or
first-tier subCONTRACTOR under an ensuing NASA contract. This
restriction shall remain in effect for a reasonable time, as agreed
to by the Contracting Officer and the CONTRACTOR, sufficient to avoid
unfair competitive advantage or potential bias (this time shall in no
case be less than the duration of the initial production contract).
NASA shall not unilaterally require the CONTRACTOR to prepare such
specifications or statements of work under this contract.
	 
	 	(2)	 	To the extent that the work under this contract requires access
to proprietary, business confidential, or financial data of other
companies, and as long as these data remain proprietary or
confidential, the CONTRACTOR shall protect these data from
unauthorized use and disclosure and agrees not to use them to compete
with those other companies.

	5.38	 	ADVANCE AGREEMENT FOR CONTRACTOR INVESTMENTS
	 
	 	 	The parties agree that the contract might be partly based on
corporate contributions/investment as specified in the proposal or as
negotiated in the contract. Costs related to the CONTRACTOR’s
contributions or investments shall be reported under the contract as
they are incurred, for purposes of tracking the CONTRACTOR’s costs as
well as the full costs of the project. The CONTRACTOR agrees that,
should the Government’s requirements change or should all or part of
the work under the contract be

 

 

					
	 	 	 	 	 
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	 	 	terminated, all reported costs as well
as unreported costs related to the CONTRACTOR’s contributions and
investment will be unallowable as part of any contract settlement.

	5.39	 	SECURITY CLASSIFICATION REQUIREMENTS (1852.204-75) (SEPT 1989)
	 
	 	 	Performance under this contract will involve access to and/or
generation of classified information, work in a security area, or
both, up to the level of “secret”. See Federal Acquisition
Regulation clause 52.204-2.
	 
	5.40	 	SECURITY REQUIREMENTS FOR UNCLASSIFIED INFORMATION TECHNOLOGY RESOURCES (NASA 1852.204-76) (NOV 2004)
	 
	 	 	Refer to paragraph 11 of Contract Exhibit “F”, ORIN 001 (3/26/07)
entitled “Flowdown Provisions
National Aeronautics and Space Administration (NASA)
Orion Program Prime Contract No. NNJ06TA25C”,

	5.41	 	ORDERING (52.216-18) (Oct 1995) Schedule A.2

	 	(a)	 	Any supplies and services to be furnished under this contract
shall be ordered by issuance of delivery orders or task orders by the
individuals or activities designated in the Schedule. Such orders may
be issued from Contract start date through September 7, 2011.
	 
	 	(b)	 	All delivery orders or task orders are subject to the terms and
conditions of this contract. In the event of conflict between a
delivery order or task order and this contract, the contract shall
control.
	 
	 	(c)	 	If mailed, a delivery order or task order is considered “issued”
when LOCKHEED MARTIN deposits the order in the mail. Orders may be
issued orally, by facsimile, or by electronic commerce methods only
if authorized in the Schedule.

	5.42	 	ORDER LIMITATIONS (FAR 52.216-19) (OCT 1995) Schedule A.2

	 	(a)	 	Minimum order. When LOCKHEED MARTIN requires supplies or services covered by
this contract in an amount of less than $50,000, LOCKHEED MARTIN is not obligated to
purchase, nor is the CONTRACTOR obligated to furnish, those supplies or services
under the Contract.
	 
	 	(b)	 	Maximum order. The CONTRACTOR is not obligated to honor-

	 	(1)	 	Any order for a single item in excess of $75,000,000 (seventy-five million)
	 
	 	(2)	 	Any order for a combination of items in excess of $75,000,000 (seventy-five
million).
	 
	 	(3)	 	A series of orders from the same ordering office within 5 business days that
together call for quantities exceeding the limitation in paragraph (b)(1) or (2) of
this section.

	 	(c)	 	If this is a requirements contract (i.e. includes the Requirements clause at FAR
52.216-21) LOCKHEED MARTIN is not required to order a part of any one requirement
from the CONTRACTOR if that requirement exceeds the maximum-order limitations in
paragraph (b) of this section.

 

 

					
	 	 	 	 	 
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	 	(d)	 	Notwithstanding paragraphs (b) and (c) of this section, the CONTRACTOR shall
honor any order exceeding the maximum order limitations in paragraph (b), unless
that order (or orders) is returned to the ordering office within 5 business days
after issuance, with written notice stating the CONTRACTOR ‘s intent not to ship the
item (or items) called for and the reasons. Upon receiving this notice, LOCKHEED
MARTIN may acquire the supplies or services from another source.

	5.43	 	INDEFINITE QUANTITY (FAR 52.216-22) (OCT 1995)

	 	(a)	 	Schedule A.2 is an indefinite-quantity contract for the supplies
or services specified and effective for the period stated, in the
Schedule. The quantities of supplies and services specified in the
Schedule are estimates only and are not purchased by this contract.
	 
	 	(b)	 	Delivery or performance shall be made only as authorized by
orders issued in accordance with Section 5.41 “Ordering”. The
CONTRACTOR shall furnish to LOCKHEED MARTIN, when and if ordered, the
supplies or services specified in the Schedule up to and including
the quantity designated in the Schedule as the “maximum.” LOCKHEED
MARTIN shall order at least the quantity of supplies or services
designated in the Schedule as the “minimum.”
	 
	 	(c)	 	Except for any limitations on quantities in the Order Limitations clause or
in the Schedule, there is no limit on the number of orders that may be issued.
LOCKHEED MARTIN may issue orders requiring delivery to multiple destinations or
performance at multiple locations.
	 
