Document:

ex10_2.htm

    
      

    

    Exhibit
10.2

     

    
      AGREEMENT
AND PLAN OF MERGER

      

      BY AND
AMONG

      

      TWL
CORPORATION,  

      A NEVADA
CORPORATION,

      

      AND

      

      TWL
KNOWLEDGE GROUP, INC.

      A
DELAWARE CORPORATION,

      

      ON THE
ONE HAND,

      

      AND

      

      DIVERGENT
ENTERTAINMENT, INC.,

      A
MINNESOTA CORPORATION

      

      AND

      

      DANIEL
HAMMETT,

      

      ON THE
OTHER HAND

      

      

      DATED AS
OF FEBRUARY 25, 2008

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      AGREEMENT
AND PLAN OF MERGER

      

      This
AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made
and entered into as of February 25, 2008, by and among TWL Corporation, a Nevada
corporation (“Parent”), and TWL
Knowledge Group, Inc., a Delaware corporation and wholly owned subsidiary of
Parent (“Merger
Sub”), and Divergent Entertainment, Inc., a Minnesota corporation (the
“Company”), and
Daniel Hammett (“Selling
Stockholder”).  Parent, Selling Stockholder, Merger Sub and the
Company are collectively referred to herein as the “Parties,” and each is
a “Party.”  Capitalized
terms used and not otherwise defined herein have the meanings set forth in
Article 1.

      

      RECITALS

      

      WHEREAS,
the Boards of Directors of Parent, Merger Sub and the Company have each
determined that it is the best interests of their respective corporations and
stockholders that Parent, Merger Sub and the Company enter into a business
combination transaction;

      

      WHEREAS,
the Boards of Directors of each of Parent, Merger Sub and the Company have
adopted and approved, as the case may be, this Agreement, the merger of the
Company with and into Merger Sub (the “Merger”) in
accordance with the provisions of the Delaware General Corporations Act (the
“DGCL”), and
the terms and conditions set forth herein;

      

      WHEREAS,
the Board of Directors of the Company has determined to recommend to the
Company’s stockholders the approval and adoption of this Agreement and the
Merger;

      

      WHEREAS,
the Selling Stockholder is the sole stockholder of the Company and will benefit
from the transactions contemplated herein;

      

      WHEREAS,
for U.S. federal income tax purposes, it is intended that the Merger shall
qualify as a reorganization within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended (the “Code”), and that this
Agreement shall constitute a plan of reorganization within the meaning of
Sections 1.368-2(g) and 1.368-3(a) of the Treasury Regulations and each of
Parent, Merger Sub, and the Company will be a party to a reorganization within
the meaning of Section 368(b) of the Code; and

      

      WHEREAS,
in connection with the Merger, the Parties desire to make certain
representations, warranties, covenants and agreements and also to prescribe
various conditions to the Merger, upon the terms and subject to the conditions
contained herein.

      

      NOW,
THEREFORE, in consideration of the covenants, promises, representations and
warranties set forth herein, and for other good and valuable consideration,
intending to be legally bound hereby the parties agree as follows:

      

      ARTICLE
1

      DEFINITIONS

      

      1.1       
    Certain
Definitions.  The following terms shall, when used in this
Agreement, have the following meanings:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Affiliate” means,
with respect to any Person: (i) any Person directly or indirectly owning,
controlling or holding with power to vote ten percent (10%) or more of the
outstanding voting securities of such other Person (other than passive or
institutional investors); (ii) any Person ten percent (10%) or more of whose
outstanding voting securities are directly or indirectly owned, controlled or
held with power to vote, by such other Person; (iii) any Person directly or
indirectly controlling, controlled by or under common control with such other
Person; and (iv) any officer, director or partner of such other Person.
“Control” for the foregoing purposes shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities or
voting interests, by contract or otherwise;

      

      “Agreement” shall have
the meaning set forth in the Recitals of this Agreement;

      

      “Alternative
Acquisition” shall have the meaning set forth in Section 5.9 of this
Agreement;

      

      “Ancillary Agreements”
means the Hammett Employment Agreement and the Disclosure Schedules to this
Agreement;

      

      “Bankrupt” means, with
respect to any person or entity, such person or entity (a) that (i) makes an
assignment for the benefit of creditors; (ii) files a voluntary petition in
bankruptcy; (iii) is adjudged a bankrupt or insolvent, or has entered against
him or it an order for relief, or is declared insolvent in any bankruptcy or
insolvency proceedings; (iv) files a petition or answer seeking for the person
or entity a reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any statute, law, or regulation; (v) files
an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against the person or entity in a proceeding of
the type described in subclauses (i) through (iv) of this clause (a); or (vi)
seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or
liquidator of the person’s or of all or any substantial part of the person’s or
entity’s properties; or (b) against whom, a proceeding seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or similar
relief under any law has been commenced and one hundred twenty (120) days have
expired without dismissal thereof or with respect to whom, without the person’s
or entity’s consent or acquiescence, a trustee, receiver, or liquidator of the
person  or entity or of all or any substantial part of the person’s or
entity’s properties has been appointed and ninety (90) days have expired without
the appointment having been vacated or stayed, or ninety (90) days have expired
after the date of expiration of a stay, if the appointment has not previously
been vacated;

      

      “Benefit Arrangement”
means any employment, consulting, severance or other similar contract, plan,
arrangement or policy, and each plan, arrangement (written or oral), program,
agreement or commitment providing for insurance coverage (including any
self-insured arrangements), workers’ compensation, disability benefits,
supplemental unemployment benefits, vacation benefits, retirement benefits,
life, health, disability or accident benefits or for deferred compensation,
profit-sharing bonuses, stock options, stock purchases or other forms of
incentive compensation or post-retirement insurance, compensation or benefits
which (A) is not a Welfare Plan, Pension Plan or Multi-employer Plan, and (B) is
entered into, maintained, contributed to or required to be contributed to, by
the Company or an ERISA Affiliate or under which the Company or any ERISA
Affiliate may incur any liability;

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      “Business” shall mean
the development, production, publishing, marketing, distribution, license and
sale of computer products throughout the world;

      

      “Business Day” means
any day other than Saturday, Sunday or a day on which banking institutions in
Dallas, Texas, are required or authorized to be closed;

      

      “Certificate of
Merger” shall have the meaning set forth in Section 2.3 of this
Agreement;

      

       “Claim” shall have the
meaning set forth in Section 8.4 of this Agreement;

      

      “Claim Notice” shall
have the meaning set forth in Section 8.4 of this Agreement;

      

      “Closing” shall have
the meaning set forth in Section 2.2 of this Agreement;

      

      “Closing Date” shall
have the meaning set forth in Section 2.2 of this Agreement;

      

       “Company” shall have
the meaning set forth in the preamble of this Agreement;

      

      “Company
Certificate(s)” shall have the meaning set forth in Section 2.5(b) of
this Agreement;

      

      “Company Common Stock”
shall have the meaning ascribed to it in Section 2.5(a) of this
Agreement;

      

       “Company Financial
Documentation” shall mean the Company’s complete financial records
including, but not limited to, balance sheets, cash flow statements, expense
ledgers, bank statements, documentation of cash transactions and expenses, and
bookkeeping records, if and as applicable;

      

      “Company Indemnified
Parties” shall have the meaning set forth in Section 8.2 of this
Agreement;

      

      “Contract” means any
agreement, contract, note, loan, evidence of indebtedness, purchase order,
letter of credit, indenture, security or pledge agreement, covenant not to
compete, license, instrument, commitment, obligation, promise or undertaking
(whether written or oral and whether express or implied) to which the Company is
a party or is bound and which relates to the Business;

      

      “DEID” means the
separate DEI business division of Merger Sub, or whatever other entity Parent
designates to manage the assets acquired from DEI, that shall include all of the
business and assets merged into Merger Sub from DEI in the Merger.

      

      “DEID Cost of Goods
Sold” shall include manufacturing and distribution costs for DEID
products sold and DEID programs licensed, operating costs related to DEID
product support service centers and DEID product distribution centers, costs
incurred to support and maintain Internet-based DIED products and services,
warranty costs, inventory write-downs, costs associated with the delivery of
DEID consulting services, costs associated with promoting, selling and marketing
the DEID products (including fees and costs related to advertising, trade shows
and other trade events, production of collateral materials and market research,
and other costs related to the marketing and sale of the products, and an
allocation for marketing personnel costs associated with DEID-related services),
and DEID Research and Development Expenses.

      
        
           

        

        
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      “DEID Expense
Allocation” shall mean the allocation of Merger Sub and Parent operating
expenses, including general and administrative-related, facilities-related,
indirect employee and consultant and other operating expenses, equal to 4% of
the DEID Revenue calculated in accordance with GAAP, but no less than $400,000
on an annual basis, and calculated commencing on January 9, 2008.

      

      “DEID Gross Profit”
means the DEID Gross Sales for goods and services provided by DEID less DEID
Cost of Goods Sold, DEID Expense Allocation, and direct DEID employee and
consultant costs (including base salary, quarterly payments and bonuses paid to
Selling Stockholder) calculated commencing on January 9, 2008, and calculated in
accordance with GAAP; provided, however, quarterly payments and bonuses paid to
Selling Stockholder shall only be included in the calculation of “DEID Gross
Profit” for the first six (6) months from the Closing Date, thereafter, the
amount, if any, of such quarterly payments and bonuses shall be negotiated in
good faith between Parent and Selling Stockholder to reflect Selling
Stockholder’s ongoing responsibilities with respect to Parent, Merger Sub and
DEID.

      

      “DEID Gross Profit
Margin” shall be a percentage calculated by dividing (i) DEID Gross
Profit by (ii) DEID Gross Sales.

      

      “DEID Net Sales” means
DEID Gross Sales minus returns, discounts and allowances attributable to DEID,
calculated in accordance with GAAP.

      

      “DEID Gross Sales” or
“DEID Gross Product
Sales” means the total DEID sales, after deducting for DEID customer
discounts, allowances or returns, attributable to DEID, calculated in accordance
with GAAP.

      

      “DEID Research and
Development Expenses” shall include payroll, employee benefits,
stock-based compensation expense, and other headcount-related expenses
associated with product development, as well as third-party development and
programming costs, localization costs incurred to translate software for
international markets, and the amortization of purchased software code and
services content.

      

      “DEID Revenue” shall
mean the appropriate amount from DEID Gross Sales for goods sold or services
provided by DEID, calculated annually in accordance with GAAP.

      

      “DGCL” shall have the
meaning set forth in the Recitals of this Agreement;

      

      “Effective Time” shall
have the meaning set forth in Section 2.3 of this Agreement;

      

      “Effective Date” shall
have the meaning set forth in Section 2.3 of this Agreement;

      
        
           

        

        
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      “Employee Plans” means
all Benefit Arrangements, Pension Plans and Welfare Plans;

      

      “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended;

      

      “Family Member” means,
with respect to any individual (i) the individual, (ii) the individual’s spouse,
(iii) any other natural Person who is related to the individual or the
individual’s spouse within the second degree (including adopted children) and
(iv) any other natural Person who resides with such individual;

      

      “GAAP” means U.S.
generally accepted accounting principles consistently applied, as in effect from
time to time;

      

      “Hammett Employment
Agreement” shall have the meaning set forth in Section 5.1 of this
Agreement;

      

      “Indemnification
Threshold” shall have the meaning set forth in Section 8.3 of this
Agreement;

      

      “Intellectual
Property” means all trademarks and trademark rights, trade names and
trade name rights, service marks and service mark rights, service names and
service name rights, patents and patent rights, utility models and utility model
rights, copyrights, mask work rights, brand names, trade dress, product designs,
product packaging, business and product names, logos, slogans, rights of
publicity, trade secrets, inventions (whether patentable or not), invention
disclosures, improvements, processes, formulae, industrial models, processes,
designs, specifications, technology, methodologies, computer software (including
all source code and object code), firmware, development tools, flow charts,
annotations, all Web addresses, sites and domain names, all data bases and data
collections and all rights therein, any other confidential and proprietary right
or information, whether or not subject to statutory registration, and all
related technical information, the information set forth in manufacturing,
engineering and technical drawings, know-how and all pending applications for
and registrations of patents, utility models, trademarks, service marks and
copyrights, and the right to sue for past infringement, if any, in connection
with any of the foregoing;

      

      “Knowledge” means and
an individual shall be deemed to have “Knowledge” of a particular fact or other
matter if such individual is actually aware of such fact or other
matter.  A Person (other than an individual and other than the Selling
Stockholder) shall be deemed to have “Knowledge” of a particular fact or other
matter if any individual who is serving, or who has at any time served as a
director or officer of such Person (or in any similar capacity) has, or at any
time had, Knowledge of such fact or other matter.

      

      “Laws” means any
statute, ordinance, law, rule, regulation, code, injunction, judgment, order,
decree, ruling, or other requirement enacted, adopted or applied by any
Regulatory Authority, including judicial decisions applying common law or
interpreting any other Law;

      

      “Leases” means all of
the existing leases of the Company listed on Schedule 3.11(a)
hereto;

      
        
           

        

        
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      “Legal Proceeding”
means any action, arbitration, audit, hearing, investigation, litigation or suit
(whether civil, criminal, administrative, investigative or informal) commenced,
brought, conducted or heard by or before, or otherwise involving, any Regulatory
Authority or arbitrator;

      

      “Liabilities” means
any direct or indirect liability, indebtedness, obligation, commitment, expense,
claim, deficiency, guaranty or endorsement of or by any Person of any type,
whether known or unknown, accrued, absolute, contingent, matured, unmatured,
liquidated or unliquidated or otherwise;

      

      “Licensed Proprietary
Rights” shall have the meaning set forth in Section 3.10(a) of this
Agreement;

      

      “Lien” means any
material mortgage, pledge, lien, encumbrance, charge, security interest,
security agreement, conditional sale or other title retention agreement,
limitation, option, assessment, restrictive agreement, restriction, adverse
interest, restriction on transfer or exception to or material defect in title or
other ownership interest (including but not limited to restrictive covenants,
leases and licenses);

      

      “Losses” means any
claim, liability, obligation, loss, damage, assessment, penalty, judgment,
settlement, cost and expense, including costs attributable to the loss of the
use of funds to the date on which a payment is made with respect to a matter of
indemnification under Article 8 hereof, and including reasonable attorneys’ and
accountants’ fees and disbursements incurred in investigating, preparing,
defending against or prosecuting any claim;

      

      “Material Adverse
Effect” or “Material Adverse
Change” means a material adverse effect on (i) the assets, liabilities,
properties or business of the Parties, (ii) the validity, binding effect or
enforceability of this Agreement or the Ancillary Agreements or (iii) the
ability of any Party to perform its obligations under this Agreement and the
Ancillary Agreements; provided, however, that none of
the following shall constitute a Material Adverse Effect on the Company: (i) the
filing, initiation and subsequent prosecution, by or on behalf of stockholders
of any Party, of litigation that challenges or otherwise seeks damages with
respect to the Merger, this Agreement and/or transactions contemplated thereby
or hereby, (ii) occurrences due to a disruption of a Party’s business as a
result of the announcement of the execution of this Agreement or changes caused
by the taking of action required by this Agreement, (iii) general economic
conditions, or (iv) any changes generally affecting the industries in which a
Party operates;

      

      “Merger” shall have
the meaning set forth in the Recitals of this Agreement;

      

      “Merger Cash
Consideration” shall have the meaning set forth in Section 2.5(e) of this
Agreement;

      

      “Merger Consideration”
shall have the meaning set forth in Section 2.5(f) of this
Agreement;

      

      “Merger Stock
Consideration” shall have the meaning set forth in Section 2.5(a) of this
Agreement;

      

      “Merger Sub” shall
have the meaning set forth in the preamble to this Agreement;

      
        
           

        

        
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      “Multiemployer Plan”
means any “multiemployer plan” as defined in Section 3(37) of
ERISA.

      

      “Order” means any
writ, judgment, decree, ruling, injunction or similar order of any Regulatory
Authority (in each such case whether preliminary or final);

      

      “Ordinary Course of
Business” or “ordinary course” or
any similar phrase means the usual and ordinary course of business of the
Company, consistent with its past custom and practice;

      

      “Owned Proprietary
Rights” shall have the meaning set forth in Section 3.10(a) of this
Agreement;

      

      “Parent” shall have
the meaning set forth in the preamble to this Agreement;

      

      “Parent Common Stock”
shall have the meaning set forth in Section 2.5(a) of this
Agreement;

      

      “Parent Indemnified
Parties” shall have the meaning set forth in Section 8.2 of this
Agreement;

      

      “Party” or “Parties” shall have
the meaning set forth in the preamble to this Agreement;

      

      “Pension Plan” means
any “employee pension benefit plan” as defined in Section 3(2) of ERISA
(other than a Multiemployer Plan) which the Company or any ERISA Affiliate
maintains, administers, contributes to or is required to contribute to, or has
maintained, administered, contributed to or was required to contribute to, or
under which the Company or any ERISA Affiliate may incur any
liability;

      

      “Permit” means any
license, franchise, certificate, declaration, waiver, exemption, variance,
permit, consent, approval, registration, authorization, qualification or similar
right granted by a Regulatory Authority;

      

      “Person” means any
natural person, individual, firm, corporation, including a non-profit
corporation, partnership, trust, unincorporated organization, association,
limited liability company, labor union, Regulatory Authority or other
entity;

      

      “Regulatory Authority”
means: any (i) federal, state, local, municipal or foreign government; (ii)
governmental or quasi-governmental authority of any nature (including without
limitation any governmental agency, branch, department, official,
instrumentality or entity and any court or other tribunal; (iii) multi-national
organization or body; or (iv) body exercising or entitled to exercise any
administrative, executive, judicial, legislative, police, regulation or taxing
authority or power of any nature;

      

      “Representatives”
shall have the meaning set forth in Section 5.9 of this Agreement;

      

      “Securities Act” means
the Securities Act of 1933, as amended;

      
        
           

        

        
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      “Selling Stockholder”
shall have the meaning set forth in the preamble to this Agreement;

      

      “Stock Power” shall
have the meaning set forth in Section 2.7 of this Agreement;

      

      “Subsidiary” of a
specified Person means (a) any Person if securities having ordinary voting power
(at the time in question and without regard to the happening of any contingency)
to elect a majority of the directors, trustees, managers or other governing body
of such Person are held or controlled by the specified Person or a Subsidiary of
the specified Person; (b) any Person in which the specified Person and its
subsidiaries collectively hold a fifty percent (50%) or greater equity interest;
(c) any partnership or similar organization in which the specified Person or
subsidiary of the specified Person is a general partner; or (d) any Person the
management of which is directly or indirectly controlled by the specified Person
and its Subsidiaries through the exercise of voting power, by contract or
otherwise;

      

      “Surviving
Corporation” shall have the meaning set forth in Section 2.1 of this
Agreement;

      

      “Tangible Personal
Property” means all equipment, tools, fixtures, furniture, office
equipment, computer hardware, supplies, materials and other items of tangible
personal property (other than Inventory) of every kind owned or leased by the
Company (wherever located) and whether or not carried on its books) and related
to the Business, together with any express or implied warranty by the
manufacturers or sellers or lessors of any item or component part thereof and
all maintenance records and documents related thereto;

      

      “Taxes” means any U.S.
or non U.S. federal, state, provincial, local or foreign (i) income, corporation
gross income, gross receipts, license, payroll, employment, excise, severance,
stamp, occupation, premium, windfall profits, environmental, customs duties,
capital, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, intangible property,
recording, occupancy, sales, use, transfer, registration, value added minimum,
ad valorem or excise tax, estimated or other tax of any kind whatsoever,
including any interest, additions to tax, penalties, fees, deficiencies,
assessments, additions or other charges of any nature with respect thereto,
whether disputed or not; and (ii) any liability for the payment of any amount of
the type described in (i) above;

      

      “Tax Returns” means
all federal, state, local, provincial and foreign tax returns, declarations,
reports, claims, schedules and forms for refund or credit or information return
or statement relating to Taxes, including any schedule or attachment thereto,
and including any amendment thereof;

      

      “Transactions” shall
have the meaning set forth in Section 3.2 of this Agreement;

      

      “Welfare Plan” means
any “employee welfare benefit plan” as defined in Section 3(1) of ERISA
which the Company or any ERISA Affiliate maintains, administers, contributes to
or is required to contribute to, or under which the Company or any ERISA
Affiliate may incur any Liability.

      
        
           

        

        
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      ARTICLE
2

      THE
MERGER

      

      2.1     
      Merger.  Upon
the terms and conditions set forth in this Agreement, and in accordance with the
provisions of the DGCL, at the Effective Time (as defined below), (i) the
Company shall be merged with and into Merger Sub, (ii) the separate corporate
existence of the Company shall cease, (iii) Merger Sub, as the surviving
corporation in the Merger, shall continue its existence under the laws of the
State of Delaware, and (iv) Merger Sub shall succeed to and assume the rights,
obligations, properties, rights, privileges, powers and franchises of the
Company.  Merger Sub, as the surviving corporation after the Merger,
is sometimes referred to herein as the “Surviving
Corporation.”

      

      2.2     
      Closing.  Unless
this Agreement has been terminated pursuant to the provisions of Article 9
hereof, and subject to the satisfaction or waiver of the conditions set forth in
Article 7of this Agreement, the closing of the Merger and other transactions
contemplated hereby (the “Closing”) shall take
place at the offices of the Parent located at 4101 International Parkway,
Carrollton, Texas 75007, or at such other place as Parent and the Company
mutually agree, at 10:00 a.m. local time on the later to occur of (a) February
25, 2008, or (b) the Business Day after the day on which the last of the closing
conditions set forth in Article 7 below has been satisfied or waived, or such
other date as Parent and the Company mutually agree upon in writing (the “Closing
Date”).

      

      2.3       
    Effective
Time.  Subject to the provisions of this Agreement, at the
Closing, the Parties shall cause the Merger to become effective by causing the
Surviving Corporation to execute and file in accordance with the relevant
provisions of the DGCL a certificate of merger with the Secretary of State of
the State of Delaware (the “Certificate of
Merger”), in the form attached hereto as Exhibit A, together
with any required related certificates, and shall make any other filings or
recordings required under the DGCL and, as applicable, the Minnesota Business
Corporations Act (“MBCA”). The Merger
shall become effective upon such filing, or at such later date and time as is
agreed to by Parent and the Company and set forth in the Certificate of Merger
(the date and time of such filing being the “Effective Time” and
the date upon which the Effective Time occurs, being the “Effective
Date”).  As soon as practicable on the Closing Date, Parent
will deliver the Merger Stock Consideration to the Selling Stockholder in
accordance with Section 2.5 hereof

      

      2.4       
    Effect of the
Merger.  At the Effective Time, in accordance with the DGCL,
the separate existence of the Company will cease and the Surviving Corporation
shall succeed, without further action, to all the property, assets, rights,
privileges, powers and franchises of every kind of the nature and description of
the Company.  All debts, liabilities and duties of Merger Sub and the
Company will become the debts, liabilities and duties of the Surviving
Corporation. As of the Effective Time, the Surviving Corporation will be a
wholly owned subsidiary of the Parent.

      

      2.5      
     Effect of Merger on Company
Common Stock; Merger Consideration.

      

      (a)      
     At the Effective Time (subject to Section
2.7 below), all 80,000 shares of common stock, $0.01 par value per share, of the
Company (the “Company
Common Stock”) issued and outstanding immediately prior to the Effective
Time shall, by virtue of the Merger, automatically without any action on the
part of the holder thereof be converted , upon surrender of the certificates
representing each such share, if any, into 2,000,000 shares of the common stock,
$0.001 par value per share, of Parent (“Parent Common
Stock”)(the “Merger Stock
Consideration”).

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      (b)         
  At the Effective Time, all shares of Company Common Stock
shall automatically be cancelled and shall cease to exist, and each holder of a
certificate which previously represented any such share of Company Common Stock
(each, a “Company
Certificate” and, collectively, the “Company
Certificates”) shall cease to have any rights with respect thereto other
than the right to receive the Merger Consideration such holder is entitled to
receive pursuant to Section 2.5(a) hereof, to be issued or paid in consideration
therefor upon surrender of such certificate in accordance with Section 2.7
hereof.

      

      (c)       
    At the Effective Time, all shares of Company
Common Stock held by the Company as treasury stock, if any, immediately prior to
the Effective Time shall automatically be cancelled and shall cease to exist,
and the Company shall cease to have any rights with respect
thereto.

      

      (d)       
    The Merger Stock Consideration shall be allocated
to and distributed wholly to the Selling Stockholder as the sole stockholder of
the Company.  For the avoidance of doubt, and notwithstanding anything
herein to the contrary, the securities issuable to the Selling Stockholder under
this Agreement, including, without limitation, the Merger Stock Consideration,
shall be unregistered shares of the Parent Common Stock issued in reliance upon
the exemption from securities registration afforded by Section 4(2) of the
Securities Act of 1933, as amended (the “1933 Act”) and
bearing a restrictive legend.  The Merger Stock Consideration shall be
subject to Parent Stock Restrictions as set forth on Exhibit
B.

      

      (e)    
       Subject to Sections 2.5(e)(iv)
and (v), and Section 6.4 below, the Selling Stockholder shall also receive cash
consideration in the aggregate amount of $1,000,000.00 (the “Merger Cash
Consideration”) paid as follows:

      

      (i)           
 Following the Effective Time, but no later than fourteen (14) days
following the Closing Date, Parent shall pay to the Selling Stockholder the cash
amount of $150,000.00 (the “Initial Cash
Payment”);

      

      (ii)         
  Following payment of the Initial Cash Payment to the Selling
Stockholder, Parent shall pay to the Selling Stockholder an aggregate cash
amount of $100,000.00 in three (3) equal quarterly payments of $33,333.33, each
within fifteen (15) Business Days following each of June 30, 2008, September 30,
2008, and December 31, 2008 (each such payment, a “Balance First Year Cash
Payment”, and collectively, the “Balance First Year Cash
Payments”);

      

      (iii)           Following
payment of the Balance First Year Cash Payments to the Selling Stockholder,
parent shall pay to the Selling Stockholder $62,500.00 within fifteen (15)
Business Days following each of March 31, 2009, June 30, 2009, September 30,
2009, December 31, 2009, March 31, 2010, June 30, 2010, September 30, 2010,
December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011, and
December 31, 2011 for a total of $750,000.00 paid over twelve (12) fiscal
quarters (each, a “Quarterly Cash
Payment” and collectively, the “Quarterly Cash
Payments”);

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (iv)           Notwithstanding
the foregoing, in the event Selling Stockholder’s employment with Parent (or a
subsidiary thereof) pursuant to the Hammett Employment Agreement is terminated
without “Cause” or Selling Stockholder voluntarily terminates his employment
with Parent (or a subsidiary thereof) for “Good Reason” (each as defined in the
Hammett Employment Agreement), Balance First Year Cash Payments or Quarterly
Cash Payments shall continued to be paid for a period of eighteen (18) months or
the remaining term of the Agreement, whichever is shorter; and

      

      Notwithstanding
the foregoing, in the event Selling Stockholder’s employment with Parent (or a
subsidiary thereof) pursuant to the Hammett Employment Agreement is terminated
for “Cause” or Selling Stockholder voluntarily terminates his employment with
Parent (or a subsidiary thereof) without “Good Reason” (each as defined in the
Hammett Employment Agreement), or Selling Stockholder’s employment terminates
due to Selling Stockholder’s death or disability, then no unpaid Balance First
Year Cash Payments or Quarterly Cash Payments shall be due or payable to Selling
Stockholder hereunder on or following the date of termination of Selling
Stockholder’s employment.

      

      (f)      
      The Merger Stock Consideration and
the Merger Cash Consideration shall collectively be referred to as the “Merger Consideration”
herein.

      

      2.6       
    Effect of Merger on Common
Stock of Merger Sub.  At the Effective Time, each share of
common stock of Merger Sub issued and outstanding immediately prior to the
Effective Time shall, by virtue of the Merger and without any action on the part
of the holders thereof, be converted into and become one share of validly
issued, fully paid and non-assessable share of common stock of the Surviving
Corporation.

      

      2.7       
    Delivery of
Certificates.  At and after the Effective Time and subject to
the Parent Stock Restrictions set forth on Exhibit B, Parent
will make available, and the Selling Stockholder shall be entitled to receive,
(i) upon surrender to Parent or its Representatives of the Company Certificates
for cancellation and an assignment separate from certificate in the form
approved by Parent (the “Stock Power”), the
allocable share of the Merger Stock Consideration, and upon such surrender of
the Company Certificates, and delivery by Parent of the aggregate Merger Stock
Consideration in exchange therefor, such shares shall forthwith be
cancelled.  Until surrendered or delivered as contemplated by this
Section 2.7, each Company Certificate will be deemed at any time after the
Effective Time for all purposes to evidence only the right to receive upon such
surrender the Merger Stock Consideration.

      

      2.8      
     Stock Transfer
Books.  From and after the Effective Time, the stock transfer
books of the Company will be closed, and there will be no further registration
or transfers of Company Common Stock thereafter on the records of the
Company.

      

      2.9     
      No Fractional
Shares.  No certificate or scrip representing fractional shares
of Parent Common Stock shall be issued upon the surrender of Company
Certificates for exchange, and such fractional share interests will not entitle
the owner thereof to vote or to any other rights of a stockholder of
Parent..

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      2.10          Lost, Stolen or Destroyed
Certificates.  In the event any Company Certificates are lost,
stolen or destroyed, Parent will issue in exchange for such lost, stolen or
destroyed Company Certificates, upon the making of an affidavit of that fact by
the holder thereof and the other deliveries required above, the applicable
Merger Consideration; provided, however, that the
Surviving Corporation may, in its sole discretion and as a condition precedent
to the issuance thereof, require the owner of such lost, stolen or destroyed
Company Certificate to deliver an indemnity or bond in such sum as it may
reasonably direct as indemnity against any claim that may be made against it
with respect to the Company Certificates alleged to have been lost, stolen or
destroyed.

      

      2.11          Charter Documents; Directors
and Officers.  Unless otherwise agreed by the Company and
Parent prior to the Closing, at and as of the Effective Time, without any
further action on the part of Parent, Merger Sub or the Company: (i) the
Certificate of Incorporation and the Bylaws of the Merger Sub as in effect
immediately prior to the Effective Time will be the Certificate of Incorporation
and Bylaws of the Surviving Corporation at and after the Effective Time until
thereafter amended as provided by applicable law and such Certificate of
Incorporation and Bylaws, as applicable; (ii) the directors of the Merger Sub
immediately prior to the Effective Time will continue to be the directors of the
Surviving Corporation from and after the Effective Time, until their successors
are elected and qualified or until their resignation or removal; (iii) the
officers of the Merger Sub immediately prior to the Effective Time shall
continue to serve in their respective offices of the Surviving Corporation from
and after the Effective Time, until their successors are elected or appointed
and qualified or until their resignation or removal.

      

      2.12          Taking of Necessary Action;
Further Action.  Each of Parent, Merger Sub and the Company
will take all such reasonable lawful action as may be necessary or appropriate
in order to effect the Merger in accordance with this Agreement as promptly as
practicable.  If, at any time after the Effective Time, any such
further action is necessary or desirable to carry out the purposes of this
Agreement and to vest the Surviving Corporation with full right, title and
possession to all the property, rights, privileges, power and franchises of the
Company and Merger Sub, the officers and directors of the Company and Merger Sub
immediately prior to the Effective Time are fully authorized in the name of
their respective corporations or otherwise to take, and will take, all such
lawful and necessary action

      

      2.13          Reorganization
Treatment. For federal income tax purposes, the Merger is intended to
constitute a reorganization within the meaning of Section 368 of the
Code.  For the avoidance of doubt, and not withstanding anything
herein to the contrary, no Party represents, warrants or guarantees that the
Merger and the transactions contemplated by this Agreement will be treated by
any relevant Regulatory Authority as a reorganization within the meaning of
Section 368 of the Code.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      ARTICLE
3

      REPRESENTATIONS
AND WARRANTIES OF THE

      COMPANY
AND THE SELLING STOCKHOLDER

      

      Except as
set forth on the disclosure schedules to this Agreement (the “Disclosure
Schedules”), the Company and the Selling Stockholder, jointly and
severally, represent and warrant to Parent that the statements contained in this
Article 3 are true, complete and correct as of the date of this Agreement and
will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Article 3, except in the case of representations and warranties
stated to be made as of the date of this Agreement or as of another date and
except for changes contemplated or permitted by this Agreement).

      

      3.1        
   Organization and
Qualification; Subsidiaries.

      

      (a)       
    The Company is duly organized, validly existing
and in good standing under the Laws of the jurisdiction in which it is organized
and has the requisite power and authority to carry on its business as now being
conducted.

      

      (b)    
       The Company is duly qualified
or licensed to do business and is in good standing in each jurisdiction in which
the nature of its business or the ownership or leasing of its properties makes
such qualification or licensing necessary, other than in such jurisdictions
where the failure to be so qualified or licensed (individually or in the
aggregate) has not had and would not reasonably be expected to have a Material
Adverse Effect.

      

      (c)      
     The Company has delivered to Parent
complete and correct copies of its articles of incorporation and by-laws, in
each case as amended to the date hereof.

      

      (d)      
     The Company does not own, directly or
indirectly, any capital stock or other ownership interest in any corporation,
partnership, joint venture or other entity.

      

      (e)      
     The Company has no
Subsidiaries.

      

      3.2       
    Authorization;
Enforceability.  The Company has the requisite power and
authority, and has taken all action necessary, to execute, deliver and perform
its obligations under this Agreement and any Ancillary Agreement to which it is
a party and each other agreement, document, instrument or certificate
contemplated by this Agreement and/or any Ancillary Agreement or to be executed
by the Company in connection with the consummation of the transactions
contemplated by this Agreement (the “Transactions”), and,
subject to approval of the stockholders of the Company, to consummate the
Transactions.  The execution and delivery by the Company of this
Agreement and any applicable Ancillary Agreement, and the consummation by the
Company of the Transactions contemplated hereby, and the performance by the
Company of its obligations hereunder, have been duly and validly authorized by
all necessary corporate action on the part of the Company, subject to adoption
of this Agreement by the Company’s stockholders, and no other action on the part
of the Company is required to authorize the execution, delivery and performance
of this Agreement and the consummation by the Company of the transactions
contemplated hereby.  This Agreement has been duly and validly
executed and delivered by the Company and constitutes a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization and other similar laws affecting creditors’ rights
generally and the general principles of equity, regardless of whether asserted
in a proceeding in equity or at law.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      3.3        
   Capitalization.

      

      (a)       
    The authorized capital stock of the Company as of
the date of this Agreement consists of 1,000,000 shares of Company Common Stock,
$0.01 par value per share, and no shares of preferred stock of the
Company.  As of the date of this Agreement, (i) there are 80,000
shares of Company Common Stock issued and outstanding, all held by Selling
Stockholder; and (ii) no shares of Company Common Stock have been reserved for
future issuance pursuant to the exercise of outstanding options or warrants.
Except as described above, as of the close of business on the day prior to the
date hereof, there were no shares of voting or non-voting capital stock, equity
interests or other securities of the Company authorized, issued, reserved for
issuance or otherwise outstanding.

      

      (b)      
     All outstanding shares of Company Common
Stock are duly authorized, validly issued, fully paid and non-assessable, and
not subject to, or issued in violation of, any preemptive, subscription or any
kind of similar rights. The Company has no outstanding shares of Company Common
Stock that are subject to a right of repurchase that will survive the
Merger.

      

      (c)    
       There are no bonds, debentures,
notes or other indebtedness of the Company having the right to vote (or
convertible into securities having the right to vote) on any matters on which
stockholders of the Company may vote. Except as set forth on Schedule 3.3(c) of
the Disclosure Schedules, there are no outstanding securities, options,
warrants, calls, rights, commitments, agreements, arrangements or undertakings
of any kind (contingent or otherwise) to which the Company is a party or bound
obligating the Company to issue, deliver or sell, or cause to be issued,
delivered or sold, additional shares of capital stock or other voting securities
of the Company or obligating the Company to issue, grant, extend or enter into
any agreement to issue, grant or extend any security, option, warrant, call,
right, commitment, agreement, arrangement or undertaking. The Company is not
subject to any obligation or requirement to provide funds for or to make any
investment (in the form of a loan or capital contribution) in any
Person.

      

      (d)    
       All of the issued and
outstanding shares of Company Common Stock were issued in compliance in all
material respects with all applicable federal and state securities
Laws.

      

      (e)      
     Except as set forth on Schedule 3.3(e) of
the Disclosure Schedules, there are no outstanding contractual obligations of
the Company to repurchase, redeem or otherwise acquire any shares of capital
stock (or options or warrants to acquire any such shares) or other security or
equity interests of the Company. Except as set forth on Schedule 3.3(e) of
the Disclosure Schedules, there are no stock-appreciation rights, security-based
performance units, phantom stock or other security rights or other agreements,
arrangements or commitments of any character (contingent or otherwise) pursuant
to which any Person is or may be entitled to receive any payment or other value
based on the revenues, earnings or financial performance, stock price
performance or other attribute of the Company or any of its assets or calculated
in accordance therewith of the Company or to cause the Company to file a
registration statement under the Securities Act, or which otherwise relate to
the registration of any securities of the Company.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      (f)         
   Except as set forth on Schedule 3.3(f) of
the Disclosure Schedules, there are no voting trusts, proxies or other
agreements, commitments or understandings to which the Company or, to the
Knowledge of the Company or Selling Stockholder, any of the stockholders of the
Company, is a party or by which any of them is bound with respect to the
issuance, holding, acquisition, voting or disposition of any shares of capital
stock or other security or equity interest of the Company.

      

      3.4       
    Non-contravention.
Except as set forth on Schedule 3.4 of the
Disclosure Schedules, the execution, delivery and performance of this Agreement
by the Company does not and, subject to obtaining stockholder adoption of this
Agreement, the consummation of the Transactions will not (a) contravene,
conflict with, or result in any violation or breach of any provision of the
articles of incorporation or by-laws of the Company, (b) contravene, conflict
with, or result in a violation or breach of any provision of any Law, (c)
require any consent or other action by any Person under, constitute a breach of
or default under, or cause or permit the termination, cancellation, acceleration
or other change of any right or obligation or the loss of any benefit to which
the Company is entitled under any provision of any agreement or other instrument
binding upon the Company or any license, franchise, permit, certificate,
approval or other similar authorization affecting, or relating in any way to,
the assets or business of the Company or (d) result in the creation or
imposition of any Lien on any asset of the Company, which in the case of clauses
(b) or (d) above would have a Material Adverse Effect on the Company or on the
validity, binding effect or enforceability of this Agreement, any Ancillary
Agreement, or the ability of the Company to perform its obligations under this
Agreement or any applicable Ancillary Agreement.

      

      3.5     
      Consents and
Approvals.  Except as set forth on Schedule 3.5 of the
Disclosure Schedules, no consent, approval, authorization or order of,
registration or filing with, or notice to, any Regulatory Authority or any other
Person is necessary to be obtained, made or given by the Company in connection
with the execution, delivery and performance by the Company of this Agreement or
any applicable Ancillary Agreement or for the consummation by the Company of the
Transactions, except to the extent the failure to obtain any such consent,
approval, authorization or order or to make any such registration or filing
would not have a Material Adverse Effect on the Company or on the validity,
binding effect or enforceability of this Agreement or any Ancillary Agreement to
which the Company is a party, or the ability of the Company to perform its
obligations under this Agreement or any Ancillary Agreement.

      

      3.6        
   Books and
Records.  The Company has delivered to Parent true, correct and
complete copies of the Articles of Incorporation of the Company, including all
amendments thereto, and the Bylaws of the Company, including all amendments
thereto, each as currently in effect.  The Company has not, in any
manner that pertains to, or could affect, the Business, engaged in any
transaction, maintained any bank account or used any corporate funds except for
transactions, bank accounts and funds which have been and are reflected in the
normally maintained Books and Records of the Company.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      3.7       
    Financial
Statements.  The Company has not prepared financial statements
and has not delivered financial statements to Parent.    The
Company Financial Documents to be delivered to Parent pursuant to Section 6.5(a)
shall fairly, fully and accurately present the financial condition and financial
history of the Company from the date of its inception through the date of
delivery of such Company Financial Documents to Parent.

      

      3.8       
    No Undisclosed
Liabilities.  Except as set forth on Schedule 3.8 of the
Disclosure Schedules, the Company has no Liabilities relating to the Business
due or to become due except  Liabilities relating to the Business
incurred in the Ordinary Course of Business (none of which relates to any
default under any Contract or Lease, breach of warranty, tort, infringement or
violation of any Law or Order or arose out of any Legal Proceeding) and none of
which would have a Material Adverse Effect.

      

      3.9      
     Taxes.

      

      (a)            Filing of Tax
Returns.   The Company has not filed a Tax Return through
the Closing Date.  No claim has ever been made against the Company or
its assets by an authority in a jurisdiction such that the Company is or may be
subject to taxation by that jurisdiction.

      

      (b)       
    Payment of
Taxes.  Except as set forth on Schedule 3.9(b) of
the Disclosure Schedules, all Taxes owed and due by the Company  as of
the date of this Agreement (whether or not shown on any Tax Return) have been
paid.