	 	(d)	 	Any order issued during the effective period of this contract and not
completed within that period shall be completed by the CONTRACTOR within the
time specified in the order. The contract shall govern the CONTRACTOR’s and
LOCKHEED MARTIN’s rights and obligations with respect to that order to the same
extent as if the order were completed during the contract’s effective period;
provided, that the CONTRACTOR shall not be required to make any deliveries
beyond 12 months after contract period of performance identified in ordering
period identified in Section 2.2.

	5.44a 	 	RIGHTS IN DATA-GENERAL (FAR 52.227-14) (JUN 1987) as modified by
NASA FAR Supplement 1852.227-14, includes 52.227-14 ALT II (JUN
1987) (insertion of (g)(2), ALT III (JUN 1987) (insertion of
(g)(3)(i), and ALT V (JUN 1987) (insertion of (j).
	 
	 	 	MODIFIED DATA RIGHTS

	 	1.	 	LOCKHEED MARTIN Exhibit F. document, “ORIN001 (03-26-07) Orion
Supplemental Flowdowns, clause 12. RIGHTS IN DATA-GENERAL
(supersedes FAR 52.227-14) (Modified by NASA)” supersedes and
replaces the following CORPDOC 4, 4B Data Rights clauses in their
entirety:

	 	a.	 	CORPDOC 4
	 
	 	 	 	In SECTION II: FAR FLOWDOWN PROVISIONS, paragraph F. FAR FLOWDOWN
CLAUSES, 1. subparagraph (k) 52.227-14, RIGHTS IN DATA GENERAL
(JUN 1987)
	 
	 	b.	 	CORPDOC 4B
	 
	 	 	 	In paragraph F. NASA FAR SUPPLEMENT FLOWDOWN CLAUSES,

 

 

					
	 	 	 	 	 
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	 	 	 	NASA FAR SUPPLEMENT FLOWDOWN CLAUSES subparagraph (f)
18-52.227-14 RIGHTS IN DATA — GENERAL (undated) (Modifies FAR
52.227-14, RIGHTS IN DATA – GENERAL; Note 5 applies.).

	 	2.	 	The following data items are authorized to be used under the NASA
Limited Rights Notice and Restricted Rights Notice.

None

	 	 	Note: “Limited rights data” and “Restricted computer software” are
defined in the NASA modified Limited Rights Notice and Restricted
Rights Notice (FAR 52.227-14, June 1987 modified), Exhibit “F”, NASA
Flowdon Provisions document Orin 001.

	5.44b 	 	RIGHTS TO PROPOSAL DATA (TECHNICAL) (FAR 52.227-23) (JUN 1987)
	 
	 	 	Except for data contained in Volumes I through VII, including any
Addendums, Amendments or Revisions thereto that are marked with the
legend “ORBITAL SCIENCES PROPRIETARY INFORMATION”, it is agreed
that, notwithstanding the conditions of any notice appearing
thereon, the Government shall have unlimited rights (as defined in
the “Rights in Data-General” clause contained in this contract) in
and to the technical data contained in CONTRACTOR’S proposals upon
which this contract is based.
	 
	5.45	 	EARNED VALUE MANAGEMENT SYSTEM (MARCH 1999) (Deviation)

	 	(a)	 	In the performance of this contract, the CONTRACTOR shall use an
earned value management system (EVMS) that has been recognized by the
cognizant Administrative Contracting Officer (ACO) as complying with
the guidelines specified in ANSI/EIA Standard 748, Industry
Guidelines for Earned Value Management Systems.
	 
	 	(b)	 	If, at the time of award, the CONTRACTOR ‘s EVMS has not been
recognized by the ACO as complying with the EVMS guidelines, the
CONTRACTOR shall apply the system to the contract and shall take
timely action to implement its plan to obtain compliance. The
CONTRACTOR shall follow and implement the approved compliance plan in
a timely fashion. The Government will conduct a Compliance Review to
assess the CONTRACTOR’s compliance with its plan, and if the
CONTRACTOR does not follow the approved implementation schedule or
correct all resulting system deficiencies identified as a result of
the compliance review within a reasonable time, the Contracting
Officer may take remedial action.
	 
	 	(c)	 	The Government will require integrated baseline reviews. Such
reviews shall be scheduled as early as practicable and should be
conducted within 180 calendar days after contract award or exercise
of significant contract options; or within two months after
distribution of a supplemental agreement that implemented a
significant funding realignment or effected a significant change in
contract requirements. The objective of IBRs is for the Government
and the CONTRACTOR to jointly assess the CONTRACTOR’s baseline to be
used for performance measurement to ensure complete coverage of the
statement of work, logical scheduling of the work activities,
adequate resourcing, and identification of inherent risks.
	 
	 	(d)	 	Unless a waiver is granted by the ACO, CONTRACTOR proposed EVMS
changes

 

 

					
	 	 	 	 	 
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	 	 	 	require approval of the ACO prior to implementation. The ACO
shall advise the CONTRACTOR of the acceptability of such changes
within 30 calendar days after receipt of the notice of proposed
changes from the CONTRACTOR. If the advance approval requirements are
waived by the ACO, the CONTRACTOR shall disclose EVMS changes to the
ACO and provide an information copy to the NASA Contracting Officer
at least 14 calendar days prior to the effective date of
implementation.
	 
	 	(e)	 	The CONTRACTOR agrees to provide access to all pertinent records
and data requested by the ACO or a duly authorized representative.
Access is to permit Government surveillance to ensure that the EVMS
complies, and continues to comply, with the criteria referenced in
paragraph (a) of this clause.
	 
	 	(f)	 	The CONTRACTOR shall be responsible for ensuring that the
subcontracts valued at $20,000,000 (twenty million dollars) or
greater comply with the EVMS requirements at the specified level. If
the subcontractor does not have an EVMS that has been recognized by
the ACO as compliant with ANSI/EIA 748, the prime CONTRACTOR shall
conduct Compliance Reviews of subcontractor’s EVMS in the same manner
as described at paragraph (b) of this clause.
	 