      

      (c)       
    Audits, Investigations,
Disputes or Claims.  Except as set forth on Schedule 3.9(c) of
the Disclosure Schedules, no deficiencies for Taxes are claimed, proposed or
assessed by any taxing or other governmental authority against the Company, and
there are no pending or, to the Knowledge of the Company or Selling Stockholder,
threatened audits, investigations, disputes or claims or other actions for or
relating to any Liability for Taxes with respect to the Company, and there are
no matters under discussion by or on behalf of the Company with any Regulatory
Authority, or known to the Company, with respect to Taxes that are likely to
result in an additional Liability for Taxes with respect to the
Company.  Audits of federal, state and local Tax Returns by the
relevant taxing authorities have been completed for the periods set forth on
Schedule 3.9(c)
of the Disclosure Schedules, and, except as set forth thereon, none of the
Company or any predecessor thereof has been notified that any taxing authority
intends to audit a Tax Return for any other period.  The Company has
not waived any statute of limitations in respect of Taxes or agreed to any
extension of time with respect to a Tax assessment or deficiency.  No
power of attorney granted by the Company with respect to any Taxes is currently
in force.

      

      (d)     
      Lien.  There
are no Liens for Taxes (other than for current Taxes not yet due and payable) on
any assets or capital stock of the Company.

      

      (e)      
     Tax
Elections.  All material elections with respect to Taxes
affecting the Company or any of its respective assets as of the Closing Date are
set forth on Schedule
3.9(e) of the Disclosure Schedules.  The Company has not: (i)
consented at any time under Section 341(f)(1) of the Code to have the provisions
of Section 341(f)(2) of the Code apply to any disposition of any of its assets;
(ii) agreed, and is not required, to make any adjustment under Section 481(a) of
the Code by reason of a change in accounting method or otherwise; (iii) made an
election, and is not required, to treat any of its assets as owned by another
Person pursuant to the provisions of Section 168(f) of the Code or as tax-exempt
bond financed property or tax-exempt use property within the meaning of Section
168 of the Code; (iv) acquired, and does not own, any assets that directly or
indirectly secure any debt the interest on which is tax exempt under Section
103(a) of the Code; (v) made a consent dividend election under Section 565 of
the Code; or (vi) made any of the foregoing elections and is not required to
apply any of the foregoing rules under any comparable state or local Tax
provision.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      (f)        
    Prior Affiliated
Groups.  The Company is not and has never been a member of an
affiliated group of corporations within the meaning of Section 1504 of the
Code.  The Company does not have any Liability for the Taxes of any
Person (i) under Treasury Regulations Section 1.1502-6 (or any similar provision
of state, local or foreign law), (ii) as a transferee or successor, (iii) by
Contract, or (iv) otherwise.

      

      (g)       
    Tax Sharing
Agreements.  There are no agreements for the sharing of Tax
liabilities or similar arrangements (including indemnity arrangements) with
respect to or involving the Company or any of its assets or the Business, and,
after the Closing Date, neither the Company nor any of its assets or the
Business shall be bound by any such Tax-sharing agreements or similar
arrangements or have any Liability thereunder for amounts due in respect of
periods prior to the Closing Date.

      

      (h)     
      Partnerships and Single
Member LLCs.  Except as set forth on Schedule 3.9(h) of
the Disclosure Schedules, the Company (i) is not subject to any joint venture,
partnership, or other arrangement or contract which is treated as a partnership
for Tax purposes, (ii) does not own a single member limited liability company
which is treated as a disregarded entity, (iii) is not a shareholder of a
“controlled foreign corporation” as defined in Section 957 of the Code (or any
similar provision of state, local or foreign law) and (iv) is not a “personal
holding company” as defined in Section 542 of the Code (or any similar provision
of state, local or foreign law).

      

      (i)      
      No
Withholding.  The Company has not been a United States real
property holding corporation within the meaning of Section 897(c)(2) of the Code
during the applicable period specified in Section 897 of the
Code.  The Company has withheld and paid all Taxes required to have
been withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, shareholder or other third
party.  The transactions contemplated herein are not subject to the
tax withholding provisions of Section 3406 of the Code, or of Subchapter A of
Chapter 3 of the Code or of any other provision of law.

      

      (j)       
     International
Boycott.  The Company has not participated in and is not
participating in an international boycott within the meaning of Section 999 of
the Code.

      

      (k)     
      Permanent
Establishment.  Except as set forth on Schedule 3.9(k) of
the Disclosure Schedules, the Company does not have and has never had a
permanent establishment in any foreign country, as defined in any applicable Tax
treaty or convention between the United States and such foreign
country.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      (l)        
    Parachute
Payments.  Except as set forth on Schedule 3.9(l) of
the Disclosure Schedules, the Company is not a party to any existing Contract,
arrangement or plan that has resulted or would result (upon the Closing or
otherwise), separately or in the aggregate, in the payment of any “excess
parachute payments” within the meaning of Section 280(G) of the
Code.

      

      (m)           Tax
Shelters.  The Company has not participated in and the Company
is not now participating in, any transaction described in Section 6111(c) or (d)
of the Code or Section 6112(b) of the Code or the Treasury Regulations
thereunder, or in any reportable transaction described in such
regulations.

      

      3.10          Intellectual Property;
Software.

      

      (a)          
 Schedule
3.10(a)(i) of the Disclosure Schedules sets forth contains a true,
correct and complete list of all Intellectual Property owned by the Company (the
“Owned Proprietary
Rights”).  Schedule 3.10(a)(ii)
of the Disclosure Schedules also lists each material license for Intellectual
Property licensed by the Company (the “Licensed Proprietary
Rights”).

      

      (b)        
   (i) The operation of the Business, including the use of
the Owned Proprietary Rights, does not infringe or misappropriate or otherwise
materially violate the Intellectual Property rights of any third party, and no
claim is pending or, to the Knowledge of the Company or Selling Stockholder,
threatened against the Company alleging any of the foregoing, (ii) the Company
owns, or with respect to the Licensed Proprietary Rights, licenses all of the
Intellectual Property necessary for the conduct of the Business, and (iii)
except for the Owned Proprietary Rights and the Licensed Proprietary Rights, no
material right, license, lease, consent, or other agreement is required with
respect to any Intellectual Property for the conduct of the
Business.

      

      (c)       
    Except as set forth on Schedule 3.10(c) of
the Disclosure Schedules, or licenses that are immaterial to the Ordinary Course
of Business of the Company, the Company is (i) the sole owner of the entire and
unencumbered right, title and interest, including the unencumbered right to
license, sublicense, assign or transfer, in and to each item of the Owned
Proprietary Rights, including all object and source code included therein, and
without any ongoing royalty, license, sublicense or other obligations to third
parties with respect thereto, and (ii) entitled to use the Owned Proprietary
Rights and Licensed Proprietary Rights in the ordinary course of its business to
the extent such rights are used in the operation of the Business. The Company
has legally secured all Licensed Proprietary Rights (including, without
limitation, any promotion, production, exhibition and similar rights currently
exploited by the Company, and any Licensed Proprietary Rights embodied in the
Contracts listed on Schedule 3.11 of the
Disclosure Schedules), and to the Company’s and Selling Stockholder’s Knowledge,
the respective licensors of such Licensed Proprietary Rights (including, without
limitation, any promotion, production, exhibition and similar rights currently
exploited by the Company) have valid title to all such rights

      

      (d)         
  The Owned Proprietary Rights and Licensed Proprietary Rights
include all of the material Intellectual Property used in the Business, and
there are no other items of Intellectual Property that are material to the
Business.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      (e)     
      The Company has made available to
Parent all material correspondence and all written opinions in its possession
relating to potential infringement or misappropriation (i) by the Company of any
Intellectual Property rights of any third party or (ii) by any third party of
any of the Owned Proprietary Rights or Licensed Proprietary Rights.

      

      (f)        
    To the Knowledge of the Company or Selling
Stockholder, (i) no third party is engaging in any activity that infringes or
misappropriates the Owned Proprietary Rights or Licensed Proprietary Rights and
(ii) the Company has not granted any material license or other right to any
third party with respect to the Owned Proprietary Rights or Licensed Proprietary
Rights.

      

      (g)       
    The Company has a license to use all software
development tools, library functions, compilers and other third-party software
that are used in the operation of the Business and are material to the Business,
taken as a whole.

      

      3.11          Contracts; No
Defaults.

      

      (a)      
     Schedule 3.11(a) of
the Disclosure Schedules sets forth a complete and accurate list, and the
Company has made available to Parent true and complete copies, of all executory
Contracts of the Company in the following categories:

      

      (i)          
  Contracts that involve performance of services or delivery of
goods by the Company during any twelve (12) month period of an amount or value,
individually or, for a series of related Contracts, in the aggregate, in excess
of Five Thousand Dollars ($5,000);

      

      (ii)      
     Contracts that were not entered into in the
Ordinary Course of Business;

      

      (iii)           Leases
(including Leases of Tangible Personal Property) of the Company and other
Contracts, in each case, affecting the ownership of, leasing of, title to, use
of, or any leasehold or other interest in, any real or personal property (except
personal property leases and installment and conditional sales agreements having
a value per item or aggregate payments, in each case, of less than Five Thousand
Dollars ($5,000) and with terms of less than one year);

      

      (iv)           Licensing
agreements of the Company, if any, and other Contracts, in each case, with
respect to patents, trademarks, copyrights or other Intellectual Property as
well as the forms of all agreements with current or former employees,
consultants or contractors regarding the appropriation of, or the non-disclosure
of, any of the Intellectual Property set forth on Schedule 3.10(a) of
the Disclosure Schedules;

      

      (v)           collective
bargaining agreements of the Company and other Contracts, in each case, to or
with any labor union or other employee representative of a group of employees
and each other written employment or consulting agreement with any employees or
consultants;

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      (vi)           joint
ventures or partnerships (however named) of the Company and other Contracts, in
each case, involving a sharing of profits, losses, costs or liabilities by the
Company with any other Person;

      

      (vii)          Contracts
containing covenants that in any way purport to restrict the business activity
of the Company or limit the freedom of the Company to engage in any line of
business or to compete with any Person or that subject the Company to
confidentiality or non-disclosure obligations;

      

      (viii)         Contracts
providing for payments to or by any Person based on sales, purchases or profits,
other than direct payments for goods;

      

      (ix)      
     powers of attorney granted by or to the
Company that are currently effective and outstanding;

      

      (x)        
    Contracts entered into other than in the Ordinary
Course of Business that contain or provide for an express undertaking by the
Company to be responsible for consequential damages;

      

      (xi)        
   Contracts for capital expenditures relating to the
Business in excess of Five Thousand Dollars ($5,000) individually or Ten
Thousand Dollars ($10,000) in the aggregate;

      

      (xii)           Contracts
which, to the Knowledge of the Company or Selling Stockholder, will result in a
material loss to the Company;

      

      (xiii)          Contracts
between the Company and any of its former or current stockholders or
shareholders, directors, officers and employees (other than standard employment
agreements previously furnished to or approved by Parent and other than option
and warrant agreements with the Company’s officers, directors and
employees);

      

      (xiv)         written
warranties, guaranties, and/or other similar undertakings with respect to
contractual performance extended by the Company, other than in the Ordinary
Course of Business; and

      

      (xv)          each
amendment, supplement, and modification (whether oral or written) in respect of
any of the foregoing.

      

      (b)       
    To the Knowledge of the Company or Selling
Stockholder, no officer, director, agent, employee, consultant or contractor of
the Company is bound by any Contract that purports to limit the ability of such
officer, director, agent, employee, consultant or contractor to (i) engage in or
continue any conduct, activity or practice relating to the Business or (ii)
assign to the Company or to any other Person any rights to any invention,
improvement or discovery.

      

      (c)         
  To the Knowledge of the Company or Selling Stockholder, each
Contract set forth on Schedule 3.11(a) of
the Disclosure Schedules is in full force and effect and is valid and
enforceable in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization or other similar
laws affecting creditors’ rights generally and the general principles of equity,
regardless of whether asserted in a proceeding in equity or at
law.

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      (d)        
   To the Knowledge of the Company or Selling
Stockholder:

      

      (i)         
   the Company is, and at all times has been, in
compliance with all material terms and requirements of each Contract set forth
on Schedule
3.11(a) of the Disclosure Schedules under which the Company has or had
any obligation or Liability or by which the Company or any of the assets owned
or used by the Company is or was bound;

      

      (ii)      
     each other Person that has or had any
obligation or Liability under any Contract set forth on Schedule 3.11(a) of
the Disclosure Schedules under which the Company has or had any rights is, and
has been, in compliance with all material terms and requirements of such
Contract;

      

      (iii)           no
event has occurred or circumstance exists that (with or without notice or lapse
of time) may contravene, conflict with, or result in a violation or breach of,
or give the Company or any other Person the right to declare a default or
exercise any remedy under, or to accelerate the maturity or performance of, or
to cancel, terminate or modify, any Contract set forth on Schedule 3.11(a) of
the Disclosure Schedules; and

      

      (iv)           the
Company has not given to or received from any other Person, any written or, to
the Knowledge of the Company or Selling Stockholder, other notice or other
communication regarding any actual, alleged, possible or potential violation or
breach of, or default under, any Contract set forth on Schedule 3.11(a) of
the Disclosure Schedules.

      

      (e)        
   There are no renegotiations of, attempts to
renegotiate, or outstanding rights to renegotiate any material amounts paid or
payable to the Company under current or completed Contracts, as applicable, with
any Person and no such Person has made written demand for such
renegotiation.

      

      (f)        
    Contracts relating to the provision of products
or services by the Company have been entered into in the Ordinary Course of
Business and have been entered into without the commission of any act alone or
in concert with any other Person, or any consideration having been paid or
promised, that is or would be in violation of any Laws.

      

      (g)      
     The Company has no reason to believe that
the products and services called for by any unfinished Contract cannot be
supplied in accordance with the terms of such Contract, including time
specifications, and has no reason to believe that any unfinished Contract will
upon performance by the Company result in a loss to the Company.

      

      (h)       
    All of the Contracts set forth on Schedule 3.11(a) of
the Disclosure Schedules are assignable to the Surviving Corporation without the
consent of any other Person, except as specifically noted on Schedule 3.5 of the
Disclosure Schedules.

      
        
           

        

        
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      3.12          Employee
Benefits.

      

      (a)      
     Schedule 3.12(a) of
the Disclosure Schedules sets forth a complete list of all Employee Plans (i)
covering employees, directors or consultants or former employees, directors or
consultants in, or related to, the Business and/or (ii) with respect to which
Surviving Corporation may incur any Liability.  The Company has
delivered or made available to Parent true and complete copies of all Employee
Plans, including written interpretations thereof and written descriptions
thereof which have been distributed to the Company’s employees and for which the
Company has copies, all annuity contracts or other funding instruments relating
thereto, and a complete description of all Employee Plans which are not in
writing.

      

      (b)         
  Neither the Company nor any ERISA Affiliate sponsors,
maintains, contributes to or has an obligation to contribute to, or has
sponsored, maintained, contributed to or had an obligation to contribute to, any
Pension Plan subject to Title IV of ERISA, or any Multiemployer
Plan.

      

      (c)       
    Each Welfare Plan which covers or has covered
employees or former employees of the Company or of its Affiliates in the
Business and which is a “group health plan,” as defined in Section 607(1) of
ERISA, has been operated in compliance with provisions of Part 6 of Title I,
Subtitle B of ERISA and Section 4980B of the Code at all times.

      

      (d)       
    There is no Legal Proceeding or Order
outstanding, relating to or seeking benefits under any Employee Plan set forth
on Schedule
3.12(a) of the Disclosure Schedules, which is pending, threatened or
anticipated against the Company, any ERISA Affiliate or any Employee
Plan.

      

      (e)     
      Neither the Company nor any ERISA
Affiliate has any liability for unpaid contributions under Section 515 of ERISA
with respect to any Welfare Plan (i) covering employees, directors or
consultants or former employees, directors or consultants in, or related to, the
Business and (ii) with respect to which Surviving Corporation may incur any
Liability.

      

      (f)        
    There are no Liens arising under the Code or ERISA
with respect to the operation, termination, restoration or funding of any
Employee Plan set forth on Schedule 3.12(a) of
the Disclosure Schedules, or arising in connection with any excise tax or
penalty tax with respect to such Employee Plan.

      

      (g)        
   Each Employee Plan set forth on Schedule 3.12(a) of
the Disclosure Schedules has at all times been maintained in all material
respects, by its terms and in operation, in accordance with all applicable laws,
including, without limitation, ERISA and the Code.

      

      (h)        
   The Company and its ERISA Affiliates have made full and
timely payment of all amounts required to be contributed under the terms of each
Employee Plan and applicable Law or required to be paid as expenses or as Taxes
under applicable Laws, under such Employee Plan, and the Company and its ERISA
Affiliates shall continue to do so through the Closing Date.

      

      (i)         
   The Company has no Employee Plan intended to qualify
under Section 401 of the Code.

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      (j)          
  Neither the execution and delivery of this Agreement or other
related agreements by the Company nor the consummation of the Transactions will
result in the acceleration or creation of any rights of any person to benefits
under any Employee Plan (including, without limitation, the acceleration of the
vesting or exercisability of any stock options, the acceleration of the vesting
of any restricted stock, the acceleration of the accrual or vesting of any
benefits under any Pension Plan or the acceleration or creation of any rights
under any severance, parachute or change in control agreement).

      

      (k)      
     Neither the Company nor any ERISA Affiliate
has incurred any liability with respect to any Employee Plan, which may create,
or result in any liability to Surviving Corporation.

      

      3.13          Labor Matters;
Employees.  Except as set forth on Schedule 3.13 of the
Disclosure Schedules, the Company is not a party to any collective bargaining or
other labor Contract.  There has not been, there is not presently
pending or existing, and, to the Knowledge of the Company or Selling
Stockholder, there is not threatened (i) any strike, slowdown, picketing, work
stoppage or employee grievance process against the Company or the Business; (ii)
any Legal Proceeding against or affecting the Company or the Business relating
to the alleged violation of any Law or Order pertaining to labor relations or
employment matters; or (iii) union organizing campaign or any application for
certification of a collective bargaining agent.  No event has occurred
or circumstance exists that could provide the basis for any work stoppage or
other labor dispute.  There is no lockout of any employees by the
Company, and no such action is contemplated by the Company.  The
Company has complied with all material Laws relating to employment, equal
employment opportunity, nondiscrimination, harassment, retaliation, immigration,
wages, hours, benefits, collective bargaining, the payment of social security
and similar Taxes, occupational health and safety, and plant
closing.  The Company is not liable for the payment of any
compensation, damages, Taxes, fines, penalties or other amounts (including,
without limitation, amounts related to workplace safety and insurance), however
designated, for failure to comply with any of the foregoing Laws.

      

      3.14          Legal
Proceedings.  There is no Legal Proceeding or Order (a) pending
or, to the Knowledge of the Company or Selling Stockholder, threatened or
anticipated against or affecting the Company, its assets or the Business (or to
the Knowledge of the Company or Selling Stockholder, pending or threatened,
against any of the officers, directors or employees of the Company with respect
to their business activities related to or affecting the Business); (b) that
challenges or that may have the effect of preventing, making illegal, delaying
or otherwise interfering with any of the Transactions; or (c) related to the
Business or the Company’s assets to which the Company is otherwise a
party.  To the Knowledge of the Company or Selling Stockholder, there
is no reasonable basis for any such Legal Proceeding or Order.  Except
as set forth on Schedule 3.14 of the
Disclosure Schedules, to the Knowledge of the Company or Selling Stockholder, no
officer, director, agent or employee of the Company is subject to any Order that
prohibits such officer, director, agent or employee from engaging in or
continuing any conduct, activity, or practice relating to the
Business.  Except as set forth on Schedule 3.14,
neither the Company, its assets or the Business is subject to any Order of any
Regulatory Authority and the Company is not engaged in any Legal Proceeding to
recover monies due it or for damages sustained by it.  The Company is
not and has not been in default with respect to any Order, and there are no
unsatisfied judgments against the Company, its assets or the
Business.  There is not a reasonable likelihood of an adverse
determination of any pending Legal Proceedings.  There are no Orders
or agreements with, or Liens by, any Regulatory Authority or quasi-governmental
entity relating to any environmental Law, which regulate, obligate, bind or in
any way affect the Company or any property on which the Company operates the
Business.

      
        
           

        

        
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      3.15          Compliance with
Law.

      

      (a)         
  The Company or Selling Stockholder, to their Knowledge, and
the conduct of the Business are and at all times have been in compliance with
all Laws or Orders applicable to them or to the conduct and operations of the
Business.  The Company has not received any notice to the effect that,
or otherwise been advised of (i) any actual, alleged, possible or potential
violation of, or failure to comply with, any such Laws or Orders or (ii) any
actual, alleged, possible or potential obligation on the part of the Company to
undertake, or to bear all or any portion of the cost of, any remedial action of
any nature.  No event has occurred or circumstance exists that (with
or without notice or lapse of time) (i) may constitute or result in a violation
by the Company of, or a failure on the part of the Company, any such Laws or
Orders or (ii) may give rise to any obligation on the part of the Company to
undertake, or to bear all or any portion of the cost of, any remedial action of
any nature, except, in either case separately or the cases together, where such
violation or failure to comply could not reasonably be expected to have a
Material Adverse Effect.

      

      (b)       
    None of the Company, or any of its directors,
officers or Representatives or to the Knowledge of the Company or Selling
Stockholder, any employee or other Person affiliated with or acting for or on
behalf of the Company, has, directly or indirectly, (i) made any contribution,
bribe, rebate, payoff, influence payment, kickback or other payment to any
Person, private or public, regardless of form, whether in money, property or
services (A) to obtain favorable treatment in securing business, (B) to pay for
favorable treatment for business secured, (C) to obtain special concessions or
for special concessions already obtained, for or in respect of the Company or
any of its Affiliates or (D) in violation of any Laws of the United States
(including, without limitation, the Foreign Corrupt Practices Act of 1977, as
amended (15 U.S.C. Sections 78dd-1 et seq.)) or any laws of any other country
having jurisdiction; or (ii) established or maintained any fund or asset that
has not been recorded in the Books and Records of the Company.

      

      3.16          Permits.  Schedule 3.16(a) of
the Disclosure Schedules sets forth a complete list of all Permits held by the
Company or used in the conduct of the Business, and such Permits collectively
constitute all of the Permits necessary for the Company to lawfully conduct and
operate the Business, as it is presently conducted and to permit the Company to
own and use its assets in the manner in which they are presently owned and
used.  Except as set forth on Schedule 3.16(b) of
the Disclosure Schedules, the Company is and at all times has been in compliance
with all material Permits applicable to it or to the conduct and operations of
the Business.  The Company has not received any notice to the effect
that, or otherwise been advised of (i) any actual, alleged, possible or
potential violation of, or failure to comply with, any such Permits or (ii) any
actual, alleged, possible or potential revocation, withdrawal, suspension,
cancellation or termination of, or any modification to, any Permit set forth on
or required to be set forth on Schedule 3.16(a) of
the Disclosure Schedules.  No event has occurred, and to the Company’s
and Selling Stockholder’s Knowledge no circumstance exists, that (with or
without notice or lapse of time) (i) may constitute or result directly or
indirectly in a violation by the Company of, or a failure on the part of the
Company to comply with, any such Permits or (ii) result directly or indirectly
in the revocation, withdrawal, suspension, cancellation or termination of, or
any modification to, any Permit set forth on or required to be set forth on
Schedule
3.16(a) of the Disclosure Schedules.  All applications for or
renewals of all Permits have been timely filed and made and no Permit will
expire or be terminated as a result of the consummation of the transactions
contemplated by this Agreement.  No present or former shareholder,
director, officer or employee of the Company or any Affiliate thereof, or any
other Person, owns or has any proprietary, financial or other interest (direct
or indirect) in any Permit that the Company owns, possesses or
uses.

      
        
           

        

        
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      3.17          Absence of Certain
Changes. Except as set forth on Schedule 3.17 of the
Disclosure Schedules, since January 1, 2008, there has not been any: (a)
Material Adverse Effect and no event has occurred and no circumstance exists
that may result in a Material Adverse Effect other than Material Adverse Effects
resulting from historical seasonality of the Business; (b) purchase, redemption,
retirement or other acquisition by the Company of any capital stock or other
equity interest of the Company; (c) amendments to the Articles of Incorporation
and Bylaws of the Company; (d) payment or increase by the Company of any
bonuses, salaries or other compensation (including management or other similar
fees) or entry into any employment, severance or similar Contract with any
employee engaged in the Business and which the Surviving Corporation is required
to hire after Closing, other than increases in salary to employees made in the
Ordinary Course of Business; (e) adverse change in employee relations which has
or is reasonably likely to have a Material Adverse Effect; (f) damage to or
destruction or loss of any of the assets or property of the Company relating to
the Business, whether or not covered by insurance, that could reasonably be
expected to constitute a Material Adverse Effect on the Business; (g) entry
into, termination or acceleration of, or receipt of notice of termination by the
Company of (1) any material license, distributorship, dealer, sales
representative, joint venture, credit or similar agreement relating to the
Business, or (2) any Contract or transaction involving a Liability by or to the
Company for which the Surviving Corporation may be liable after the Closing
(other than the Liabilities set forth on Schedule 3.8,
Liabilities reflected on in the interim balance sheet which have not been paid
or discharged since the interim balance sheet date, and Liabilities relating to
the Business incurred in the Ordinary Course of Business since the interim
balance sheet date); (h) sale (other than sales of inventory in the Ordinary
Course of Business, if any), lease or other disposition of any of the assets or
property of the Company relating to the Business; (i) mortgage, pledge or
imposition of any Lien on any assets or property of the Company relating to the
Business, including the sale, lease or other disposition of any of its
Intellectual Property relating to the Business; (j) (1) delay or failure to
repay when due any obligation of the Company, which delay or failure could have
a Material Adverse Effect on the Company, other than such items as have been
specifically documented to Parent in writing or (2) delay or failure to repay
when due any obligation of the Company which delay or failure could have a
Material Adverse Effect on the Company, the Business or on any assets or
property of the Company relating to the Business; (k) cancellation or waiver by
the Company of any claims or rights with a value to the Company relating to the
Business in excess of Five Thousand Dollars ($5,000) individually or in the
aggregate; (l) failure by the Company to use reasonable efforts to preserve
intact the current business organization of the Company relating to the
Business, and maintain the relations and goodwill with its suppliers, customers,
landlords, creditors, employees, licensors, resellers, distributors, agents and
others having business relationships with them relating to the Business where
such failure could reasonably be expected to have a Material Adverse Effect on
the Company; (m) licensing out on an exclusive basis or other than in the
Ordinary Course of Business, disposition or lapsing of any Intellectual Property
or any disclosure to any Person of any trade secret or other confidential
information without appropriate protections in place; (n) change in the
accounting methods, principles or practices used by the Company; (o) capital
expenditures by the Company relating to the Business in excess of $5,000
individually or $10,000 in the aggregate; or (p) agreement, whether oral or
written, by the Company with respect to or to do any of the foregoing other than
as expressly provided for herein.

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

      3.18          Insurance.  There
are no insurance policies or binders of insurance of any kind or nature covering
the Company, the Business, or any employees, properties or assets of the Company
relating to the Business, including, without limitation, policies of life,
disability, fire, theft, workers compensation, employee fidelity and other
casualty and liability insurance.

      

      3.19          Restrictions on Business
Activities. There is no agreement, judgment, injunction, order or decree
binding upon the Company which has the effect of prohibiting or materially
impairing (a) any current or future business practice of the Company or (b) any
acquisition of any Person or property by the Company, except in each of clauses
(a) and (b) for any such prohibitions or impairments that would not reasonably
be expected to have a Material Adverse Effect.

      

      3.20          Related Party
Transactions.  Except as set forth on Schedule 3.20 of the
Disclosure Schedules, none of the Company, any Affiliate thereof, holders of the
capital stock or other ownership interest of the Company or any Affiliate or
Family Member thereof is presently or has, since the inception date of the
Company, borrowed any moneys from or has any outstanding debt or other
obligations to the Company or is presently a party to any transaction with the
Company relating to the Business.  Except as set forth on Schedule 3.20 of the
Disclosure Schedules, none of the Company, any Affiliate thereof, or any
director, officer or key employee of any such Persons (a) owns any direct or
indirect interest of any kind in (except for ownership of less than 1% of any
public company, provided, that such owner’s role is that solely of a passive
investor), or controls or is a director, officer, employee or partner of,
consultant to, lender to or borrower from, or has the right to participate in
the profits of, any Person which is (i) a competitor, supplier, customer,
landlord, tenant, creditor or debtor of the Company, (ii) engaged in a business
related to the Business or (iii) a participant in any transaction to which the
Company is a party, or (b) is a party to any Contract with the
Company.  Except as set forth on Schedule 3.20 of the
Disclosure Schedules, the Company has no Contract or understanding with any
officer, director or key employee of the Company or any of the Company’s
shareholders or any Affiliate or Family Member thereof with respect to the
subject matter of this Agreement, the consideration payable hereunder or any
other matter.

      

      3.21          Brokers or
Finders.  Except as set forth on Schedule 3.21 of the
Disclosure Schedules, all negotiations relative to this Agreement and the
transactions contemplated hereby have been carried out by the Company or its
Affiliates in connection with the transactions contemplated by this Agreement,
and neither the Company, or Affiliates has incurred any obligation to pay any
brokerage or finder’s fee or other commission in connection with the transaction
contemplated by this Agreement.

      
        
           

        

        
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      3.22          No Other
Agreements.  Except as set forth on Schedule 3.22 of the
Disclosure Schedules, and other than this Agreement or any agreement
contemplated hereby, neither the Company, nor any of its stockholders, officers,
directors or Affiliates has any legal obligation, absolute or contingent, to any
other Person to sell, assign or transfer any capital stock of or other equity
interest (other than warrants or options in favor of the Company’s officers,
directors or employees, if any) in the Company or to effect any merger,
consolidation or other reorganization of the Company or to enter into any
agreement with respect thereto.

      

      3.23          Disclosure.  No
representation or warranty of the Company in this Agreement or in any Ancillary
Agreement and no statement in any certificate furnished or to be furnished by
the Company pursuant to this Agreement contained, contains or will contain on
the date such agreement or certificate was or is delivered, or on the Closing
Date, any untrue statement of a material fact, or omitted, omits or will omit on
such date to state any material fact necessary in order to make the statements
made, in light of the circumstances under which they were made, not
misleading.

      

      3.24          Real Property; Title to
Property.

      

      (a)       
    The Company does not own any real property or any
interest, other than a leasehold interest, in any real
property.  Schedule 3.24(a) of
the Disclosure Schedules lists and describes all real property leased by the
Company and all subleases thereto.  Except for Leases and subleases
listed on Schedule
3.24(a) of the Disclosure Schedules, there are no leases, subleases,
licenses, occupancy agreements, options, rights, concessions or other agreements
or arrangements, written or oral, granting to any Person the right to purchase,
use or occupy any real property used in connection with the Business or any
portion thereof or interest in any such real property.

      

      (b)     
      The Company has good and marketable
title to all of its properties, interests in properties and assets, real and
personal, or with respect to leased properties and assets, valid leasehold
interests in, free and clear of all mortgages, liens, pledges, charges or
encumbrances of any kind or character, except (i) Liens for current Taxes not
yet due and payable or which are being contested by the Company in good faith,
(ii) such imperfections of title, liens and easements as do not and will not
materially detract from or interfere with the use of the properties subject
thereto or affected thereby, or otherwise materially impair business operations
involving such properties, (iii) Liens securing debt, and (iv) any Liens set
forth on Schedule
3.24  of the Disclosure Schedules.  The properties
and equipment of the Company that are used in the operation of the Business are
in good operating condition subject to normal wear and tear.  All
material properties used in the Business will be reflected in the Company
Financial Documents.

      

      3.25          Conduct of
Business.  Prior to the Closing Date, the Company shall conduct
its business in the normal course, and shall not sell, pledge, or assign any
assets, without the prior written approval of Parent, except in the regular
course of business. Except as otherwise provided herein, the Company shall not
amend its Articles of Incorporation or By-Laws, declare dividends, redeem or
sell stock or other securities, acquire or dispose of fixed assets, change
employment terms, enter into any material or long-term contract, guarantee
obligations of any third party, settle or discharge any material balance sheet
receivable for less than its stated amount, pay more on any liability than its
stated amount or enter into any other transaction other than in the regular
course of business.

      
        
           

        

        
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      3.26          Restricted
Securities.  The Selling Stockholder hereby acknowledges and
understands that the shares of Parent Common Stock issuable to the Selling
Stockholder, as the Merger Stock Consideration, pursuant to the Merger shall be
restricted securities and agrees that such restricted securities may not be
sold, offered for sale, transferred, pledged, hypothecated or otherwise disposed
of except in compliance with the Securities Act, and all other applicable
securities laws and regulations, and as set forth in the Parent Stock
Restrictions as set forth on Exhibit
B.

      

      3.27          Accredited
Investor.  The Selling Stockholder represents and warrants as
follows:

      

      (a)        
   The Selling Stockholder is an “accredited investor” as
defined in Rule 501(a) of Regulation D, promulgated under the Securities
Act;

      

      (b)      
     The Selling Stockholder has sufficient
knowledge and experience in investing in companies similar to Parent so as to be
able to evaluate the risks and merits of its investment in Parent and it is able
financially to bear the risks thereof;

      

      (c)      
     The Selling Stockholder has sufficient
knowledge and experience in investing in companies similar to Parent so as to be
able to evaluate the risks and merits of its investment in Parent and it is able
financially to bear the risks thereof, has adequate means of providing for its
current financial needs and possible contingencies that may face it and has no
need for liquidity in its investment in Parent;

      

      (d)      
     It is the present intention that the shares
of Parent Common Stock being acquired by the Selling Stockholder pursuant to the
transactions contemplated by this Agreement are being acquired for investment
and not with a present view to or for sale in connection with any distribution
thereof; and

      

      (e)     
      The Selling Stockholder further
represents that he does not presently have any contract, undertaking, agreement
or arrangement with any person to sell, transfer or grant participations to such
person or any third person with respect to the shares of Parent Common Stock
being acquired under this Agreements.

      

      ARTICLE
4

      REPRESENTATIONS
AND WARRANTIES OF PARENT AND MERGER SUB

      

      Except as
set forth on the Disclosure Schedules, Parent and Merger Sub hereby, jointly and
severally, represent and warrant to the Company that the statements contained in
this Article 4 are true, complete and correct as of the date of this Agreement
and will be correct and complete as of the Closing Date (as though made then and
as though the Closing Date were substituted for the date of this Agreement
throughout this Article 4, except in the case of representations and warranties
stated to be made as of the date of this Agreement or as of another date and
except for changes contemplated or permitted by this
Agreement).

      
        
           

        

        
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      4.1       
    Organization and
Qualification.  Each of Parent and Merger Sub is duly
organized, validly existing and in good standing under the Laws of the
jurisdiction in which it is organized and has the requisite power and authority
to carry on its business as now being conducted. Each of Parent and Merger Sub
is duly qualified or licensed to do business and is in good standing in each
jurisdiction in which the nature of its business or the ownership or leasing of
its properties makes such qualification or licensing necessary, other than in
such jurisdictions where the failure to be so qualified or licensed
(individually or in the aggregate) has not had and would not reasonably be
expected to have a Material Adverse Effect.  Each of Parent and Merger
Sub has delivered to the Company complete and correct copies of their respective
articles of incorporation and by-laws, in each case as amended to the date
hereof.

      

      4.2      
     Authorization;
Enforceability.  Each of Parent and Merger Sub have the
requisite power and authority, and have taken all action necessary, to execute,
deliver and perform their obligations under this Agreement and any Ancillary
Agreement to which either is a party and each other agreement, document,
instrument or certificate contemplated by this Agreement and/or any Ancillary
Agreement or to be executed by Parent and Merger Sub in connection with the
consummation of the Transactions, and to consummate the
Transactions.  The execution and delivery by Parent and Merger Sub of
this Agreement and any applicable Ancillary Agreement, and the consummation by
Parent and Merger Sub of the Transactions contemplated hereby, and the
performance by Parent and Merger Sub of its obligations hereunder, have been
duly and validly authorized by all necessary corporate action on the part of
Parent and Merger Sub, and no other action on the part of each of Parent and
Merger Sub is required to authorize the execution, delivery and performance of
this Agreement and the consummation by each of Parent and Merger Sub of the
transactions contemplated hereby.  This Agreement has been duly and
validly executed and delivered by each of Parent and Merger Sub and constitutes
a legal, valid and binding obligation of Parent and Merger Sub enforceable
against each in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization and other similar
laws affecting creditors’ rights generally and the general principles of equity,
regardless of whether asserted in a proceeding in equity or at law.

      

      4.3      
     Non-contravention.
Except as set forth on Schedule 4.3 hereto,
the execution, delivery and performance of this Agreement by each of Parent and
Merger Sub does not, and the consummation of the Transactions will not (a)
contravene, conflict with, or result in any violation or breach of any provision
of the articles of incorporation or by-laws of each of Parent and Merger Sub,
(b) contravene, conflict with, or result in a violation or breach of any
provision of any Law, (c) require any consent or other action by any Person
under, constitute a breach of or default under, or cause or permit the
termination, cancellation, acceleration or other change of any right or
obligation or the loss of any benefit to which either of Parent or Merger Sub is
entitled under any provision of any agreement or other instrument binding upon
Parent or Merger Sub or any license, franchise, permit, certificate, approval or
other similar authorization affecting, or relating in any way to, the assets,
property or business of either of Parent or Merger Sub, or (d) result in the
creation or imposition of any Lien on any of the assets or properties of either
of Parent or Merger Sub, which in the case of clauses (b) or (d) above would
have a Material Adverse Effect on either of Parent or Merger Sub or on the
validity, binding effect or enforceability of this Agreement, any Ancillary
Agreement, or the ability of either of Parent or Merger Sub to perform their
obligations under this Agreement or any applicable Ancillary
Agreement.

      
        
           

        

        
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      4.4        
   Consents and
Approvals.  Except as set forth on Schedule 4.4 of the
Disclosure Schedules, no consent, approval, authorization or order of,
registration or filing with, or notice to, any Regulatory Authority or any other
Person is necessary to be obtained, made or given by either of Parent or Merger
Sub in connection with their execution, delivery and performance of this
Agreement or any applicable Ancillary Agreement or for the consummation by each
of Parent or Merger Sub of the Transactions, except to the extent the failure to
obtain any such consent, approval, authorization or order or to make any such
registration or filing would not have a Material Adverse Effect on either of
Parent or Merger Sub or on the validity, binding effect or enforceability of
this Agreement or any Ancillary Agreement to which Parent or Merger Sub is a
party, or the ability of either of Parent or Merger Sub to perform their
obligations under this Agreement or any Ancillary Agreement.

      

      4.5       
    Legal
Proceedings.  There are no Legal Proceedings pending, or to the
Knowledge of each of Parent or Merger Sub, threatened that are reasonably likely
to prohibit or restrain the ability of either of Parent or Merger Sub to enter
into this Agreement, any applicable Ancillary Agreement or consummate the
Transactions.

      

      4.6       
    Brokers or
Finders.  Except as set forth on Schedule 4.6 of the
Disclosure Schedules, all negotiations relative to this Agreement and the
transactions contemplated hereby have been carried out by Parent and Merger Sub
or their Affiliates in connection with the transactions contemplated by this
Agreement, and neither Parent nor Merger Sub, or their Affiliates, has incurred
any obligation to pay any brokerage or finder’s fee or other commission in
connection with the transaction contemplated by this Agreement.

      

      4.7       
    Restrictions on Business
Activities. There is no agreement, judgment, injunction, order or decree
binding upon the Parent and Merger Sub or their Affiliates which has the effect
of prohibiting or materially impairing (a) any current or future business
practice of the Company or (b) any acquisition of any Person or property by
Parent and Merger Sub or their Affiliates, except in each of clauses (a) and (b)
for any such prohibitions or impairments that would not reasonably be expected
to have a Material Adverse Effect.

      

      ARTICLE
5

      PRE-CLOSING
COVENANTS OF THE PARTIES

      

      5.1     
      Hammett Employment
Agreement.  As soon as practicable following the execution of
this Agreement, but in any event prior to the Closing Date, the Selling
Stockholder shall execute and enter into an employment agreement with the
Surviving Corporation, in substantially the form attached hereto as Exhibit C (the “Hammett Employment
Agreement”).

      

      5.2        
   Otting Offer
Letter.  As soon as practicable following the execution of this
Agreement, but in any event prior to the Closing Date, Zachary Otting shall
enter into an offer letter with the Surviving Corporation setting forth the
terms and conditions of his employment in substantially the form attached hereto
as Exhibit D
(the “Otting Offer
Letter”).

      

      5.3       
    Access to
Information.  The Parties shall provide to each other and their
respective representatives such financial, operating and other documents, data
and information relating to the Party, and their respective businesses,
properties, assets and liabilities, as each Party, or its representatives may
reasonably request.  In addition, each Party hereby agrees to take all
action necessary to enable their respective representatives review, inspect and
audit each Party’s business, properties, assets and liabilities and discuss them
with such Party’s officers, employees, independent accountants and
counsel.  Notwithstanding any investigation that any Party may conduct
of the other Parties, or their respective businesses, properties, assets and
liabilities, each Party may fully rely on the other Party’s warranties,
covenants and indemnities set forth in this Agreement.

      
        
           

        

        
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      5.4       
    Consents and
Approvals.  As soon as practicable after execution of this
Agreement, the Parties shall use commercially reasonable efforts to obtain any
necessary consent, approval, authorization or order of, make any registration or
filing with or give any notice to, any Regulatory Authority or Person as is
required to be obtained, made or given by any Party to consummate the
transactions contemplated by this Agreement and the Ancillary
Agreements.