	 	 	 	(Insert list of applicable subcontractors and the level of compliance
(i.e., guidelines or principles).
	 
	 	(g)	 	If the CONTRACTOR identifies a need to deviate from the agreed
baseline by working against an Over Target Baseline or Over Target
Schedule, the CONTRACTOR shall submit to the Contracting Officer a
request for approval to begin implementation of an Over Target
Baseline or Over Target Schedule. This request shall include a
top-level projection of cost and/or schedule growth, whether or not
performance variances will be retained, and a schedule of
implementation for a rebase alignment. The Government will authorize
or deny the request within 30 calendar days after receipt of the
request. Failure of the Government to respond within this 30-day
period constitutes approval of the request. For cost-reimbursement
contracts, the contract budget baseline shall exclude changes for
cost growth increases, other than for authorized changes to the
contract requirements.

	5.46	 	ENGINEERING CHANGE PROPOSALS (NASA 1852.243-70) (OCT 2001)

	 	(a)	 	Definition.
	 
	 	 	 	“ECP” means an Engineering Change Proposal (ECP), which is a proposed
engineering change and the documentation by which the change is
described, justified, and submitted to the procuring activity for
approval or disapproval.

 

 

					
	 	 	 	 	 
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	 	(c)	 	Either party to the contract may originate ECPs. Implementation
of an approved ECP may occur by either a supplemental agreement or,
if appropriate, as a written change order to the contract.
	 
	 	(d)	 	Any ECP submitted to LOCKHEED MARTIN shall include a
“not-to-exceed” price increase or decrease adjustment amount, if any,
and the required time of delivery adjustment, if any, acceptable to
the originator of the ECP. If the change is originated within
LOCKHEED MARTIN, the LOCKHEED MARTIN Procurement Representative shall
obtain a written agreement with the CONTRACTOR regarding the
“not-to-exceed” price and time of delivery adjustments, if any, prior
to issuing an order for
	 
	 	 	 	implementation of the change. An ECP accepted in accordance with the
Changes clause of this contract shall not be considered an
authorization to the CONTRACTOR to exceed the estimated cost in the
contract Schedule, unless the estimated cost is increased by the
change order or other contract modification.

ALT II (SEP 1990)

	 	 	An ECP accepted in accordance with the Changes clause of this
contract shall not be considered an authorization to the CONTRACTOR
to exceed the estimated cost in the contract Schedule, unless the
estimated cost is increased by the change order or other contract
modification.

	5.47	 	SUBMISSION OF COMMERCIAL TRANSPORTATION BILLS TO THE GENERAL SERVICES ADMINISTRATION
FOR AUDIT (FAR 52.247-67) (JUN 1997) (Applicable only to cost reimbursable)
	 
	 	 	Refer to paragraph 14 of Contract Exhibit “F”, ORIN 001 (3/26/07) entitled “Flowdown
Provisions National Aeronautics and Space Administration (NASA)
Orion Program Prime Contract No. NNJ06TA25C”,
	 
	 	 	SECTION 6 – MODIFICATIONS TO GENERAL TERMS AND CONDITIONS
	 
	 	 	Contract general terms and conditions deviations / modifications for this Contract are
incorporated within the following documents:
	 
	 	 	Exhibit D
	 
	 	 	LOCKHEED MARTIN CORPORATION Cost Reimbursement General Provisions and FAR Flowdown
Provisions for Subcontracts/Purchase Orders (All Agencies) For Non-Commercial Items
Under a U.S. Government Prime Contract – CORPDOC-4 (09/06).
	 
	 	 	Exhibit E
	 
	 	 	LOCKHEED MARTIN CORPORATION National Aeronautics and Space Administration (NASA)
Flowdown Provisions for Subcontracts/Purchase Orders For Non-Commercial Items Under a
U.S. Government Prime Contract – CORPDOC-4B (09/06).
	 
	 	 	Exhibit F
	 
	 	 	LOCKHEED MARTIN Flowdown Provisions, National Aeronautics and Space Administration
(NASA), Orion Program, Prime Contract No. NNJ06TA25C, Orin001 (03-26-07), Orion
Supplemental Flowdowns.

 

 

					
	 	 	 	 	 
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The above settlement represents full and complete Letter Contract definitization inclusive of
modifications 01, 02, 03, 04, 05 and 06, 07 and 08; and the following Change Orders:

Change
Order No .001 dated 16 Nov, 2006,

Change Order No. 002 dated16 Nov, 2006, and

Change Order No. 004 dated 13 Apr 2007.

However, the above settlement is without prejudice to the CONTRACTOR’s claim to an equitable
adjustment in Contract Price and Contract Delivery Schedule under the following undefintized Change
Orders:

Change
Order No. 003 dated 30 Jan, 2007; 003a dated 06 Apr 2007,

Change Order No. 005 dated 01 June, 2007,

Change Order No. 006 dated 04 Sep 2007; 006 Rev 01 dated 21 Sep, 2007: and 006 Rev 02 dated 09 Oct 1007.

Change Order No. 007 dated 10 Oct, 2007,

Change Order No. 008 dated 26 Oct 2007, and

Change Order No. 009 dated 14 Nov 2007.

(end of page)

 

 

					
	 	 	 	 	 
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SECTION 7 – SIGNATURES

This proposed Contract shall constitute an offer until acceptance by the CONTRACTOR and execution
by LOCKHEED MARTIN. LOCKHEED MARTIN, except as may be otherwise provided herein, specifically
reserves the right to revoke this offer at any time prior to acceptance hereof in writing by the
CONTRACTOR and execution by LOCKHEED MARTIN. Upon execution by LOCKHEED MARTIN, the rights and
obligations of the Parties hereto shall be subject to and governed by the Terms and Conditions
contained herein. When executed by LOCKHEED MARTIN, this Contract, as described, shall constitute
the entire agreement between the Parties hereto and any Terms or Conditions offered by the
CONTRACTOR in addition thereto or in any way different from those set forth herein are hereby
objected to by LOCKHEED MARTIN.

All documents and clauses in this Contract shall be read so as to be consistent to the extent
practicable. In the event of any inconsistency between provisions of this Contract, the order of
precedence in this Contract shall be: (a) The Schedule of this Contract, including any Special
Provisions and/or modifications to standard preprinted Terms and Conditions; (b) The standard,
preprinted Terms and Conditions or Exhibits of this Contract incorporated by reference; (c) Any
documents, such as, but not limited to, Statements of Work, Drawings, or Specifications, of this
Contract incorporated by reference.

This Contract is subject to acceptance and written Consent by the National Aeronautics and Space
Administration (NASA) Contracting Officer.

In WITNESS WHEREOF, the Parties hereto have executed this Contract as of the day and year of the
last signature affixed below

	 	 	 	 	 	 	 
	 

	 	ORBITAL SCIENCES CORPORATION
	 	 	 	LOCKHEED MARTIN CORPORATION
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Space Systems company
	 
	 	 	 	 	 	 
	By:

	 	/s/ [* *]
	 	By:
	 	/s/ [* *]
	 

	 	[* *]
	 	 	 	[* *]
	 
	 	 	 	 	 	 
	Title:

	 	Sr. Director, Contracts
	 	Title:
	 	Director
	 

	 	Advanced Programs Group
	 	 	 	Subcontract Program Management
	 
	 	 	 	 	 	 
	Date:

	 	December 17, 2007
	 	Date:
	 	December 17, 2007exv10w29

 

Exhibit 10.29

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between Pierre Samec
(“Employee”) and Expedia, Inc., a Washington corporation (the “Company”), and is effective as of
August 7, 2007 (the “Effective Date”).

          WHEREAS, the Company desires to establish its right to the services of Employee, in the
capacity described below, on the terms and conditions hereinafter set forth, and Employee is
willing to accept such employment on such terms and conditions.

          NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, Employee and
the Company have agreed and do hereby agree as follows:

1A. EMPLOYMENT. The Company agrees to employ Employee as Chief Technology Officer (“CTO”)
of the Company, and Employee accepts and agrees to such employment. During Employee’s employment
with the Company, Employee shall do and perform all services and acts necessary or advisable to
fulfill the duties and responsibilities as are commensurate and consistent with Employee’s position
and shall render such services on the terms set forth herein. During Employee’s employment with
the Company, Employee shall report directly to the Company’s Chief Executive Officer or such
person(s) as from time to time may be designated by the Company (hereinafter referred to as the
“Reporting Officer”). Employee shall have such powers and duties with respect to the Company as
may reasonably be assigned to Employee by the Reporting Officer, to the extent consistent with
Employee’s position and status. Employee agrees to devote all of Employee’s working time,
attention and efforts to the Company and to perform the duties of Employee’s position in accordance
with the Company’s policies as in effect from time to time. Employee’s principal place of
employment shall be the Company’s offices located in Bellevue, Washington.

2A. TERM OF AGREEMENT. The term (“Term”) of this Agreement shall commence on the Effective
Date and shall continue for a period of two (2) years.

3A. COMPENSATION.

     (a) BASE SALARY. During the Term, the Company shall pay Employee an annual base
salary of $350,000 (the “Base Salary”), payable in equal biweekly installments or in accordance
with the Company’s payroll practice as in effect from time to time. For all purposes under this
Agreement, the term “Base Salary” shall refer to Base Salary as in effect from time to time. The
Base Salary shall be subject to review and increase at the discretion of the Company’s Chief
Executive Officer.

     (b) DISCRETIONARY BONUS. During the Term, Employee shall be eligible to receive
discretionary annual bonuses. For purposes of the foregoing, Employee’s annual target bonus shall
be 60% of Employee’s Base Salary earned for that year. The bonus, if any, will be payable annually
at the same time that bonuses generally are paid by the company, currently scheduled to be no later
than March 30 for the preceding calendar year. For the avoidance of doubt, the amount of any such
bonus will be determined by the Company in its absolute

 

 

discretion and may be zero. In addition, in order to receive any bonus payment, Employee must
still be in service and not under notice of termination on the date determined by the Company for
payment of the bonus. The Company does not, and Employee is not entitled to, a pro rata payment of
bonus should Employee’s employment terminate for any reason prior to the determined bonus payment
date.

     (c) RESTRICTED STOCK UNITS. The Company shall recommend to the Compensation
Committee that Executive be issued Restricted Stock Units (“RSU’s) valued in the amount of Five
Hundred Thousand Dollars ($500,000.00), to vest in equal increments over five (5) years, contingent
on satisfaction of the Section 162(M) performance goals set periodically by the Compensation
Committee, and subject to the terms and conditions of the Restricted Stock Unit Agreement and other
applicable Restricted Stock Unit Plans. The specific number of RSU’s will be based on the
valuation practices established by the Compensation Committee.

     (d) BENEFITS. From the Effective Date through the date of termination of Employee’s
employment with the Company for any reason, Employee shall be entitled to participate in any
welfare, health and life insurance and pension benefit and incentive programs as may be adopted
from time to time by the Company on the same basis as that provided to similarly situated employees
of the Company. Without limiting the generality of the foregoing, Employee shall be entitled to
the following benefits:

     (i) Reimbursement for Business Expenses. During the Term, the Company shall
reimburse Employee for all reasonable and necessary expenses incurred by Employee in
performing Employee’s duties for the Company, on the same basis as similarly situated
employees and in accordance with the Company’s policies as in effect from time to time.