      

      5.5      
     Notification of Adverse
Change and Certain Matters.  Each Party shall promptly notify
the other Party of any material adverse change in the condition (financial or
otherwise) of such Party.  Each Party shall promptly notify the other
Party of any fact, event, circumstance or action known to it that is reasonably
likely to cause such Party to be unable to perform any of its covenants
contained herein or any condition precedent in Article 7 not to be satisfied, or
that, if known on the date of this Agreement, would have been required to be
disclosed to another Party pursuant to this Agreement or the existence or
occurrence of which would cause any of the such Party’s representations or
warranties under this Agreement not to be correct and/or
complete.  Each Party shall give prompt written notice to the other
Party of any adverse development causing a breach of any of the representations
and warranties in Articles 3 and 4 as of the date made.

      

      5.6     
      Disclosure
Schedule.  Each Party shall, from time to time prior to
Closing, supplement the Disclosure Schedules attached hereto with additional
information that, if existing or known to it on the date of delivery to the
other Party, would have been required to be included therein.  For
purposes of determining the satisfaction of any of the conditions to the
obligations of any Party in Article 7, the Disclosure Schedules of such Party
shall be deemed to include only (a) the information contained therein on the
date of this Agreement and (b) information added to the such Party’s Disclosure
Schedule by written supplements delivered prior to Closing by such Party (i) are
accepted in writing by the receiving Party, or (ii) reflect actions taken or
events occurring after the date hereof prior to Closing.

      

      5.7     
      State
Statutes.  The Parties and their respective Board of Directors
shall, if any state takeover statute or similar law is or becomes applicable to
the Merger, this Agreement or any of the transactions contemplated by this
Agreement, use all reasonable efforts to ensure that the Merger and the other
transactions contemplated by this Agreement may be consummated as promptly as
practicable on the terms contemplated by this Agreement and otherwise to
minimize the effect of such statute or regulation on the Merger, this Agreement
and the transactions contemplated hereby.

      
        
           

        

        
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      5.8     
      Conduct of
Business.  During the period from the date of this Agreement
and continuing until the earlier of the termination of this Agreement pursuant
to the provisions of Article 9 hereof or the Closing, Parent shall direct the
day-to-day operations of the Company and approve all non-recurring transactions
and significant recurring transactions undertaken by the
Company.  Further, during such period, the Company shall (unless
otherwise required by this Agreement or Parent has given its prior written
consent to the Company) carry on its business in the ordinary course consistent
with past practice, pay its Taxes and other obligations consistent with its past
practices, pay or perform other obligations when due consistent with its past
practices, subject to any good faith disputes over such Taxes and other
obligations and, to the extent consistent with the Business, use reasonable
efforts and institute all policies to preserve intact its present business
organization, keep available the services of its present officers and key
employees, preserve its relationships with customers, suppliers, distributors,
licensors, licensees, independent contractors and other Persons having business
dealings with it to do the same, all with the express purpose and intent of
preserving unimpaired its goodwill and ongoing businesses at the
Closing.  Parent shall assume the risk of losses incurred, and the
benefit of profits earned, during such period, unless this Agreement is
otherwise terminated pursuant to Article 9 hereof.

      

      5.9      
     No
Solicitation.  Until the earlier of the Closing or the date of
termination of this Agreement pursuant to the provisions of Article 9 hereof,
neither the Company, the Selling Stockholder, the Parent and Merger Sub or their
Affiliates, nor any of their respective stockholders, officers, directors,
agents, investment bankers or other representatives of any of them
(collectively, the “Representatives”)
will, directly or indirectly, (i) solicit, engage in discussions or negotiate
with any Person (regardless of who initiates such discussions or negotiations),
or take any other action intended or designed to facilitate the efforts of any
Person, other than the parties hereto, relating to the possible acquisition of
the Company (whether by way of purchase of capital stock, purchase of assets or
otherwise) or any significant portion of its capital stock or assets by any
Person other than the parties hereto (an “Alternative
Acquisition”), (ii) provide information with respect to the Company to
any Person relating to a possible Alternative Acquisition by any Person, (iii)
enter into an agreement with any Person providing for a possible Alternative
Acquisition, or (iv) make or authorize any statement, recommendation or
solicitation in support of any possible Alternative Acquisition by any
Person.  The Company Parent and Merger Sub or their Affiliates shall
cause their Representatives to immediately cease and cause to be terminated all
existing discussions or negotiations with any Person heretofore conducted with
respect to any possible Alternative Acquisition.

      

      5.10          Confidentiality.  The
Parties hereto acknowledge and agree that the terms and conditions described in
this Agreement, including its existence, as well as the non-public information
and data furnished to them or their respective Representatives from the first
introduction of the parties and throughout the negotiation and drafting of this
Agreement is confidential and will not be disclosed to any third party, or used
for any purpose not specifically contemplated herein, without prior written
consent of all Parties, unless otherwise required by Law or unless it ceases to
be confidential through no breach of the receiving
party.  Notwithstanding the foregoing, Parent and Merger Sub shall be
entitled to make a public announcement of the terms and conditions described in
this Agreement and make such public disclosures and filings as they deem
reasonable or prudent without the prior written consent of the Company or the
Selling Stockholder.

      
        
           

        

        
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      5.11          Meeting of the
Stockholders.  Promptly after the date hereof, if required
under applicable law, each Party will take all action necessary in accordance
with its articles of incorporation and by-laws, or other charter or
organizational documents, to convene a meeting of their respective stockholders,
or seek the written consent of its stockholders to consider the adoption and
approval of this Agreement and approval of the Merger to be held as promptly as
practicable, but in any event prior to the Closing Date.

      

      5.12          Pre-Closing
Cooperation.  Between the date of this Agreement and the
Closing Date, the Company shall, and Selling Stockholders shall cause the
Company to, (i) afford Parent and its Representatives full and free access to
the Company’s personnel, properties, Contracts, books and records, and other
documents and data, and (ii) cooperate with Parent and its Representatives,
including providing any relevant documents, in connection with an accounting
review and audit of the Company.   Between the date of this
Agreement and the Closing Date, the Parent and Merger Sub shall cooperate with
Company and Selling Stockholders and thier Representatives, including providing
any relevant documents, in connection with this transaction.

      

      ARTICLE
6

      POST-CLOSING
COVENANTS OF THE PARTIES

      

      6.1      
     Post-Closing
Cooperation.  Following the Closing Date, the Company shall,
and the Selling Stockholder shall cause the Company to cooperate with Parent and
its Representatives, including providing any relevant documents, in connection
with any post-Closing accounting review and audit of the Company.

      

      6.2       
    Expense
Reimbursements.  Following the Closing Date, on the date that
is the later of (A) sixty (60) days following the Closing Date, or (B) the date
that all of the post-closing covenants set forth in Section 6.5 have been
satisfied or waived by Parent in writing, Parent shall reimburse the Selling
Stockholder for all reasonable and documented out-of-pocket expenses paid by the
Selling Stockholder on behalf of Company in connection with the development of
(i) engine code base, art, graphics, sound, user interface, and associated
content with product entitled “Fire Dept 2 & 3, Raging Inferno,” by Monte
Cristo, a French corporation (“Monte Cristo”),
pursuant to that certain Software Publishing Agreement (“Monte Cristo
Agreement”), provided to Parent and as described in Schedule A attached
thereto, and (ii) engine code base, art, graphics, sound, user interface, and
associated content with product entitled “FireFighter:  Everybody Goes
Homeä”, by Digital
Content LLC, a Minnesota corporation d/b/a “Big John Games” (“Big John Games”),
pursuant to that certain draft Software Publishing Agreement provided to Parent
and as described in Schedule A attached thereto ((i) and (ii) collectively,
“Expense
Reimbursements”).  Full documentation of all such reimbursable
expenses shall be provided by Selling Stockholder to Parent for reimbursement
thereof.

      

      6.3        
   DEID Capital Development
Plan and Monte Cristo Payment.  Following the Closing Date, the
Selling Stockholder and Parent agree to use commercially reasonable, good faith
efforts to create and implement a DEID capital development plan pursuant to
which Parent and/or Merger Sub shall agree to invest approximately $250,000 into
DEID’s development in Q1 2008, and an aggregate of $500,000 in 2008 (including
the $250,000 invested in Q1 2008 and all Expense Reimbursements paid in
accordance with Section 6.3 above).  Parent and Merger Sub further
agree to use commercially reasonable, good faith efforts to provide sales and
marketing support required to sell DEID product and services.  As soon
as commercially practicable following the Closing Date, but no later than one
(1) Business Day following the Closing Date, Parent shall pay to Monte Cristo
the amount of $100,000 in development fees pursuant to the Monte Cristo
Agreement, which amount shall applied against Parent’s $250,000 development
commitment in Q1 2008.

      
        
           

        

        
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      6.4    
       Merger
Unwind.

      

      (a)        
   Parent Unwind
Rights.  In the event that (i) the DEID Gross Product Sales do
not equal or exceed $2,000,000 within the first one (1) year from the date of
first shipment of a production version of the earlier to ship of (i) FireFighter:  Everybody
Goes Home, or (ii) the ACLS/EMS software product, and with DEID
maintaining at least an average of 50% DEID Gross Profit Margin measured from
the Effective Date through the end of such one (1) year period; or Production
versions of (i) FireFighter:  Everybody
Goes Home, and (ii) the ACLS/EMS
product are not first shipped by September 30, 2008; Parent may deliver a
written notice (“Unwind Notice”) to
Selling Stockholder indicating their election to transfer, assign, license,
sublicense and otherwise return, as applicable, all Owned Proprietary Rights and
Licensed Proprietary Rights assumed by Merger Sub from the Company as a result
of the Merger, and all developments and improvements directly related to FireFighter:  Everybody
Goes Home and the ACLS/EMS product which were conceived by Parent, Merger
Sub and/or Selling Stockholder following the Effective Date and through the date
of the Unwind Notice, to Selling Stockholder (collectively, the “Unwind Transfer”), in
exchange for the option for Parent to repurchase some or all of the unvested
Merger Stock Consideration issued to Selling Stockholder hereunder in accordance
with the repurchase provisions set forth in Exhibit B attached
hereto (the “Unwind
Repurchase”), and the discontinuation of any and all Merger Cash
Consideration payments to Selling Stockholder hereunder.  The Unwind
Transfer and Unwind Repurchase shall occur within 30 days of the date of the
Unwind Notice as determined by Parent.  No Merger Cash Consideration
or Expense Reimbursements previously paid to Selling Stockholder prior to the
date of the Unwind Notice shall be refundable to Parent upon consummation of the
Unwind Transfer and Unwind Repurchase, and the Parties shall have no further
obligations under this Agreement.

      

      (b)     
      Selling Stockholder Unwind
Rights.  In the event that (i) Parent fails to meet the capital
requirements of the DEID Capital Development Plan referred to in paragraph 6.3,
above, (ii) fails to use commercially reasonable, good faith efforts to provide
sales and marketing support required to sell DEID product and services, and/or
(iii) Parent and/or Merger Sub become Bankrupt, Selling Stockholder may deliver
a written notice (“Unwind Notice”) to
Parent indicating his election that Parent transfer, assign, license, sublicense
and otherwise return, as applicable, all Owned Proprietary Rights and Licensed
Proprietary Rights assumed by Merger Sub from the Company as a result of the
Merger, and all developments and improvements directly related to FireFighter:  Everybody
Goes Home and the ACLS/EMS product which were conceived by Parent, Merger
Sub and/or Selling Stockholder following the Effective Date and through the date
of the Unwind Notice, to Selling Stockholder (collectively, the “Unwind Transfer”), in
exchange for Selling Stockholder transferring the Merger Stock Consideration
issued to Selling Stockholder hereunder in accordance back to the Parent/Merger
Sub.  Should Selling  Stockholder deliver such Unwind
Notice, the Parent may discontinue all future Merger Cash Consideration payments
to Selling Stockholder hereunder.  The Unwind Transfer shall occur
within 30 days of the date of the Unwind Notice.  No Merger Cash
Consideration or Expense Reimbursements previously paid to Selling Stockholder
prior to the date of the Unwind Notice shall be refundable to Parent upon
consummation of the Unwind Transfer and Unwind Repurchase, and the Parties shall
have no further obligations under this Agreement.

      
        
           

        

        
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      6.5       
    Selling Stockholder
Post-Closing Covenants.

      

      (a)       
    Delivery of Company
Financial Documents.  Within thirty (30) days following the
Closing Date, Selling Stockholder shall deliver all Company Financial Documents
to Parent.

      

      (b)       
    Delivery of Sponsor
Information.  Within thirty (30) days following the Closing
Date, Selling Stockholder shall deliver to Parent the names and contact
information for all potential sponsors Selling Stockholder has identified for
the FireFighter:  Everybody
Goes Home product.

      

      (c)      
     Introduction to
Developers.  Within thirty (30) days following the Closing
Date, Selling Stockholder shall use his best efforts to schedule, and
participate in, introductory telephone calls or meetings between Dennis Cagan,
the CEO of Parent, and each of Monte Cristo and Big John Games.

      

      6.6        
   Parent Post-Closing
Covenants.

      

      (a)       
    Payment of Bonus to Selling
Stockholder.  On the date that is the later of (A) sixty (60)
days following the Closing Date, or (B) the date that all of the post-closing
covenants set forth in Section 6.5 have been satisfied or waived by Parent in
writing, Parent shall (i) pay to Selling Stockholder a cash bonus equal to the
amount of salary, less applicable withholding, Selling Stockholder would have
accrued as an employee of Parent or Merger Sub from January 9, 2008 through the
date that Selling Stockholder’s formal employment with the Parent or Merger Sub
commences on or after the Closing Date pursuant to the Hammett Employment
Agreement, and (ii) reimburse all reasonable and documented out-of-pocket
expenses incurred on behalf of Parent and Merger Sub during the period from
January 9, 2008 through  the date that Selling Stockholder’s formal
employment with the Parent or Merger Sub commences on or after the Closing Date
pursuant to the Hammett Employment Agreement.

      

      (b)       
    Payment of Bonus to Zachary
Otting.  On the date that is the later of (A) sixty (60) days
following the Closing Date, or (B) the date that all of the post-closing
covenants set forth in Section 6.5 have been satisfied or waived by Parent in
writing, Parent shall pay to Zachary Otting a cash bonus equal to the amount of
salary, less applicable withholding, Zachary Otting would have accrued as an
employee of Parent or Merger Sub from January 9, 2008 through the date that
Zachary Otting’s formal employment with the Parent or Merger Sub commences on or
after the Closing Date pursuant to the Otting Offer Letter.

      
        
           

        

        
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      ARTICLE
7

      CLOSING
CONDITIONS

      

      7.1     
      Conditions to Company and
the Selling Stockholder’s Obligations to Close.  The
obligations of the Company and the Selling Stockholder to consummate the
transactions provided for hereby are subject to the satisfaction, before or on
the Closing Date, of each of the conditions set forth below in this Section 7.1,
any of which may be waived by either of the Company and the Selling
Stockholder:

      

      (a)     
      Accuracy of
Representations.  All representations and warranties of each of
each of Parent and Merger Sub contained in this Agreement, the Ancillary
Agreements and any certificate delivered by any of them at or prior to Closing
shall be, if specifically qualified by materiality, true in all respects and, if
not so qualified, shall be true in all material respects, in each case on and as
of the Closing Date with the same effect as if made on and as of the Closing
Date, except for representations and warranties expressly stated to be made as
of the date of this Agreement or as of another date other than the Closing Date
and except for changes contemplated or permitted by this
Agreement.  Parent shall have delivered to the Company a certificate
dated the Closing Date to the foregoing effect.

      

      (b)      
     Covenants.  Parent
and Merger Sub shall, in all material respects, have performed and complied with
each of the covenants, obligations and agreements contained in this Agreement
and the Ancillary Agreements that are to be performed or complied with by them
at or prior to Closing.  Parent shall have delivered to the Company a
certificate dated the Closing Date to the foregoing effect.

      

      (c)      
     Consents and
Approvals.  All consents, approvals, permits, authorizations
and orders required to be obtained from, and all registrations, filings and
notices required to be made with or given to any Regulatory Authority or Person
as provided herein, if any, shall have been so obtained or filed with such
Regulatory Authority or Person.

      

      (d)    
       Hammett Employment
Agreement.  The Hammett Employment Agreement shall have been
executed and delivered to the Company pursuant to Article 5 hereof.

      

      (e)      
     Otting Offer
Letter.  The Otting Offer Letter shall have entered into by and
between Zachary Otting pursuant to Article 5 hereof.

      

      (f)    
        No Legal
Proceedings.  No injunction, action, suit or proceeding shall
be pending or threatened by or before any Regulatory Authority and no Law shall
have been enacted, promulgated or issued or deemed applicable to any of the
transactions contemplated by this Agreement and the Ancillary Agreements, which
would: (i) prevent consummation of any of the transactions contemplated by this
Agreement and the Ancillary Agreements; (ii) cause any of the transactions
contemplated by this Agreement and the Ancillary Agreements to be rescinded
following consummation; or (iii) have a Material Adverse Effect on a Party, the
Merger, this Agreement or the transactions contemplated hereby.

      

      (g)    
       Closing
Deliverables.  Parent and Merger Sub shall have delivered, or
caused to be delivered, to the Company those certificates set forth in Section
7.1(a) and (b) hereof.

      
        
           

        

        
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      (h)        
   Covenants.  The
Parties shall, in all material respects, have performed and complied with each
of the covenants, obligations and agreements contained in this Agreement and the
Collateral Documents that are to be performed or complied with by them at or
prior to Closing.  The Company shall have delivered to the Parent and
Merger Sub, and the Parent and Merger Sub shall have delivered to the Company, a
certificate dated the Closing Date to the foregoing effect.

      

      7.2      
     Conditions to Parent and
Merger Sub’s Obligations to Close.  The obligations of Parent
and Merger Sub to consummate the transactions provided for hereby are subject to
the satisfaction, before or on the Closing Date, of each of the conditions set
forth below in this Section 7.2, any of which may be waived by
Parent:

      

      (a)         
  Accuracy of
Representations.  All representations and warranties of the
Company and of the Selling Stockholder contained in this Agreement, the
Ancillary Agreements and any certificate delivered by any of the Company and the
Selling Stockholder at or prior to Closing shall be, if specifically qualified
by materiality, true in all respects and, if not so qualified, shall be true in
all material respects, in each case on and as of the Closing Date with the same
effect as if made on and as of the Closing Date, except for representations and
warranties expressly stated to be made as of the date of this Agreement or as of
another date other than the Closing Date and except for changes contemplated or
permitted by this Agreement.  The Company and the Selling Stockholder
shall have delivered to Parent a certificate dated the Closing Date to the
foregoing effect.

      

      (b)      
     Covenants.  The
Company and the Selling Stockholder shall, in all material respects, have
performed and complied with each of the covenants, obligations and agreements
contained in this Agreement and the Ancillary Agreements that are to be
performed or complied with by them at or prior to Closing.  The
Company shall have delivered to Parent a certificate dated the Closing Date to
the foregoing effect.

      

      (c)     
      Consents and
Approvals.  All consents, approvals, permits, authorizations
and orders required to be obtained from, and all registrations, filings and
notices required to be made with or given to, any Regulatory Authority or Person
as provided herein, shall have been so obtained or filed with such Regulatory
Authority or Person.

      

      (d)    
       Stockholder
Approval.  All stockholder approval, if any, as required under
any applicable Law, shall have been obtained to approve the transactions
contemplated hereunder including the approval of the Merger, this Agreement or
the transactions contemplated hereby.

      

      (e)    
       Hammett Employment
Agreement.  The Hammett Employment Agreement shall have been
executed and delivered to Parent pursuant to Article 5 hereof.

      

      (f)        
    Otting Offer
Letter.  The Otting Offer Letter shall have entered into by and
between Zachary Otting pursuant to Article 5 hereof.

      

      (g)     
      No Legal
Proceedings.  No injunction, action, suit or proceeding shall
be pending or threatened by or before any Regulatory Authority and no Law shall
have been enacted, promulgated or issued or deemed applicable to any of the
transactions contemplated by this Agreement and the Ancillary Agreements, which
would: (i) prevent consummation of any of the transactions contemplated by this
Agreement and the Ancillary Agreements; (ii) cause any of the transactions
contemplated by this Agreement and the Ancillary Agreements to be rescinded
following consummation; or (iii) have a Material Adverse Effect on a Party, the
Merger, this Agreement or the transactions contemplated hereby.

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

      (h)        
   No Material Adverse
Change.  There shall have been no Material Adverse Change in
the business, financial condition or operations of the Company.

      

      (i)         
   Resignation of Selling
Stockholder.  Selling Stockholder shall deliver to Parent his
resignation from all positions as officer and director of Company held prior to
the Closing.

      

      (j)        
    Closing
Deliverables.  The Company and the Selling Stockholder shall
have delivered, or caused to be delivered, to Parent those certificates set
forth in Section 7.2(a) and (b) hereof.

      

      (k)    
       Delivery of Monte Cristo
Agreement.  The Company and the Selling Stockholder shall have
delivered, or caused to be delivered, to Parent a fully-executed copy of the
Monte Cristo Agreement.

      

      ARTICLE
8

      INDEMNIFICATION

      

      8.1         
  Survival of Representations,
Etc.  All of the representations and warranties contained in
this Agreement shall survive the Closing hereunder (even if the damaged party
knew or had reason to know of any misrepresentation or breach of warranty or
covenant at the time of Closing) and continue in full force and effect for a
period of four (4) years after the Closing Date (subject to any applicable
statutes of limitations).  The right to indemnification, payment of
Losses or other remedy based on such representations, warranties, covenants and
obligations will not be affected by any investigation conducted with respect to,
or any knowledge of the party entitled to such right to indemnification acquired
(or capable of being acquired) at any time, whether before or after the Closing
Date, with respect to the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant or obligation.  The waiver of any
condition based on the accuracy of any representation or warranty, or on the
performance of or compliance with any covenant or obligation, will not affect
the right to indemnification, payment of Losses, or other remedies based on such
representations, warranties, covenants and obligations.

      

      8.2      
     Indemnification.

      

      (a)      
     By Company and the Selling
Stockholder.  Subject to Section 8.3, the Company and the
Selling Stockholder, jointly and severally, hereby agree (without duplication)
to indemnify, protect, defend (at Parent’s request), release and hold Parent and
its directors, officers, managers, members, employees, agents, successors,
Affiliates and assigns (collectively, the “Parent Indemnified
Parties”) harmless from and against any and all Losses incurred in
connection with, arising out of, resulting from or incident to:

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

      (i)         
   any breach or inaccuracy of any representation or
warranty of the Company and the Selling Stockholder set forth in this Agreement
or contained in any certificate delivered by or on behalf of Company pursuant to
this Agreement;

      

      (ii)       
    any breach of any covenant or other agreement
made by the Company and the Selling Stockholder in or pursuant to this
Agreement;

      

      (iii)           any
Liability arising under or with respect to any and all Employee Plans, and any
Liability with respect to any of the Company’s employees, former employees or
service providers relating to acts or omissions which occurred on or prior to
the Closing Date;

      

      (iv)           any
claim by any Person for brokerage or finder’s fees or commissions or similar
payments based on any agreement or understanding alleged to have been made by
such Person with the Company or the Selling Stockholder (or any Person acting
(or purportedly acting) on behalf of any such Person) in connection with the
transactions contemplated by this Agreement; or

      

      (v)     
      any Loss, including Taxes, arising in
connection with any distributions made to Company Stockholders at any time prior
to and including the date of the Merger.

      

      (b)     
      Indemnification by
Parent.  Subject to Section 8.3, Parent hereby agrees (without
duplication) to indemnify, protect, defend (at the Company’s request), release
and hold the Selling Stockholder, Company and its directors, officers,
stockholders, employees, agents, successors and assigns (collectively, the
“Company Indemnified
Parties”) harmless from and against any and all Losses incurred in
connection with, arising out of, resulting from or incident to:

      

      (i)       
     any breach or inaccuracy of any
representation or warranty of Parent and Merger Sub set forth in this Agreement
or contained in any certificate delivered by or on behalf of Parent and Merger
Sub pursuant to this Agreement; or

      

      (ii)    
       any breach of any covenant or
other agreement made by Parent and Merger Sub in or pursuant to this
Agreement.

      

      (c)     
      The term “Losses” as used in this
Section 8.2 is not limited to matters asserted by third parties against any
indemnified party, but includes Losses incurred or sustained by an indemnified
party in the absence of third party claims.  Payments by an
indemnified party of amounts for which such indemnified party is indemnified
under this Article 8 shall not be a condition precedent to
recovery.

      

      8.3      
     Limitations on
Indemnification for Certain Breaches.  An indemnifying party
shall not have any Liability under Section 8.2(a) or 8.2(b) for any Claims
unless the aggregate amount of Losses to the indemnified parties finally
determined to arise thereunder exceeds Fifty Thousand Dollars ($50,000) (the
“Indemnification
Threshold”), in which event the indemnifying party shall be required to
pay the full amount of such Losses in relating back to the first dollar; provided, however, that the
maximum liability of any Party hereunder shall be limited to the consideration
received and to be received by such Party under this Agreement, in the case of
the Company or the Selling Stockholder, or paid or to be paid by Parent
hereunder to the Company and the Selling Stockholder, in the case of Parent or
Merger Sub.

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      8.4       
    Indemnification
Procedures.

      

      (a)      
     In the event that any Legal Proceeding
shall be instituted or any claim or demand shall be asserted (individually and
collectively, a “Claim”) by any Person
in respect of which payment may be sought under this Article 8 (regardless of
the provisions of Section 8.3), the indemnified party shall reasonably and
promptly cause written notice (a “Claim Notice”) of the
assertion of any Claim of which it has knowledge which is covered by this
indemnity to be delivered to the indemnifying party; provided, however, that the
failure of the indemnified party to give the Claim Notice shall not release,
waive or otherwise affect the indemnifying party’s obligations with respect
thereto, except to the extent that the indemnifying party can demonstrate actual
loss and material prejudice as a result of such failure.  If the
indemnifying party shall notify the indemnified party in writing within five (5)
Business Days (or sooner, if the nature of the Claim so requires) that the
indemnifying party shall be obligated under the terms of its indemnity hereunder
in connection with such lawsuit or action, then the indemnifying party shall be
entitled, if it so elects at its own cost, risk and expense, (i) to take control
of the defense and investigation of such lawsuit or action, (ii) to employ and
engage attorneys of its own choice, but, in any event, reasonably acceptable to
the indemnified party, to handle and defend the same unless the named parties to
such action or proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and the indemnified party has been
advised in writing by counsel that there may be one or more material legal
defenses available to such indemnified party that are different from or
additional to those available to the indemnifying party, in which event the
indemnified party shall be entitled, at the indemnifying party’s cost, risk and
expense, to a single firm of separate counsel (plus any necessary local
counsel), all at reasonable cost, of its own choosing, reasonably acceptable to
the indemnifying party and (iii) to compromise or settle such lawsuit or action,
which compromise or settlement shall be made only with the prior written consent
of the indemnified party, such consent not to be unreasonably withheld or
delayed.

      

      8.5       
    If the indemnifying party elects not to defend
against, negotiate, settle or otherwise deal with any Claim which relates to any
Losses indemnified against hereunder, fails to notify the indemnified party of
its election as provided in this Section 8.4 or contests its obligation to
indemnify the indemnified party for such Losses under this Agreement, the
indemnified party may defend against, negotiate, settle or otherwise deal with
such Claim.  If the indemnified party defends any Claim, then the
indemnifying party shall reimburse the indemnified party for the Losses incurred
in defending such Claim upon submission of periodic bills.  If the
indemnifying party shall assume the defense of any Claim, the indemnified party
may participate, at its own expense, in the defense of such Claim; provided, however, that such
indemnified party shall be entitled to participate in any such defense with
separate counsel at the expense of the indemnifying party if (i) so requested by
the indemnifying party to participate or (ii) in the reasonable opinion of
counsel to the indemnified party, a material conflict or potential material
conflict exists between the indemnified party and the indemnifying party that
would make such separate representation required; and provided, further, that the
indemnifying party shall not be required to pay for more than one such counsel
for all indemnified parties in connection with any Claim.  If the
indemnifying party shall assume the defense of any Claim, the indemnifying party
shall obtain the prior written consent of the indemnified party before entering
into any settlement of such Claim or ceasing to defend such Claim if, pursuant
to or as a result of such settlement or cessation, injunctive or other equitable
relief shall be imposed against the indemnified party or if such settlement or
cessation does not expressly and unconditionally release the indemnified party
from all Liabilities or obligations with respect to such Claim, with
prejudice.  The parties hereto agree to cooperate fully with each
other in connection with the defense, negotiation or settlement of any
Claim.

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      8.6        
   Recoupment From Merger Cash
Consideration.   Any
indemnification to which a Company Indemnified Party is entitled under this
Agreement as a result of any Losses it may suffer shall first be made as a
payment to such Company Indemnified Party from the next Merger Cash
Consideration payments to be made to the Selling Stockholder hereunder, which
shall reduce such Merger Cash Consideration payments accordingly until such
Losses are indemnified in full.  To the extent that the aggregate
amount of such indemnification exceeds the future Merger Cash Consideration
payments to be received by the Selling Stockholder, the Company Indemnified
Party(ies) may recoup such unpaid Losses from the Selling Stockholder
directly.

      

      ARTICLE
9

      TERMINATION

      

      9.1         
  Termination.  This
Agreement may be terminated, and the transactions contemplated hereby may be
abandoned, at any time prior to the Effective Time.

      

      (a)        
   By mutual written agreement of the
Parties;

      

      (b)       
    By either of Parent or the Company if the Closing
does not occur on or before February 29, 2008, or to be extended by mutual
consent of the parties;

      

      (c)         
  By the Company if the stockholders of the Company fail to
approve the Merger, this Agreement and the transactions contemplated
hereby;

      

      (d)      
     By either of Parent or the Company if any
court of competent jurisdiction or other competent Regulatory Authority shall
have issued an order making illegal or otherwise permanently restricting,
preventing or otherwise prohibiting the Merger and such order shall have become
final;

      

      (e)        
   By either of Parent or the Company upon written notice
to the other Party in the event of a breach of any provision or covenant of this
Agreement, or any representation or warranty made by such Party hereunder
becomes inaccurate; provided, however, that such
breach or inaccuracy would cause the related closing condition, if any, not be
satisfied in accordance with Article 7 hereof; provided, further, that prior
to any termination by the non-breaching party, such Party shall provide written
notice to the breaching Party specifically identifying the breach or inaccurate
representation, and the breaching Party does not cure or correct such breach or
inaccuracy within 30 days following receipt of the written notice.

      

      9.2        
   Effect of
Termination.  If this Agreement is validly terminated by either
the Company or Parent pursuant to Section 9.1, this Agreement will forthwith
become null and void and there will be no liability or obligation on the part of
the parties hereto, except that nothing contained herein shall relieve any party
hereto from liability for willful breach of its representations, warranties,
covenants or agreements contained in this Agreement.

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      ARTICLE
10

      MISCELLANEOUS
PROVISIONS

      

      10.1          Notices.  All
notices, requests and other communications hereunder must be in writing and will
be deemed to have been duly given only if delivered personally against written
receipt or mailed by prepaid first class registered or certified mail, return
receipt requested, or sent by overnight courier prepaid, to the parties at the
following addresses or facsimile numbers:

      

      
        	
                If
      to Parent and Merger Sub to:

              
	 
      
	
                TWL
      Corporation

              
	
                4101
      International Parkway

              
	
                Carrollton,
      Texas 75007

              
	Facsimile:	
                 

              
	
                Attention:  Chief
      Executive Officer

              
	 
      
	 
      
	
                with
      a copy, which shall not constitute notice to:

              
	 
      
	
                Clark
      R. Moore, Esq.

              
	
                105
      Carrick Circle

              
	
                Hayward,
      California 94542

              
	
                Facsimile:  510.743.4262

              
	 
      
	
                If
      to the Company or the Selling Stockholder:

              
	 
      
	
                Divergent
      Entertainment, Inc.

              
	
                700
      Hammett Lane

              
	
                New
      Smyrna Beach, FL 32169

              
	Facsimile:	
                 

              
	
                Attention:  Daniel
      Hammett

              
	 
      
	
                with
      a copy, which shall not constitute notice, to:

              
	 
      
	
                Leonard,
      O'Brien, Spencer, Gale & Sayre

              
	
                100
      South Fifth Street, Suite 2500

              
	
                Minneapolis,
      MN 55402

              
	
                Facsimile:  612.332.2740

              
	
                Attention:  Scott
      S. Payzant, Esq.

              

      

      

      

      10.2          Entire
Agreement.  This Agreement supersedes all prior discussions and
agreements between the parties with respect to the subject matter hereof and
thereof and contains the sole and entire agreement between the parties hereto
with respect to the subject matter hereof and thereof.  Except for the
representations and warranties contained in this Agreement or in any instrument
delivered pursuant to this Agreement, each of the Parties to this Agreement
acknowledges that no other representations or warranties have been relied upon
by that Party or made by any other party or its officers, directors, employees,
agents, financial and legal advisors or other representatives.

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      10.3          Further Assurances;
Post-Closing Cooperation.  At any time or from time to time
after the Closing, the Parties will execute and deliver to the other party such
other documents and instruments, provide such materials and information and take
such other actions as the other party may reasonably request to consummate the
transactions contemplated by this Agreement and otherwise to cause the other
Party to fulfill its obligations under this Agreement and the transactions
contemplated hereby.  Each Party agrees to use commercially reasonable
efforts to cause the conditions to its obligations to consummate the
transactions contemplated hereby to be satisfied.

      

      10.4          Amendment.  This
Agreement may be amended by the Parties hereto at any time before the Closing by
execution of an instrument in writing signed on behalf of each of the Parties
hereto and after the Closing by execution of an instrument in writing signed on
behalf of the Surviving Corporation.

      

      10.5          Extension.  At
any time prior to the Closing, Parent, Merger Sub and the Company may, to the
extent legally allowed, may agree in writing to extend the time for the
performance of any of the obligations of the other party hereto.

      

      10.6          Waiver.  Any
term or condition of this Agreement may be waived at any time by the party that
is entitled to the benefit thereof, but no such waiver will be effective unless
set forth in a written instrument duly executed by or on behalf of the party
waiving such term or condition.  No waiver by any party of any term or
condition of this Agreement, in any one or more instances, will be deemed to be
or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion.  All remedies, either under this
Agreement or by Law or otherwise afforded, will be cumulative and not
alternative.

      

      10.7          Third Party
Beneficiaries.  The terms and provisions of this Agreement are
intended solely for the benefit of each Party hereto and their respective
successors or permitted assigns, and it is not the intention of the Parties to
confer third-party beneficiary rights, and this Agreement does not confer any
such rights, upon any other Person other than any Person entitled to indemnity
as described in Article 8.

      

      10.8          No Assignment; Binding
Effect.  Neither this Agreement nor any right, interest or
obligation hereunder may be assigned (by operation of law or otherwise) by any
Party without the prior written consent of the other Parties and any attempt to
do so will be void.  Subject to the preceding sentence, this Agreement
is binding upon, inures to the benefit of and is enforceable by the Parties
hereto and their respective successors and assigns.

      

      10.9          Captions.  The
headings and table of contents used in this Agreement have been inserted for
convenience of reference only and do not define or limit the provisions
hereof.

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

      10.10        Invalid
Provisions.  If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future law, and if the
rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (a) such provision will be fully
severable, (b) this Agreement will be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, (c) the
remaining provisions of this Agreement will remain in full force and effect and
will not be affected by the illegal, invalid or unenforceable provision or by
its severance herefrom and (d) in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this Agreement a
legal, valid and enforceable provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible.

      

      10.11        Governing
Law.  This Agreement will be governed by and construed in
accordance with the domestic laws of the State of Texas, without giving effect
to any choice of law or conflict of law provision.

      

      10.12        Construction.  The
Parties hereto agree that this Agreement is the product of negotiation between
sophisticated parties and individuals, all of whom were represented by counsel,
and each of whom had an opportunity to participate in and did participate in,
the drafting of each provision hereof.  Accordingly, ambiguities in
this Agreement, if any, will not be construed strictly or in favor of or against
any Party hereto but rather will be given a fair and reasonable construction
without regard to the rule of contra proferentum.

      

      10.13        Counterparts.  This
Agreement may be executed in any number of counterparts, each of which will be
deemed an original, but all of which together will constitute one and the same
instrument.

      

      10.14        Expenses.  The
Company and the Selling Stockholder, on one hand, and Parent and Merger Sub, on
the other hand, shall each bear its own expenses, including attorneys’,
accountants’ and other professionals’ fees, incurred in connection with the
negotiation and execution of this Agreement and each other agreement, document
and instrument contemplated by this Agreement and the consummation of the
transactions contemplated hereby and thereby.

      

      10.15        Attorneys’ Fees and
Costs.  In the event of any action at law or in equity between
the parties hereto to enforce any of the provisions hereof, the unsuccessful
party to such litigation shall pay to the successful party all costs and
expenses, including reasonable attorneys’ fees, incurred therein by such
successful party; and if such successful party shall recover judgment in any
such action or proceeding, such costs, expenses and reasonable attorneys’ fees
may be included in and as part of such judgment.

      

      10.16        Waiver of Jury
Trial.  Each party hereto hereby expressly waives any right to
trial by jury of any claim, demand, action or cause of action arising under or
in connection with this Agreement or the transactions contemplated
hereby.

      

      10.17        Legends.  Each
Selling Stockholders understands that the stock certificates representing the
Parent Common Stock shall bear any legend as required by the "blue sky" laws of
any state and a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of such stock
certificates):

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

      THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT 7OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.

      

      10.18        Representation by
Counsel.  Each party hereto represents and agrees with each
other that it has been represented by or had the opportunity to be represented
by independent counsel of its own choosing, and that it has had the full right
and opportunity to consult with its respective attorney(s) to the extent, if
any, that it desired, it availed itself of this right and opportunity, that it
or its authorized officers (as the case may be) have carefully read and fully
understand this Agreement in its entirety and have had it fully explained to
them by such party’s respective counsel, that each is fully aware of the
contents thereof and its meaning, intent and legal effect, and that it or its
authorized officer (as the case may be) is competent to execute this Agreement
and has executed this Agreement free from coercion, duress or undue
influence.

      

      10.19        Schedules.  In
the event of any inconsistency between the statements in the body of this
Agreement and those in the Disclosure Schedule (other than an exception
expressly set forth as such in the Disclosure Schedule with respect to a
specifically identified representation or warranty), the statements in the body
of this Agreement will control.

      

      10.20  
     Specific
Performance.  The Parties hereto agree that irreparable damage
would occur in the event that Sections 5.9, 6.1, 6.2 and 6.4 of this Agreement
is not performed in accordance with its specific terms or were otherwise
breached.  It is agreed that the Parties will be entitled to an
injunction or injunctions to prevent breaches of Sections 5.9, 6.1, 6.2 and 6.4
of this Agreement and to enforce specifically the terms and provisions thereof
in any court having jurisdiction, this being in addition to any other remedy to
which they are entitled at law or in equity.

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
above written.

      

      

      
        	 
      	
                “PARENT”

              	 
      
	 
      	 
      	 
      
	 
      	
                TWL
      Corporation,

              	 
      
	 
      	
                a
      Nevada corporation

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	
                Dennis
      Cagan

              	 
      
	 
      	 
      	
                Title:

              	
                Chief
      Executive Officer

              	 
      
	 
      	 
      	 
      
	 
      	
                “MERGER
      SUB”

              	 
      
	 
      	 
      	 
      
	 
      	
                TWL
      Knowledge Group, Inc.,

              	 
      
	 
      	
                a
      Delaware corporation

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	
                Dennis
      Cagan

              	 
      
	 
      	 
      	
                Title:

              	
                Chief
      Executive Officer

              	 
      
	 
      	 
      	 
      
	 
      	
                “COMPANY”

              	 
      
	 
      	 
      	 
      
	 
      	
                Divergent
      Entertainment, Inc.,

              	 
      
	 
      	
                a
      Minnesota corporation

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	
                Daniel
      Hammett

              	 
      
	 
      	 
      	
                Title:

              	
                President

              	 
      
	 
      	 
      	 
      
	 
      	
                “SELLING
      STOCKHOLDER”

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	
                Daniel
      Hammett

              	 
      

      

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

      DISCLOSURE
SCHEDULES

      

      

      

      Schedule
3.3(c)

      

      No
disclosures.

      

      Schedule
3.3(e)

      

      No
disclosures.

      

      Schedule
3.3(f)

      

      No
disclosures.

      

      Schedule
3.4

      

      No
disclosures.

      

      Schedule
3.5

      

      No
disclosures.

      

      Schedule
3.8

      

      No
disclosures

      

      Schedule
3.9(b)

      

      No
disclosures

      

      Schedule
3.9(c)

      

      No
disclosures

      

      Schedule
3.9(e)

      

      No tax
elections have been made.

      

      Schedule
3.9(h)

      

      No
disclosures

      

      Schedule
3.9(k)

      

      No
disclosures.

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

      Schedule
3.9(l)

      

      No
disclosures

      

      Schedule
3.10(a)(i)

      

      Complete
list of all Intellectual Property owned by the Company (the “Owned Proprietary
Rights”).