     (ii) Vacation. During the Term, Employee shall be entitled to annual paid
vacation, in accordance with the plans, policies, programs and practices of the Company
applicable to similarly situated employees of the Company generally.

4A. NOTICES. All notices and other communications under this Agreement shall be in writing
and shall be given by first-class mail, certified or registered with return receipt requested or
hand delivery acknowledged in writing by the recipient personally, and shall be deemed to have been
duly given three days after mailing or immediately upon duly acknowledged hand delivery to the
respective persons named below:

	 	 	 	 	 
	 

	 	If to the Company:
	 	3150 139th Avenue SE
	 
	 	 	 	 
	 

	 	 	 	Bellevue, WA 98005
	 
	 	 	 	 
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	If to Employee:
	 	At the most recent address on record for Employee at the Company.

 

 

Either party may change such party’s address for notices by notice duly given pursuant hereto.

5A. GOVERNING LAW; JURISDICTION. This Agreement and the legal relations thus created
between the parties hereto shall be governed by and construed under and in accordance with the
internal laws of the State of Washington without reference to the principles of conflicts of laws.
Any and all disputes between the parties which may arise pursuant to this Agreement will be heard
and determined before an appropriate federal court in Washington, or, if not maintainable therein,
then in an appropriate Washington state court. The parties acknowledge that such courts have
jurisdiction to interpret and enforce the provisions of this Agreement, and the parties consent to,
and waive any and all objections that they may have as to, personal jurisdiction and/or venue in
such courts.

6A. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same
instrument. Employee expressly understands and acknowledges that the Standard Terms and Conditions
attached hereto are incorporated herein by reference, deemed a part of this Agreement and are
binding and enforceable provisions of this Agreement. References to “this Agreement” or the use of
the term “hereof” shall refer to this Agreement and the Standard Terms and Conditions attached
hereto, taken as a whole.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and delivered by its
duly authorized officer and Employee has executed and delivered this Agreement as of the Effective
Date.

	 	 	 	 	 	 	 
	 	 	EXPEDIA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Burke F. Norton 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	Executive Vice President and
General Counsel 	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Pierre Samec	 	 
	 	 	 	 	 
	 	 	Pierre Samec	 	 

 

 

STANDARD TERMS AND CONDITIONS

1. TERMINATION OF EMPLOYEE’S EMPLOYMENT.

     (a) DEATH. In the event Employee’s employment hereunder is terminated by reason of
Employee’s death, the Company shall pay Employee’s designated beneficiary or beneficiaries, within
30 days of Employee’s death in a lump sum in cash, (i) Employee’s Base Salary through the end of
the month in which death occurs and (ii) any Accrued Obligations (as defined in paragraph 1(f)
below).

     (b) DISABILITY. If, as a result of Employee’s incapacity due to physical or mental
illness (“Disability”), Employee shall have been absent from the full-time performance of
Employee’s duties with the Company for a period of four consecutive months and, within 30 days
after written notice is provided to Employee by the Company (in accordance with Section 4A hereof),
Employee shall not have returned to the full-time performance of Employee’s duties, Employee’s
employment under this Agreement may be terminated by the Company for Disability. During any period
prior to such termination during which Employee is absent from the full-time performance of
Employee’s duties with the Company due to Disability, the Company shall continue to pay Employee’s
Base Salary at the rate in effect at the commencement of such period of Disability, offset by any
amounts payable to Employee under any disability insurance plan or policy provided by the Company.
Upon termination of Employee’s employment due to Disability, the Company shall pay Employee within
30 days of such termination (i) Employee’s Base Salary through the end of the month in which
termination occurs in a lump sum in cash, offset by any amounts payable to Employee under any
disability insurance plan or policy provided by the Company; and (ii) any Accrued Obligations (as
defined in paragraph 1(f) below).

     (c) TERMINATION FOR CAUSE; RESIGNATION WITHOUT GOOD REASON. The Company may terminate
Employee’s employment under this Agreement with or without Cause at any time prior to the
expiration of the Term. As used herein, “Cause” shall mean: (i) the plea of guilty or nolo
contendere to, or conviction for, the commission of a felony offense by Employee; provided,
however, that after indictment, the Company may suspend Employee from the rendition of
services, but without limiting or modifying in any other way the Company’s obligations under this
Agreement; (ii) a material breach by Employee of a fiduciary duty owed to the Company; (iii) a
material breach by Employee of any of the covenants made by Employee in Section 2 hereof; (iv) the
willful or gross neglect by Employee of the material duties required by this Agreement; or (v) a
violation by Employee of any Company policy pertaining to ethics, legal compliance, wrongdoing or
conflicts of interest. Upon (A) the termination of Employee’s employment by the Company for Cause
prior to the expiration of the Term or (B) Employee’s resignation without Good Reason prior to the
expiration of the Term, the Company shall have no further obligation hereunder, except for the
payment of any Accrued Obligations (as defined in paragraph 1(f) below).