      

      Technology
prototype for Firefighter training tool

      Trademark:  Everybody
Goes HomeTM

      

      

      Schedule
3.10(a)(ii)

      

      List of
each material license for Intellectual Property licensed by the Company (the
“Licensed Proprietary
Rights”)

      

      
        	
                 
      

              	
                ·

              	
                Divergent
      Entertainment Software Licensing Agreement with Monte
    Cristo

              

      

      

      
        	
                 
      

              	
                ·

              	
                Divergent
      Entertainment Software Licensing Agreement with Big John
    Games

              

      

      

      

      Schedule
3.10(c)

      

      Disclosures
related to ownership of IP

      

      

      Schedule
3.11(a)

      

      List of
all executory Contracts of the Company:

      

      
        	
                 
      

              	
                ·

              	
                Divergent
      Entertainment Software Licensing Agreement with Monte
    Cristo

              

      

      

      
        	
                 
      

              	
                ·

              	
                Divergent
      Entertainment Software Licensing Agreement with Big John
    Games

              

      

      

      Schedule
3.12(a)

      

      No
Disclosures.

      

      Schedule
3.13

      

      No
Disclosures.

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

      Schedule
3.14

      

      No
Disclosures.

      

      Schedule 3.16(a) &
(b)

      

      No
Permits.

      

      Schedule
3.17

      

      Divergent
Entertainment Software Licensing Agreement with Monte Cristo

      

      Divergent
Entertainment Software Licensing Agreement with Big John Games

      

      Schedule
3.20

      

      No
disclosures.

      

      Schedule
3.21

      

      No
disclosures.

      

      Schedule
3.22

      

      No
disclosures.

      

      Schedule
3.24(a)

      

      The
Company does not own any real property and is not a party to any
leases.

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      DELAWARE
CERTIFICATE OF MERGER

      
        
           

        

        
          51

          
            

          

        

        
           

        

      

      EXHIBIT
B

      

      PARENT
STOCK RESTRICTIONS

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

      EXHIBIT
C

      

      HAMMETT
EMPLOYMENT AGREEMENT

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

      EXHIBIT
D

      

      OTTING
OFFER LETTER

       

       
54ex10_1.htm

    
      

    

    CERTAIN
MATERIAL (INDICATED BY AN ASTERISK [*]) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.  THE OMITTED
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

    
 

    
      	
              AWARD
      / CONTRACT

            	
              1.
      THIS CONTRACT IS A RATED ORDER UNDER
      DPAS (15CFR350)

            	 
      ›	
              RATING

              DO-A1

            	
              PAGE  OF

              1

            	 
      	
              PAGES

              19

            
	
              2.  CONTRACT
      NO.  (PROC. INST. IDENT.) NO.

              FA8629-07-D-2376

            	
              3.  EFFECTIVE
      DATE

              22
      DEC 2006

            	
              4.  REQUISITION
      PURCHASE REQUEST PROJECT NO.

              See
      Section G

            

    

    
      	
              5.  ISSUED
      BY:   356 AESG/PK

            	
              CODE

            	
              FA8629

            	
              6.  ADMINISTERED
      BY (IF OTHER THAN ITEM 5)

            	
              CODE

            	
              S0512A

            
	
              USAF/AFMC

            	
              DCMA
      LOS ANGELES

            
	
              AERONAUTICAL
      SYSTEMS CENTER (ASC)

            	
              P.
      O. BOX 9608

            
	
              670
      AESS. 1895 FIFTH STREET

            	
              MISSION
      HILLS CA 91346-9608

            
	
              WRIGHT-PATTERSON
      AFB OH 45433-7200

            	
              DCMALOSANGELES@DCMA.MIL

            
	
              NANCY
      G. LEGGETT     937-255-1696

            	
               
      

            
	
              nancy.leggett@wpafb.af.mil

            	 
      
	 
      	
              SCD:  C       PAS:
      (NONE)

            

    

    
      	
              7.  NAME
      AND ADDRESS OF CONTRACTOR (NO., STREET, CITY, COUNTY, STATE AND ZIP
      CODE)

            	
              8.  DELIVERY

            
	
              AEROVIRONMENT,
      INC.

            	
              o  FOB
      Origin

            	
              x  Other
      (see below)

            
	
              181
      W HUNTINGTON DR STE 202

            	
              9.  DISCOUNT
      FOR PROMPT PAYMENT

            
	
              MONROVIA
      CA 91016-3456

            	
              N

            
	
              (626)
      357-9983

            	 
      
	 
      	
              10.
      SUBMIT INVOICES

              (4 COPIES UNLESS OTHERWISE
      SPECIFIED)  TO THE ADDRESS
      SHOWN IN: 

            	›	
              ITEM

               

            
	
              CAGE
      CODE  60107

               

            	 
      	
              FACILITY
      CODE

               

            	 
      	 
      

    

    
      	
              11.
      SHIP TO MARK FOR

            	
              CODE

            	 
      	
              12.  PAYMENT
      WILL BE MADE BY:

            	
              CODE

            	
              HQ0339

            
	
              See
      Section F

            	
              DFAS
      COLUMBUS CENTER

            
	 
      	
              DFAS-CO/WEST
      ENTITLEMENT OPS

            
	 
      	
              P.
      O. BOX 182381

            
	 
      	
              COLUMBUS
      OH 43218-2381

            
	 
      	
               
      

            
	 
      	
              EFT:  T

            
	
              13.  AUTHORITY
      FOR OTHER THAN FULL AND OPEN COMPETITION

            	
              14.  ACCOUNTING
      AND APPROPRIATION DATA

            
	 
      	 
      

    

    
      	
              15A.
      ITEM NO.

              See
      Section B

            	
              15B.  SUPPLIES
      SERVICES

            	
              15C.
      QUANTITY

            	
              15D.  UNIT

            	
              15E.  UNIT
      PRICE

            	
              15F.  AMOUNT

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              15G.  TOTAL
      AMOUNT OF CONTRACT  ›

            	
              $0.00 
      

            

    

    
      
        
          	
                  16.  Table
      of Contents

                
	 
      	
                  SEC

                	
                                         DESCRIPTION

                	
                  PAGE(S)

                	 
      	
                  SEC

                	
                  DESCRIPTION

                	
                  PAGE(S)

                
	
                        PART
      I – THE SCHEDULE

                	 
      	
                  PART
      II – CONTRACT CLAUSES

                
	
                  √

                	
                  A

                	
                  SOLICITATION/CONTRACT
      FORM

                	
                  1

                	
                  √

                	
                  I

                	
                  CONTRACT
      CLAUSES

                	 
      
	
                  √

                	
                  B

                	
                  SUPPLIES
      OR SERVICES AND PRICES/COSTS

                	
                  2

                	
                  PART
      III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

                
	
                  √

                	
                  C

                	
                  DESCRIPTIONS/SPECS./WORK
      STATEMENTS

                	
                  7

                	
                  √

                	
                  J

                	
                  LIST
      OF ATTACHMENTS

                	 
      
	
                  √

                	
                  D

                	
                  PACKAGING
      AND MARKING

                	
                  8

                	
                  PART
      IV – REPRESENTATIONS AND INSTRUCTIONS

                
	
                  √

                	
                  E

                	
                  INSPECTION
      AND ACCEPTANCE

                	
                  9

                	 
      	
                  K

                	
                  REPRESENTATIONS,
      CERTIFICATIONS AND

                	 
      
	
                  √

                	
                  F

                	
                  DELIVERIES
      OR PERFORMANCE

                	
                  10

                	 
      	 
      	
                  OTHER
      STATEMENTS OF OFFERORS

                	 
      
	
                  √

                	
                  G

                	
                  CONTRACT
      ADMINISTRATION DATA

                	
                  11

                	 
      	
                  L

                	
                  INSTRS,
      CONDS., AND NOTICES TO

                	 
      
	
                  √

                	
                  H

                	
                  SPECIAL
      CONTRACT REQUIREMENTS

                	
                  12

                	 
      	
                  M

                	
                  EVALUATION
      FACTORS FOR AWARD

                	 
      

        

      

    

    
      	
              CONTRACTING
      OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE

            
	
              17.     o    Contractor’s
      Negotiated Agreement

              (Contractor
      is required to sign this document and return _ copies to issuing
      office.) Contractor agrees
      to furnish and deliver all items or perform all the services set forth or
      otherwise identified above and on any continuation sheets for the
      consideration stated herein.  The rights and obligations of the
      parties to this contract shall be subject to and governed by the following
      documents: (a) this award/contract, (b) the solicitation, if any, and (c)
      such provisions, representations, certifications, and specifications, as
      are attached or incorporated by reference herein.  (Attachments
      are listed herein.)

            	
              18.       x    Award
      (Contractor is not required
      to sign this document.)  Your offer on solicitation number _
      including the additions or changes made by you which additions or changes
      are set forth in full above, is hereby accepted as to the items listed
      above and on any continuation sheets.  This award consummates
      the contract which consists of the following documents:  (a) the
      Government’s solicitation and your offer, and (b) this
      award/contract.  No further contractual document is
      necessary.

            
	
              19A.  NAME
      AND TITLE OF SIGNER (TYPE OR PRINT)

            	
              20A.  NAME
      OF CONTRACTING OFFICER

            
	 
      	
              NANCY
      G. LEGGETT

            

    

    
      	
              19B.  Name Of
      Contractor

               

               

               

              by ___________________________

              (Signature
      of person authorized to sign)

            	
              19C. Date
    Signed

            	
              20B.  United
      States of America

               

               

               

              by ___________________________

              (Signature
      of person authorized to sign)

               

            	
              20C.  Date
      Signed

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      PART I -
THE SCHEDULE

      
        SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

      

    

    
      
        

      

       

    

    
      	 
      	 
      	
              Qty

            	
              Unit
      Price

            
	
              ITEM

            	
              SUPPLIES OR SERVICES

            	
              Purch Unit

            	
              Total Item
Amount

            

    

    

    0001

    
      	 
      	
              Noun:

            	
              DEVELOPMENT
      AND INTEGRATION

            
	 
      	
              NSN:

            	
              N -
      Not Applicable

            
	 
      	
              Contract
      type:

            	
              U -
      COST PLUS FIXED FEE

            
	 
      	
              Inspection:

            	
              SOURCE

            
	 
      	
              Acceptance:

            	
              SOURCE

            
	 
      	
              FOB:

            	
              DESTINATION

            
	 
      	
              Descriptive
      Data:

            	 
      
	 
      	
              The
      contractor shall provide development and integration efforts in accordance
      with (IAW) the applicable documents attached to the individual orders
      issued hereunder and the System Specification attached to this
      contract.

            

    

     

    0002

    
      	 
      	
              Noun:

            	
              BATMAV
      SYSTEMS

            
	 
      	
              NSN:

            	
              N -
      Not Applicable

            
	 
      	
              Contract
      type:

            	
              J -
      FIRM FIXED PRICE

            
	 
      	
              Inspection:

            	
              SOURCE

            
	 
      	
              Acceptance:

            	
              SOURCE

            
	 
      	
              FOB:

            	
              DESTINATION

            
	 
      	
              Descriptive
      Data:

            	 
      
	 
      	
              The
      contractor shall deliver BATMAV systems in accordance with (IAW)
      applicable documents attached to the individual orders issued hereunder
      and the System Specification attached to this
  contract.

            

    

     

    0003

    
      	 
      	
              Noun:

            	
              INITIAL
      SPARES

            
	 
      	
              NSN:

            	
              N -
      Not Applicable

            
	 
      	
              Contract
      type:

            	
              J -
      FIRM FIXED PRICE

            
	 
      	
              Inspection:

            	
              SOURCE

            
	 
      	
              Acceptance:

            	
              SOURCE

            
	 
      	
              FOB:

            	
              DESTINATION

            
	 
      	
              Descriptive
      Data:

            	 
      
	 
      	
              The
      contractor shall deliver initial spares in accordance with (IAW)
      applicable documents attached to the individual orders issued hereunder
      and the System Specification attached to this
  contract.

            

    

    
       

      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

      
        
 NSD\93571.2

    

    
      
         

      

      
        PAGE 2 OF
19

        
          

        

      

      
         

      

    

    
      
         

        PART I -
THE SCHEDULE

        
          SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

        

      

      
        
          

        

         

      

    

    
      	 
      	 
      	
              Qty

            	
              Unit
      Price

            
	
              ITEM

            	
              SUPPLIES OR SERVICES

            	
              Purch Unit

            	
              Total Item
Amount

            

    

    

    0004

    
      	 
      	
              Noun:

            	
              TRAINING

            
	 
      	
              NSN:

            	
              N -
      Not Applicable

            
	 
      	
              Contract
      type:

            	
              J -
      FIRM FIXED PRICE

            
	 
      	
              Inspection:

            	
              SOURCE

            
	 
      	
              Acceptance:

            	
              SOURCE

            
	 
      	
              FOB:

            	
              DESTINATION

            
	 
      	
              Descriptive
      Data:

            	 
      
	 
      	
              The
      contractor shall deliver training in accordance with (IAW) applicable
      documents attached to the individual orders issued hereunder and the
      System Specification attached to this contract.  Each class will
      consist of six students, and each student will be provided with a Training
      Reference Manual, as part of the
class.

            

    

     

    0005

    
      	 
      	
              Noun:

            	
              REPAIR
      AND RETURN

            
	 
      	
              NSN:

            	
              N -
      Not Applicable

            
	 
      	
              Contract
      type:

            	
              Y -
      TIME AND MATERIALS

            
	 
      	
              Inspection:

            	
              SOURCE

            
	 
      	
              Acceptance:

            	
              SOURCE

            
	 
      	
              FOB:

            	
              DESTINATION

            
	 
      	
              Descriptive
      Data:

            	 
      
	 
      	
              The
      contractor shall deliver repair and return services in accordance with
      (IAW) applicable documents attached to the individual orders issued
      hereunder and the System Specification attached to this
      contract.

            

    

     

    0006

    
      	 
      	
              Noun:

            	
              DATA

            
	 
      	
              NSN:

            	
              N -
      Not Applicable

            
	 
      	
              DD1423 is
      Exhibit:

            	
              A

            
	 
      	
              Contract
      type:

            	
              J -
      FIRM FIXED PRICE

            
	 
      	
              Inspection:

            	
              SOURCE

            
	 
      	
              Acceptance:

            	
              SOURCE

            
	 
      	
              FOB:

            	
              DESTINATION

            
	 
      	
              Descriptive
      Data:

            	 
      
	 
      	
              The
      contractor shall provide data in accordance with (IAW) applicable
      documents attached to the individual orders issued
      hereunder.  This CLIN is not separately priced (NSP) and the
      price will be included in the price of CLIN
  0001.

            

    

    
       

      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

      
        
 NSD\93571.2

    

    
      
         

      

      
        PAGE 3 OF
19

        
          

        

      

      
         

      

    

    
      
        PART I -
THE SCHEDULE

        
          SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

        

      

      
        
          

        

         

         

      

    

    The
purpose of this contract is the acquisition of the Battlefield Air Targeting
Micro Air Vehicle (BATMAV).  The procurement includes necessary
integration efforts, procurement of the systems, initial spares, training and
sustainment.  The initial customer will be the Air Force Special
Operations Command (AFSOC).  However, it is envisioned that other
customers can later be added onto this contracting vehicle by the contracting
office (670 AESS/PK).

    

    This
Request for Proposal (RFP) will result in the award of an indefinite
delivery/indefinite quantity (ID/IQ) contract.  The Statement of Work
(SOW) for the overall contract is generic in nature.  All requirements
will be acquired by the issuance of a delivery order (DO).  Each
Delivery Order will have a separate Statement of Work.

    

    Note
1:  Rates/Prices for Contract Line Item Numbers (CLINs) X001 - X006
shall apply to each of the contract periods (Government FY), as indicated within
the CLIN matrix shown at Attachment 1 this Contract.

    

    CLIN
X001:  Development and Integration

    CLIN
X002:  BATMAV systems

    CLIN
X003:  Initial Spares

    CLIN
X004:  Training

    CLIN
X005:  Repair and Return

    CLIN
X006:  Data

    

    Note
2:  The following identifiers represent the year/item number sequence
in effect during each contract period.  These numbers will be used in
combination with the line item numbers (for example X002), which are established
in the first digit of the CLIN, for ordering during each contract
period.  For example all BATMAV systems purchased during FY07 (October
01 2006 - September 30 2007) will be identified as CLIN 2002, those systems
purchased during FY08 (October 01 2007 - September 30 2008) will be identified
as CLIN 3002, etc.

    

    I. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated by
reference:

    

    FEDERAL ACQUISITION
REGULATION CONTRACT CLAUSES

    

    II. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    B028
CONTRACT TYPE:  FIRM FIXED PRICE (FEB 1997)

    

    Total
Price $[*]

    

    Applicable
to following Line Items:  0002, 0003, 0004, 0006

    Applies
to Firm-Fixed-Price CLIN(s) only.

    

    B036
CONTRACT TYPE:  TIME-AND-MATERIALS (FEB 1997)

    

    (a) The
Contractor shall furnish at the hourly rates stated below, all necessary and
qualified personnel, managing and directing the same to complete CLIN(s) 0005
within the performance period specified in Section F.  In performance
of these CLIN(s), Contractor shall be reimbursed for direct labor (exclusive of
any work performed in an unpaid overtime status) at the hourly rates listed
below for the identified labor categories.

    

    [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

     

    
      
        
          CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

          
            
 NSD\93571.2

        

        
          
             

          

          
            PAGE 4 OF
19

            
              

            

          

          
             

          

        

      

    

    
       

      PART I -
THE SCHEDULE

      
        SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

      

    

    
      
        

      

       

    

    CATEGORIES                                HOURLY
RATE

    

    Contractors
shall give rates for each category by Government Fiscal year beginning in FY07
(01 October 2006 - 30 September 2007) and continuing until FY11 (01 October 2010
- 30 September 2011).

    

    (b) For
the purposes of the clause of this contract entitled "Payments Under
Time-and-Material and Labor-Hour Contracts", the total ceiling price of the
CLIN(s) specified in paragraph (a) above is $[*].

    Applies
to Time-and-Materials CLIN(s) only.

    

    B039
INDEFINITE QUANTITY (DEC 2005)

    

    This is
an Indefinite Quantity contract as contemplated by FAR 16.504.  The
total scope of the technical tasks for which orders may be issued is set forth
in paragraph 2.0 of the attached Statement of Work (SOW).  The maximum
dollar amount the Government may order under this contract is $45,000,000.00;
the minimum amount is $300,000.00.

    

    B040
ORDERING PROCEDURES (DEC 2005)

    

    (a)
Orders will be issued by a Procuring Contracting Officer in accordance with the
Ordering clause of this contract.  However, the following procedures
shall be used for negotiation of orders.

    

    (1) The
Contracting Officer will provide the Contractor with a copy of the notification
of each proposed Order which will include a description of work to be performed,
description of expertise required, and desired completion date.

    

    (2) The
Contractor shall then:  (i) submit to the Contracting Officer a brief
technical discussion describing how the work will be performed; (ii) submit a
cost proposal identifying labor categories and number of hours within each
category required for the performance of the proposed work; (iii) identify and
provide rationale for all non-labor cost elements required for performance; and
(iv) identify any Government property required for performance.

    

    (3) Upon
receipt of the proposal, the Contracting Officer will analyze the proposal and,
if acceptable, issue an Order directing the Contractor to commence performance,
or if the proposal is not fully acceptable as offered, negotiations shall be
conducted prior to issuance of any Order .  In the event issues
pertaining to proposed work cannot be resolved to the satisfaction of the
Contracting Officer, the Contracting Officer reserves the right to withdraw and
cancel the proposed work.  In such event, the Contractor shall be
notified, via letter, of the Contracting Officer's decision.  This
decision shall be final and conclusive and shall not be subject to the Disputes
clause or the Contract Disputes Act.

    

    (b) The
Contractor is not authorized to commence performance prior to issuance of the
Order by the Contracting Officer.

    

    B042
SEGREGATION OF COSTS (DEC 2005)

    

    The
Contractor shall segregate all costs associated with CLIN 0001 of this contract
from the costs associated with the other CLINs of this contract.

    

    [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

      
        
 NSD\93571.2

    

    
      
         

      

      
        PAGE 5 OF
19

        
          

        

      

      
         

      

    

    
       

      PART I -
THE SCHEDULE

      
        SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

      

    

    
      
        

      

       

    

    B054
IMPLEMENTATION OF LIMITATION OF FUNDS (DEC 2005)

    

    Pursuant
to the clause FAR 52.232-22 in Section I, entitled, "Limitation of Funds", the
total amount available for payment and allotted to this contract for CLIN X001
is shown on the individual delivery order.  It is estimated that this
amount is sufficient to cover performance through (to be shown on the individual
delivery order)

    

    Applies to Cost-Plus-Fixed-Fee
CLIN(s) only.

    

    B058
CONTRACT TYPE:  COST-PLUS-FIXED-FEE (DEC 2005)

    

    The
estimated cost and fee for this contract are shown below.  The
applicable fixed fee set forth below may be increased or decreased only by
negotiation and modification of the contract for added or deleted
work.  As determined by the contracting officer, it shall be paid as
it accrues, in regular installments based upon the percentage of completion of
work (or the expiration of the agreed-upon period(s) for term
contracts).

    

    Estimated
Cost (will be shown on each delivery order)

    Fixed Fee
(will be shown on each delivery order)

    Applies to Cost-Plus-Fixed-Fee
CLIN(s) only.

    

    SOFSG/TI--B001
PAYMENT OF FEE (MAR 2006)

    

    The
estimated cost and fee for this contract are shown below.  The
applicable fixed fee set forth below may be increased or decreased only by
negotiation and modification of the contract for added or deleted
work.  As determined by the contracting officer, it shall be paid as
it accrues in regular installments based upon the percentage of completion of
work .

    

    Estimated
cost $(will be shown on each delivery order)

    Fixed
Fee          $(will be shown
on each delivery order)

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

      
        
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        PAGE 6 OF
19

        
          

        

      

      
         

      

    

    
       

      PART I -
THE SCHEDULE

      
        SECTION F
- DELIVERIES OR PERFORMANCE

      

    

    
      
        

      

       

    

    NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    C001
WORK DESCRIPTION/SPECIFICATION (MAY 1997)

    

    Work
called for by the contract line items specified in SECTION B shall be performed
in accordance with the following:

    

    
      	
              CONTRACT
      LINE ITEM NUMBERS (CLINs)

            	
              DESCRIPTION/SPECIFICATIONS

            
	
              ALL

            	
              BATMAV
      Statement of Work (See Section J)

            
	 
      	
              or

            
	 
      	
              As
      cited on applicable Delivery Orders

            

    

    

    C002
REFERENCE TO SPECIFIC PARAGRAPHS OF THE STATEMENT OF WORK (MAY
1997)

    

    Reference
to specific paragraphs of the Statement of Work (SOW) indicates only where the
CLIN/SubCLIN requirement is principally described and does not absolve the
Contractor from the requirement to comply with the contractual provisions
applicable to those CLINs/SubCLINs.

    

    C003
INCORPORATED DOCUMENTS/REQUIREMENTS (AUG 2006)

    

    (a) The
following documents are a part of this contract:

    

    (1)
Statement of Work dated 29 August 2006

    

    (2) DD
Form 1423, Contract Data Requirements Lists apply, see Exhibit A, dated 21
August 2006.

    

    I. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated by
reference:

    

    

    AIR FORCE MATERIEL COMMAND
FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES

    

    5352.247-9008
CONTRACTOR COMMERCIAL PACKAGING (AFMC) (SEP 1998)

    

    

    II. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    D001
PRESERVATION, PACKAGING, PACKING AND MARKING REQUIREMENTS (FEB
1997)

    

    Preservation,
packaging, packing and marking shall be set forth in the individual
order.

    

    I. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated by
reference:

    

    A. FEDERAL ACQUISITION
REGULATION CONTRACT CLAUSES

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION F

      
        
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        PAGE 7 OF
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      PART I -
THE SCHEDULE

      
        SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

      

      
        
          

        

        
        

      

    

    
      	
              52.246-02

            	
              INSPECTION
      OF SUPPLIES -- FIXED-PRICE (AUG 1996)

            
	
              52.246-03

            	
              INSPECTION
      OF SUPPLIES -- COST-REIMBURSEMENT (MAY 2001)

            
	
              52.246-06

            	
              INSPECTION
      -- TIME-AND-MATERIAL AND LABOR-HOUR (MAY 2001) - ALTERNATE I (APR
      1984)

            
	
              52.246-09

            	
              INSPECTION
      OF RESEARCH AND DEVELOPMENT (SHORT FORM) (APR 1984)

            
	
              52.246-15

            	
              CERTIFICATE
      OF CONFORMANCE (APR 1984)

            
	
              52.246-16

            	
              RESPONSIBILITY
      FOR SUPPLIES (APR 1984)

            

    

    

    B. DEFENSE FEDERAL
ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES

    

    
      	
              252.246-7000

            	
              MATERIAL
      INSPECTION AND RECEIVING REPORT (MAR
2003)

            

    

    

    

    II. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    E006
PAYMENT REQUEST AND RECEIVING REPORT SUBMISSION INSTRUCTIONS (AUG
2006)

    

    (a)
Pursuant to DFARS 252.232-7003, Electronic Submission of Payment Requests, use
of the Wide Area Work Flow - Receipt and Acceptance (WAWF-RA) system for
electronic submission of payment requests and receipt/acceptance documents is
mandatory for this award.  In accordance with DFARS 252.246-7000,
Material Inspection and Receiving Report, use of WAWF-RA fulfills the
requirements for submission of DD Form 250s.

    

    (b)
Technical reports are not to be submitted as attachments in
WAWF-RA.  See F005 for delivery instructions and addresses for these
reports.

    

    (c) A
copy of the receiving report printed from WAWF-RA shall accompany each shipment
which requires a DD Form 250/receiving report.

    

    (d)
PROCESSING STATUS.  Any inquiry as to the processing status of a
payment request or receiving report should be made to the following
office:  DCMA Los Angeles, PO Box 9608, Mission Hills, CA
91346-9608.

    

    I. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated by
reference:

    

    FEDERAL ACQUISITION
REGULATION CONTRACT CLAUSES

    

    
      	
              52.242-15

            	
              STOP-WORK
      ORDER (AUG 1989)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s), Time-and-Materials CLIN(s)
    only.

            
	
              52.242-15

            	
              STOP-WORK
      ORDER (AUG 1989) - ALTERNATE I (APR 1984)

            
	 
      	
              Applies to Cost-Plus-Fixed-Fee
      CLIN(s) only.

            
	
              52.242-17

            	
              GOVERNMENT
      DELAY OF WORK (APR 1984)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.247-34

            	
              F.O.B.
      DESTINATION (NOV 1991)

            
	
              52.247-48

            	
              F.O.B.
      DESTINATION -- EVIDENCE OF SHIPMENT (FEB
1999)

            

    

    

    

    II. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

      
        
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    PART I -
THE SCHEDULE

    
      SECTION B
- SUPPLIES OR SERVICES AND PRICES/COSTS

    

    
      
        

      

       

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    F003
CONTRACT DELIVERIES (FEB 1997)

    

    The
following terms, if used within this contract in conjunction with contract
delivery requirements (including data deliveries), are hereby defined as
follows:

    

    (a) "MAC"
and "MARO" mean "months after the effective date for award of the contractual
action (as shown in block 3, Section A, SF 26)".

    

    (b)
"WARO" means "weeks after the effective date for award of the contractual
action".

    

    (c)
"DARO" means "days after the effective date for award of the contractual
action".

    

    (d)
"ASREQ" means "as required".  Detailed delivery requirements are then
specified elsewhere in Section F.

    

    F007
SHIPMENT ADDRESS (SEP 1997)

    

    To be
cited on applicable delivery orders.

    

    SOFSG/TI--F001
NOTIFICATION REGARDING ADMINISTRATIVE PROBLEMS (MAR 2006)

    

    If at any
time during the performance of this contract administrative problems should
arise which will have an adverse impact on timely performance by the Contractor
or affect the contract price, the Contractor is required to immediately notify
SOFSG/TI, WRIGHT-PATTERSON AFB OH 45433-7233 and the cognizant administrative
contracting officer (ACO).

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION B

      
        
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    PART I -
THE SCHEDULE

    
      SECTION G
- CONTRACT ADMINISTRATION DATA

    

    
      
        

      

      
      

    

    NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    G001
ACCOUNTING AND APPROPRIATION DATA (FEB 1997)

    

    Accounting
and appropriation data will be set forth on individual orders issued
hereunder.

    

    G018
CONTRACT HOLIDAYS (FEB 2003)

    

    (a) The
prices/costs in Section B of the contract include holiday observances;
accordingly, the Government will not be billed for such holidays, except when
services are required by the Government and are actually performed on a
holiday.  Holidays in addition to those reflected in this contract,
which are designated by the Government, will be billable provided the assigned
Contractor employee was available for performance and was precluded from such
performance.

    

    (b) The
following days are contract holidays:  1) New Year's Day, 2) Martin
Luther King Jr's B-day, 3) President's Day, 4) Memorial Day, 5) Independence
Day, 6) Labor Day, 7) Columbus Day, 8) Veteran's Day, 9) Thanksgiving Day, 10)
Christmas Day

    

    SOFSG/TI--G001
REMITTANCE ADDRESS (MAR 2006)

    

    (to be
completed for the basic contract)

    

    If the
remittance address is different from the mailing address, enter the remittance
address below. Failure to provide this information may impact
payment.

     

    ________________________________________

    ________________________________________

    ________________________________________

    ________________________________________

     

    
      
        CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION G

        
          

        

         NSD\93571.2

         

      

    

    
      
        
           

        

        
          PAGE 10 OF
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      PART I -
THE SCHEDULE

      
        SECTION H
- SPECIAL CONTRACT REQUIREMENTS

      

      
        
          

        

         

      

    

    NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    

    OTHER CONTRACT CLAUSES IN
FULL TEXT

    

    H001
OPTIONS (MAY 1997)

    

    The
Government reserves the right to exercise option(s) subject to the conditions
stated in the applicable delivery order.  In the event an option is
exercised, the affected sections of the contract, e.g., Section B, Section F,
Section G, etc., will be modified as appropriate.

    

    H025
INCORPORATION OF SECTION K (OCT 1998)

    

    Section K
of the solicitation is hereby incorporated by reference.

    

    H055
INSURANCE CLAUSE IMPLEMENTATION (FEB 2003)

    

    The
Contractor shall obtain and maintain the minimum kinds and amounts of insurance
during performance of this contract as specified by FAR 28.307-2, Liability, and
contemplated by FAR 52.228-5, Insurance--Work on a Government Installation,
and/or 52.228-7, Insurance--Liability to Third Persons. Applies to Cost-Plus-Fixed-Fee
CLIN(s) only.

    

    H087
GOVERNMENT- FURNISHED PROPERTY (GFP) (FEB 2003)

    

    Pursuant
to the Government Property clause herein, the Government may furnish the item(s)
of property listed below as Government-Furnished Property (GFP) to the
Contractor, f.o.b. destination, for use in performance of this
contract.  Upon completion of the contract, the Contractor shall
obtain disposition instructions from the Government Property Administrator of
the activity having responsibility for administration of the
contract.  The full listing of GFP to be used on this contract will be
listed on Atch 6.

    

    ITEM
DESCRIPTION

    

    FalconView
Software - currently fielded version of AF mapping program

    UAV Tool
Software - prototype video tool for UAV video

    AFRL/HE
Voice Control software suite - prototype voice control software compatible with
AF version of

    OCU

    Panasonic
CF-18 Toughbook Computer

    

    SOFSG/TI--H001
MODIFICATION OF DATA REQUIREMENTS (MAR 2006)

    

    During
the performance of this contract the CO may desire to make minor changes to the
CDRL that are expected to have no impact on the established contract prices and
value.  These changes include such things as change in place of
delivery and other administrative and clarification changes to the
CDRL.  The contractor will be informed of these changes by issuance of
a CO letter that will reference this paragraph as its
authority.  Within 10 days of receipt of the CO letter the contractor
will notify the CO in writing either (1) that he will proceed with the changes
at no change in the price(s) of the contract, or (2) that there is an impact on
the contract price(s).  For those changes described under (2) above,
the contractor will, at the COs direction, submit a contract change proposal and
will not proceed with any of the changes described in the CO letter until
authorization from the CO.  For those changes described in (1) above,
the contractor will proceed with the change(s) described in, and under the
authority of, the CO letter.  Once a year, the CDRL changes that have
been directed in this manner, and are accomplished at no change in contract
price(s), will be formally incorporated into a no change in price, unilateral
contract modification.

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION H

      
        
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    PART I -
THE SCHEDULE

    
      SECTION H
- SPECIAL CONTRACT REQUIREMENTS

    

    
      
        

      

       

    

    SOFSG/TI--H002
ORDERS (MAR 2006)

    

    Orders
will be issued by a Contracting Officer (CO) in accordance with the Ordering
clause of this contract.  However, the following procedures shall be
used for negotiation of orders.

    

    a) The
Contracting Officer will provide the Contractor with a letter request for
proposal (letter RFP) which will include a Statement of Work (SOW) decribing the
work to be performed, and desired completion date.  Estimates shall be
furnished to the Contracting Officer within fifteen (15) working days from the
date of the letter RFP.  Each proposal shall, on its face, identify
the contract number, the SOW title and date, and the delivery order
number.

    

    b) Upon
reciept of any RFP issued hereunder by the Contracting Officer, the Contractor,
pursuant to such Order, shall furnish to the Government services, materials, and
data of the type and at the prices set forth in the Schedule.  Orders
may be issued at the sole option of the Government during the period set forth
in the "Ordering" clause hereof.  Only contracting officers of the
office issuing the basic contract may issue orders under this
contract.

    

    c) The
Contractor is not authorized to commence performance prior to issuance of the
Order by the Contracting Officer.

    

    d) The
Government reserves the right to not award a delivery order after requesting a
delivery order estimate.

    

    SOFSG/TI--H003
CONTRACT MINIMUM/MAXIMUM (MAR 2006)

    

    For the
purposes of paragraph of the clause entitled "Indefinite Quantity", the minimum
shall be $300,000 for the life of the contract.  The maximum shall be
$45,000,000 for all orders.

    

    (IAW FAR
52.215-22(b)

    

    SOFSG/TI--H005
CLIN MATRIX (JUL 2006)

    

    The
government reserves the right to procure additional BATMAV systems, intial
spares, training, repair and return and data in accordance with the CLIN matrix
at Attachment 1 to this contract.  The prices apply to the government
fiscal year in which the order is placed, and data shall be Not Separately
Priced (NSP).

    

    SOSFG/TI--H004
ENGINEERING CHANGES (JUN 2006)

    

    The Firm
Fixed Price (FFP) supply CLINs on this contract will be used as a baseline to
negotiate a fair and reasonable price for any configuration changes to the
initial spiral.  Development of configuration changes subsequent to
this baseline will be accomplished as an Engineering Change
Proposal.

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION H

      
        
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    PART II -
CONTRACT CLAUSES

    
      SECTION I
- CONTRACT CLAUSES

    

    
      
        

      

       

    

    Contract
Clauses in this section are from the FAR, Defense FAR Sup, Air Force FAR Sup,
and the Air Force Materiel Command FAR Sup, and are current through the
following updates:

    

    Database_Version:  6.10.x.500;
Issued:  1/14/2008; FAR:  FAC 2005-23 (Partial);
DFAR:  DCN20080110; DL.:  DL 98-021; Class
Deviations:  CD 2007o0011; AFFAR:  2002 Edition;
AFMCFAR:  AFMC 2007; AFAC:  AFAC 2007-0823;
IPN:  98-009

    

    

    I. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated by
reference:

    

    

    A. FEDERAL ACQUISITION
REGULATION CONTRACT CLAUSES

    

    
      	
              52.202-01

            	
              DEFINITIONS
      (JUL 2004)

            
	
              52.203-03

            	
              GRATUITIES
      (APR 1984)

            
	
              52.203-05

            	
              COVENANT
      AGAINST CONTINGENT FEES (APR 1984)

            
	
              52.203-06

            	
              RESTRICTIONS
      ON SUBCONTRACTOR SALES TO THE GOVERNMENT (JUL 1995)

            
	
              52.203-07

            	
              ANTI-KICKBACK
      PROCEDURES (JUL 1995)

            
	
              52.203-08

            	
              CANCELLATION,
      RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY (JAN
      1997)

            
	
              52.203-10

            	
              PRICE
      OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (JAN
    1997)

            
	
              52.203-12

            	
              LIMITATION
      ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEP
      2005)

            
	
              52.204-04

            	
              PRINTED
      OR COPIED DOUBLE-SIDED ON RECYCLED PAPER (AUG 2000)

            
	
              52.204-07

            	
              CENTRAL
      CONTRACTOR REGISTRATION (JUL 2006)

            
	
              52.209-06

            	
              PROTECTING
      THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH CONTRACTORS DEBARRED,
      SUSPENDED, OR PROPOSED FOR DEBARMENT (SEP 2006)

            
	
              52.211-05

            	
              MATERIAL
      REQUIREMENTS (AUG 2000)

            
	
              52.213-01

            	
              FAST
      PAYMENT PROCEDURE (MAY 2006)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.215-02

            	
              AUDIT
      AND RECORDS -- NEGOTIATION (JUN 1999)

            
	
              52.215-08

            	
              ORDER
      OF PRECEDENCE--UNIFORM CONTRACT FORMAT (OCT 1997)

            
	
              52.215-11

            	
              PRICE
      REDUCTION FOR DEFECTIVE COST OR PRICING DATA -- MODIFICATIONS (OCT
      1997)

            
	
              52.215-13

            	
              SUBCONTRACTOR
      COST OR PRICING DATA--MODIFICATIONS (OCT 1997)

            
	
              52.215-14

            	
              INTEGRITY
      OF UNIT PRICES (OCT 1997)

            
	
              52.215-17

            	
              WAIVER
      OF FACILITIES CAPITAL COST OF MONEY (OCT 1997)

            
	
              52.215-19

            	
              NOTIFICATION
      OF OWNERSHIP CHANGES (OCT 1997)

            
	
              52.216-07

            	
              ALLOWABLE
      COST AND PAYMENT (DEC 2002)

            
	 
      	
              Applies to Cost-Plus-Fixed-Fee
      CLIN(s) only.

            
	
              52.216-08

            	
              FIXED
      FEE (MAR 1997)

            
	 
      	
              Applies to Cost-Plus-Fixed-Fee
      CLIN(s) only.

            
	
              52.216-18

            	
              ORDERING
      (OCT 1995)

            
	 
      	
              Para
      (a), Issued from date is '15 DEC 2006'

            
	 
      	
              Para
      (a), Issued through date is '30 SEP 2011'

            
	
              52.216-19

            	
              ORDER
      LIMITATIONS (OCT 1995)

            
	 
      	
              Para
      (a).  Insert Dollar amount or
      quantity.    '$2,500.00'

            
	 
      	
              Para
      (b)(1). Insert dollar amount or
      quantity    '$45,000,000.00'

            
	 
      	
              Para
      (b)(2). Insert dollar amount or
      quantity.    '$45,000,000.00'

            
	 
      	
              Para
      (b)(3). Insert number of days. '30'

            
	 
      	
              Para
      (d). Insert number of days. '7'

            
	
              52.216-22

            	
              INDEFINITE
      QUANTITY (OCT 1995)

            
	 
      	
              Para
      (d), Date is '30 SEP 2014'

            

    

     

    
      
        CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION I

        
          
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      PART II -
CONTRACT CLAUSES

      
        SECTION I
- CONTRACT CLAUSES

      

      
        
          

        

        
        

      

    

    
      	
              52.217-07

            	
              OPTION
      FOR INCREASED QUANTITY -- SEPARATELY PRICED LINE ITEM (MAR
      1989)

            
	 
      	
              Period
      of time is 'the times specified on individual delivery
      orders.'

            
	
              52.219-06

            	
              NOTICE
      OF TOTAL SMALL BUSINESS SET-ASIDE (JUN 2003)

            
	
              52.219-08

            	
              UTILIZATION
      OF SMALL BUSINESS CONCERNS (MAY 2004)

            
	
              52.219-14

            	
              LIMITATIONS
      ON SUBCONTRACTING (DEC 1996)

            
	
              52.222-01

            	
              NOTICE
      TO THE GOVERNMENT OF LABOR DISPUTES (FEB 1997)

            
	
              52.222-02

            	
              PAYMENT
      FOR OVERTIME PREMIUMS (JUL 1990)

            
	 
      	
              Para
      (a), Dollar amount is '$0.00'

            
	
              52.222-20

            	
              WALSH-HEALEY
      PUBLIC CONTRACTS ACT (DEC 1996)

            
	
              52.222-21

            	
              PROHIBITION
      OF SEGREGATED FACILITIES (FEB 1999)

            
	
              52.222-26

            	
              EQUAL
      OPPORTUNITY (APR 2002)

            
	
              52.222-35

            	
              EQUAL
      OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA,
      AND OTHER ELIGIBLE VETERANS (DEC 2001)

            
	
              52.222-36

            	
              AFFIRMATIVE
      ACTION FOR WORKERS WITH DISABILITIES (JUN 1998)

            
	
              52.222-37

            	
              EMPLOYMENT
      REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND
      OTHER ELIGIBLE VETERANS (DEC 2001)

            
	
              52.222-39

            	
              NOTIFICATION
      OF EMPLOYEE RIGHTS CONCERNING PAYMENT OF UNION DUES OR FEES (DEC
      2004)

            
	
              52.223-06

            	
              DRUG-FREE
      WORKPLACE (MAY 2001)

            
	
              52.225-08

            	
              DUTY-
      FREE ENTRY (FEB 2000)

            
	
              52.225-13

            	
              RESTRICTIONS
      ON CERTAIN FOREIGN PURCHASES (FEB 2006)

            
	
              52.227-01

            	
              AUTHORIZATION
      AND CONSENT (JUL 1995)

            
	
              52.227-02

            	
              NOTICE
      AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (AUG
      1996)

            
	
              52.228-07

            	
              INSURANCE
      -- LIABILITY TO THIRD PERSONS (MAR 1996)

            
	 
      	
              Applies to Cost-Plus-Fixed-Fee
      CLIN(s) only.