     (d) TERMINATION BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE; RESIGNATION FOR
GOOD REASON. Upon termination of
Employee’s employment prior to the expiration of the Term (I) by the Company without Cause

 

 

(other than for death or Disability) or (II) by Employee for Good Reason (as defined below), then
(i) the Company shall continue to pay Employee the Base Salary through the longer of (1) one year
and (2) the end of the Term, over the course of such period (such period, the “Severance Period”),
payable in equal biweekly installments in accordance with the Company’s payroll practice as in
effect from time to time, subject in all events to Section 9 below, provided that the
expiration of this Agreement shall not give rise to any such payment obligation; and (ii) the
Company shall pay Employee within 30 days of the date of such termination in a lump sum in cash any
Accrued Obligations (as defined in paragraph 1(f) below). The payment to Employee of the severance
benefits described in Section 1(d)(i) shall be subject to Employee’s execution and non-revocation
of a separation agreement in a form acceptable to the Company including a general release of the
Company and its affiliates, a covenant not to compete for twelve (12) months and a further covenant
not to compete for twelve (12) additional months with respect to the entities specified in Schedule
A hereto, and non-solicitation covenants (“Separation Agreement”) and Employee’s compliance with
the restrictive covenants set forth in Section 2 hereof. Employee acknowledges and agrees that the
Company’s payment of severance benefits described in Section 1(d)(i) constitutes good and valuable
consideration for such release. As used herein, “Good Reason” shall mean the occurrence of any of
the following without Employee’s prior consent: (A) the Company’s material breach of any material
provision of this Agreement, (B) the material reduction in Employee’s duties, excluding for this
purpose any such reduction that is an isolated and inadvertent action not taken in bad faith or
that is authorized pursuant to this Agreement, (C) the material reduction in Employee’s Base
Salary, provided that in no event shall Employee’s resignation be for “Good Reason” unless
(x) an event or circumstance set forth in clauses (A) through (C) shall have occurred and Employee
provides the Company with written notice thereof within thirty (30) days after the Employee has
knowledge of the occurrence or existence of such event or circumstance, which notice specifically
identifies the event or circumstance that Employee believes constitutes Good Reason, (y) the
Company fails to correct the circumstance or event so identified within 30 days after receipt of
such notice, and (z) the Employee resigns within 90 days after the date of delivery of the notice
referred to in clause (x) above.

     (e) MITIGATION; OFFSET. In the event of termination of Employee’s employment prior to
the end of the Term, Employee shall use his or her reasonable best efforts to seek other employment
and to take other reasonable actions to mitigate the amounts payable under Section 1(d)(i) hereof,
if any. If Employee obtains other employment during the Severance Period, the amount of any
severance payments provided to Employee under Section 1(d)(i) hereof which has been paid to
Employee shall be refunded to the Company by Employee in an amount equal to any compensation earned
by Employee as a result of employment with or services provided to another employer during the
Severance Period (for clarity, no amounts greater than such payments or benefits provided to
Employee under Section 1(d)(i) hereof need be refunded), as set forth in the Separation Agreement.
In addition, all future amounts payable by the Company under Section 1(d)(i) to Employee during the
Severance Period shall be offset by the amount earned by Employee from another employer. For
purposes of this Section 1(e), Employee shall have an obligation to inform the Company regarding
Employee’s employment status following
termination and during the period encompassing the Term (including, without limitation, the
Severance Period).

2

 

     (f) ACCRUED OBLIGATIONS. As used in this Agreement, “Accrued Obligations” shall mean
the sum of (i) any portion of Employee’s accrued but unpaid Base Salary through the date of death
or termination of employment for any reason, as the case may be; (ii) any compensation previously
earned but deferred by Employee (together with any interest or earnings thereon) that has not yet
been paid; and (iii) other than in the event of Employee’s resignation without Good Reason or
termination by the Company for Cause (except as required by applicable law), any portion of
Employee’s accrued but unpaid vacation pay through the date of death or termination of employment.

2. CONFIDENTIAL INFORMATION; NON-SOLICITATION; AND PROPRIETARY RIGHTS.

     (a) CONFIDENTIALITY. Employee acknowledges that while employed by the Company
Employee will occupy a position of trust and confidence. The Company shall provide Employee with
Confidential Information. Employee shall hold in a fiduciary capacity for benefit of the Company
and its subsidiaries and affiliates, and shall not, except as may be required to perform Employee’s
duties hereunder or as required by applicable law, without limitation in time, communicate,
divulge, disseminate, disclose to others or otherwise use, whether directly or indirectly, any
Confidential Information. “Confidential Information” shall mean information about the Company or
any of its subsidiaries or affiliates, and their respective businesses, employees, consultants,
contractors, suppliers, clients and customers that is not disclosed by the Company or any of its
subsidiaries or affiliates for financial reporting purposes and that was learned by Employee in the
course of employment by the Company or any of its subsidiaries or affiliates, including (without
limitation) any proprietary knowledge, trade secrets, data, formulae, processes, methods, research,
secret data, costs, names of users or purchasers of their respective products or services, business
methods, operating procedures or programs or methods of promotion and sale, information relating to
accounting or tax strategies and data, information and client and customer lists and all papers,
resumes, and records (including computer records) of the documents containing such Confidential
Information. For purposes of this Section 2(a), information shall not cease to be Confidential
Information merely because it is embraced by general disclosures for financial reporting purposes
or because individual features or combinations thereof are publicly available. Notwithstanding the
foregoing provisions, if Employee is required to disclose any such confidential or proprietary
information pursuant to applicable law or a subpoena or court order, Employee shall promptly notify
the Company in writing of any such requirement so that the Company may seek an appropriate
protective order or other appropriate remedy or waive compliance with the provisions hereof.
Employee shall reasonably cooperate with the Company to obtain such a protective order or other
remedy. If such order or other remedy is not obtained prior to the time Employee is required to
make the disclosure, or the Company waives compliance with the provisions hereof, Employee shall
disclose only that portion of the confidential or proprietary information which he is advised by
counsel that he is legally required to so disclose. Employee acknowledges that such Confidential
Information is specialized, unique in nature and of great value to the Company and its subsidiaries
or affiliates, and that such information gives the Company and its subsidiaries or
affiliates a competitive advantage. Employee agrees to deliver or return to the Company, at
the Company’s request at any time or upon termination or expiration of Employee’s employment, all
documents, computer tapes and disks, plans,

3

 

initiatives, strategies, records, lists, data,
drawings, prints, notes and written information (and all copies thereof) created by or on behalf of
the Company or its subsidiaries or affiliates or prepared by Employee in the course of Employee’s
employment by the Company and its subsidiaries or affiliates. As used in this Agreement,
“subsidiaries” and “affiliates” shall mean any company controlled by, controlling or under common
control with the Company.