            
	
              52.229-03

            	
              FEDERAL,
      STATE, AND LOCAL TAXES (APR 2003)

            
	
              52.229-04

            	
              FEDERAL,
      STATE, AND LOCAL TAXES (STATE AND LOCAL ADJUSTMENTS) (APR
      2003)

            
	
              52.232-01

            	
              PAYMENTS
      (APR 1984)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.232-07

            	
              PAYMENTS
      UNDER TIME-AND-MATERIALS AND LABOR-HOUR CONTRACTS (AUG
    2005)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s) only.

            
	
              52.232-08

            	
              DISCOUNTS
      FOR PROMPT PAYMENT (FEB 2002)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.232-11

            	
              EXTRAS
      (APR 1984)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.232-16

            	
              PROGRESS
      PAYMENTS (APR 2003) - ALTERNATE I (MAR 2000)

            
	 
      	
              Applies to Firm-Fixed-Price
      CLIN(s) only.

            
	
              52.232-17

            	
              INTEREST
      (JUN 1996)

            
	
              52.232-20

            	
              LIMITATION
      OF COST (APR 1984)

            
	
              52.232-22

            	
              LIMITATION
      OF FUNDS (APR 1984)

            
	 
      	
              Applies
      to Cost-Plus-Fixed-Fee CLIN(s) only.

            
	
              52.232-23

            	
              ASSIGNMENT
      OF CLAIMS (JAN 1986)

            
	
              52.232-25

            	
              PROMPT
      PAYMENT (OCT 2003)

            
	
              52.232-33

            	
              PAYMENT
      BY ELECTRONIC FUNDS TRANSFER--CENTRAL CONTRACTOR REGISTRATION (OCT
      2003)

            
	
              52.233-01

            	
              DISPUTES
      (JUL 2002)

            
	
              52.233-03

            	
              PROTEST
      AFTER AWARD (AUG 1996)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s), Time-and-Materials CLIN(s)
    only.

            
	
              52.233-03

            	
              PROTEST
      AFTER AWARD (AUG 1996) - ALTERNATE I (JUN 1985)

            
	 
      	
              Applies
      to Cost-Plus-Fixed-Fee CLIN(s) only.

            
	
              52.233-04

            	
              APPLICABLE
      LAW FOR BREACH OF CONTRACT CLAIM (OCT 2004)

            
	
              52.242-01

            	
              NOTICE
      OF INTENT TO DISALLOW COSTS (APR
1984)

            

    

     

    
      
        CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION I

        
          
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        PAGE 14 OF
19

        
          

        

      

      
        
        

      

    

    
       

      PART II -
CONTRACT CLAUSES

      
        SECTION I
- CONTRACT CLAUSES

      

      
        
          

        

        
        

      

    

    
      	 
      	
              Applies
      to Cost-Plus-Fixed-Fee CLIN(s) only.

            
	
              52.242-03

            	
              PENALTIES
      FOR UNALLOWABLE COSTS (MAY 2001)

            
	
              52.242-04

            	
              CERTIFICATION
      OF FINAL INDIRECT COSTS (JAN 1997)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s), Cost-Plus-Fixed-Fee CLIN(s)
      only.

            
	
              52.242-13

            	
              BANKRUPTCY
      (JUL 1995)

            
	
              52.243-01

            	
              CHANGES
      -- FIXED-PRICE (AUG 1987)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.243-01

            	
              CHANGES
      -- FIXED-PRICE (AUG 1987) - ALTERNATE II (APR 1984)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              52.243-02

            	
              CHANGES
      -- COST-REIMBURSEMENT (AUG 1987)

            
	 
      	
              Applies to Cost-Plus-Fixed-Fee
      CLIN(s) only.

            
	
              52.243-02

            	
              CHANGES
      -- COST-REIMBURSEMENT (AUG 1987) - ALTERNATE II (APR
  1984)

            
	 
      	
              Applies
      to Cost-Plus-Fixed-Fee CLIN(s) only.

            
	
              52.243-03

            	
              CHANGES
      -- TIME-AND-MATERIALS OR LABOR-HOURS (SEP 2000)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s) only.

            
	
              52.244-06

            	
              SUBCONTRACTS
      FOR COMMERCIAL ITEMS (SEP 2006)

            
	
              52.245-02

            	
              GOVERNMENT
      PROPERTY (FIXED-PRICE CONTRACTS) (MAY 2004)

            
	
              52.245-04

            	
              GOVERNMENT-FURNISHED
      PROPERTY (SHORT FORM) (JUN 2003)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s), Time-and-Materials CLIN(s)
    only.

            
	
              52.245-05

            	
              GOVERNMENT
      PROPERTY (COST-REIMBURSEMENT, TIME-AND-MATERIAL, OR LABOR-HOUR CONTRACTS)
      (DEVIATION) (MAY 2004)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s), Cost-Plus-Fixed-Fee CLIN(s)
      only.

            
	
              52.245-19

            	
              GOVERNMENT
      PROPERTY FURNISHED "AS IS" (APR 1984)

            
	
              52.246-23

            	
              LIMITATION
      OF LIABILITY (FEB 1997)

            
	
              52.249-02

            	
              TERMINATION
      FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) (MAY
  2004)

            
	
              52.249-06

            	
              TERMINATION
      (COST-REIMBURSEMENT) (MAY 2004)

            
	 
      	
              Applies
      to Cost-Plus-Fixed-Fee CLIN(s) only.

            
	
              52.249-06

            	
              TERMINATION
      (COST-REIMBURSEMENT) (MAY 2004) - ALTERNATE IV (SEP
  1996)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s) only.

            
	
              52.249-08

            	
              DEFAULT
      (FIXED-PRICE SUPPLY AND SERVICE) (APR 1984)

            
	
              52.249-14

            	
              EXCUSABLE
      DELAYS (APR 1984)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s), Cost-Plus-Fixed-Fee CLIN(s)
      only.

            
	
              52.253-01

            	
              COMPUTER
      GENERATED FORMS (JAN 1991)

            

    

    

    B. DEFENSE FEDERAL
ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES

    

    
      	
              252.203-7001

            	
              PROHIBITION
      ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE- CONTRACT- RELATED FELONIES
      (DEC 2004)

            
	
              252.203-7002

            	
              DISPLAY
      OF DOD HOTLINE POSTER (DEC 1991)

            
	
              252.204-7000

            	
              DISCLOSURE
      OF INFORMATION (DEC 1991)

            
	
              252.204-7003

            	
              CONTROL
      OF GOVERNMENT PERSONNEL WORK PRODUCT (APR 1992)

            
	
              252.204-7004

            	
              ALTERNATE
      A TO FAR 52.204-7, CENTRAL CONTRACTOR REGISTRATION (NOV
    2003)

            
	
              252.204-7006

            	
              BILLING
      INSTRUCTIONS (OCT 2005)

            
	
              252.205-7000

            	
              PROVISION
      OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS (DEC
  1991)

            
	
              252.211-7003

            	
              ITEM
      IDENTIFICATION AND VALUATION (JUN 2005)

            
	 
      	
              Para
      (c)(1)(ii).  Items with acquisition cost less than
      $5,000.  'NONE'

            
	 
      	
              Para
      (c)(1)(iii).  Attachment Nr.  'N/A'

            
	
              252.215-7000

            	
              PRICING
      ADJUSTMENTS (DEC 1991)

            
	
              252.225-7002

            	
              QUALIFYING
      COUNTRY SOURCES AS SUBCONTRACTORS (APR 2003)

            
	
              252.225-7012

            	
              PREFERENCE
      FOR CERTAIN DOMESTIC COMMODITIES (JUN 2004)

            
	
              252.225-7014

            	
              PREFERENCE
      FOR DOMESTIC SPECIALTY METALS (JUN 2005) - ALTERNATE I (APR
      2003)

            
	
              252.225-7016

            	
              RESTRICTION
      ON ACQUISITION OF BALL AND ROLLER BEARINGS (MAR
  2006)

            

    

    
      
         

        CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION I

        
          

        

         NSD\93571.2

         

      

    

    
      
        
        

      

      
        PAGE 15 OF
19

        
          

        

      

      
        
        

      

    

    
       

      PART II -
CONTRACT CLAUSES

      
        SECTION I
- CONTRACT CLAUSES

      

      
        
          

        

        
        

      

    

    
      	
              252.227-7013

            	
              RIGHTS
      IN TECHNICAL DATA--NONCOMMERCIAL ITEMS (NOV 1995)

            
	
              252.227-7014

            	
              RIGHTS
      IN NONCOMMERCIAL COMPUTER SOFTWARE AND NONCOMMERCIAL COMPUTER SOFTWARE
      DOCUMENTATION (JUN 1995)

            
	
              252.227-7015

            	
              TECHNICAL
      DATA--COMMERCIAL ITEMS (NOV 1995)

            
	
              252.227-7016

            	
              RIGHTS
      IN BID OR PROPOSAL INFORMATION (JUN 1995)

            
	
              252.227-7030

            	
              TECHNICAL
      DATA--WITHHOLDING OF PAYMENT (MAR 2000)

            
	
              252.227-7037

            	
              VALIDATION
      OF RESTRICTIVE MARKINGS ON TECHNICAL DATA (SEP 1999)

            
	
              252.231-7000

            	
              SUPPLEMENTAL
      COST PRINCIPLES (DEC 1991)

            
	
              252.232-7004

            	
              DOD
      PROGRESS PAYMENT RATES (OCT 2001)

            
	
              252.232-7006

            	
              ALTERNATE
      A TO FAR 52.232-7, PAYMENTS UNDER TIME-AND-MATERIALS AND LABOR-HOUR
      CONTRACTS (DEC 2003)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s) only.

            
	
              252.232-7009

            	
              MANDATORY
      PAYMENT BY GOVERNMENTWIDE COMMERCIAL PURCHASE CARD (JUL
    2000)

            
	
              252.232-7010

            	
              LEVIES
      ON CONTRACT PAYMENTS (DEC 2006)

            
	
              252.243-7001

            	
              PRICING
      OF CONTRACT MODIFICATIONS (DEC 1991)

            
	 
      	
              Applies
      to Firm-Fixed-Price CLIN(s) only.

            
	
              252.245-7001

            	
              REPORTS
      OF GOVERNMENT PROPERTY (MAY 1994)

            
	 
      	
              Applies
      to Time-and-Materials CLIN(s), Cost-Plus-Fixed-Fee CLIN(s)
      only.

            
	
              252.247-7023

            	
              TRANSPORTATION
      OF SUPPLIES BY SEA (MAY 2002)

            

    

    

    C. AIR FORCE FEDERAL
ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES

    

    
      	
              5352.201-9101

            	
              OMBUDSMAN
      (AUG 2005)

            
	 
      	
              Para
      (c). Ombudsmen names, addresses, phone numbers, fax, and email addresses.
      'Mr. Steve Miller, ASC/AE, 1755 Eleventh Street, Bldg 570, Room 113,
      Wright-Patterson OH 45433-7404. Phone A/C 937-255-5315. Fax A/C
      937-656-7193.'

            
	
              5352.223-9000

            	
              ELIMINATION
      OF USE OF CLASS I OZONE DEPLETING SUBSTANCES (ODS) (APR
    2003)

            
	 
      	
              Para
      (c), List of Class I ODSs. 'NONE'

            

    

    

    

    II. NOTICE:  The
following contract clauses pertinent to this section are hereby incorporated in
full text:

    

    

    A. FEDERAL ACQUISITION
REGULATION CONTRACT CLAUSES IN FULL TEXT

    

    52.211-15
DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS (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).

    

    52.252-02
CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

    

    This
contract incorporates one or more clauses by reference, with the same force and
effect as if they were given in full text.  Upon request, the
Contracting Officer will make their full text available.  Also, the
full text of a clause may be accessed electronically at this/these
address(es):  http://farsite.hill.af.mil/

    

    52.252-06
AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)

    

    (a) The
use in this solicitation or contract of any Federal Acquisition Regulation (48
CFR Chapter 1) clause with an authorized deviation is indicated by the addition
of "(DEVIATION)" after the date of the clause.

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION I

      
        
 NSD\93571.2

    

    
      
         

      

      
        PAGE 16 OF
19

        
          

        

      

      
         

      

    

     

    PART II -
CONTRACT CLAUSES

    
      SECTION I
- CONTRACT CLAUSES

    

    
      
        

      

       

    

    (b) The
use in this solicitation or contract of any Defense Federal Acquisition
Regulation Supplement (48 CFR Chapter 2) clause with an authorized deviation is
indicated by the addition of "(DEVIATION)" after the name of the
regulation.

    

    B. AIR FORCE MATERIEL
COMMAND FEDERAL ACQUISITION REGULATION SUPPLEMENT CONTRACT CLAUSES IN FULL
TEXT

    

    5352.215-9005
INCORPORATION OF CONTRACTOR'S TECHNICAL PROPOSAL (AFMC) (AUG 1998)

    

    (a) The
following documents are incorporated herein by reference and made a part of this
contract:

    

    The Contractor's Technical Proposal
dated 29 August 2006

    

    (b)
Nothing contained in the Contractor's technical proposal shall constitute a
waiver to any other requirement of this contract.  In the event of any
conflict between the Contractor's technical proposal and any other requirement
of the contract, the conflict shall be resolved in accordance with the Order of
Precedence clause.  For purposes of the Order of Precedence clause the
document(s) listed above shall rank below the schedule, representations and
clauses within the contract.

    

    (c) The
detailed technical content of the Contractor's proposal was an important factor
in the selection of the Contractor for award of this contract.  The
documents listed above are now contractually binding.  The Contractor
shall not change or otherwise deviate from the content of these documents
without prior written approval from the Contracting Officer.

    

    (d) If it
is necessary to change the performance, design, configuration, or other items
specified in the technical proposal in order to comply with the requirements of
the contract clauses, special contract requirements, or statement of work, the
contract shall be modified appropriately.

    

    (e) The
Contractor agrees that the documents listed above reflects the results/responses
to exchanges and /or Evaluation Notices (ENs) issued during the negotiation
process.  If, after contract award, it is discovered that changes made
during negotiations were not incorporated in the SOW and/or technical proposal,
such changes to the Contractor's documents shall be considered administrative in
nature and shall be made by unilateral modification to the contract, at no
change in contract cost or price or other terms and conditions.

     

    
      CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION I

      
        
 NSD\93571.2

    

    
      
         

      

      
        PAGE 17 OF
19

        
          

        

      

      
         

      

    

     

    PART III
- LIST OF DOCUMENTS, EXHIBITS AND ATTACHMENTS

    
      SECTION J
- LIST OF ATTACHMENTS

    

    
      
        

      

       

    

    
      	
              DOCUMENT

            	
              PGS

            	
              DATE

            	
              TITLE

            
	 
      	 
      	 
      	 
      
	
              EXHIBIT
      A

            	
              15

            	
              30
      JAN 2007

            	
              DD
      1423 CONTRACT DATA REQUIREMENTS LIST

            
	
              This
      attachment/exhibit was modified by:  P00001.

            	 
      
	 
      	 
      
	
              ATTACHMENT
      1

            	
              2

            	
              20
      APR 2007

            	
              CLIN
      MATRIX -- COST OF CLINS IN THE OUTYEARS

            
	
              This
      attachment/exhibit was modified by:  P00002.

            	 
      
	 
      	 
      
	
              ATTACHMENT
      2

            	
              15

            	
              16
      APR 2007

            	
              STATEMENT
      OF WORK (SOW)

            
	
              This
      attachment/exhibit was modified by:  P00002,
    P00003.

            
	 
      
	
              ATTACHMENT
      3

            	
              32

            	
              14
      MAY 2007

            	
              SYSTEM
      SPECIFICATION

            
	
              This
      attachment/exhibit was modified by:  P00003.

            
	 
      
	
              ATTACHMENT
      4

            	
              41

            	
              29
      AUG 2006

            	
              INTEGRATED
      MASTER PLAN (IMP)

            
	 
      	 
      	 
      	 
      
	
              ATTACHMENT
      5

            	
              1

            	
              29
      AUG 2006

            	
              CONTRACT
      WORK BREAKDOWN STRUCTURE (CWBS)

            
	 
      	 
      	 
      	 
      
	
              ATTACHMENT
      6

            	
              1

            	
              29
      AUG 2006

            	
              GOVERNMENT
      FURNISHED PROPERTY

            
	 
      	 
      	 
      	 
      
	
              ATTACHMENT
      7

            	
              3

            	
              07
      FEB 2007

            	
              WIDE
      AREA WORKFLOW - RECEIPT AND ACCEPTANCE (WAWF-RA) ELECTRONIC INVOICING AND
      RECEIVING REPORT INSTRUCTIONS

            
	
              This
      attachment/exhibit was modified by:  P00001.

            
	 
      
	
              ATTACHMENT
      8

            	
              1

            	
              28
      AUG 2007

            	
              CATALOG
      LISTING

            
	
              This
      attachment/exhibit was modified by:  P00004.

            	 
      
	 
      	 
      
	
              ATTACHMENT
      9

            	
              1

            	
              28
      AUG 2007

            	
              INITIAL
      SPARES PACKAGE

            
	
              This
      attachment/exhibit was modified by:  P00004.

            	 
      

    

     

    
      
        CONFORMED
CONTRACT FA8629-07-D-2376 (01-22-2008)   SECTION J

        
          
 NSD\93571.2

      

    

    

      
        
           

        

        
          PAGE 18 OF
19

          
            

          

        

        
           

        

      

     

    
       

       

      
        
          	 
      	
                  AUTOMATED
      DATA MANAGEMENT SYSTEM

                	 
      
	 
      	 
      	 
      
	
                  03/07/2007

                	
                  CDRL
      TABLE OF CONTENTS

                	 
      
	 
      	 
      	 
      
	
                  10:45:56

                	
                  CONTRACT
      #: FA8629-07-D-2376

                	 
      
	 
      	 
      	 
      
	
                  SET
      NAME BATMAV-1

                	
                                
      CONTRACTOR: AEROVIRONMENT, INC

                	 
      
	 
      	 
      	 
      
	
                  PROGRAM
      ID : BATMA

                	
                  SYSTEM
      ITEM: BATMAV

                	 
      

        

        

        
          	
                  DATA
      ITEM

                	
                  REQUIRING
      OFFICE

                	
                  AUTHORITY
      / TITLE / SUBTITLE

                	
                  SOW
      PARAGRAPH

                
	 
      	 
      	 
      	 
      
	
                  A001

                	
                  SOFSG/TI

                	
                  DI-MISC-81418

                  Operating
      Procedures Manual

                  Acceptance
      Test Procedures

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A002

                	
                  SOFSG/TI

                	
                  DI-TMSS-80527A

                  Commercial
      Off-the-Shelf (COTS) Manual

                  Training
      and Operator's Manual

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A003

                	
                  SOFSG/TI

                	
                  DI-MGMT-80177A/T

                  Bar
      Code Identification Report

                  UID

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A004

                	
                  SOFSG/TI

                	
                  DI-ADMN-81250A

                  Conference
      Minutes

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A005

                	
                  SOFSG/TI

                	
                  DI-NOTI-80566/T

                  Test
      Plan

                  Contractor's
      Test Plan

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A006

                	
                  SOFSG/TI

                	
                  DI-CMAN-80858B

                  Contractor's
      Configuration Management Plan

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A007

                	
                  SOFSG/TI

                	
                  DI-CMAN-81248A

                  Interface
      Contral Document (ICD)

                  Swappable
      Payload & Voice Control Software

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A008

                	
                  SOFSG/TI

                	
                  DI-MISC-81183A/T

                  Integrated
      Master Schedule (IMS)

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A009

                	
                  SOFSG/TI

                	
                  DI-IPSC-81488

                  Computer
      Software Product

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A010

                	
                  SOFSG/TI

                	
                  DI-IPSC-81431A

                  System/Subsystem
      Specification (SSS)

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A011

                	
                  SOFSG/TI

                	
                  DI-IPSC-81442A

                  Software
      Version Description (SVD)

                	
                  SOW
      Para.

                
	 
      	 
      	 
      	 
      
	
                  A012

                	
                  SOFSG/TI

                	
                  DI-ADMN-81401A

                  Contract
      Change Proposal (CCPs)

                	
                  SOW
      Para.   3.0

                
	 
      	 
      	 
      	 
      
	
                  A013

                	
                  SOFSG/TI

                	
                  DI-CMAN-80639C/T

                  Engineering
      Change Proposal (ECP)

                	
                  SOW
      Para.   3.0

                
	 
      	 
      	 
      	 
      
	
                  A014

                	
                  SOFSG/TI

                	
                  DI-CMAN-80640C/T

                  Request
      for Deviation (RFD)

                	
                  SOW
      Para.   3.0

                

        

         

      

      
        
          
          

        

        
          Page
1

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  CONTRACT
      DATA REQUIREMENTS LIST

                  (1
      Data Item)

                	
                  Form
      Approved        

                  OMB
      No. 0704-0188

                
	
                  Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                

        

        
          	
                  A.
      CONTRACT LINE ITEM NO.

                	
                  B.
      EXHIBIT

                	
                  C.
      CATEGORY 

                  TDP         TM         OTHER

                

        

        
          	
                  D.
      SYSTEM/ITEM 

                  BATMAV

                	
                  E.
      CONTRACT/PR NO. 

                  FA8629-07-D-2376

                	
                  F.
      CONTRACTOR 

                  AEROVIRONMENT,
      INC.

                

        

        
          	
                  1.
      DATA ITEM NO 

                  A001

                	
                  2.
      TITLE OF DATA ITEM 

                  Operating
      Procedures Manual

                	
                  3.
      SUBTITLE 

                  Acceptance
      Test Procedures

                

        

        
          	
                  4.
      AUTHORITY (Data Acquisition Document No.) 

                  DI-MISC-81418

                	
                  5.
      CONTRACT REFERENCE 

                  SOW
      Para:

                	
                  6.
      REQUIRING OFFICE 

                  SOFSG/TI

                

        

        
          
            	
                    7.
      DD 250 REQ

                     

                    LT

                  	
                    9.
      DIST STATEMENT REQUIRED

                     

                  	
                    10.
      FREQUENCY

                     

                    ONE/R

                  	
                    12.
      DATE OF FIRST SUBMISSION

                     

                    BLK
      16

                  	
                    14.
      DISTRIBUTION

                  
	
                    8.
      APP CODE

                     

                    A

                  	
                    D

                  	
                    11.
      AS OF DATE

                     

                    BLK
      16

                  	
                    13.
      DATE OF SUBSEQUENT SUBMISSION

                     

                    BLK
      16

                  	
                    a
      ADDRESSEE

                  	
                    b
      COPIES

                  
	
                    Draft

                  	
                    Final

                  
	
                    Reg

                  	
                    Repro

                  
	
                    10.
      REMARKS

                    1.
      BLOCKS 11, 12 & 13: The contractor shall generate and submit to the
      Government one complete BATMAV CAV FLIGHT System ATP with each deployment
      case.

                     

                    2.
      The contractor shall provide Government ATP test script two weeks prior to
      ATP event.

                     

                    3.
      Execution of ATP test script will be witnessed by Air Force
      representatives.

                     

                    4.
      Successful ATP execution required before delivery.

                  	
                    SOFSG/TI

                  	
                    0

                  	
                    1

                  	
                    0

                  
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                    15.
      TOTAL --->

                  	 
      0	 
      1	 
      0

          

        

        
          	
                  17.
      PRICE GROUP

                   

                	
                  18.
      ESTIMATED TOTAL PRICE

                	 

        

        
          	
                  G
      PREPARED BY

                   

                   

                	
                  H
      DATE

                	
                  I
      APPROVED BY

                	
                  J
      DATE

                

        

         

        
          	 DD Form 1423-1, JUN 90	
                   Computer
      Generated

                	
                   Previous
      editions are obselete

                	
                   Page 1 of 1
      Pages

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A002

                  	
                    2.
      TITLE OF DATA ITEM 

                    Commercial
      Off-the-Shelf (COTS) Manual

                  	
                    3.
      SUBTITLE 

                    Training
      and Operator's Manual

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    
                      DI-TMSS-80527A

                    

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      ONE/R

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      A

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      BLK
      16

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      BLK
      16

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      1.
      BLOCK 4: Contractor formal is acceptable

                       

                      2.
      BLOCKS 11, 12 & 13: The contractor shall generate and submit to the
      Government four copies of Battlefield Air Targeting Micro Air Vehicle
      (BATMAV UAV) Operator's Manual. Revision to the original Manual shall be
      made by individual page replacement. 

                       

                      3.
      The contractor shall deliver 4 manuals to SOFSG/TI by:

                      DRAFT:
      30 days prior to DT

                      FINAL:
      15 days after completion of DT delivery at ATP event.

                    	
                      SOFSG/TI

                    	
                      4

                    	
                      4

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      4	 
      4	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            
              	 DD Form 1423-1, JUN 90	
                       Computer
      Generated

                    	
                       Previous
      editions are obselete

                    	
                       Page 1 of 1
      Pages

                    

            

             

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A003

                  	
                    2.
      TITLE OF DATA ITEM 

                    Bar
      Code Identification Report

                  	
                    3.
      SUBTITLE 

                    UID

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    
                      DI-MGMT-80177A/T

                    

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      AS
      REQ 

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      N

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      N/A

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      N/A

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      1.
      Block 4: DID is tailored as follows:

                      a.
      Para 10.2 Delete magnetic tape media format. Use DoD electronic commerce
      methods.

                      b. Para 10.2.1 - 10.2.15. Reorder and/or rename
      fields for DoD data elements.

                      c. Para 10.2.1. UID of the item delivered that
      contains the embedded subassembly, component or part.

                      d. Para 10.2.2. UID of the embedded subassemblies,
      component or part. 

                      e. Para 10.2.3. UID type

                      f.  Para 10.2.4. Issuing Agency
      Code.

                      g. Para 10.2.5. Enterprise
Identifier.

                      h. Para 10.2.6. Original part number.

                      i.  Para 10.2.7. Serial number.

                      j.  Para 10.2.8. Unit of Measure

                      k. Para10.2.9. Description.

                      l.  Para10.2.10. - 10.2.15. Not
      used.

                       

                      2. Block 12: Concurrent with associated end item
      delivery

                    	
                      SOFSG/TI

                    	
                      0

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      0	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                      A

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER
      ADMIN

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A004

                  	
                    2.
      TITLE OF DATA ITEM 

                    Conference
      Minutes

                  	
                    3.
      SUBTITLE 

                     
      

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-ADMN-81250A

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      ASREQ

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      A

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      ASREQ

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      ASREQ

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        Block
      8:

                        Approval
      for TIM's minutes only.

                        Development
      up to 4 TIM's.

                        Production
      up to 6 TIM's.

                        

                        Block
      12:

                        Minutes
      shall be submitted five (5) working days after each review, meeting or
      audit. The minutes shall be subject to Government approval.

                        

                        Block
      14:

                        Each
      person in attendance shall be furnished one copy of minutes. When minutes
      are distributed a the meeting and approval is not required no additional
      distribution needs to be made to attendees.

                      

                    	
                      SOFSG/TI

                    	
                      1

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      1	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                      A

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A005

                  	
                    2.
      TITLE OF DATA ITEM 

                    Test
      Plan

                  	
                    3.
      SUBTITLE 

                    Contractor's Test
      Plan

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-NOTI-80566/T

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      BLK
      16

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      A

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      BLK
      16

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      BLK
      16

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        BLOCK
      4:

                        Contractor
      format is Acceptable.

                        

                        BLOCKS
      8, 10, 11, 12 and 13:

                        A
      Draft Master Test Plan (MTP) 90 days after contract award. The Government
      will provide comments 30 days after receipt. A final MTP (to include
      Government comments) shall be due 120 days after contract
      award

                      

                    	
                      SOFSG/TI

                    	
                      1

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 1	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                      A

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER
      IPSC

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A006

                  	
                    2.
      TITLE OF DATA ITEM 

                    Contractor's
      Configuration Management Plan

                  	
                    3.
      SUBTITLE 

                     

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-CMAN-80858B

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      ONE/R

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      N/A

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                       

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      BLK
      16

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      N/A

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      BLOCK
      4:

                      Contractor format is acceptable.

                      NOTE: The first submittal shall be approved by the
      Government.

                      BLOCK 11: First submittal due 15 days after
      contract award.

                       

                    	
                      SOFSG/TI

                    	
                      1

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      1	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER 
      ALSS

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A007

                  	
                    2.
      TITLE OF DATA ITEM 

                    Interface
      Control Document (ICD)

                  	
                    3.
      SUBTITLE 

                    Swappable
      Payload & Voice Control
Software

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-CMAN-81248A

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      ONE/R

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                       

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      AS
      REQ

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      BLK
      16

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      Block
      4: DI-CMAN-81248A is tailored as follows:

                       

                      a. Paragraph 2.b. shall include data internally
      generated for which the contractor has configuration control and for
      interface with other affected aircraft systems. 

                       

                      b. Paragraph 2.c. is deleted.

                       

                      Block 12: One draft paper copy shall be sent to
      SOFSG/TI 15 working days prior to DT.

                       

                      Block 13: One Draft and one Final digital
      electronic copy shall be sent to SOFSG/TI at conpletion of
    DT.

                    	
                      SOFSG/TI

                    	
                      1

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      1	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                      A

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER 
      MISC

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A008

                  	
                    2.
      TITLE OF DATA ITEM 

                    Integrated
      Master Schedule (IMS)

                  	
                    3.
      SUBTITLE 

                     

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-MISC-81183A/T

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      MTHLY

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                       

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      BLK
      16

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      MTHLY

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        BLOCK
      4:

                        Data
      Item DI-MISC-81183A is tailored as follows:

                        Paragraph
      10.2; delete reference to CPR and C/SSR.

                        Contractor
      Format is Acceptable.

                        NOTE:
      First IMS submittal shall be subject to Government approval.

                        

                        BLOCKS
      11, 12 and 13:

                        Submittal
      shall be the first IMS schedule that happens 15 days after Contract
      Award.

                      

                    	
                      SOFSG/TI

                    	
                      1

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      1	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                      A

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER   
      MISC

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A009

                  	
                    2.
      TITLE OF DATA ITEM 

                    Computer
      Software Product

                  	
                    3.
      SUBTITLE 

                     
      

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-IPSC-81488

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      BLK 16

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                       

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      N/A

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      BLK
      16

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        BLOCK
      4: Shall consist of all new and/or revised software required to implement
      the system integration. Including documentation per the data
      item.

                        

                        BLOCKS
      10, 12 and 13: Initial submission shall be required to support the
      testing. SOW paragraph may be added; Subsequent submissions shall be made
      as required on further testing and subsequent feedback from user's
      received such that changes may be incorporated prior to the end of the
      period of in reference. A final submission of the software shall be made
      at the end of the period of performance that incorporates all approved
      changes made during the period of performance.  The reproducible
      copy is the software delivered on the appropriate electronic and/or
      optical media.

                      

                    	
                      SOFSG/TI

                    	
                      1

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      1	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A010

                  	
                    2.
      TITLE OF DATA ITEM 

                    System/Subsystem
      Specification (SSS)

                  	
                    3.
      SUBTITLE 

                     

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-IPSC-81431A

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      ASREQ

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      A

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      N/A

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      BLK
      16

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        1.
      Blocks: 10, 12 and 13: Note, the System Specification shall be developed
      and delivered as contractor / Air Force joint work group.

                        

                        2.
      Final Subsystem Specifications shall be delivered by:

                        DRAFT:
      Updated from Proposal delivery 30 days before DT subject to Government
      approval.

                        FINAL:
      15 days after completion of DT, subject to Government
      approval.

                      

                    	
                      SOFSG/TI

                    	
                      0

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      0	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A011

                  	
                    2.
      TITLE OF DATA ITEM 

                    Software
      Version Description 9SVD)

                  	
                    3.
      SUBTITLE 

                     

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-IPSC-81442A

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      ONE/R

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      BLK
      16

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      N

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      BLK
      16

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      BLK
      16

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        1.
      Format IAW the DID is required unless otherwise agreed to by the
      Government.

                        

                        2.
      Blocks 10, 11, 12 and 13: Draft SVD to be delivered for review prior to
      Development Test (DT). Final submission with the Computer Software Product
      End Item. Update as required.

                        

                        3.
      An SVD shall be submitted for any developed or modified software including
      the Operator Control Unit (OCU) and Autopilot
    software.

                      

                    	
                      SOFSG/TI

                    	
                      0

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      0	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    CONTRACT
      DATA REQUIREMENTS LIST

                    (1
      Data Item)

                  	
                    Form
      Approved        

                    OMB
      No. 0704-0188

                  
	
                    Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                  

          

          
            	
                    A.
      CONTRACT LINE ITEM NO.

                  	
                    B.
      EXHIBIT

                  	
                    C.
      CATEGORY 

                    TDP         TM         OTHER

                  

          

          
            	
                    D.
      SYSTEM/ITEM 

                    BATMAV

                  	
                    E.
      CONTRACT/PR NO. 

                    FA8629-07-D-2376

                  	
                    F.
      CONTRACTOR 

                    AEROVIRONMENT,
      INC.

                  

          

          
            	
                    1.
      DATA ITEM NO 

                    A012

                  	
                    2.
      TITLE OF DATA ITEM 

                    Contract Change Proposal (CCPs)

                  	
                    3.
      SUBTITLE 

                     

                  

          

          
            	
                    4.
      AUTHORITY (Data Acquisition Document No.) 

                    DI-ADMN-81401A

                  	
                    5.
      CONTRACT REFERENCE 

                    SOW
      Para:   3.0

                  	
                    6.
      REQUIRING OFFICE 

                    SOFSG/TI

                  

          

          
            
              	
                      7.
      DD 250 REQ

                       

                      LT

                    	
                      9.
      DIST STATEMENT REQUIRED

                       

                    	
                      10.
      FREQUENCY

                       

                      AS
      REQ

                    	
                      12.
      DATE OF FIRST SUBMISSION

                       

                      AS
      REQ

                    	
                      14.
      DISTRIBUTION

                    
	
                      8.
      APP CODE

                       

                      A

                    	
                      D

                    	
                      11.
      AS OF DATE

                       

                      AS
      REQ

                    	
                      13.
      DATE OF SUBSEQUENT SUBMISSION

                       

                      AS
      REQ

                    	
                      a
      ADDRESSEE

                    	
                      b
      COPIES

                    
	
                      Draft

                    	
                      Final

                    
	
                      Reg

                    	
                      Repro

                    
	
                      10.
      REMARKS

                      
                        1.
      Blocks 10, 11, 12 and 13: Submittal due as required by PCO
      letter.

                        

                        2.
      Block 14: Two hardcopies of entire proposal and Pricing volume to be
      submitted to SOFSG/TI. One copy to SOFSG Contracts and one copy to
      SOFSG/CM. Remainder to be provided electronically.

                      

                    	
                      SOFSG/TI

                    	
                      0

                    	
                      1

                    	
                      0

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      15.
      TOTAL --->

                    	 
      0	 
      1	 
      0

            

          

          
            	
                    17.
      PRICE GROUP

                     

                  	
                    18.
      ESTIMATED TOTAL PRICE

                  	 

          

          
            	
                    G
      PREPARED BY

                     

                     

                  	
                    H
      DATE

                  	
                    I
      APPROVED BY

                  	
                    J
      DATE

                  

          

           

          
            	 DD Form 1423-1, JUN 90	
                     Computer
      Generated

                  	
                     Previous
      editions are obselete

                  	
                     Page 1 of 1
      Pages

                  

          

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	
                      CONTRACT
      DATA REQUIREMENTS LIST

                      (1
      Data Item)

                    	
                      Form
      Approved        

                      OMB
      No. 0704-0188

                    
	
                      Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                    

            

            
              	
                      A.
      CONTRACT LINE ITEM NO.

                    	
                      B.
      EXHIBIT

                    	
                      C.
      CATEGORY 

                      TDP         TM         OTHER

                    

            

            
              	
                      D.
      SYSTEM/ITEM 

                      BATMAV

                    	
                      E.
      CONTRACT/PR NO. 

                      FA8629-07-D-2376

                    	
                      F.
      CONTRACTOR 

                      AEROVIRONMENT,
      INC.

                    

            

            
              	
                      1.
      DATA ITEM NO 

                      A013

                    	
                      2.
      TITLE OF DATA ITEM 

                      Engineering
      Change Proposal (ECP)

                    	
                      3.
      SUBTITLE 

                       

                    

            

            
              	
                      4.
      AUTHORITY (Data Acquisition Document No.) 

                      
                        DI-CMAN-80639C/T

                      

                    	
                      5.
      CONTRACT REFERENCE 

                      SOW
      Para:  3.0

                    	
                      6.
      REQUIRING OFFICE 

                      SOFSG/TI

                    

            

            
              
                	
                        7.
      DD 250 REQ

                         

                        LT

                      	
                        9.
      DIST STATEMENT REQUIRED

                         

                      	
                        10.
      FREQUENCY

                         

                        BLK
      16

                      	
                        12.
      DATE OF FIRST SUBMISSION

                         

                        BLK
      16

                      	
                        14.
      DISTRIBUTION

                      
	
                        8.
      APP CODE

                         

                        A

                      	
                         

                      	
                        11.
      AS OF DATE

                         

                        BLK
      16

                      	
                        13.
      DATE OF SUBSEQUENT SUBMISSION

                         

                        BLK
      16

                      	
                        a
      ADDRESSEE

                      	
                        b
      COPIES

                      
	
                        Draft

                      	
                        Final

                      
	
                        Reg

                      	
                        Repro

                      
	
                        10.
      REMARKS

                        
                          1.
      Block 4: DID is tailored to include an Environmental, Safety and Health
      impact statement with each ECP.

                          

                          2.
      Blocks 10, 11, 12 and 13: Submit ECP IAW Request for Proposal (RFP)
      notification and/or letter.

                          

                          3.
      Block 14: Two hardcopies of entire proposal and pricing volume to be
      submitted to SOFSG/TI-CM. One copy to SOFSG Contracts and one copy to
      SOFSG/CM. Remainder to be provided electronically.

                          

                          4.
      Block 9: Use Distribution Statement B and/or D.

                        

                      	
                        SOFSG/TI

                      	
                        0

                      	
                        2

                      	
                        0

                      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                        15.
      TOTAL --->

                      	 
      0	 
      2	 
      0

              

            

            
              	
                      17.
      PRICE GROUP

                       

                    	
                      18.
      ESTIMATED TOTAL PRICE

                    	 

            

            
              	
                      G
      PREPARED BY

                       

                       

                    	
                      H
      DATE

                    	
                      I
      APPROVED BY

                    	
                      J
      DATE

                    

            

             

            
              	 DD Form 1423-1, JUN 90	
                       Computer
      Generated

                    	
                       Previous
      editions are obselete

                    	
                       Page 1 of 1
      Pages

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

       

      
        
          
            
              	
                      CONTRACT
      DATA REQUIREMENTS LIST

                      (1
      Data Item)

                    	
                      Form
      Approved        

                      OMB
      No. 0704-0188

                    
	
                      Public
      reporting burden for this collection of information is estimated to
      average 110 hours per response, including the time for reviewing
      instructions, searching existing data sources, gathering and maintaining
      the data needed, and completing and reviewing the collection of
      information. Send comments regarding this burden estimate or any other
      aspect of this collection of information, including suggestions for
      reducing this burden, to : Department of Defense, Washington Headquarters
      Services. Directorate for Information Operations and Reports, 1215
      Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302, and to the
      Office of Management and Budget Paperwork Reduction Project (0704-0188),
      Washington, DC 20503. Please DO NOT RETURN your form to either of these
      addresses. Send completed forms to the Government-Issuing Contracting
      Officer for the Contract/PR No listed in Block
  E.

                    

            

            
              	
                      A.
      CONTRACT LINE ITEM NO.

                    	
                      B.
      EXHIBIT

                    	
                      C.
      CATEGORY 

                      TDP         TM         OTHER

                    

            

            
              	
                      D.
      SYSTEM/ITEM 

                      BATMAV

                    	
                      E.
      CONTRACT/PR NO. 

                      FA8629-07-D-2376

                    	
                      F.
      CONTRACTOR 

                      AEROVIRONMENT,
      INC.