     (b) DUTY OF LOYALTY. In consideration of the Company’s promise to disclose, and
disclosure of, its Confidential Information and other good and valuable consideration provided
hereunder, the receipt and sufficiency of which are hereby acknowledged by Employee, Employee
hereby agrees and covenants that for a period of twelve (12) months beyond Employee’s date of
termination of employment from the Company or any of its subsidiaries or affiliates for any reason,
including the expiration of the Term (the “Restricted Period”), Employee shall not, directly or
indirectly, engage in, assist or become associated with a Competitive Activity. For purposes of
this Section 2(b): (i) a “Competitive Activity” means, at the time of Employee’s termination, any
business or other endeavor in any jurisdiction of a kind being conducted by the Company or any of
its subsidiaries or affiliates (or demonstrably anticipated by the Company or its subsidiaries or
affiliates), including, without limitation, those that are engaged in the provision of any lodging
or travel related services (including, without limitation, corporate travel services) in any
jurisdiction as of the Effective Date or at any time thereafter (such affiliates including, without
limitation, Hotels.com, Hotwire, Inc. and TripAdvisor); and (ii) Employee shall be considered to
have become “associated with a Competitive Activity” if Employee becomes directly or indirectly
involved as an owner, principal, employee, officer, director, independent contractor,
representative, stockholder, financial backer, agent, partner, advisor, lender, or in any other
individual or representative capacity with any individual, partnership, corporation or other
organization that is engaged in a Competitive Activity. Notwithstanding the foregoing, Employee
may make and retain investments during the Restricted Period, for investment purposes only, in less
than five percent (5%) of the outstanding capital stock of any publicly-traded corporation engaged
in a Competitive Activity if stock of such corporation is either listed on a national stock
exchange or on the NASDAQ National Market System if Employee is not otherwise affiliated with such
corporation. Employee further agrees and covenants that for an additional period of twelve (12)
months beyond the Initial Restricted Period (“Second Restricted Period”) Employee shall not
directly or indirectly be associated with (as defined above) any entity listed on Schedule A
hereto.

     (c) NON-SOLICITATION OF EMPLOYEES. Employee recognizes that he or she will possess
Confidential Information about other employees, officers, directors, agents, consultants and
independent contractors of the Company and its subsidiaries or affiliates relating to their
education, experience, skills, abilities, compensation and benefits, and inter-personal
relationships with suppliers to and customers of the Company and its subsidiaries or affiliates.
Employee recognizes that the information he or she will possess about these employees, officers,
directors, agents, consultants and independent contractors is not generally known, is of
substantial value to the Company and its subsidiaries or affiliates in developing their respective
businesses and in securing and retaining customers, and will be acquired by Employee because
of Employee’s business position with the Company. Employee agrees (i) that, during the Term and
the Restricted Period, Employee will not, directly or indirectly, hire or solicit or recruit the

4

 

employment or services of (i.e., whether as an employee, officer, director, agent, consultant or
independent contractor), or encourage to change such person’s relationship with the Company or any
of its subsidiaries or affiliates, any employee, officer, director, agent, consultant or
independent contractor of the Company or any of its subsidiaries or affiliates, provided, however,
that a general solicitation of the public for employment shall not constitute a solicitation
hereunder so long as such general solicitation is not designed to target, or does not have the
effect of targeting, any employee, officer, director, agent, consultant or independent contractor
of the Company or any of its subsidiaries or affiliates and (ii) that Employee will not convey any
Confidential Information or trade secrets about any employees, officers, directors, agents,
consultants and independent contractors of the Company or any of its subsidiaries or affiliates to
any other person except within the scope of Employee’s duties hereunder.

     (d) NON-SOLICITATION OF CUSTOMERS, SUPPLIERS, PARTNERS. During the Term and the
Restricted Period, Employee shall not, without the prior written consent of the Company, directly
or indirectly, solicit, attempt to do business with, or do business with any customers of,
suppliers (including providers of travel inventory) to, business partners of or business affiliates
of the Company or any of its subsidiaries or affiliates (collectively, “Trade Relationships”) on
behalf of any entity engaged in a Competitive Activity, or encourage (regardless of who initiates
the contact) any Trade Relationship to use the services of any competitor of the Company or its
subsidiaries or affiliates, or encourage any Trade Relationship to change its relationship with the
Company or its subsidiaries or affiliates.

     (e) PROPRIETARY RIGHTS; ASSIGNMENT. All Employee Developments shall be made for hire
by the Employee for the Company or any of its subsidiaries or affiliates. “Employee Developments”
means any idea, discovery, invention, design, method, technique, improvement, enhancement,
development, computer program, machine, algorithm or other work or authorship that (i) relates to
the business or operations of the Company or any of its subsidiaries or affiliates, or (ii) results
from or is suggested by any undertaking assigned to the Employee or work performed by the Employee
for or on behalf of the Company or any of its subsidiaries or affiliates, whether created alone or
with others, during or after working hours. All Confidential Information and all Employee
Developments shall remain the sole property of the Company or any of its subsidiaries or
affiliates. The Employee shall acquire no proprietary interest in any Confidential Information or
Employee Developments developed or acquired during the Term. To the extent the Employee may, by
operation of law or otherwise, acquire any right, title or interest in or to any Confidential
Information or Employee Development, the Employee hereby assigns to the Company all such
proprietary rights. The Employee shall, both during and after the Term, upon the Company’s
request, promptly execute and deliver to the Company all such assignments, certificates and
instruments, and shall promptly perform such other acts, as the Company may from time to time in
its discretion deem necessary or desirable to evidence, establish, maintain, perfect, enforce or
defend the Company’s rights in Confidential Information and Employee Developments.