                    

            

            
              	
                      1.
      DATA ITEM NO 

                      A014

                    	
                      2.
      TITLE OF DATA ITEM 

                      Request
      for Deviation (RFD)

                    	
                      3.
      SUBTITLE 

                       

                    

            

            
              	
                      4.
      AUTHORITY (Data Acquisition Document No.) 

                      DI-CMAN-80640C/T

                    	
                      5.
      CONTRACT REFERENCE 

                      SOW
      Para:  3.0

                    	
                      6.
      REQUIRING OFFICE 

                      SOFSG/TI

                    

            

            
              
                	
                        7.
      DD 250 REQ

                         

                        LT

                      	
                        9.
      DIST STATEMENT REQUIRED

                         

                      	
                        10.
      FREQUENCY

                         

                        AS
      REQ

                      	
                        12.
      DATE OF FIRST SUBMISSION

                         

                        AS
      REQ

                      	
                        14.
      DISTRIBUTION

                      
	
                        8.
      APP CODE

                         

                        A

                      	
                        D

                      	
                        11.
      AS OF DATE

                         

                        AS
      REQ

                      	
                        13.
      DATE OF SUBSEQUENT SUBMISSION

                         

                        AS
      REQ

                      	
                        a
      ADDRESSEE

                      	
                        b
      COPIES

                      
	
                        Draft

                      	
                        Final

                      
	
                        Reg

                      	
                        Repro

                      
	
                        10.
      REMARKS

                        
                          Block
      4: DID is tailored to include a Safety Impact Statement with each
      Deviation.

                          

                          Blocks
      10, 11, 12 and 13: Request for Deviations shall be submitted NLT 10 days
      after discovery. A corrective action plan shall be submitted with the
      Deviation.

                        

                      	
                        SOFSG/TI

                      	
                        0

                      	
                        1

                      	
                        0

                      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                        15.
      TOTAL --->

                      	 
      0	 
      1	 
      0

              

            

            
              	
                      17.
      PRICE GROUP

                       

                    	
                      18.
      ESTIMATED TOTAL PRICE

                    	 

            

            
              	
                      G
      PREPARED BY

                       

                       

                    	
                      H
      DATE

                    	
                      I
      APPROVED BY

                    	
                      J
      DATE

                    

            

             

            
              	 DD Form 1423-1, JUN 90	
                       Computer
      Generated

                    	
                       Previous
      editions are obselete

                    	
                       Page 1 of 1
      Pages

                    

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

       

    

    FA8629-07-D-2376

    Attachment
1 – Revision A

    20 April
2007

    

    CLIN
MATRIX – COST OF CLINS BY YEAR

     

    CLIN
X001 – DEVELOPMENT & INTEGRATION – [*]

     

    CLIN
X002 – BATMAV SYSTEMS

     

    
      	 
      	
              Qty
      –

              [*]

            	
              Qty
      –

              [*]

            	
              Qty

              [*]

            	
              Qty

              [*]

            
	
              Unit
      Price – FY07

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY08

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY09

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY10

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price – FY11

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            

    

    

    CLIN
X003 – INITIAL SPARES.

     

    
      	 
      	
              Qty
      –

              [*]

            	
              Qty
      –

              [*]

            	
              Qty

              [*]

            	
              Qty

              [*]

            
	
              Unit
      Price – FY07

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY08

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY09

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY10

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price – FY11

            	
              [*]

            	
              [*]

            	
              [*]

            	
              [*]

            

    

    

    (A
listing of what is included in the initial spares package for each lot buy will
be included as an attachment to the delivery order)

     

    CLIN
X004 – TRAINING (Each class shall consist of six (6) students)

     

    
      	
              Price
      Per class

            	
              Train
      the Trainer

            	
              Long
      Course

            	
              Short
      Course

            
	
              Unit
      Price – FY07

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY08

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY09

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price –FY10

            	
              [*]

            	
              [*]

            	
              [*]

            
	
              Unit
      Price – FY11

            	
              [*]

            	
              [*]

            	
              [*]

            

    

    

    CLIN
X005 – REPAIR AND RETURN.  Costs will be based on a loaded rate for
each year, and separate material costs.  These will be billed against
the CLIN as needed.

     

    (LOADED
RATES)

     

    [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

     

    FY07             [*]

    FY08             [*]

    FY09             [*]

     

     

    NSD\93731.2

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    FA8629-07-D-2376

    Attachment
1 – Revision A

    20 April
2007

    

    FY10             [*]

    FY11             [*]

    

    CLIN
X006 – DATA:  All data should be NSP.  The contractor shall
show which CLIN(s) include the price of data.

     

    Delivery
Schedule for CLINs

    Proposed
delivery schedule.  The proposed schedule is subject to the following
guidance:

     

    The
contractor should propose delivery dates which show a total delivery schedule
for CLINs X002, X003, X004 and X005.  These may be shown in WARO
(weeks after receipt of order) or MARO (months after receipt of order) format or
the contractor can use the format shown below:

     

    “Xx
systems in xxx weeks/months, with xxx additional systems every week/month until
complete”.

     

    An
example might be:  10 systems in 4 months, with 5 additional systems
every week until complete.  (This would be a delivery schedule for 30
systems, with final delivery 5 months after order)

     

    CLIN
x002 – BATMAV SYSTEMS

     

    Up to 30
systems in four (4) months, with up to 30 additional systems every month until
complete.

     

    CLIN
X003 – INITIAL SPARES.

     

    The
offeror will deliver the initial spares package in conjunction with the final
delivery for each lot buy.

     

    (A
listing of what is included in the initial spares package for each lot buy will
be included as an attachment to the delivery order)

     

    CLIN
X004 – TRAINING (Each class shall consist of six (6) students) –

     

    On as
required basis.

     

    [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

     

    CLIN
X005 – REPAIR AND RETURN.

     

    Period of
Performance should be 12 months after lot buy is delivered.

     

    CLIN
X006 – DATA:

     

    On as
required basis.

     

    

    NSD\93731.2

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                

              	
                Contract
      FA8629-07-D-2376

              	
                

              

      

       

      CONTENTS

       

      
        	
                1.0

              	 
      	
                Program
      Goal

              	 
      	
                3

              
	
                2.0

              	 
      	
                Scope

              	 
      	
                3

              
	
                2.1

              	 
      	
                Background

              	 
      	
                3

              
	
                2.2

              	 
      	
                Cross
      Reference SOO / SOW / WBS / CDRL

              	 
      	
                3

              
	
                2.3

              	 
      	
                Applicable
      Documents

              	 
      	
                3

              
	
                3.0

              	 
      	
                Program
      Requirements

              	 
      	
                3

              
	
                3.1

              	 
      	
                Program
      Objectives

              	 
      	
                4

              
	
                3.2

              	 
      	
                General
      System Description

              	 
      	
                4

              
	
                3.3

              	 
      	
                Detailed
      Requirements

              	 
      	
                4

              
	
                3.3.1

              	 
      	
                Management

              	 
      	
                4

              
	
                3.3.1.1

              	 
      	
                Production
      Program Support

              	 
      	
                4

              
	
                3.3.1.2

              	 
      	
                Engineering
      Support

              	 
      	
                5

              
	
                3.3.1.3

              	 
      	
                Overall
      Program Support

              	 
      	
                6

              
	
                3.3.2

              	 
      	
                System
      Development

              	 
      	
                7

              
	
                3.3.2.1

              	 
      	
                Development
      - Program Management

              	 
      	
                7

              
	
                3.3.2.2

              	 
      	
                Develop
      and Integrate BATMAV Subsystems

              	 
      	
                7

              
	
                3.3.2.3

              	 
      	
                System
      Validation, Test and Evaluation

              	 
      	
                8

              
	
                3.3.2.4

              	 
      	
                System
      Specification and Technical Data

              	 
      	
                8

              
	
                3.3.2.5

              	 
      	
                Payload
      and Voice Control Interface Control Documents

              	 
      	
                9

              
	
                3.3.2.6

              	 
      	
                Develop
      Operator’s Manual and Training Manual

              	 
      	
                9

              
	
                3.3.2.7

              	 
      	
                Configuration
      Management Plan

              	 
      	
                9

              
	
                3.3.3

              	 
      	
                Production

              	 
      	
                9

              
	
                3.3.3.1

              	 
      	
                Systems
      Production

              	 
      	
                10

              
	
                3.3.3.2

              	 
      	
                Initial
      Spares Production

              	 
      	
                10

              
	
                3.3.4

              	 
      	
                Contractor
      Logistics Support

              	 
      	
                10

              
	
                3.3.4.1

              	 
      	
                Training
      Program

              	 
      	
                10

              
	
                3.3.4.2

              	 
      	
                Maintenance

              	 
      	
                12

              
	
                4.0

              	 
      	
                Government
      Furnished Equipment and Government Furnished Information

              	 
      	
                12

              
	
                5.0

              	 
      	
                SOW/SOO/WBS/CDRL
      CROSS Reference Matrix

              	 
      	
                13

              
	
                6.0

              	 
      	
                Document
      Summary List

              	 
      	
                15

              

      

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 1 of
15

                
                  

                

              

              
                 

              

            

          

        

      

       

      
        	
                

              	
                Contract
      FA8629-07-D-2376

              	
                

              

      

       

      GLOSSARY

      
        	
                Acronym

              	 
      	
                Definition

              	 
      	
                STANAG

              	 
      	
                Standardization
      Agreement

              
	
                ATP

              	 
      	
                Acceptance
      Test Procedure

              	 
      	
                Acronym

              	 
      	
                Definition

              
	
                BA

              	 
      	
                Battlefield
      Airman

              	 
      	
                TCDL

              	 
      	
                Tactical
      Common Data Link

              
	
                BAO

              	 
      	
                Battlefield
      Air Operations

              	 
      	
                UID

              	 
      	
                Unique
      Identification

              
	
                BATMAV

              	 
      	
                Battlefield
      Air Targeting Micro Air Vehicle

              	 
      	
                WBS

              	 
      	
                Work
      Breakdown Structure

              
	
                BDA

              	 
      	
                Battle
      Damage Assessment

              	 
      	 
      	 
      	 
      
	
                BLOS

              	 
      	
                Beyond
      Line of Sight

              	 
      	 
      	 
      	 
      
	
                CDRL

              	 
      	
                Contract
      Data Requirements List

              	 
      	 
      	 
      	 
      
	
                CM

              	 
      	
                Configuration
      Management

              	 
      	 
      	 
      	 
      
	
                COMSEC

              	 
      	
                Communications
      Security

              	 
      	 
      	 
      	 
      
	
                DCID

              	 
      	
                Director
      of Central Intelligence Directive

              	 
      	 
      	 
      	 
      
	
                DM

              	 
      	
                Data
      Management

              	 
      	 
      	 
      	 
      
	
                DoD

              	 
      	
                Department
      of Defense

              	 
      	 
      	 
      	 
      
	
                DT&E

              	 
      	
                Developmental
      Test & Evaluation

              	 
      	 
      	 
      	 
      
	
                EO

              	 
      	
                Electro-Optical

              	 
      	 
      	 
      	 
      
	
                FoS

              	 
      	
                Family
      of Systems

              	 
      	 
      	 
      	 
      
	
                FSO

              	 
      	
                Facility
      Security Officer

              	 
      	 
      	 
      	 
      
	
                GCS

              	 
      	
                Ground
      Control Systems

              	 
      	 
      	 
      	 
      
	
                GPS

              	 
      	
                Global
      Positioning System

              	 
      	 
      	 
      	 
      
	
                GUI

              	 
      	
                Graphical
      User Interface

              	 
      	 
      	 
      	 
      
	
                IAW

              	 
      	
                In
      Accordance With

              	 
      	 
      	 
      	 
      
	
                ICD

              	 
      	
                Interface
      Control Document

              	 
      	 
      	 
      	 
      
	
                ILS

              	 
      	
                Integrated
      Logistics Support

              	 
      	 
      	 
      	 
      
	
                IMP

              	 
      	
                Integrated
      Management Plan

              	 
      	 
      	 
      	 
      
	
                IMS

              	 
      	
                Integrated
      Master Schedule

              	 
      	 
      	 
      	 
      
	
                IOC

              	 
      	
                Initial
      Operational Capability

              	 
      	 
      	 
      	 
      
	
                IPT

              	 
      	
                Integrated
      Product Teams

              	 
      	 
      	 
      	 
      
	
                IR

              	 
      	
                Infrared

              	 
      	 
      	 
      	 
      
	
                ISO

              	 
      	
                International
      Organization for Standardization

              	 
      	 
      	 
      	 
      
	
                ISP

              	 
      	
                Initial
      Spares Package

              	 
      	 
      	 
      	 
      
	
                LOS

              	 
      	
                Line
      of Sight

              	 
      	 
      	 
      	 
      
	
                NISPOM

              	 
      	
                National
      Industrial Security Program Operating Manual

              	 
      	 
      	 
      	 
      
	
                OEM

              	 
      	
                Original
      Equipment Manufacturer

              	 
      	 
      	 
      	 
      
	
                OT&E

              	 
      	
                Operational
      Test & Evaluation

              	 
      	 
      	 
      	 
      
	
                PCO

              	 
      	
                Procuring
      Contract Officer

              	 
      	 
      	 
      	 
      
	
                PO

              	 
      	
                Program
      Office

              	 
      	 
      	 
      	 
      
	
                QMSP

              	 
      	
                Quality
      Management System Plan

              	 
      	 
      	 
      	 
      
	
                QPP

              	 
      	
                Quality
      Program Plan

              	 
      	 
      	 
      	 
      
	
                RF

              	 
      	
                Radio
      Frequency

              	 
      	 
      	 
      	 
      
	
                RSTA

              	 
      	
                Reconnaissance,
      Surveillance, and Target Acquisition

              	 
      	 
      	 
      	 
      
	
                SAASM

              	 
      	
                Selective
      Availability Anti-Spoofing Module

              	 
      	 
      	 
      	 
      
	
                SOO

              	 
      	
                Statement
      of Objectives

              	 
      	 
      	 
      	 
      
	
                SOW

              	 
      	
                Statement
      of Work

              	 
      	 
      	 
      	 
      
	
                SRD

              	 
      	
                System
      Requirement Document

              	 
      	 
      	 
      	 
      
	
                SSS

              	 
      	
                System/Subsystem
      Specification

              	 
      	 
      	 
      	 
      
	
                ST

              	 
      	
                Special
      Tactics

              	 
      	 
      	 
      	 
      

      

       

      
        
          
            
              

            
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        

        Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

      

      

        
          
             

          

          
            Page 2 of
15

            
              

            

          

          
             

          

        

      

       

      
        
          	
                  

                	
                  Contract
      FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                1.0

              	
                Program
      Goal

              

      

       

      The goal
of this program is to deliver and support a rugged, field-repairable,
man-packable, single-operator, hand-launched Battlefield Air Targeting Micro Air
Vehicle (BATMAV) system that provides real-time reconnaissance, surveillance,
and target acquisition (RSTA) and battle damage assessment (BDA).  The
system shall be capable of employing interchangeable payloads (current and
future) through an interchangeable interface.

       

      
        	
                2.0

              	
                Scope

              

      

       

      This
Statement of Work (SOW), for the basic contract, is for the development,
production and support of a rugged, field-repairable, man-packable,
single-operator, hand-launched BATMAV system.  It includes systems
engineering, management, manufacturing, test, evaluation, training, logistics,
repair, support, and incorporation of Block Upgrades and delivery.

       

      
        	
                2.1

              	
                Background

              

      

       

      Lessons
learned from recent military operations have shown that existing equipment used
by U.S. Air Force Special Tactics (ST) Combat Controller Battlefield Airmen (BA)
has numerous limitations, including size, range, line of sight (LOS), and
information management. The BATMAV system is intended to support the Battlefield
Air Operations (BAO) Kit family of systems (FoS).  The BAO Kit FoS
provides the Battlefield Airman the ability to adapt to the warfighting
environment as the situation dictates and provides increased situational
awareness and a standoff targeting capability. The BATMAV system provides a
means for these soldiers to see the battle space beyond the restrictions of LOS,
fulfilling the need for real-time RSTA and BDA.  A Block Upgrade
approach to the Wasp/BATMAV System fielding allows time-phased incorporation of
objective-level System Requirements Document (SRD) requirements, continued
spiral development and horizontal technology insertion.

       

      
        	
                2.2 

              	
                Cross
      Reference SOO / SOW / WBS / CDRL

              

      

       

      The
contractor has developed a cross-reference matrix to ensure traceability of
program requirements from the Statement of Objectives (SOO), SOW, Work Breakdown
Structure (WBS) and Contract Data Requirements List (CDRL) deliverables. This
Matrix can be found in Section 5 of this document. The purpose
of the matrix is to identify where each SOO element is addressed in the WBS and
SOW and how the
CDRLs are related to the SOW.

       

      
        	
                2.3 

              	
                Applicable
      Documents

              

      

       

      Applicable
documents are cited in the Document Summary List (Section 6 of this document) by
number, title, date, and as otherwise specified in this contract.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

            
              
                 

              

              
                Page 3 of
15

                
                  

                

              

              
                 

              

            

          

        

      

       

      
        
          	
                  

                	
                  Contract
      FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                3.0

              	
                Program
      Requirements

              

      

       

      The
contractor shall be responsible for total system performance, development,
integration, test, evaluation, manufacturing, logistics, repair and support of
the BATMAV Systems as defined in this SOW and the BATMAV System Specification
through Government performance testing.  This SOW describes the
contractor’s responsibilities and tasks that shall be performed in the
development, procurement, delivery and support of the systems.  The
contractor shall furnish all labor and all required materials in the performance
of this SOW except those specified to be Government-furnished.  The
contractor shall perform all tasks specified under this contract over the period
of performance specified by the contract.

       

      
        	
                3.1 

              	
                Program
      Objectives

              

      

       

      The
program objective is to provide the capability for a single operator to obtain
LOS and beyond-line-of-sight (BLOS), real-time RSTA and BDA during day and/or
night operations utilizing the BATMAV system.  The system shall be
delivered to meet the Government’s Initial Operational Capability (IOC)
requirement.  The baseline configuration shall be used for logistics
product development, training, developmental and qualification testing, and
operational evaluation.

       

      
        	
                3.2 

              	
                General
      System Description

              

      

       

      The
BATMAV system shall consist of the following basic components: two Air Vehicles,
one Ground Control Station (GCS), one infrared (IR) camera payload, one
Electro-Optical (EO) camera payload, and one Operator’s Kit.  Initial
Spares Package (ISP) components shall be included for operation and support of
the basic system components.  The BATMAV system is detailed in the
proposal for this contract.  The definition of system components shall
be updated through the contract period of performance as a result of changes
from: incorporation of additional trade-space requirements, fixes resulting from
Test and Evaluation, and incorporation of advanced sensors.

       

      
        	
                3.3 

              	
                Detailed
      Requirements

              

      

       

      The
following requirements provide a framework for the development, integration,
production and delivery of hardware and the attendant services required to
support training, engineering and fielding of assets.

       

      
        	
                3.3.1 

              	
                Management

              

      

       

      
        	
                3.3.1.1

              	
                Production Program
      Support

              

      

       

      
        	
                3.3.1.1.1

              	
                Program
      Management

              

      

       

      The
contractor shall establish and maintain a BATMAV System Integrated Management
Plan (IMP) to support cost, schedule and performance aspects of the production
effort of this contract. The contractor shall
perform all program management functions necessary to execute the production
effort required by this contract, including contract, business, technical and
logistics management.  The
contractor shall provide all planning, organizing, controlling, staffing and
direction functions to meet SOW requirements. The contractor shall establish and
maintain a Contract Work Breakdown Structure (CWBS) for the efforts of the
program.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

            
              
                 

              

              
                Page 4 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

      

       

      The
contractor shall maintain an Integrated Master Schedule (IMS) in contractor
format that reflects the efforts identified in this SOW.  The schedule
shall include development, integration milestones, reviews, manufacturing,
procurement, assembly, test of completed systems and the tracking of delivered
and repair items.  The contractor shall provide updates to the IMS on
a monthly basis IAW DI-MISC-81183A/T (CDRL A008).

       

      During
the production phase of the program, the contractor shall hold program reviews
once every two months to provide the status of program activities at the
Integrated Product Team (IPT) level and at the integrated system
level.  The contractor shall provide agendas and minutes for all
Contractor-Government meetings/conferences and audits IAW DI-ADMIN-81250A (CDRL
A004).

       

      The
contractor shall establish, implement, and maintain a proactive, ongoing Risk
Management Process that identifies, assesses, handles/mitigates and
appropriately reports technical, cost, and schedule risk for the production
efforts of this contract.  Program reviews, reports and IPT meetings
will be used by the contractor and the Government to track risks and mitigation
progress across the entire program.

       

      
        	
                3.3.1.1.2

              	
                Contracts

              

      

       

      The
contractor shall provide all personnel, materials and resources necessary for
contract management associated with this effort.  This shall include
methods, processes and activities for interfacing with the Procuring Contracting
Officer (PCO) on this prime contract and any subcontracts required in the
performance of this effort.

       

      
        	
                3.3.1.1.3

              	
                Finance

              

      

       

      The
contractor shall provide all personnel, materials and resources necessary for
financial management of this effort.  This shall include methods,
processes and activities for financial accounting of the program.

       

      
        	
                3.3.1.1.4

              	
                Integrated
      Product Team (IPTs)

              

      

       

       

      The
contractor shall make use of IPTs, enabling membership and direct involvement by
Government personnel at the working level.  IPTs shall be used to
resolve issues/conflicts, and as such, each IPT shall develop and track an
objective means to measure its contribution to program success and shall
identify risk areas and develop solutions to mitigate these
risks.  Each IPT shall have joint Government/contractor leads, and
contractor and Government representatives on the IPTs shall be identified by
name.  Any IPT recommendations that require contract modification
shall be forwarded to the PCO along with a request to modify the
contract.  The basic BATMAV IPT structure shall be composed of an
overarching management IPT, a logistics management IPT, and an engineering
IPT.  IPTs shall be empowered to form ad hoc IPTs and Process Action
Teams as required to address detailed issues.  IPTs shall meet as
required..

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 5 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

      

       

      
        	
                3.3.1.2

              	
                Engineering
      Support

              

      

       

      
        	
                3.3.1.2.1

              	
                System
      Engineering

              

      

       

      The
contractor shall provide systems engineering to support internal and external
integration of components, training materials and logistics support. The
contractor shall participate in technical interchanges, program reviews, test
and integration planning cells, and design reviews. The contractor shall provide
programmatic, technical, and test support to the program.

       

      
        	
                3.3.1.2.2

              	
                Product
      Engineering

              

      

       

      The
contractor shall provide product engineering for production and support of the
BATMAV system.  This shall include engineering support in production,
training and logistics activities of this effort.

       

      
        	
                3.3.1.2.3

              	
                Configuration
      Management

              

      

       

      The
contractor shall perform Configuration Management/Data Management (CM/DM) tasks
pertaining to the BATMAV System, hardware, and software components in this SOW
IAW the contractor’s CM plan for production business practices.  The
contractor shall be responsible for maintaining established baselines and the
entire CM through the program life cycle for the BATMAV System.

       

      Hardware
and software changes shall be processed IAW the contractor’s CM plan provided
under section 3.3.2.7 of this SOW.  Class I changes to the system
baseline shall be coordinated with the Air Force Program Office (PO) as an
Engineering Change Proposal.

       

      For
software changes, the contractor shall ensure that the software baselines are
controlled and tested at the computer software configuration item
level.  The contractor shall ensure each software baseline is
identified, tracked within the contractor’s CM Plan guidelines, and has the
necessary number of backup copies.   Class 1 changes to the
system baseline shall be coordinated with the Air Force PO as an Engineering
Change Proposal.

       

      
        	
                3.3.1.2.4

              	
                Obsolescence

              

      

       

      Through
the period of performance of the contract, the contractor shall:  (1)
identify alternate sources, replacement parts, or optional part numbers for
parts and materials that become obsolete or damaged and need repair; and (2)
revise applicable engineering drawings, schematics, and specifications to
incorporate the new information.  The contractor’s Parts Obsolescence
program and procedures shall be made available for review by Government IPT
members.

       

      
        	
                3.3.1.3

              	
                Overall Program
      Support

              

      

       

       

      
        	
                3.3.1.3.1

              	
                Security

              

      

       

      The
BATMAV system shall comply with the BATCAM Security Classification Guide (SCG),
which addresses security considerations such as classification levels. In
accordance with the guide, this capability does not contain Sensitive
Compartmented Information that requires physical security. The contractor shall
comply with any additional security measures as documented in the Security
Classification Guides for any future classified payloads required. The BATMAV
system shall comply  with the Information Assurance (IA) standards
listed in the System Specification.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 6 of
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                Contract
      FA8629-07-D-2376

              	
                

              

      

      

      The
contractor shall comply with the requirements of the Department of Defense (DoD)
Contract Security Classification Specification (DD Form 254) and the BATCAM SCG
for classification guidance. Significant upgrades and materiel procurement
related to facility clearance shall be assessed and agreed upon jointly by the
contractor and the Government. In order to accomplish the technical tasks
required under this SOW, the contractor shall maintain a valid U.S. COMSEC
account throughout the period of performance of this contract. The contractor
shall require access to For Official Use Only (FOUO) documents. The contractor
logistic support efforts may require access to classified military operations
and deployments. Foreign subcontractors are restricted from access to protected
subsystems or functional military exercises.

       

      
        	
                3.3.1.3.2

              	
                Safety

              

      

       

      The
contractor’s established safety guidelines and procedures shall be followed
during the execution of this SOW. Contractor and subcontractor activities shall
be in compliance with applicable federal, state, and local environmental laws
and regulations. The contractor shall ensure that design, maintenance,
operation, manufacturing, programmatic decisions, and trade-off studies strive
to eliminate or reduce hazardous materials and wastes.  The contractor
shall provide, through the IPT process, immediate notification of any proposed
hazardous material mitigation/elimination efforts that may adversely impact
schedules, cost, or performance.

       

      
        	
                3.3.1.3.3

              	
                Quality
      Program

              

      

       

      The
contractor shall establish and maintain a quality program conforming to the
requirements of International Organization for Standardization (ISO) 9001 or a
Government-approved equivalent standard.  The contractor shall
maintain a Quality Management System Plan (QMSP) that satisfies the requirements
of ISO 9001 or equivalent and addresses their operations at the production and
flight acceptance sites.  The Quality Program Plan (QPP) shall include
policies and procedures for the flow down of the necessary quality requirements
to its suppliers in order to ensure the delivered products meet their intended
requirements.  The QPP shall be available for Government
review.

       

      
        	
                3.3.1.3.4

              	
                Flight
      Operations

              

      

       

      The
contractor shall support development, training and acceptance tests. The
contractor shall coordinate procedures and scheduling with appropriate
Government and local area personnel to ensure flight procedures comply with
local and area requirements and appropriate flight regulations. The contractor
shall coordinate identification of frequency management requirements with
appropriate Government personnel.

       

      
        	
                3.3.2 

              	
                System
      Development

              

      

       

       

      
        	
                3.3.2.1

              	
                Development - Program
      Management

              

      

       

      The
contractor shall establish and maintain a BATMAV System IMP to support cost,
schedule and performance aspects of the effort required by the development
effort of this contract. The IMP shall include systems engineering and software
processes, certifications, tasks, reviews and events. The contractor shall
provide planning, organizing, controlling, staffing and direction functions to
meet these requirements. The contractor shall establish and maintain a CWBS for
the efforts of the program. The contractor shall provide agendas and minutes for
Contractor-Government meetings/conferences and audits IAW DI-ADMIN-81250A (CDRL
A004).

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 7 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

      

       

      The
contractor shall maintain an IMS in contractor format that reflects the efforts
identified in this SOW.  The schedule shall include development,
integration milestones, and reviews.  The contractor shall provide
updates to the IMS on a monthly basis IAW DI-MISC-81183A/T (CDRL
A008).

       

      The
contractor shall perform contract, finance and IPT activities as described by
the scope of production management sections 3.3.1.1.2, 3.3.1.1.3 and 3.3.1.1.4
for the development phase of this contract.

       

      
        	
                3.3.2.2

              	
                Develop and Integrate
      BATMAV Subsystems

              

      

       

      The
contractor shall develop and integrate the subsystem components required to
transition the demonstrated baseline system into the production BATMAV
system.  The contractor shall integrate subsystems into the production
BATMAV system.

       

      
        	
                3.3.2.3

              	
                System Validation,
      Test and Evaluation

              

      

       

      
        	
                3.3.2.3.1

              	
                Validation
      Testing

              

      

       

      The
contractor shall prepare a test plan IAW DI-NDTI-80566/T (CDRL A005) in support
of validation of the system with respect to the BATMAV System Specifications
defined as part of the scope of this effort.  The contractor shall
conduct validation testing in support of the development and integration of the
production BATMAV System.  The contractor shall generate summary
reports for studies and analysis tasks performed in this effort.

       

      
        	
                3.3.2.3.2

              	
                Developmental
      Test and Evaluation

              

      

       

      The
contractor shall support the Government in Development Test and Evaluation
(DT&E) on production hardware to ensure compliance with performance
specifications and interoperability.  This shall include support of
test, analysis and development of detailed test plans.

       

      
        	
                3.3.2.3.3

              	
                Operational
      Test and Evaluation

              

      

       

      The
contractor shall support the Government in Operational Test and Evaluation
(OT&E) on production hardware to ensure compliance with performance
specifications and interoperability.  This shall include the support
of test, analysis and development of detailed test plans.

       

      
        	
                3.3.2.4

              	
                System Specification
      and Technical Data

              

      

       

      The
contractor shall prepare and update a BATMAV System/Subsystem Specification
(SSS) IAW DI-IPSC-81431A  (CDRL A010) over the period of performance
of the contract.  Changes to the performance specification shall be
made as upgrades are incorporated into the system configuration.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 8 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

      

       

      The
contractor shall provide updates to the computer software product used to
implement the system integration IAW DI-IPSC-81488 (CDRL A009).

       

      The
contractor shall provide updates to the Computer Version Description (SVD) for
the OCU and air vehicle autopilot IAW DI-IPSC-81442 (CDRL A011).

       

      
        	
                3.3.2.4.1

              	
                Program
      Waiver Support

              

      

       

      The
contractor shall provide technical data support to the PCO in preparing the
following waiver packages (as required):

       

      
        	
                 
      

              	
                ·

              	
                Tactical
      Common Data Link (TCDL) waiver

              

      

       

      
        	
                 
      

              	
                ·

              	
                Secure
      Global Positioning System (GPS)
waiver

              

      

       

      
        	
                 
      

              	
                ·

              	
                Selective
      Availability Anti-Spoofing Module (SAASM)
waiver

              

      

       

      
        	
                 
      

              	
                ·

              	
                Standardization
      Agreement (STANAG) 4586 waiver

              

      

       

      The
contractor shall support the Government (e.g., participating in planning and
technical meetings, engineering analysis, testing, etc.) in completing required
military certifications and reviews.

       

      
        	
                3.3.2.4.2

              	
                Acceptance
      Test Procedure

              

      

       

      The
contractor shall prepare/update Acceptance Test Procedure (ATP) in contractor
format and IAW DI-MISC-81418 (CDRL A001).   The ATP shall be
consistent with the requirements for the production and reporting efforts
defined within section 3.3.3 of this SOW.

       

      
        	
                3.3.2.4.3 

              	
                Information
      Assurance Support

              

      

       

      The
contractor shall support the development process for creating Information
Assurance (IA) and interoperability requirements and documentation including
availability, integrity, authentication, confidentiality, and nonrepudiation, as
required to achieve Joint Interoperability Test Command (JITC) approval and
AF/J6 interoperability certification and if necessary an  Interim
Approval to Operate (IATO) by the Designated Approval Authority (DAA) as
required by CJCSI 6212.01D, 8 March 2006.

       

      The
contractor shall perform additional testing, if required, for satisfying the IA
and interoperability requirements and documentation including availability,
integrity, authentication, confidentiality, and nonrepudiation, as required to
achieve JITC approval and AF/J6 interoperability certification and if necessary
an  IATO by the DAA  as defined by the applicable documents
section 2.0 of the  system specification.

       

      
        	
                3.3.2.5

              	
                Payload and Voice
      Control Interface Control
Documents

              

      

       

      The
contractor shall publish and maintain a Swappable Payload Interface Control
Document (ICD) IAW DI-CMAN-81248A (CDRL A007).   The contractor
shall publish and maintain a Voice Control Software ICD IAW DI-CMAN-81248A (CDRL
A007).

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 9 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

      

       

      
        	
                3.3.2.6

              	
                Develop Operator’s
      Manual and Training Manual

              

      

       

      The
contractor shall provide a commercial off-the-shelf (COTS) Operator’s Manual in
contractor format.  The contractor shall prepare and update the
Operator’s Manual to include operation, maintenance and field repair IAW
DI-TMSS-80527A (CDRL A002).  The contractor shall provide a Training
Manual in contractor format and IAW DI-TMSS-80527A (CDRL A002).  The
training manual shall have content that supports the conduct of training as
defined in section 3.3.4.1 of this SOW.

       

      
        	
                3.3.2.7

              	
                Configuration
      Management
      Plan

              

      

       

      The
contractor shall deliver a CM Plan in contractor format and IAW DI-CMAN-80858B
(CDRL A006).  The plan shall be consistent with the approach used in
the performance of CM activities for this effort as defined in section 3.3.1.2.3
of this SOW.

       

      
        	
                3.3.3 

              	
                Production

              

      

       

      The
contractor shall provide all labor and material to produce BATMAV Systems for
the developmental and production phases of the program.  The
contractor shall provide all labor and material to produce initial spares and
depot stock to support these systems.  The initial spares shall be
produced concurrently with the BATMAV Systems.  The contractor shall
work jointly with the Government IPTs to identify and effect changes in the
content and quantities of the BATMAV Systems and Spares based on field usage and
incorporation of system upgrades.  Such changes shall be submitted as
a request to the PCO for contract modification.

       

      
        	
                3.3.3.1

              	
                Systems
      Production

              

      

       

      The
contractor shall deliver production BATMAV systems IAW the contract delivery
schedule.  The production systems and support components shall be
compliant with the latest updated BATMAV SSS.  The contractor shall
provide systems for training activities defined within this effort prior to the
test and deployment phases of the program. 

       

      
        	
                3.3.3.1.1

              	
                Unique
      Identification Report

              

      

       

      The
contractor shall develop and maintain a Unique Identification (UID) approach for
BATMAV System and Spares hardware IAW the Battlefield Airmen UID program
policy.  This program shall describe the materials, methods, and
verification criteria for marking deliverable items and producing and
maintaining a Bar Code Identification report IAW DI-MGMT-80177A/T (CDRL
A003).   

       

      
        	
                3.3.3.1.2

              	
                Inspection
      and Acceptance

              

      

       

      The
contractor shall conduct acceptance testing of BATMAV System and
Spares.  This includes Air Vehicles, payloads and associated ground
control and support equipment.  The contractor shall maintain a
database of acceptance test results.  Final inspection and acceptance
testing shall be performed at a contractor-provided test
facility.  The contractor shall submit a delivery ATP report IAW
DI-MISC-81418 (CDRL A001) upon completion of each ATP.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 10 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

      

       

      
        	
                3.3.3.2

              	
                Initial Spares
      Production

              

      

       

      The
contractor shall deliver production BATMAV Initial Spares IAW the contract
delivery schedule.  The production spares and support components shall
be compliant with the latest updated BATMAV SSS. The contractor shall produce
system spares for training activities defined within this effort prior to the
test and deployment phases of the program.

       

      
        	
                3.3.4 

              	
                Contractor
      Logistics Support

              

      

       

      The
contractor shall establish a BATMAV Integrated Logistics Support (ILS) Program
in coordination with the Logistics IPT with the logistics concept as defined in
the System Specification.  The Logistics IPT shall be responsible for
the coordination, planning, controlling, implementation and verification of
BATMAV logistics support.

       

      The
contractor shall perform program management activities defined by the scope of
section 3.3.1.1 for logistics activities described in this section of the
SOW.

       

      
        	
                3.3.4.1

              	
                Training
      Program

              

      

       

      The
contractor shall develop and maintain a total training system concept that
satisfies the requirements for qualifying and sustaining trainers, operators,
and maintainers.  The contractor shall develop and maintain a training
program and training support package for system training efforts.  The
contractor shall provide specific personnel performance requirements data
necessary to support the design of a training program and manual in contractor
format in support of the effort defined in section 3.3.2.6 of this
SOW.  This shall include providing a Training Reference Manual (TRM)
to the U.S. Air Force that describes the operator manipulation of the graphical
user interface (GUI) parameters, software variables and voice commands of the
software and hardware associated with the (BATMAV) system compatible with the
System Specification (SS) document requirements.  The contractor shall
provide definition and direction for instructors and trainees for the conduct of
formal training. The contractor shall provide an instructional media package to
support the transfer of knowledge, skills and attitudes for
training.

       

      
        	
                3.3.4.1.1

              	
                Equipment

              

      

       

      The
contractor shall provide necessary training equipment, instructional methods,
manuals, and related tools for all training levels a minimum of 30 days prior to
the delivery date of each increment of BATMAV capability. The contractor shall
provide a minimum of one (1) Operator’s Manual per student and training package
to conduct training operations.  The contractor shall supply support
materials and consumables necessary for conducting training.  The
operators will be responsible for supplying BATMAV production hardware for the
training session.  The contractor shall provide maintenance activities
to keep the required training systems operational as part of the maintenance
effort for this SOW.  All costs/charges for offsite shipping of
systems and components for higher-level maintenance will be considered as a
charge to the Contractor Logistics Support effort.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

           

          
            
              
                 

              

              
                Page 11 of
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                  Contract
      FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                3.3.4.1.2

              	
                Services

              

      

       

      The
training shall consist of a combination of classroom and flight training using
system hardware consistent with the contract deliverable
hardware.  The training program curriculum shall include skills,
tasks, accomplishments and capability for system operation, maintenance,
airspace management, troubleshooting proficiencies, simulator operation,
tactics, techniques and procedures.  The contractor shall develop two
operator training courses.  A short operator training course designed
for operators with prior Wasp Block II or Raven B training and a long operator
training course designed for operators not currently trained on Wasp Block II or
Raven B training.  The training shall consist of both classroom and
field flight training.  The contractor shall conduct the training
courses to personnel identified by HQ AFSOC/670th
AESS.

       

      The
contractor shall provide the specific data necessary for the examination of an
individual’s skills, knowledge, attitudes and achievement of learning
objectives.  Students shall be assessed by the contractor on the
flight profiles identified in the training program on criteria of
Go/No-Go.  The contractor shall administer and evaluate these tasks by
performance during
the practical exercise portion of training events.  The contractor
shall track and record individual student task proficiency prior to the
conclusion of the student’s training program, and provide results to the BATMAV
Project Office within seven days of each course completion on attendees by name,
organization, and follow-on contact information and recommendation on completion
assessment (Go/No-Go). The contractor shall make recommendations to the
Government for dismissal of any student who has shown an inability to comprehend
the course material or who is a behavioral issue.

       

      Contractor
personnel shall be fully capable of supporting the training and have the
knowledge required to meet the requirements specified in this
SOW.  The contractor shall assign supporting personnel to perform the
services and functions required to execute Training requirements outlined in
this document.  Personnel assigned to this task shall be capable of
conducting training IAW this document, utilizing the training support package in
an austere environment.

       

      
        	
                3.3.4.1.3

              	
                Facilities

              

      

       

      Training
shall be conducted at a Government-approved location. The Government will
provide classroom, range, and storage facilities as
required.  Training location and schedule shall be established by the
PCO.  The PCO shall notify the contractor of a training location not
less than 45 days (minimum) prior to start of training.

       

      
        	
                3.3.4.2

              	
                Maintenance

              

      

       

      The
contractor shall provide all maintenance and repair actions above the field
level (Operator-level) required to support the BATMAV System equipment delivered
in the scope of this SOW.  Maintenance shall be performed by qualified
maintainers using contractor-approved procedures.  The contractor
shall provide the tools and test equipment required to accomplish maintenance
actions. The Government will provide all shipping costs for systems/components,
spares and consumables that require retrograde to Depot Main (Original Equipment
Manufacturer (OEM)) and material sustainment of the BATMAV systems and spares.
The contractor shall provide  Depot-level maintenance required to
support the BATMAV system equipment without affecting readiness
levels.  The readiness rate shall be tracked by the Government and
provided to the contractor through the logistics IPT.  The contractor
shall provide spares to support integration, test and operational activities of
the program.  The BATMAV contractor shall have training in maintenance
and operation of BATMAV equipment available prior to the start of test and
deployment phases of the program.

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision
B

        

      

      
        
           

        

        
          Page 12 of
15

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                4.0

              	
                Government
      Furnished Equipment and Government Furnished
  Information

              

      

       

      The
Government Furnished Equipment or Information required by the contractor in the
performance of this contract is summarized below:

       

      
        	
                4.1

              	
                Toughbook
      Computer

              

      

       

      A
Panasonic CF-18 Toughbook laptop computer will be made available to the BATMAV
contractor for OCU software checkout, peripheral hardware compatibility checks
and contractor integration testing.  The Toughbook is configured with
a Pentium M 733- 1.1GHzULV(Centrino), 10.4" Touch Screen Hi-bright Transmissive
XGA, 60GB HDD, 512MB RAM, Intel 802.11a+b+g (DISABLED), Dual pass through
antenna connector, 9pin RS232 serial port, WIN XP SP2 operating system, built-in
GPS, Bluetooth capability, Backlit keyboard.

       

      
        	
                4.2

              	
                Falcon View 3.3
      Software Application

              

      

       

      Falcon
View 3.3, a government mission planning software package on the Toughbook laptop
computer for map display of potential target coordinates, is the current map
display program being used by the Battlefield Airmen in the
field.  Version 4.0 is anticipated to be in use by the time of
releasing the BATMAV system.  A currently fielded version of Falcon
View will be made available to the BATMAV contractor for OCU software checkout,
CoT message testing and contractor integration testing.