     (f) COMPLIANCE WITH POLICIES AND PROCEDURES. During the Term, Employee shall adhere
to the policies and standards of professionalism set forth in the Company’s Policies and Procedures
as they may exist from time to time.

5

 

     (g) REMEDIES FOR BREACH. Employee expressly agrees and understands that Employee will
notify the Company in writing of any alleged breach of this Agreement by the Company, and the
Company will have 30 days from receipt of Employee’s notice to cure any such breach.

          Employee expressly agrees and understands that the remedy at law for any breach by Employee of
this Section 2 will be inadequate and that damages flowing from such breach are not usually
susceptible to being measured in monetary terms. Accordingly, it is acknowledged that upon
Employee’s violation of any provision of this Section 2 the Company shall be entitled to obtain
from any court of competent jurisdiction immediate injunctive relief and obtain a temporary order
restraining any threatened or further breach as well as an equitable accounting of all profits or
benefits arising out of such violation. Nothing in this Section 2 shall be deemed to limit the
Company’s remedies at law or in equity for any breach by Employee of any of the provisions of this
Section 2, which may be pursued by or available to the Company.

     (h) SURVIVAL OF PROVISIONS. The obligations contained in this Section 2 shall, to the
extent provided in this Section 2, survive the termination or expiration of Employee’s employment
with the Company and, as applicable, shall be fully enforceable thereafter in accordance with the
terms of this Agreement. If it is determined by a court of competent jurisdiction in any state
that any restriction in this Section 2 is excessive in duration or scope or is unreasonable or
unenforceable under the laws of that state, it is the intention of the parties that such
restriction may be modified or amended by the court to render it enforceable to the maximum extent
permitted by the law of that state.

3. TERMINATION OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement
between the parties and terminates and supersedes any and all prior agreements and understandings
(whether written or oral) between the parties with respect to the subject matter of this Agreement.
Employee acknowledges and agrees that neither the Company nor anyone acting on its behalf has
made, and is not making, and in executing this Agreement, the Employee has not relied upon, any
representations, promises or inducements except to the extent the same is expressly set forth in
this Agreement. Employee hereby represents and warrants that by entering into this Agreement,
Employee will not rescind or otherwise breach an employment agreement with Employee’s current
employer prior to the natural expiration date of such agreement

4. ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and none of the
parties hereto shall, without the consent of the others, assign or transfer this Agreement or any
rights or obligations hereunder, provided that, in the event of the merger, consolidation,
transfer, or sale of all or substantially all of the assets of the Company with or to any other
individual or entity, this Agreement shall, subject to the provisions hereof, be binding upon and
inure to the benefit of such successor and such successor shall discharge and perform all the
promises, covenants, duties, and obligations of the Company hereunder, and all references herein to
the “Company” shall refer to such successor.

5. WITHHOLDING. The Company shall make such deductions and withhold such amounts from each
payment and benefit made or provided to Employee hereunder, as may be required from time to time by
applicable law, governmental regulation or order.

6

 

6. HEADING REFERENCES. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.

7. WAIVER; MODIFICATION. Failure to insist upon strict compliance with any of the terms
hereof shall not be deemed a waiver of such term, nor shall any waiver or relinquishment of, or
failure to insist upon strict compliance with, any right or power hereunder at any one or more
times be deemed a waiver or relinquishment of such right or power at any other time or times. This
Agreement shall not be modified in any respect except by a writing executed by each party hereto.
Notwithstanding anything to the contrary herein, neither the assignment of Employee to a different
Reporting Officer due to a reorganization or an internal restructuring of the Company or its
affiliated companies nor a change in the title of the Reporting Officer shall constitute a
modification or a breach of this Agreement.

8. SEVERABILITY If a court of competent jurisdiction determines that any portion of this
Agreement is in violation of any law or public policy, only the portions of this Agreement that
violate such law or public policy shall be stricken. All portions of this Agreement that do not
violate any statute or public policy shall continue in full force and effect. Further, any court
order striking any portion of this Agreement shall modify the stricken terms as narrowly as
possible to give as much effect as possible to the intentions of the parties under this Agreement.

9. SECTION 409A. This Agreement is intended to comply with Section 409A of the Internal
Revenue Code of 1986, as amended, including any regulations and guidance issued thereunder
(“Section 409A”), to the extent Section 409A is applicable to this Agreement. Notwithstanding any
other provision of this Agreement to the contrary, this Agreement shall be interpreted, operated
and administered by the Company in a manner consistent with such intention and to avoid the
pre-distribution inclusion in income of amounts deferred under this Agreement and the imposition of
any additional tax or interest with respect thereto. Without limiting the generality of the
foregoing, to the extent required in order to comply with Section 409A, amounts that would
otherwise be payable under this Agreement during the six-month period immediately following the
date of termination of Employee’s employment shall instead be paid on the first business day after
the date that is six months following the Employee’s “separation from service” within the meaning
of Section 409A.

7

 

     ACKNOWLEDGED AND AGREED AS OF THE EFFECTIVE DATE:

	 	 	 	 	 	 	 
	 	 	EXPEDIA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Burke F. Norton
 

	 	 
	 

	 	Its:
	 	Executive Vice President and General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Pierre Samec	 	 
	 	 	 	 	 
	 

	 	Pierre
	 	Samec	 	 

8

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