       

      
        	
                4.3

              	
                UAVTool Software
      Application

              

      

       

      UAVTool
is a software application developed by the BA team for viewing video from any
UAV.  UAVTool uses CoT message handling to view video from the UAV,
flying overhead.  It is interfaced to the Falcon View application
running on the Toughbook computer.  A currently fielded version of
UAVTool will be made available to the BATMAV contractor for OCU software
checkout, CoT message testing and contractor integration testing.

       

      
        	
                4.4 

              	
                Other
      GFE

              

      

       

       

      
        	
                Quantity

              	
                Federal Stock
      #

              	
                Nomenclature

              	
                Duration

              	
                Rental
      Value

              	
                Reason for
      Need

              	
                Cross Ref. To Cost
      Prop.

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                THE
      ONLY GFP/BASE SUPPORT REQUIRED, IN ADDITION TO THAT SET FORTH IN CLAUSE
      H-087 OF THE MODEL CONTRACT, IS THE FOLLOWING:

              
	 
      
	
                TBD

              	
                N/A

              	
                Training
      Facilities

              	
                5-10
      days each

              	
                Not
      known

              	
                To
      support Operator Training

              	
                N/A

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

      

      Attachment
2, Statement of Work (SOW), Basic Contract – Revision B

      
        
           

        

        
          Page 13 of
15

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                5.0

              	
                SOW/SOO/WBS/CDRL
      CROSS Reference Matrix

              

      

       

      
        	
                SOW
      Section

              	
                Description

              	
                SOO
      Attach. 6

              	
                WBS
      Element

              	
                CDRL
      Number

              
	
                1.0

              	
                Program
      Goal

              	
                1.

              	 
      	 
      
	
                2.0

              	
                Scope

              	
                2.

              	 
      	 
      
	
                 2.1

              	
                Background

              	 
      	 
      	 
      
	
                 2.2

              	
                Cross
      Reference SOO/SOW/WBS/CDRL

              	 
      	 
      	 
      
	
                 2.3

              	
                Applicable
      Documents

              	 
      	 
      	 
      
	
                3.0

              	
                Program
      Requirements

              	 
      	 
      	 
      
	
                 3.1

              	
                Program
      Objectives

              	
                3.

              	 
      	 
      
	
                 3.2

              	
                General
      System Description

              	 
      	 
      	 
      
	
                 3.3

              	
                Detailed
      Requirements

              	 
      	 
      	 
      
	
                  3.3.1

              	
                Management

              	 
      	
                1.0

              	 
      
	
                   3.3.1.1

              	
                Production
      Program Support

              	 
      	
                 1.1

              	
                A004,
      A008

              
	
                   3.3.1.2

              	
                Engineering
      Management

              	 
      	
                 1.2

              	 
      
	
                   3.3.1.3

              	
                Overall
      Program Support

              	 
      	
                 1.3

              	 
      
	
                  3.3.2

              	
                System
      Development

              	 
      	
                2.0

              	 
      
	
                   3.3.2.1

              	
                Development
      Program –Management Support

              	 
      	
                 2.1

              	
                A004,
      A008

              
	
                   3.3.2.2

              	
                Develop
      and Integrate BATMAV Subsystems

              	
                3-a,
      3-b, 3-c, 3-d

              	
                 2.2

              	 
      
	
                   3.3.2.3

              	
                System
      Validation, Test and Evaluation

              	
                3-g,
      3-h, 3-n

              	
                 2.3

              	
                A005

              
	
                   3.3.2.4

              	
                System
      Specification and Technical Data

              	
                3-l

              	
                 2.4

              	
                A001,
      A009, A010, A011

              
	
                   3.3.2.5

              	
                Payload
      and Voice Control Interface Control Documents

              	
                3-i

              	
                 2.5

              	
                A007

              
	
                   3.3.2.6

              	
                Develop
      Operator’s Manual and Training Manual

              	
                3-e,
      3-n

              	
                 2.6

              	
                A002

              
	
                   3.3.2.7

              	
                Configuration
      Management Plan

              	
                3-m

              	
                 2.7

              	
                A006

              
	
                  3.3.3

              	
                Production

              	 
      	
                3.0

              	 
      
	
                   3.3.3.1

              	
                Systems
      Production

              	 
      	
                 3.1

              	
                A001,
      A003

              
	
                   3.3.3.2

              	
                Initial
      Spares Production

              	
                3-k

              	
                 3.2

              	 
      
	
                  3.3.4

              	
                Contractor
      Logistics Support

              	
                3-j

              	
                4.0

              	 
      
	
                   3.3.4.1

              	
                Training
      Program

              	
                3-f

              	
                 4.1

              	 
      
	
                   3.3.4.2

              	
                Maintenance

              	 
      	
                 4.2

              	 
      
	
                4.0

              	
                Government
      Furnished Equipment & Government Furnished Information

              	 
      	 
      	 
      
	
                5.0

              	
                SOW/SOO/WBS/CDRL
      Cross Reference Matrix

              	 
      	 
      	 
      
	
                6.0

              	
                Document
      Summary List

              	 
      	 
      	 
      

      

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision
B

        

      

      
        
           

        

        
          Page 14 of
15

          
            

          

        

        
           

        

      

      
         

        
          	
                  

                	
                  Contract
      FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                6.0

              	
                Document
      Summary List

              

      

       

      
        	
                DOCUMENT
      SUMMARY LIST (DSL) FOR THE

                BATMAV
      SYSTEM PROGRAM

              
	
                DOCUMENT
      Number/CDRL Number

              	
                
                  TITLE

                

              	
                
                  DATE/
      CATEGORY

                

              
	
                1.

              	
                CJCSI
      6212.01(D)

              	
                Interoperability
      and Supportability of Information Technology and National Security
      Systems

              	
                8-Mar-2006

                Cat.
      0

              
	
                2.

              	
                DI-MISC-81418
      (A001)

                 

              	
                Operating
      Procedures Manual - Acceptance Test Procedure

                 

              	
                14-Nov-1994

                Cat.
      1

              
	
                3.

              	
                DI-TMSS-80527A  (A002)

                 

              	
                Commercial
      Off-the-Shelf (COTS) Manual- Training and Operators Manual

              	
                21-May-1997

                Cat.
      1

              
	
                4.

              	
                DI-MGMT-80177A/T
      (A003)

                 

              	
                Bar
      Code Identification Report

              	
                26-Aug-1986

                Cat.
      1

              
	
                5.

              	
                DI-ADMIN-81250A
      (A004)

                 

              	
                Conference
      Minutes

                 

              	
                01-Oct-1993

                Cat.
      1

              
	
                6.

              	
                DI-NDTI-80566/T  (A005)

                 

              	
                Test
      Plan

                 

              	
                13-Apr-1988

                Cat.
      1

              
	
                7.

              	
                DI-CMAN-81248A

                (A006)

              	
                Interface
      Control Document (ICD) - Swappable Payload & Voice Control
      Software

                 

              	
                30-Sep-2000

                Cat.
      1

              
	
                8.a

              	
                DI-MISC-81183A/T
      (A007)

                 

              	
                Integrated
      Master Schedule (IMS)

                 

              	
                09-Feb-1996

                Cat.
      1

              
	
                9.

              	
                DI-IPSC-81488
      (A008)

                 

              	
                Computer
      Software Product (all new and/or revised software required to implement
      the system integration)

                 

              	
                31-Jul-1995

                Cat.
      1

              
	
                10.

              	
                DI-IPSC-81431A
      (A009)

                 

              	
                System/Subsystem
      Specification (SSS)

                 

              	
                10-Jan-2000

                Cat.
      1

              
	
                11.

              	
                N/A

              	
                BATCAM
      Security Classification Guide

              	
                unknown

                Cat.
      1

              
	
                12.

              	
                BATMAV
      SRD version 2.7

              	
                System
      Requirements Document for Battlefield Air Targeting Micro Air Vehicle
      (BATMAV) – Increment Two System Development

              	
                28-Jul-2006

                Cat.
      1

              
	
                13.

              	
                DD
      Form 254

              	
                Department
      of Defense Security Classification Specification

              	
                1-Dec-90

                Cat.
      0

              

      

       

      
        
          
            
              
                

              
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          Attachment
2, Statement of Work (SOW), Basic Contract – Revision
B

        

      

      
        
           

        

        
          Page 15 of
15

          
            

          

        

        
           

        

      

       

      
        	
                

              	
                Department
      of the Air Force

                U.S.
      Air Force BATMAV System, Solicitation # FA8629-06-R-2351

              	
                

              

      

      

      

      SYSTEM
SPECIFICATION

      

      

      BATMAV-0001

      Rev
A

      

      for

      

      Battlefield
Air Targeting Micro Air Vehicle (BATMAV)

      

      Contract
# FA8629-07-D-2376

      

      CDRL
A010

      

      May
14, 2007

      

      Prepared
By:  AeroVironment Inc,

      

      

      

      On
behalf of the U.S. Government, I have reviewed and accept the specification
defined in this document.

      

      

      
        	 
      	 
      	 
      	 
      
	
                Signature,
      U.S. Government Representative

              	 
      	
                Date

              	 
      

      

      

      
        	 
      	 
      	 
      
	
                Printed
      Name

              	 
      	 
      

      

      

      Distribution
limited to DOD and DOD contractors only

       

      

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

      

      Volume
5:  Attachment 3, System Specification

      
        
           

        

        
          Page
1

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  
                    Department
      of the Air Force

                    U.S.
      Air Force BATMAV System, Contract # FA8629-07-D-2376

                  

                	
                  

                

        

         

      

      

      [*]

      

      

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      

      
        
          
            

          

          
            Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

          

          System
Specification

        

      

      
        
           

        

        
          Page
2

          
            

          

        

        
           

        

      

      

      
        	
                

              	
                Contract
      # FA8629-07-D-2376

              	
                

              

      

       

      Integrated
Master Plan (IMP)

      

      Table
of Contents

      

      
        	
                SECTION

              	 
      	 
      	 
      	
                PAGE

              
	
                1.0

              	 
      	
                IMP
      Event-Based Plan

              	 
      	
                1

              
	
                2.0

              	 
      	
                IMP
      Narrative

              	 
      	
                4

              
	
                2.1

              	 
      	
                Management
      Activities

              	 
      	
                4

              
	
                2.1.1

              	 
      	
                Production
      Management

              	 
      	
                4

              
	
                2.1.1.1

              	 
      	
                System
      Delivery Schedule Approved

              	 
      	
                4

              
	
                2.1.2

              	 
      	
                Engineering
      Support Activities

              	 
      	
                4

              
	
                2.1.2.1

              	 
      	
                Program
      Engineering Requirements Reviewed Objective

              	 
      	
                4

              
	
                2.1.2.2

              	 
      	
                Adjustments
      to Standard Practices / Processes in Place Objective

              	 
      	
                6

              
	
                2.1.3

              	 
      	
                Program
      Support Activities

              	 
      	
                7

              
	
                2.1.3.1

              	 
      	
                Program
      Support Requirements Reviewed

              	 
      	
                7

              
	
                2.1.3.2

              	 
      	
                Adjustments
      to Standard Practices / Processes in Place

              	 
      	
                11

              
	
                2.2

              	 
      	
                BATMAV
      System Development

              	 
      	
                11

              
	
                2.2.1

              	 
      	
                Development
      Program Management Activities

              	 
      	
                11

              
	
                2.2.1.1

              	 
      	
                Program
      Organization Established

              	 
      	
                12

              
	
                2.2.1.2

              	 
      	
                Program
      Plans Reviewed

              	 
      	
                12

              
	
                2.2.1.3

              	 
      	
                Kick-off
      Meeting Conducted

              	 
      	
                14

              
	
                2.2.1.4

              	 
      	
                Program
      Technical Interchange Meetings

              	 
      	
                14

              
	
                2.2.2

              	 
      	
                System
      Development and Integration

              	 
      	
                14

              
	
                2.2.2.1

              	 
      	
                System
      Engineering

              	 
      	
                15

              
	
                2.2.2.2

              	 
      	
                Integrated
      Product Development

              	 
      	
                15

              
	
                2.2.2.3

              	 
      	
                Software
      Development Plan

              	 
      	
                16

              
	
                2.2.2.4

              	 
      	
                GCS/OCU
      Development, Integration and Test

              	 
      	
                16

              
	
                2.2.2.5

              	 
      	
                Air
      Vehicle Integration and Test Completed

              	 
      	
                16

              
	
                2.2.2.6

              	 
      	
                Payload
      Integration and Test Completed Objective:

              	 
      	
                16

              
	
                2.2.2.7

              	 
      	
                System
      Integration Completed

              	 
      	
                16

              
	
                2.2.2.8

              	 
      	
                System
      Level BOM approved and released to ERP System

              	 
      	
                16

              
	
                2.2.3

              	 
      	
                Validation
      and Test Program

              	 
      	
                16

              
	
                2.2.3.1

              	 
      	
                System
      Validation

              	 
      	
                16

              
	
                2.2.3.2

              	 
      	
                Developmental
      and Operational Test Support Objective

              	 
      	
                16

              
	
                2.2.4

              	 
      	
                System
      Specification and Technical Data

              	 
      	
                16

              
	
                2.2.4.1

              	 
      	
                System
      Requirements Finalized

              	 
      	
                16

              
	
                2.2.4.2

              	 
      	
                System
      Specification Publish

              	 
      	
                16

              
	
                2.2.4.3

              	 
      	
                System
      Acceptance Test Procedure

              	 
      	
                16

              
	
                2.2.4.4

              	 
      	
                Prepare
      Supporting Documents for Waivers

              	 
      	
                16

              
	
                2.2.5

              	 
      	
                Technical
      Interface Drawings

              	 
      	
                16

              
	
                2.2.6

              	 
      	
                Operators
      and Training Manuals

              	 
      	
                16

              
	
                2.2.6.1

              	 
      	
                Operators
      Manuals

              	 
      	
                16

              
	
                2.2.6.2

              	 
      	
                Training
      Package

              	 
      	
                16

              
	
                2.2.7

              	 
      	
                Configuration
      Management Plan Objective

              	 
      	
                16

              
	
                2.3

              	 
      	
                BATMAV
      System Production

              	 
      	
                16

              

      

      

       

      
        Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
i

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.3.1

              	 
      	
                Procurement

              	 
      	
                16

              
	
                2.3.2

              	 
      	
                Subcontractor/Supply
      Chain Management

              	 
      	
                16

              
	
                2.3.3

              	 
      	
                Manufacturing

              	 
      	
                16

              
	
                2.3.4

              	 
      	
                Inspection
      and Test

              	 
      	
                16

              
	
                2.3.5

              	 
      	
                UID
      Process

              	 
      	
                16

              
	
                2.4

              	 
      	
                Contractor
      Logistics Support

              	 
      	
                16

              
	
                2.4.1

              	 
      	
                Integrated
      Logistics Support

              	 
      	
                16

              
	
                2.4.2

              	 
      	
                Training
      Program

              	 
      	
                16

              
	
                2.4.2.1

              	 
      	
                Training
      Support/Set-up

              	 
      	
                16

              
	
                2.4.2.2

              	 
      	
                Training
      Class

              	 
      	
                16

              
	
                2.4.3

              	 
      	
                Maintenance

              	 
      	
                16

              
	
                3.0

              	 
      	
                IMS
      Walkthrough

              	 
      	
                16

              
	
                4.0

              	 
      	
                Management
      Approach

              	 
      	
                16

              
	
                4.1

              	 
      	
                Placement
      within AeroVironment

              	 
      	
                16

              
	
                4.2

              	 
      	
                Program
      Management Structure

              	 
      	
                16

              
	
                4.2.1

              	 
      	
                BATMAV
      Organizational Structure

              	 
      	
                16

              
	
                4.2.2

              	 
      	
                Organizational
      Commitment

              	 
      	
                16

              
	
                4.2.3

              	 
      	
                BATMAV
      Key Positions and Personnel

              	 
      	
                16

              
	
                4.2.3.1

              	 
      	
                Program
      Manager – [*]

              	 
      	
                16

              
	
                4.2.3.2

              	 
      	
                Contract
      Management – [*]

              	 
      	
                16

              
	
                4.2.3.3

              	 
      	
                Quality
      Assurance Management – [*]

              	 
      	
                16

              
	
                4.2.3.4

              	 
      	
                Finance
      – [*]

              	 
      	
                16

              
	
                4.2.3.5

              	 
      	
                Research
      and Development – [*]

              	 
      	
                16

              
	
                4.2.3.6

              	 
      	
                System
      / Product Engineering – [*]

              	 
      	
                16

              
	
                4.2.3.7

              	 
      	
                Manufacturing
      – [*]

              	 
      	
                16

              
	
                4.2.3.8

              	 
      	
                Logistics
      – [*]

              	 
      	
                16

              
	
                4.2.3.9

              	 
      	
                Training
      – [*]

              	 
      	
                16

              
	
                5.0

              	 
      	
                Contractor
      Work Breakdown Structure (CWBS)

              	 
      	
                16

              
	
                5.1

              	 
      	
                CWBS
      Chart

              	 
      	
                16

              
	
                5.2

              	 
      	
                WBS
      Dictionary

              	 
      	
                16

              
	
                5.3

              	 
      	
                Responsibility
      Assignment Matrix

              	 
      	
                16

              

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

       

      List
of Figures

       

      
        	
                Figure
      1. AeroVironment Inc. Organizational Chart

              	 
      	
                16

              

      

      

      Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

      
        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
ii

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                Figure
      2. BATMAV Program Structure

              	 
      	
                16

              
	
                Figure
      3. Contract Work Breakdown Structure

              	 
      	
                16

              

      

      

       

      List
of Tables

       

      
        	
                Table
      1.  Event-Based Plan

              	 
      	
                16

              

      

       

       

      
        Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
iii

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      GLOSSARY

       

      
        	
                Acronym

              	 	
                Definition

              	 
      	
                Acronym

              	 	
                Definition

              
	
                AC

              	 	
                Accomplishment
      Criteria

              	 
      	
                IPT

              	 	
                Integrated
      Product Team

              
	
                ACO

              	 	
                Administrative
      Contracting Officer

              	 
      	
                JCCB

              	 	
                Joint
      Configuration Control Board

              
	
                AFSOC

              	 	
                Air
      Force Special Operations Command

              	 
      	
                MRP

              	 	
                Manufacturing
      Resource Planning

              
	
                ATP

              	 	
                Acceptance
      Test Procedure

              	 
      	
                MTBOMF

              	 	
                Mean
      Time Between Operational Mission Failures

              
	
                AV

              	 	
                Air
      Vehicle

              	 
      	
                NDA

              	 	
                Non-Disclosure
      Agreements

              
	
                AVI

              	 	
                AeroVironment
      Inc.

              	 
      	
                NSA

              	 	
                National
      Security Administration

              
	
                AVOLS

              	 	
                AeroVironment
      Online Logistics System

              	 
      	
                OCONUS

              	 	
                Outside
      the Continental United States

              
	
                BOM

              	 	
                Bill
      of Material

              	 
      	
                OCU

              	 	
                Operator
      Control Unit

              
	
                CCB

              	 	
                Configuration
      Control Board

              	 
      	
                OT&E

              	 	
                Operational
      Test and Evaluation

              
	
                CDRL

              	 	
                Contract
      Data Requirements List

              	 
      	
                PBL

              	 	
                Performance
      Based Logistic

              
	
                CM

              	 	
                Configuration
      Management

              	 
      	
                PCO

              	 	
                Principal
      Contracting Officer

              
	
                CMC

              	 	
                Configuration
      Management Coordinator

              	 
      	
                PE

              	 	
                Program
      Event

              
	
                COMSEC

              	 	
                Communications
      Security

              	 
      	
                PM

              	 	
                Program
      Manager

              
	
                CONUS

              	 	
                Continental
      United States

              	 
      	
                PPT&E

              	 	
                Pre
      Production Test and Evaluation

              
	
                COTS

              	 	
                Commercial-Off-the-Shelf

              	 
      	
                QMS

              	 	
                Quality
      Management System

              
	
                CSCI

              	 	
                Computer
      Software Configuration Items

              	 
      	
                QSP

              	 	
                Quality
      System Procedure

              
	
                CSS

              	 	
                Central
      Security Service

              	 
      	
                QT

              	 	
                Qualification
      Test

              
	
                DARPA

              	 	
                Defense
      Advanced Research Projects Agency

              	 
      	
                RD/W

              	 	
                Request
      for Deviation/Waiver

              
	
                DCID

              	 	
                Director
      of Central Intelligence Directives

              	 
      	
                SA

              	 	
                Significant
      Accomplishment

              
	
                DCMA/LA

              	 	
                Defense
      Contract Management Agency/Los Angeles

              	 
      	
                SEMP

              	 	
                System
      Engineering Management Plan

              
	
                DIAS

              	 	
                Dynamic
      Information Architecture System

              	 
      	
                SOO

              	 	
                Statement
      of Objectives

              
	
                DID

              	 	
                Data
      Item Description

              	 
      	
                SOW

              	 	
                Statement
      of Work

              
	
                DoD

              	 	
                Department
      of Defense

              	 
      	
                SQA

              	 	
                Software
      Quality Assurance

              
	
                DSS

              	 	
                Defense
      Security Services

              	 
      	
                SRD

              	 	
                System
      Requirement Document

              
	
                DT&E

              	 	
                Development
      Test and Evaluation

              	 
      	
                SUAV

              	 	
                Small
      Unmanned Aerial Vehicle

              
	
                EAC

              	 	
                Estimates
      at Completion

              	 
      	
                TIM

              	 	
                Technical
      Interchange Meeting

              
	
                ECO

              	 	
                Engineering
      Change Order

              	 
      	
                UAV

              	 	
                Unmanned
      Aerial Vehicle

              
	
                ECP

              	 	
                Engineering
      Change Proposal

              	 
      	
                UID

              	 	
                Unique
      Identification

              
	
                ERP

              	 	
                Enterprise
      Resource Planning

              	 
      	
                WBS

              	 	
                Work
      Breakdown Structure

              
	
                FMECA

              	 	
                Failure
      Mode Effects and Criticality Analysis

              	 
      	 
      	 	 
      
	
                FPY

              	 	
                First
      Pass Yield

              	 
      	 
      	 	 
      
	
                FRACAS

              	 	
                Failure
      Reporting and Corrective Action System

              	 
      	 
      	 	 
      
	
                GFE

              	 	
                Government
      Furnished Equipment

              	 
      	 
      	 	 
      
	
                GFP

              	 	
                Government
      Furnished Property

              	 
      	 
      	 	 
      
	
                GPO

              	 	
                Government
      Program Office

              	 
      	 
      	 	 
      
	
                HFE

              	 	
                Human
      Factor Engineering

              	 
      	 
      	 	 
      
	
                HWCI

              	 	
                Hardware
      Configuration Items

              	 
      	 
      	 	 
      
	
                ICD

              	 	
                Interface
      Control Document

              	 
      	 
      	 	 
      
	
                IMP

              	 	
                Integrated
      Master Plan

              	 
      	 
      	 	 
      
	
                IMS

              	 	
                Integrated
      Master Schedule

              	 
      	 
      	 	 
      
	
                IPD

              	 	
                Integrated
      Product Development

              	 
      	 
      	 	 
      

      

      

       

      
        Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
iv

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      INTEGRATED
MASTER PLAN (IMP)

       

      
        	
                1.0

              	
                IMP
      Event-Based Plan

              

      

       

      The
Integrated Master Plan (IMP) event-based plan for the BATMAV program is listed
in Table 1.  Each program event (PE) is defined by significant
accomplishments (SA) necessary to complete the event.  Each
significant accomplishment is defined by criteria (AC) necessary to complete
each accomplishment.  The Integrated Master Schedule (IMS), provided
in Volume 1, directly correlates to the events, accomplishments and
criteria.  In the IMS, each criterion is further detailed by tasks
necessary to achieve the criterion.

       

      

       

      Table
1. Event-Based Plan

       

      
        	
                Activity
      Code

              	
                Program
      Event

                   Significant
      Accomplishment

                      Accomplishment
      Criteria

              	
                Entrance
      Criteria

              	
                WBS

              	
                SOW

              
	
                PE

              	
                SA

              	
                AC

              
	
                A

              	 
      	 
      	
                Management
      Activities Complete

              	 
      	
                1.0

              	
                3.3.1

              
	 
      	
                01

              	 
      	
                Production
      Management Complete

              	
                Award

              	
                1.1

              	
                3.3.1.1

              
	 
      	 
      	
                a

              	
                System
      Level Delivery Schedule approved and released to ERP

              	 
      	
                1.1

              	
                3.3.1.1

              
	 
      	
                02

              	 
      	
                BATMAV
      Engineering Support Activities Established for AVI UAS Engineering
      Dept.

              	
                Award

              	
                1.2

              	
                3.3.1.2

              
	 
      	 
      	
                a

              	
                Program
      Engineering requirements reviewed

              	 
      	
                1.2

              	
                3.3.1.2

              
	 
      	 
      	
                b

              	
                Adjustments
      to standard practices / processes in place

              	 
      	
                1.2

              	
                3.3.1.2

              
	 
      	
                03

              	 
      	
                BATMAV
      Program Support Activities Established for AVI UAS
Division

              	
                Award

              	
                1.3

              	
                3.3.1.3

              
	 
      	 
      	
                a

              	
                Program
      Support requirements reviewed

              	 
      	
                1.3

              	
                3.3.1.3

              
	 
      	 
      	
                b

              	
                Adjustments
      to standard practices/processes in place

              	 
      	
                1.3

              	
                3.3.1.3

              
	
                B

              	 
      	 
      	
                BATMAV
      System Development Complete

              	 
      	
                2.0

              	
                3.3.2

              
	 
      	
                01

              	 
      	
                Development
      Program Management Activities Completed

              	
                Award

              	
                2.1

              	
                3.3.2.1

              
	 
      	 
      	
                a

              	
                Program
      Organization Established

              	 
      	
                2.1.4

              	
                3.3.2.1.4

              
	 
      	 
      	
                b

              	
                Program
      Plans Reviewed

              	 
      	
                2.1.1

              	
                3.3.2.1.1

              
	 
      	 
      	
                c

              	
                BATMAV
      Kick-Off Meeting Conducted

              	 
      	
                2.1.1

              	
                3.3.2.1.1

              
	 
      	 
      	
                d

              	
                Program
      TIMs Completed

              	 
      	
                2.1.1

              	
                3.3.2.1.1

              
	 
      	
                02

              	 
      	
                System
      Development and Integration Completed

              	
                B01,
      X104,

                X105

              	
                2.2

              	
                3.3.2.2

              
	 
      	 
      	
                a

              	
                GCS/OCU
      Development, Integration and Test Complete

              	 
      	
                2.2

              	
                3.3.2.2

              
	 
      	 
      	
                b

              	
                Air
      Vehicle Integration and Test Completed

              	 
      	
                2.2

              	
                3.3.2.2

              
	 
      	 
      	
                c

              	
                Payload
      Integration and Test Completed

              	 
      	
                2.2

              	
                3.3.2.2

              
	 
      	 
      	
                d

              	
                System
      Integration Completed

              	 
      	
                2.2

              	
                3.3.2.2

              
	 
      	 
      	
                e

              	
                System
      Level BOM approved and released to ERP System

              	 
      	
                2.2

              	
                3.3.2.2

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

         

        
          
            
               

            

            
              Page
1

              
                

              

            

            
               

            

          

        

         

      

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

        
          
            	 
      	
                    03

                  	 
      	
                    Validation
      and Test Programs Executed

                  	
                    B02,
      C01

                  	
                    2.3

                  	
                    3.3.2.3

                  
	 
      	 
      	
                    a

                  	
                    System
      Validation Complete

                  	 
      	
                    2.3.1

                  	
                    3.3.2.3.1

                  
	 
      	 
      	
                    b

                  	
                    DT&E
      Completed

                  	 
      	
                    2.3.2

                  	
                    3.3.2.3.2

                  
	 
      	 
      	
                    c

                  	
                    OT&E
      Completed

                  	 
      	
                    2.3.3

                  	
                    3.3.2.3.3

                  
	 
      	
                    04

                  	 
      	
                    System
      Specification and Tech Data Completed

                  	
                    B03

                  	
                    2.4

                  	
                    3.3.2.4

                  
	 
      	 
      	
                    a

                  	
                    System
      Requirements Finalized

                  	 
      	
                    2.4

                  	
                    3.3.2.4

                  
	 
      	 
      	
                    b

                  	
                    System
      Specifications Published

                  	 
      	
                    2.4

                  	
                    3.3.2.4

                  
	 
      	 
      	
                    c

                  	
                    System
      Acceptance Test Procedures Completed

                  	 
      	
                    2.4

                  	
                    3.3.2.4

                  
	 
      	 
      	
                    d

                  	
                    Supporting
      Documents for Waivers Submitted

                  	 
      	
                    2.4

                  	
                    3.3.2.4

                  
	 
      	
                    05

                  	 
      	
                    ICDs
      Delivered

                  	
                    B03,
      B04

                  	
                    2.5

                  	
                    3.3.2.5

                  
	 
      	 
      	
                    a

                  	
                    ICDs
      Internally Approved

                  	 
      	
                    2.5

                  	
                    3.3.2.5

                  
	 
      	 
      	
                    b

                  	
                    ICDs
      Submitted

                  	 
      	
                    2.5

                  	
                    3.3.2.5

                  
	 
      	
                    06

                  	 
      	
                    Operator's
      and Training Manuals Delivered

                  	
                    B03,
      B04

                  	
                    2.6

                  	
                    3.3.2.6

                  
	 
      	 
      	
                    a

                  	
                    Draft
      Ops Manual Reviewed

                  	 
      	
                    2.6

                  	
                    3.3.2.6

                  
	 
      	 
      	
                    b

                  	
                    Draft
      Operator's Manual Delivered

                  	 
      	
                    2.6

                  	
                    3.3.2.6

                  
	 
      	 
      	
                    c

                  	
                    Final
      Ops Manual Reviewed

                  	 
      	
                    2.6

                  	
                    3.3.2.6

                  
	 
      	 
      	
                    d

                  	
                    Final
      Operator's Manual Delivered

                  	 
      	
                    2.6

                  	
                    3.3.2.6

                  
	 
      	 
      	
                    e

                  	
                    Training
      Package Delivered

                  	 
      	
                    2.6

                  	
                    3.3.2.6

                  
	 
      	
                    07

                  	 
      	
                    Configuration
      Management Plan Delivered

                  	
                    B01

                  	
                    2.7

                  	
                    3.3.2.7

                  
	 
      	 
      	
                    a

                  	
                    Configuration
      Management Plan Reviewed

                  	 
      	
                    2.7

                  	
                    3.3.2.7

                  
	 
      	 
      	
                    b

                  	
                    Configuration
      management plan report submitted

                  	 
      	
                    2.7

                  	
                    3.3.2.7

                  
	
                    C

                  	 
      	 
      	
                    BATMAV
      System Production Complete

                  	 
      	
                    3.0

                  	
                    3.3.3

                  
	 
      	
                    01

                  	 
      	
                    System
      Production Completed

                  	
                    B04

                  	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	 
      	
                    a

                  	
                    GCSs
      Production Completed

                  	 
      	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	 
      	
                    b

                  	
                    Air
      Vehicles Production Completed

                  	 
      	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	 
      	
                    c

                  	
                    Payloads
      Production Completed

                  	 
      	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	 
      	
                    d

                  	
                    Field
      Repair Kits Production Completed

                  	 
      	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	 
      	
                    e

                  	
                    Other
      SubSystems Production Completed

                  	 
      	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	 
      	
                    f

                  	
                    System
      Integration, Test and Inspection Completed

                  	 
      	
                    3.1

                  	
                    3.3.3.1

                  
	 
      	
                    02

                  	 
      	
                    Initial
      Spares Production Completed

                  	
                    B04

                  	
                    3.2

                  	
                    3.3.3.2

                  
	 
      	 
      	
                    a

                  	
                    ISP
      Assemblies Complete

                  	 
      	
                    3.2

                  	
                    3.3.3.2

                  
	 
      	 
      	
                    b

                  	
                    Integration
      and Test Complete

                  	 
      	
                    3.2

                  	
                    3.3.3.2

                  
	
                    D

                  	 
      	 
      	
                    Contractor
      Logistics Support Completed

                  	 
      	
                    4.0

                  	
                    3.3.4

                  
	 
      	
                    01

                  	 
      	
                    Training
      Program Completed

                  	
                    B06,
      C01

                  	
                    4.1

                  	
                    3.3.4.1

                  
	 
      	 
      	
                    a

                  	
                    Training
      Support / Setup Completed

                  	 
      	
                    4.1

                  	
                    3.3.4.1

                  
	 
      	 
      	
                    b

                  	
                    First
      class of 6 Students trained

                  	 
      	
                    4.1

                  	
                    3.3.4.1

                  
	 
      	 
      	
                    c

                  	
                    Second
      class of 6 students trained

                  	 
      	
                    4.1

                  	
                    3.3.4.1

                  
	 
      	 
      	
                    d

                  	
                    Third
      class of 6 students trained

                  	 
      	
                    4.1

                  	
                    3.3.4.1

                  
	 
      	
                    02

                  	 
      	
                    Maintenance
      Activities Completed

                  	
                    C01,
      C02

                  	
                    4.2

                  	
                    3.3.4.2

                  
	 
      	 
      	
                    a

                  	
                    BATMAV
      Maintenance Program Established for Logistics Dept.

                  	 
      	
                    4.2

                  	
                    3.3.4.2

                  

          

           

        

      

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
2

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	 
      	 
      	 
      	
                DARPA
      Funded Wasp Block AV Development (for Reference Only)

              	 
      	 
      	 
      
	
                X1

              	 
      	 
      	
                DARPA
      AV Development Complete

              	 
      	 
      	 
      
	 
      	
                01

              	 
      	
                Aircraft
      Layout Complete

              	 
      	 
      	 
      
	 
      	
                02

              	 
      	
                Payload
      Design Complete

              	 
      	 
      	 
      
	 
      	
                03

              	 
      	
                Avionics
      Design Complete

              	 
      	 
      	 
      
	 
      	
                04

              	 
      	
                AV
      Structural Design Complete

              	 
      	 
      	 
      
	 
      	
                05

              	 
      	
                Engineering
      Test and Evaluation Complete

              	 
      	 
      	 
      
	
                X2

              	
                 
      

              	 
      	
                DARPA
      AV Block Ill Build Complete

              	 
      	 
      	 
      
	 
      	
                01

              	 
      	
                Procurement
      Complete

              	 
      	 
      	 
      
	 
      	
                02

              	 
      	
                Integration
      and Test Complete

              	 
      	 
      	 
      

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
3

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.0

              	
                IMP
      Narrative

              

      

       

      
        	
                2.1

              	
                Management
      Activities

              

      

       

      
        	
                2.1.1

              	
                Production
      Management

              

      

       

      
        	
                2.1.1.1

              	
                System
      Delivery Schedule Approved

              

      

       

      Objective

       

      Review
proposed system delivery and initial spares schedule and update the IMS to
reflect the new plan.  This data will then be loaded into our
Enterprise Resource Planning (ERP) system for the production phase of the
program.

       

      Governing
Documents

       

      
        	
                CDRL
      A008

              	
                Integrated
      Master Schedule (IMS)

              

      

       

      
        	
                QSP
      7.5

              	
                Production
      Process Control

              

      

       

      Process

       

      The
objective is accomplished by executing initial phase of the processes as defined
in AVI’s Quality System Procedure 7.5.  Production management,
planning and control are accomplished with the aid of AVI’s ERP system,
Cincom.  The management team plans the delivery schedule and loads
requirements into the ERP system.  Weekly reports are generated for
guiding the Purchasing department in buying requirements necessary to meet the
delivery schedule.

       

      Program
management works directly with Planning and Manufacturing to develop a build
plan master schedule to drive hardware requirements to meet contractual delivery
dates.  The master schedule reflects a weekly build schedule to meet
monthly contract delivery dates.  This is a schedule risk mitigation
approach which translates to 25% of the monthly deliverables being completed
each week.  The master schedule further buffers deliveries by allowing
two weeks slack to facilitate the scheduling of customer witnessed Acceptance
Test Procedures (ATPs).

       

      A full-up
regenerative Manufacturing Resource Planning (MRP) is run nightly (seven days
per week) to ensure up-to-date information is passed to Planning and
Purchasing.  Cycle counting is performed daily to ensure inventory
accuracy.  All assembly and component lead times are entered into the
ERP system to ensure sufficient time is allowed to procure and build hardware
that supports the contract deliverables.  This accomplishment is
complete once the delivery schedule has been established and approved by
cognizant personnel as defined by the process.

       

      
        	
                2.1.2

              	
                Engineering
      Support Activities

              

      

       

      
        	
                2.1.2.1

              	
                Program
      Engineering Requirements Reviewed
Objective

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
4

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Review
program requirements and make necessary adjustments to engineering support
provided to manufacturing, testing, and logistics functions to ensure product
conformance and performance for the BATMAV program.  This includes
support from specialty engineering to ensure that reliability, consideration,
and management of Human Factor Engineering (HFE) and obsolescence of Commercial
Off-the-Shelf (COTS) parts are included in the Systems Engineering support of
the BATMAV program.

       

      Governing
Documentation

       

      
         
BATMAV
Contract

      

       

      
        	
                QSP
      7.3

              	
                Design
      and Development

              

      

       

      
        	
                QSP
      7.3.7

              	
                Control
      of Design and Development Changes

              

      

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      
        	
                QSP
      8.5.2

              	
                Quality
      System Procedure, Corrective Action

              

      

       

      MIL-STD-1472F
– Human Engineering, 23 August 1999

       

      Process

       

      Support
Engineering Process

       

      AVI will
provide engineering support in all areas of the BATMAV
program.  Activities include documentation update, Engineering Change
Order (ECO) processing, documentation control, manufacturing and test support,
integrated logistics support, and qualification testing.  AVI has
documentation for processing and controlling changes, maintaining product
configuration and conformance, and data reporting and control.  AVI
will also provide support to Quality Management functions such as failure
analysis and corrective actions for incoming inspection, production and field
failures.  AVI has developed these processes for systems currently in
production and will continue to use and make necessary changes specifically for
the BATMAV program.

       

      Specialty
Engineering Processes – Reliability

       

      The
reliability of all AVI Small Unmanned Aerial Vehicle (SUAV) equipment is
assessed throughout design, test, and operational phases.  Designs are
reviewed for component selection to ascertain:

       

      
        	
                 
      

              	
                ·

              	
                Reasonable
      longevity (obsolescence mitigation, alternate
  sources).

              

      

       

      
        	
                 
      

              	
                ·

              	
                Compatibility
      to environment and service
conditions.

              

      

       

      
        	
                 
      

              	
                ·

              	
                De-rating
      is in accordance with the established
  guidelines.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Use
      of parts with histories of demonstrated successful
  aging.

              

      

       

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
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      Reliability
analyses, including Part Stress Analysis Prediction and functional Failure Mode
Effects and Criticality Analysis (FMECA), are performed to identify areas of
weakness in the design.  Failures from receiving inspection through
final production test, including customer returns, are
reported.  These failures are evaluated via a Failure Reporting and
Corrective Action System (FRACAS) for possible trends and implementation of
corrective action.

       

      Field
reporting data is collected and reviewed to identify trends in mean time between
operational mission failures (MTBOMF) that need to be addressed.

       

      Burn-in
testing of electronic assemblies is an example of a test method that AVI
routinely does to assess and improve reliability of parts, leading to better
reliability of our overall systems.

       

      Specialty
Engineering Processes – Part Obsolescence

       

      AVI’s
design approach is to use only COTS items that are commonly available and have
more than one source; exceptions are made to provide a key performance
characteristic or best-value enhancement for the system.  Items are
evaluated with respect to availability and the planned or expected life of the
part.  Often we may alter the overall system design in order to accept
a wider range of alternate components as necessary for service life or future
upgrades.  In cases where a sole source is necessary, we may develop a
closer preferred vendor relationship with the manufacturer of the component in
order to gain some configuration control, and/or advanced warning of
changes.  In addition, we may start production with a sole source and
later develop an alternate source.

       

      Our
obsolescence program routinely evaluates components for
obsolescence.  Components that may present a problem are evaluated and
a plan is developed to resolve the issue.  Often this includes
execution of a lifetime buy to cover the service life of the
system.  We maintain these methods and processes in the Quality
Management System (QMS).

       

      Specialty
Engineering Process – Human Factors

       

      HFE is
included in the design and processes associated with operators, maintainers,
sustainers, trainers, and other support personnel.  These processes
includes analyzing all indicators, visual displays, auditory indicators, and
other aids to maximize situational awareness and overall performance, while not
interfering with peripheral vision, movement, or effectiveness.  Human
factors considerations are also applied to displayed data to allow easy
understanding and processing, including data processed and passed to the next
user system.  Operational Use Tests are conducted at each level of the
design phase to ensure compatibility with Human Factor
considerations.

       

      
        	
                2.1.2.2

              	
                Adjustments
      to Standard Practices / Processes in Place
  Objective

              

      

       

      Make
necessary adjustments to AVI’s current policies or procedures to ensure they
conform with program requirements.

       

      Governing
Documentation

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
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6

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

       

      Process

       

      AVI
maintains a configuration management system for all policies and
procedures.  Each document has a unique part number and is revision
controlled.  ECOs are generated for any necessary updates and are
incorporated upon approval by the Configuration Control Board
(CCB).

       

      
        	
                2.1.3

              	
                Program
      Support Activities

              

      

       

      
        	
                2.1.3.1

              	
                Program
      Support Requirements Reviewed

              

      

       

      Objective

       

      Review
program requirements for providing program support to development,
manufacturing, testing, and logistics functions that ensure product conformance
and performance.  This objective is completed once the support
activities have been reviewed and adjusted as necessary for the BATMAV
program.

       

      Governing
Documentation

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      
        	
                QSP
      4.2.3-1

              	
                Engineering
      Technical Drawing Standard

              

      

       

      
        	
                QSP
      4.2.3-2

              	
                Release
      of Parts, Assemblies and Documents

              

      

       

      
        	
                QSP
      7.3.7

              	
                Control
      of Design and Development Changes

              

      

       

      Contract
Data Requirements List (CDRL) items.

       

      All
formally issued contractual documents and technical requirements.

       

      
        	
                QM9001-2000 

              	
                Quality
      Manual

              

      

       

      
        	
                ISO-9001

              	
                Quality
      System Standard

              

      

       

      NSA/CSS
Policy Manual 3-16      Control of Communications
Security Material

       

      
        	
                DoD
      5220.22-M

              	
                National
      Industrial Security Program Operating
Manual

              

      

       

      
        Director
of Central Intelligence Directives (DCID)

      

       

      
        Defense
Security Services (DSS)

      

       

      
        Customers
DD-254

      

       

      
        DoD
4161.2-M Department of Defense Manual for the Performance of Government Property
Administration

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
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7

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        FAR
Federal Acquisition Regulations

      

       

      DFARS
Defense Federal Acquisition Regulations Supplement

       

       

      Process

       

      Contract
Data Management Process

       

      AVI will
manage and maintain all contractual data including the deliverable Contract Data
Requirements List (CDRL) items, and formal technical & contractual
documentation, during the life of the program and for a reasonable period
thereafter.

       

      The
program manager and contracts manager will track and manage all CDRL items; i.e.
CDRL due date, Data Item Description (DID), format and
distribution.  The initial submission of a CDRL item will be
coordinated with the Government Program Office (GPO) to ensure that the initial
CDRL deliverable (and subsequent submissions) has captured the information that
is relevant to the GPO.  The AVI PM is responsible for maintaining a
database reflecting all CDRLs delivered and for handling all questions
pertaining to the CDRLs.

       

      Our
configuration management organization will manage all controlled documentation
(drawings, prints, specifications, deviations/waivers, etc) on the
program.

       

      Our
contracts manager will maintain a comprehensive contracts file that will include
all formally issued, non-controlled documents
(basic contract, amendments, statement of work and all subsequent revisions),
and all communications with the Principal Contracting Officer (PCO) and the
Administrative Contracting Officer (ACO).

       

      Planning
Process for Deviations and Waivers

       

      AVI will
maintain a configuration baseline on all of its Unmanned Aerial Vehicle (UAV)
products, and process a deviation or waiver only if it is in the best interest
of the program, and only if written authorization for the deviation or waiver
has been received.

       

      When
there is a need to depart from a particular specification performance or design
requirement, drawing, or other document, for a specific number of units, or a
specific period of time, a Request for Deviation/Waiver (RD/W) shall be
submitted to the AVI CCB through the AVI Configuration Management Coordinator
(CMC).  The RD/W shall cite, as a minimum, the affected program,
affected parts, and reason for the deviation/waiver.  Once the CCB has
ruled on the particular RD/W, its findings are documented and communicated to
the appropriate engineering, manufacturing and program personnel.

       

      We will
also provide technical guidance and documentation as required in supporting the
Air Force Program Office in obtaining waivers required as outline in the System
Requirement Document (SRD).

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
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8

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Quality
Process

       

      The ISO
QMS extends to all processes associated with the design, manufacture, delivery,
installation, and service of all production products.  AVI’s UAS
Manufacturing facility is registered as fully compliant with all requirements of
ISO 9001:2000.

       

      The
majority of our QMS processes are controlled with a process
flowchart.  This allows a clear understanding of the process being
managed.  Analysis of performance metrics is a key aspect of managing
our QMS.  From Receiving Inspection to First Pass Yield (FPY) out of
production, charting and analyzing data are used to provide feedback to our
manufacturing processes.  The following are examples of our quality
processes:

       

      
        	
                a.

              	
                Robust
      Supplier Management to assure that received product is
      manufactured/processed to specified
  requirements.

              

      

       

      
        	
                b.

              	
                Documented
      processes to ensure predictability and reliability of components,
      sub-assemblies, and final
assemblies.

              

      

       

      
        	
                c.

              	
                Formal
      configuration management controls (procedures, work instructions, work
      orders, BOMs, drawings, specifications, CCBs, ECOs,
  etc.).

              

      

       

      
        	
                d.

              	
                Human
      resource allocation (Engineering, Technicians, Professional,
      etc.).

              

      

       

      
        	
                e.

              	
                Product
      conformance status and testing (receiving, in-process, and
      final).

              

      

       

      
        	
                f.

              	
                Computer-based
      traceability management of manufactured and repaired product AeroVironment
      Online Logistics System (AVOLS).

              

      

       

      
        	
                g.

              	
                One
      hundred percent verification of product using released ATPs before
      delivery to the customer.

              

      

       

      
        	
                h.

              	
                Audits,
      Corrective/Preventive Action, and On-Going Training (AVI and customer
      personnel).

              

      

       

      In
support of the QMS, are computer-based systems including a state-of-the-art ERP
database (Cincom Control), the QMS database that manage the documentation and
data collection mechanism, and the AVOLS database that manages Depot repair
services.  Our Quality manual, QM9001:2000, identifies the system and
references the procedures we have in place to ensure continuous improvement and
a high level of quality.

       

      Security/COMSEC
Process

       

      AVI’s
Corporate Security Manager is responsible for the overall security of the
company and manages security on all programs to ensure compliance with
government regulations and customer requirements.  We adhere to the
governing documents listed above follow the guidelines set forth by DSS for
cleared contractor facilities.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
9

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      AVI
maintains an active Communications Security (COMSEC) account classified at the
Secret level with the National Security Agency (NSA).  We follow the
requirements of NSA/CSS Policy Manual 3-16 for controlling and reporting COMSEC
material transactions using NSAs DIAS software program.  We have an
assigned COMSEC custodian and alternate custodian.  All personnel
requiring access to COMSEC material receive annual briefings regarding their
responsibilities for controlling this material.  Debriefing is
conducted when necessary.  If the BATMAV program requires accessing or
handling COMSEC material, AVI has the processes and account in
place.

       

      Government
Furnished Property Utilization and Handling Process

       

      AVI only
anticipates the use of one GFE piece of equipment, the Panasonic CF-18
(Toughbook), used as part of the BATMAV system hardware
production.  The three other segments of this proposed effort that
could require GFE are Manufacturing, Logistics, and Training.

       

      Manufacturing: We plan to
procure all items needed to manufacture the BATMAV systems, except the
Toughbook, which will be provided as GFE.

       

      Logistics: AVI will manage,
track and secure Government property in performance of the maintenance and
repair activities of this program.

       

      Training: AVI will use
Government furnished system hardware and facilities in the performance of the
training activities of this effort.

       

      AVI has a
well-established Government Furnished Property (GFP) tracking system to ensure
that we know the location of all customer property and to meet the 15 functions
of GFP handling as stated by DoD 4161.2-M.

       

      Inside
AVI’s secure production and depot maintenance facility, we ensure all inbound
GFP is accompanied by the appropriate paperwork for chain of custody
documentation.  Upon appropriate receipt of GFP, the inventory is
logged in the AVOLS GFP database.  The GFP accountability is
maintained in the database until the property is shipped backed to the customer
or the appropriate disposition instructions are received from the Program
Contracting Officer or the appropriate personnel.

       

      AVI
undergoes annual, rigorous, third party GFP property audits conducted by Defense
Contract Management Agency-Los Angeles (DCMA-LA).

       

      Government
Information Exchange

       

      AVI’s
program manager has overall responsibility for the program.  As such,
his primary responsibility is to serve as the main interface for the GPO on all
programmatic matters including technical, deliveries, schedule and
financial.

       

      Contractual
matters with both the Government’s principal contracting officer and the
administrative contracting officer will be handled directly with AVI’s contracts
manager.

       

      
        

      

      
        Use or disclosure of information contained on this page is subject
to the restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

         

        
          
            
               

            

            
              Page
10

              
                

              

            

            
               

            

          

        

         

      

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      All data
to be transferred to and from the Government will be reviewed by the AVI program
manager, transmitted primarily through the contracts manager.  It is
the goal of AVI to establish clear and concise lines of communication with the
Government on this program through the identification of points of contact for
the GPO and the Government contracts office for all matters on the
program.

       

      Configuration
Management

       

      AVI’s
current Configuration Management (CM) system is used to establish and control
the baseline deliverable system, software, hardware, and data configuration
items.  We maintain a CM system for all products.  Each
component of the system is given a unique part number and is revision controlled
using our ERP software.  An indentured Bill of Material (BOM) is
generated that defines the required hardware and software for the procured
system configuration.  ECOs are generated for any necessary updates
and are incorporated upon approval by the CCB.  This includes
necessary qualifications defined by contractual configuration control
oversight.  Software is revision controlled during the development
process using Microsoft Source Safe on a secure network server.  The
correction of software issues is tracked using Test Track software
database.  Once the software is ready for production, it is released
and controlled as a component of the associated BOM.  Engineering
Change Proposals (ECPs) will be submitted to the contracting authority for any
hardware and/or software configuration change that impacts form, fit or function
of AVI’s production baseline, alters function from the System Performance
Specification, or results in the necessity for changes to the system Technical
Manuals.  All ECPs will be processed through a Joint Configuration
Control Board (JCCB).  The JCCB will consist of Government and AVI
personnel.  Class I changes will not be incorporated unless approved
by the Government.

       

      
        	
                2.1.3.2

              	
                Adjustments
      to Standard Practices / Processes in
Place

              

      

       

      Objective

       

      Any
adjustments required to conform to program requirements would be made to AVI’s
current policies or procedures.

       

      Governing
Documentation

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      Process

       

      AVI
maintains a configuration management system for all policies and
procedures.  Each document has a unique part number and is revision
controlled.  Engineering change orders are generated for any necessary
updates and are incorporated upon approval by the CCB.

       

      
        	
                2.2

              	
                BATMAV
      System Development

              

      

       

      
        	
                2.2.1

              	
                Development
      Program Management Activities

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
11

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.2.1.1

              	
                 Program
      Organization Established

              

      

       

      Objective

       

      The
overall BATMAV program organization will be established within
AVI.  Integrated Product Teams (IPT) will be established for Program
Management, System Engineering, and Logistics.  They will be formed
with cross-discipline members from the Air Force, AVI, and trusted suppliers (as
appropriate).

       

      Governing
Documents

       

      None

       

      Process

       

      IPT
members will be selected from those disciplines applicable to the team’s
objectives and area of responsibility.  Program reviews, progress
reports and other documents will be organized around the activities and
performance of the IPTs.

       

      We have
an informal class of suppliers that we refer to as trusted
suppliers.  These suppliers have earned their status through their
history of superior program performance.  We treat these suppliers as
members of the team, working together to prevent or solve problems, and to
identify better ways of doing things.  We will continue to build these
relationships during the BATMAV program.

       

      
        	
                2.2.1.2

              	
                Program
      Plans Reviewed

              

      

       

      Objective

       

      The
overall Integrated Master Plan and Integrated Master Schedule for the
development phase of the program will be reviewed and updated to reflect the
program as awarded to ensure we have adequate resources, including personnel and
facilities, to effectively develop, test, and manufacture the proposed BATMAV
system.  Risk areas in performance, cost and schedule will be
identified and mitigation plans further refined.

       

      Governing
Documents

       

      
        BATMAV
Contract

      

       

      
        	
                CDRL
      A008

              	
                Integrated
      Master Schedule

              

      

       

      
        	
                QSP
      5.6

              	
                Management
      Review

              

      

       

      Process

       

      Our
approach to risk management is very similar to our approach to quality
management.  We embed it into our program planning process and monitor
for evidence of variation to plan.  Risks identified during the
planning process are assigned to the Program Management IPT.  Research
is conducted to determine if the risk can be eliminated and/or risk mitigation
options identified.  The IPT then reviews the options, conducts
cost/schedule/performance tradeoffs, and recommends a course of action to best
support the program.  The Program Manager confers with senior team
management and the Customer PMO, and a course of action is agreed
upon.  The revised plan is then published with risk mitigation
activities authorized and included in the new baseline.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
12

          
            

          

        

        
           

        

      

      
         

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Identifying
and Managing Technical/Performance Risks

       

      As
technical risks are identified in this program, we have in place a technical
risk management process driven by our engineering IPT.  Given the more
complex nature of technical risk, as opposed to cost and schedule, this process
relies on our proven Systems Engineering practices.  Technical risks
are properly quantified by engineering and possible solutions are identified and
proven out through a series of analyses and tests.  Technical risks
are reported to program management and mitigation actions are reviewed with
impact to schedules and costs.  The Program Manager ultimately decides
on the appropriate course of action, via the risk management board, to ensure
all aspects of the risk and its resolution have been
considered.  Customer representatives are members of this process and
any change to the baseline configuration is addressed through our engineering
change process.

       

      Identifying
and Managing Cost Risk

       

      Our
computer-based system uses a project-based cost accounting methodology that
mirrors the program WBS.  Actual and committed costs are tracked to
the specific WBS sub-element.  Cost reports from Cincom allow program
management to review actual expenditures versus budget, and commitments versus
planned expenditures.  This powerful tool allows program management to
identify possible cost risks before they occur, and permit cost risk mitigation
plans to be developed and implemented.  Populating, maintaining,
monitoring, and updating the database with cost and schedule information in a
timely manner is an established process.  This process allows us to
closely monitor cost variances and identify any potential cost risks to the
program.

       

      Identifying
and Managing Schedule Risks

       

      The
Integrated Master Schedule is the primary management tool for identifying and
developing insight into schedule risk and its overall program
consequences.  The program management IPT is the central vehicle by
which identified risks (in this case, schedule) are identified, researched,
mitigated and resolved.

       

      The
engineering development IPT holds weekly meetings to review schedule status and
identify any potential risks.  Identified schedule risks are
documented and risk mitigation plans are developed and forwarded to the program
manager for resolution.  Program management holds weekly meetings to
review all non-hardware related program activities.  This ensures a
close monitoring of performance by task and is the primary vehicle for
maintaining the IMS throughout the life of the program.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
13

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.2.1.3

              	
                Kick-off
      Meeting Conducted

              

      

       

      Objective:

       

      The
Kick-off meeting will be dedicated to providing all members of the BATMAV
program with an overview of the program.  A review of the overall
program objectives and schedule will also be conducted.

       

      Governing
Documents:

       

      BATMAV
Contract

       

      
        	
                2.2.1.4

              	
                Program
      Technical Interchange Meetings

              

      

       

      Objective:

       

      Technical
Interchange Meetings (TIMs) will be dedicated to overall program status,
critical examination of cost/schedule/technical status, and plans for resolution
of identified problems.

       

      Governing
Documents:

       

      CDRL A004
Conference Minutes

       

      Process:

       

      Formal
BATMAV TIMs will be conducted once every two months throughout the development
and production phases of the program.  Program reviews will be chaired
by the program manager and a typical agenda will include:

       

      
        	
                 
      

              	
                ·

              	
                General
      Program Overview

              

      

       

      
        	
                 
      

              	
                ·

              	
                Contract
      Change Status

              

      

       

      
        	
                 
      

              	
                ·

              	
                Technical/Design
      Status

              

      

       

      
        	
                 
      

              	
                ·

              	
                IPT
      Activities/Status

              

      

       

      
        	
                 
      

              	
                ·

              	
                Risk
      Management Activities/Status

              

      

       

      
        	
                 
      

              	
                ·

              	
                Deliverable
      Hardware Status

              

      

       

      
        	
                 
      

              	
                ·

              	
                Contract
      Data Status

              

      

       

      
        	
                 
      

              	
                ·

              	
                Government
      Topics of Interest

              

      

       

      
        	
                 
      

              	
                ·

              	
                Action
      Items and Open Issues

              

      

       

      
        	
                2.2.2

              	
                System
      Development and Integration

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
14

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

        

      

       

      
        	
                2.2.2.1

              	
                System
      Engineering

              

      

       

      Objective:

       

      The
objective of AVI’s System Engineering and Development process is to ensure all
aspects of product life cycle are addressed.

       

      Governing
Documentation

       

      
        	
                QSP
      7.3

              	
                Design
      and Development

              

      

       

      Process

       

      AVI’s
system engineering process is a documented IPT process that guides our
development and will be used to execute specific BATMAV activities such as
environmental qualification.  This process includes requirements
definition and documentation, specification generation, design reviews with
entry and exit criteria, development test and qualification, production
documentation release, and integrated logistics support
implementation.  Imbedded in this process are activities such as
performance analysis, trade studies, and verification and
validation.

       

      
        	
                2.2.2.2

              	
                Integrated
      Product Development

              

      

       

      Objective

       

      Planning
and control of product development will be realized through a variety of AVI
Quality System Procedures (QSPs).  The overarching process is QSP 7.3
Integrated Product Design and Development, which describes the key activities
and documents required to plan and complete each phase.

       

      Governing
Documentation

       

      
        	
                QSP
      7.3

              	
                Design
      and Development

              

      

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      
        	
                QSP
      4.2.4

              	
                Control
      of Records

              

      

       

      
        	
                QSP
      7.4-1

              	
                Supplier
      Management

              

      

       

      
        	
                QSP
      7.5-1

              	
                Part
      Number Creation

              

      

       

      
        	
                CDRL
      A010

              	
                System/Subsystem
      Specification

              

      

       

      Process

       

      The
Integrated Product Development (IPD) process is made up of seven
phases:  Requirements, Concept Design, Preliminary Design, Detailed
Design, Design Verification, Design Validation, and Production
Readiness.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
15

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Distinct
phases will be linked to specific activities identified on the program schedule
to measure the progress of the program and provide defined points at which
design reviews may be held to make sure the design is consistent with specified
requirements and cost objectives.  Generally, a program begins with
requirements and progresses chronologically through the remaining
phases.  However, it is common for some phases to overlap in time and
for detailed design work to be done while design verification and validation are
in progress.

       

      Critical
program objectives will be defined and documented clearly during the
requirements phase so that the desired product is realized and can be verified
against the specification during the verification and validation
phase.

       

      Specific
organization responsibilities and authority will be managed as
follows:

       

      
        	
                 
      

              	
                ·

              	
                Program
      objectives, cost, and schedule will be controlled by Program Manager using
      Project Management Software, Excel, and accounting
    software.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Technical
      requirements, specifications, and design will be controlled by Engineering
      Leads, based on the IPD and QSP
documents.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Configuration
      Control will be managed by the CCB.

              

      

       

      
        	
                2.2.2.3

              	
                Software
      Development Plan

              

      

       

      Objective

       

      The
Software Development Plan (SDP) establishes the plan for developing the Computer
Software Configuration Items (CSCIs) for the BATMAV System.

       

      Governing
Documentation

       

      
        	
                MIL-STD-498

              	
                Software
      Development and Documentation

              

      

       

      
        	
                QSP
      7.3.7

              	
                Control
      of Design and Development Changes

              

      

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      
        	
                QSP
      8.5.2

              	
                Quality
      System Procedure, Corrective Action

              

      

       

      
        	
                CDRL
      A009

              	
                Computer
      Software Product

              

      

       

      Process

       

      The
software development process includes the following phases for all project
software:

       

      
        	
                 
      

              	
                ·

              	
                Software
      Requirements Analysis

              

      

       

      
        	
                 
      

              	
                ·

              	
                Software
      Design

              

      

       

      
        	
                 
      

              	
                ·

              	
                Software
      Implementation and Unit Testing

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
16

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                 
      

              	
                ·

              	
                Component/Unit
      Integration and Testing

              

      

       

      
        	
                 
      

              	
                ·

              	
                CSCI
      Qualification Testing

              

      

       

      
        	
                 
      

              	
                ·

              	
                CSCl/Hardware
      Configuration Items (HWCI) Integration and
  Testing

              

      

       

      
        	
                 
      

              	
                ·

              	
                Qualification
      Testing

              

      

       

      Software
development begins with an analysis and definition of all software requirements,
proceeding through the detailed design of all software units, culminating with
the Internal Design Review.  The software is completed using an
incremental development process, starting with the Software Implementation and
Unit Testing Phase and finishing with the internal Qualification Test
(QT).  A Software Quality Assurance (SQA) engineer will perform this
QT.  The incremental development process is accomplished using
incremental software builds.

       

      The
operational software is developed using C as the primary language, with the
exception of the FalconView SUAV Add-on Tool, which is developed in Visual
Basic.NET.

       

      
        	
                2.2.2.4

              	
                GCS/OCU
      Development, Integration and Test

              

      

       

      Objective:

       

      To
perform the development, integration, and testing required to complete the
modification of the existing off-the-shelf Wasp / Raven B GCS for use on the
BATMAV system.

       

      Process:

       

      The
existing RF Unit, from the Wasp / Raven B GCS, will be modified to include an
omni-directional downlink antenna and a software activated switch to enable the
user to select between the directional and omni-directional downlink
antenna.  The development and testing of this modified design will
follow our standard process stated above.

       

      The
joystick controller will continue to be refined based on user feedback and
additional human factors testing.  The design will follow the standard
product development process as stated above.

       

      The
BATMAV Operator Control Unit (OCU) software is based on production-ready
software implemented in the Wasp / Raven B GCS, and already adapted for full use
in the Toughbook computer.  The OCU application will undergo further
integration and testing in the BATMAV GCS in accordance with the software
development process outlined above.

       

      Governing
Documentation

       

      As stated
above.

       

      
        	
                2.2.2.5

              	
                Air
      Vehicle Integration and Test
Completed

              

      

       

      Objective:

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
17

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      To
perform the incremental development, integration, and testing required to ensure
the Wasp Block III air vehicle (AV) meets the requirements of the BATMAV
system.

       

      Governing
Documents:

       

      As stated
above.

       

      Process:

       

      The AV
proposed for the BATMAV system will continue to be developed under DARPA
Contract MDA972-03-C-0058.  Although there are currently no additional
BATMAV specific requirements that go beyond DARPA’s current goals for the
payload, a placeholder for developing and integrating these requirements has
been included in the IMS.  Any additional development and testing will
follow the standard product development process outlined above.

       

      
        	
                2.2.2.6

              	
                Payload
      Integration and Test Completed
Objective:

              

      

       

      To
perform the incremental development, integration and testing required to ensure
the Wasp Block III AV meets the requirements of the BATMAV system.

       

      Governing
Documents:

       

      As stated
above.

       

      Process:

       

      The IR
and EO Payload proposed for the BATMAV system will continue to be developed
under DARPA Contract MDA972-03-C-0058.  Although there are currently
no additional BATMAV specific requirements that go beyond DARPA’s current goals
for the payloads, a placeholder for developing and integrating these
requirements has been included in the IMS.  Any additional development
and testing will follow the standard product development process outlined
above.

       

      
        	
                2.2.2.7

              	
                System
      Integration Completed

              

      

       

      Objective:

       

      Integration
of all subsystem components into the complete system to ensure they all work
together, prior to the full testing and validation process.

       

      
        	
                2.2.2.8

              	
                System
      Level BOM approved and released to ERP
System

              

      

       

      Objective:

       

      Document
and release all system level BOMs for placement into the ERP system using the
standard release procedure.

       

      Governing
Documents:

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
18

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                QSP
      7.5-1

              	
                Part
      Number Creation and Maintenance

              

      

       

      
        	
                2.2.3

              	
                Validation
      and Test Program

              

      

       

      
        	
                2.2.3.1

              	
                System
      Validation

              

      

       

      Objective

       

      Ensure
the BATMAV system performs to the system/subsystem specification under a variety
of test conditions.

       

      Governing
Documentation

       

      
        	
                CDRL
      A005

              	
                Contractor
      Test Plan

              

      

       

      
        	
                CDRL
      A010

              	
                System/Subsystem
      Specification

              

      

       

      Process

       

      Test,
validation, and verification of the system requirements of the BATMAV system is
accomplished through the implementation of a 3-stage process consisting of a)
Pre-Production Test and Evaluation (PPT&E), b) Developmental Test and
Evaluation (DT&E), and c) Operational Test and Evaluation
(OT&E).  The PPT&E process is executed by AVI and has as a
main objective to validate that the BATMAV system meets the system requirements
specified in the System Specification.  This test program includes
verification of all specification requirements via analyses, inspections, field
and bench tests, and environmental qualification
testing.  Environmental tests will expose the BATMAV system to high
and low temperature environments, wind, and rain in combinations of operating
and non-operating conditions.  Detailed test plans and test reports
will be produced for customer review and approval as proposed.

       

      The
Qualification Test Matrix can be seen in Volume 5, Attachment 3.

       

      
        	
                2.2.3.2

              	
                Developmental
      and Operational Test Support
Objective

              

      

       

      AVI will
support DT&E and OT&E programs scheduled by the Air Force BATMAV Program
Office as required.

       

      Governing
Documentation

       

      
        	
                CDRL
      A005

              	
                Test
      Plan

              

      

       

      
        	
                CDRL
      A010

              	
                System/Subsystem
      Specification

              

      

       

      Process

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
19

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Support
will include the direct involvement of AVI System Engineers during the testing
process, as well as assistance in formulating applicable test scenarios, and in
defining appropriate success criteria that validate the System Specifications of
the BATMAV System.

       

      
        	
                2.2.4

              	
                System
      Specification and Technical Data

              

      

       

      
        	
                2.2.4.1

              	
                System
      Requirements Finalized

              

      

       

      Objective:

       

      Establish
and flowdown system requirements to the subsystem level to ensure all
performance objectives from the contract Statement of Work (SOW) and SRD are
met.

       

      Governing
Documents:

       

      
        	
                QSP
      7.3

              	
                Design
      and Development

              

      

       

      Process:

       

      This
process includes requirements definition and documentation, specification
generation, development test, and qualification.

       

      
        	
                2.2.4.2

              	
                System
      Specification Publish

              

      

       

      Objective:

       

      Prepare
the system/subsystem specification document based on the preliminary
specification and the validation and verification testing of the BATMAV system
based on the SOW and SRD.

       

      Governing
Documents:

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      
        	
                QSP
      7.3

              	
                Design
      and Development

              

      

       

      
        	
                CDRL
      A010 

              	
                System/Subsystem
      Specification

              

      

       

      Process:

       

      This
process includes reviewing and analyzing the test results and generating and
publishing the system/subsystem specification.  This process also
includes reviews with the customer before the final version is
published.

       

      
        	
                2.2.4.3

              	
                System
      Acceptance Test Procedure

              

      

       

      Objective:

       

      Prepare
the system ATP for the BATMAV system prior to delivery.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
20

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Governing
Documents:

       

      QSP 7.3
Design and Development

       

      Process:

       

      An
internal IPT consisting of engineering resources (systems engineer, product
engineer, manufacturing engineer, and tech writer) and quality personnel will
work together to create the ATP.  During the development process,
drafts are screened by the program manager and customer representatives to
ensure all critical requirements are met.  The finalized copy is
released through our standard document control system and future revisions are
revision controlled.

       

      
        	
                2.2.4.4

              	
                Prepare
      Supporting Documents for Waivers

              

      

       

      Objective:

       

      Prepare
technical or performance related documentation to support the government in
preparation for waivers required on this program.

       

      Governing
Documents:

       

      None.

       

      Process

       

      AVI will
work with the Government and the Program Contracting Office to generate the
required information to support any waivers required.

       

      
        	
                2.2.5

              	
                Technical
      Interface Drawings

              

      

       

      Objective

       

      Technical
Interface Drawings will be maintained to manage compatibility as a normal part
of the development process.  Physical, electrical, timing, formatting,
and content (including standards used), are to be documented and controlled,
using an ICD.

       

      Governing
Documentation

       

      
        	
                CDRL
      A007

              	
                Swappable
      Payload ICD

              

      

       

      
        	
                CDRL
      A007 

              	
                Voice
      Control Software ICD

              

      

       

      Process

       

      An
internal ICD defines the interconnectivity between system
components.  This is generated during development and maintained by
AVI during the life cycle of the product.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
21

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      An
external ICD defines the interconnectivity with non-system components, and
components and systems, developed in the future for use with the
SUAV.  The external ICD is available to the customer.  TIMs,
in which all users of the interface may participate, lead to an approved and
controlled ICD.

       

      
        	
                2.2.6

              	
                Operators
      and Training Manuals

              

      

       

      
        	
                2.2.6.1

              	
                Operators
      Manuals

              

      

       

      Objective:

       

      Prepare a
comprehensive Operators Manual that includes 0-level maintenance and
repair.

       

      Governing
Documents:

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      Process:

       

      An
internal IPT consisting of engineering resources (product engineer,
manufacturing engineer, tech writer, and graphics technician), flight test team
personnel, and instructors is tasked with preparing the Operators Manual using
standardized formats and lay-outs.  During the development process,
drafts are screened by flight test, training personnel, and customer
representatives and tried out in field operations.  The finalized copy
is released through our standard document control system and future revisions
are revision controlled.

       

      
        	
                2.2.6.2

              	
                Training
      Package

              

      

       

      Objective:

       

      Prepare
the training package including manual, visual aids, and auxiliary equipment for
use in the training program.

       

      Governing
Documents:

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      Process:

       

      Our
preferred process is to form a training IPT composed of AV instructors and
customer representatives.  The initial effort is to closely define the
specific needs for the customer and cover aspects such as format, available
training sites and facilities, desired class sizes, mission specific
requirements, and special needs.  The IPT then tailors our standard
training course and materials to a custom training package.  This
package is dry-run through our training team, and released through our document
control system.  Future revisions are revision
controlled.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
22

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.2.7

              	
                Configuration
      Management Plan Objective

              

      

       

      Document
AVIs current Configuration Management (CM) system to establish and control the
baseline deliverable system, software, and hardware configuration
items.

       

      Governing
Documentation

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      

       

      
        	
                2.3

              	
                BATMAV
      System Production

              

      

       

      
        	
                2.3.1

              	
                Procurement

              

      

       

      Objective

       

      The main
purpose is to clearly define standard procurement processes for materials,
supplies and services.  Only authorized purchasing agents can order
products and services via Cincom, whereby the company can maintain control of
cost of goods and services, supplier relationships, and can more effectively
monitor supply chain activities.  By following formal and consistent
procurement practices, we can manage variation in material, cost, quality,
delivery, and as yet unformed supplier relationships, to ensure shipment of
quality products on-time and at a predictable price.

       

      Governing
Documentation

       

      
        	
                QSP
      7.4

              	
                Purchasing

              

      

       

      UAS
Purchasing Manual

       

      Process

       

      
        	
                 
      

              	
                1.

              	
                Required
      Material or Services Identified - A requirement for material or services
      is identified either on the weekly Material Requirements Planning (MRP)
      report or on a Purchase Requisition (PR).  The MRP is
      systematically generated daily.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Buyer
      Initiates RFQ/RFP - The Buyer prepares an RFQ or RFP and distributes the
      data to the appropriate supplier.  RFQ/RFP’s for inventory items
      used for production in the Manufacturing Center must be distributed to an
      approved supplier.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Quote/Proposal
      Evaluation - The Buyer compares all of the quotes by analyzing price,
      volume, lead-time, supplier quality, on-time data, current supplier
      service levels including capacity, supplier reliability, and supplier
      technical expertise if purchased product warrants continued supplier
      support.

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

         

        
          
            
               

            

            
              Page
23

              
                

              

            

            
               

            

          

        

         

      

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                 
      

              	
                4.

              	
                Purchase
      Order Generation - The Buyer generates a Purchase Order via the Cincom PO
      Entry screens and follows the requirements in Appendix A of QSP
      7.4.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Purchase
      Order Acknowledgement - It is the Buyer’s responsibility to ensure that
      the supplier returns a written acknowledgement of the PO via fax or
      email.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Purchase
      Order Revisions - The Buyer and the Purchasing Manager are the only
      authorized authorities able to make revisions to
  POs.

              

      

       

      
        	
                 
      

              	
                7.

              	
                Material
      Receipt Verification - All material received to support production is
      inspected.  At a minimum, material is inspected for
      identification and damage - this typically applies to
      commercial-off-the-shelf items.  Material supplied to an AV
      specification is routed to Receiving Inspection for verification of the
      product to a requirements document - typically a
  drawing.

              

      

       

      
        	
                2.3.2

              	
                Subcontractor/Supply
      Chain Management

              

      

       

      Objective

       

      Ensure
our suppliers perform acceptably, on-time and within budget.

       

      Governing
Documents

       

      
        	
                QSP
      7.4-1

              	
                Supplier
      Management

              

      

       

      
        	
                QSP
      7.4.3

              	
                Verification
      of Purchased Product

              

      

       

      
        	
                QSP
      4.2.3

              	
                Control
      of Documents

              

      

       

      Process

       

      The AVI
subcontractor/supplier contract management approach is based on practical
experience in managing both large and small suppliers.  Our IPTs are
responsible for early identification of subcontractor/vendor risk
issues.  We use a competitive procurement process and component
quality review program to ensure performance and identify critical path
components.  Subcontractor and supplier performance is measured in
real time and reviewed by quality assurance and procurement
personnel.  Regularly scheduled reviews with key suppliers ensure
potential risks are identified.  This allows corrective and
preventative action plans to be implemented quickly, minimizing the chance of
negative schedule impact.

       

      We
maintain Non-Disclosure Agreements (NDAs) in place with our key
subcontractors.  We have negotiated pricing and terms with all key
subcontractors to support the production and logistics
requirements.  Our procurement and contracts people work hand-in-hand
with our quality assurance and engineering organizations to ensure that we
adequately define the subcontract work, qualify capable suppliers, and monitor
their performance.  Our contract management office will maintain these
contracts and work in conjunction with purchasing to ensure contractual
requirements and delivery schedules are met.  A comprehensive make/buy
analysis will be performed on all subcomponents required on this
program.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
24

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.3.3

              	
                Manufacturing

              

      

       

      Objective

       

      Provide a
consistent and reliable method to flow materials, labor, and process together
resulting in a consistent, controlled and predictable output.

       

      Governing
Documentation

       

      
         
Quality
System Manual

      

       

      
        	
                QSP
      7.2

              	
                Customer
      related Processes

              

      

       

      
        	
                QSP
      7.2.1

              	
                System
      Sell-off Process

              

      

       

      
        	
                QSP
      7.5

              	
                Production
      Process Control

              

      

       

      
        	
                QSP
      7.5-9

              	
                Consumables
      Process

              

      

       

      Process

       

      AVIs UAS
Manufacturing facility is registered as fully compliant with all requirements of
ISO 9001:2000.  The ISO Quality Management System (QMS) extends to all
processes within the manufacturing of SUAS products.  In conjunction
with the QMS, are computer-based systems and key manufacturing processes that
have been refined to meet the needs of Military SUAS Programs.

       

      Existing
AVI Computer based systems that will be used to support manufacturing for this
program:

       

      
        	
                 
      

              	
                ·

              	
                ERP/MRP
      database; Cincom Control

              

      

       

      
        	
                 
      

              	
                ·

              	
                QMS
      database that manages the process documentation and data collection
      mechanism

              

      

       

      
        	
                 
      

              	
                ·

              	
                Configuration
      Management Database

              

      

       

      
        	
                 
      

              	
                ·

              	
                AVOLS
      database that manages As-built
configuration.

              

      

       

      Existing
AVI manufacturing processes that will be used to support this program cover the
following key areas:

       

      
        	
                 
      

              	
                ·

              	
                Quality
      Assurance (ISO 9001:2000 certified)

              

      

       

      
        	
                 
      

              	
                ·

              	
                Manufacturing
      (Mechanical and Electronic
Assembly)

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
25

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                 
      

              	
                ·

              	
                Test
      and Inspection

              

      

       

      
        	
                 
      

              	
                ·

              	
                Supply
      Chain Management Processes

              

      

       

      
        	
                 
      

              	
                ·

              	
                Configuration
      Management and Document control

              

      

       

      
        	
                 
      

              	
                ·

              	
                Flight
      Operations

              

      

       

      Regular
and rigorous capacity planning is executed to ensure sufficient resources to
meet the production build plan with high probability.  Scheduling and
release of manufacturing orders (MO) to the stock room is the responsibility of
the Material Planning team using our ERP/MRP database.  A material
control specialist pulls the kit and delivers the MO to the production shop
floor.  Work Cell-based lean manufacturing techniques are utilized on
the production floor allowing focused cross-trained teams to complete the MO
routing steps and record labor times.  Configuration managed documents
are used in the fabrication, assembly, test and inspection of
product.  Test and yield data is collected at significant points in
the process to ensure specifications are met and continuous improvement methods
can be employed.  As-built configurations of all serialized assemblies
are entered into AVOLS for use by AVI’s integrated logistics organization and
the customer.  The stock room completes the MO and material is put
into inventory.  The entire manufacturing order process is tracked in
Cincom Control including; material, labor, assembly, test and
inspection.

       

      Once
complete sales order line item hardware sets are in stock, a Sales order pick
list is provided by the Material Planning team to the stock room.  The
items are pulled per the pick list and delivered to the Sell-off
Cage.  Flight Operations commence on applicable hardware and the
hardware is prepared for customer acceptance and Sell-off.

       

      Upon
customer request, the delivery is packaged and shipped out or shipped in place
pending specific instructions.

       

      
        	
                2.3.4

              	
                Inspection
      and Test

              

      

       

      Objective

       

      Ensure
inspection and test planning is incorporated in the BATMAV program and that all
proper inspections are accomplished at the correct points in the
process.

       

      Governing
Documentation

       

      
        	
                QSP
      7.4.3

              	
                Verification
      of Purchased Product

              

      

       

      
        	
                QSP
      7.6

              	
                Control
      of Monitoring and Measurement
Devices

              

      

       

      
        	
                QSP
      8.2.4

              	
                Monitoring
      and Measurement of Product

              

      

       

      
        	
                QSP
      8.3

              	
                Control
      of Nonconforming Product

              

      

       

      Process

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
26

          
            

          

        

        
           

        

      

      
         

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Inspection
and test spans the entire manufacturing process, from purchased components
through hardware production, including Customer witnessed
ATP.  Engineering, Quality Assurance, Procurement and Manufacturing
work together to define the production inspection and test plan.  Once
approved through program management, it becomes embedded in our engineering and
manufacturing process in the form of:

       

      
        	
                 
      

              	
                ·

              	
                Inspection
      and test requirements imposed on our supply chain partners to ensure
      materials meet specification prior to arriving at
  AVI.

              

      

       

      
        	
                 
      

              	
                ·

              	
                In
      plant receiving inspection and test requirements to catch nonconforming
      material prior to moving it to
stock.

              

      

       

      
        	
                 
      

              	
                ·

              	
                In-process
      inspection check lists on shop floor work order routings before assemblies
      move to the next operation.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Electronic
      subsystems before and after burn-in tests to eliminate latent defects in
      components and workmanship.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Air
      vehicle and ground equipment final test and inspection prior to validation
      test flight.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Validation
      flight test prior to customer
presentation.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Customer
      Acceptance Test Procedure to ensure products are fully compliant with
      system specification.

              

      

       

      Throughout
this process, nonconforming product is identified and isolated.  The
nonconforming product enters an existing process, disposition is determined, and
it is ultimately brought back into conformance or scrapped.  Any
changes to the inspection and test procedures must be formally approved by the
CCB, using our formal engineering change process.

       

      
        	
                2.3.5

              	
                UID
      Process

              

      

       

      Objective

       

      Implement
the current Unique Identification (UID) process on BATMAV program to ensure the
appropriate components are tagged per the requirements of
MIL-STD-130.

       

      Governing
Documentation

       

      
        	
                MIL-STD-130

              	
                Identification
      Marking of US Military Property

              

      

       

      
        	
                CDRL
      A003

              	
                Bar
      Code Identification Report

              

      

       

      
        	
                QSP
      7.5

              	
                Production
      Process Control

              

      

       

      Process

       

      When
systems are received in the sell-off cage, the UIDs are printed for each item as
specified by the contract and AVIs QSP 7.5.  The equipment used for
printing is MIL-STD-130 and ISO compliant.  The label is printed with
the following information: Cage Code, Part Number and Serial
Number.  Once the label is printed, bar codes have to be verified to
make sure the structure of the bar code is correct and is at an acceptable level
of clarity.  Once that is done, the label can be applied to the
equipment according to the production-released drawing.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
27

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                2.4

              	
                Contractor
      Logistics Support

              

      

       

      
        	
                2.4.1

              	
                Integrated
      Logistics Support

              

      

       

      Objective

       

      The
objective of AVI Integrated Logistics Support (ILS) is to achieve a low
lifecycle cost for our customer while continuously meeting customer expectations
in sustainment, supportability, availability and design.

       

      Governing
Documentation

       

      
        	
                MIL-HDBK-502

              	
                Department
      of Defense Handbook, Acquisition
Logistics

              

      

       

      
        	
                MIL-STD-1388-1A

              	
                Military
      Standard, Logistic Support Analysis

              

      

       

      
        	
                MIL-STAD-1388-2B

              	
                Military
      Standard, Department of Defense Requirements for a Logistic Support
      Analysis Record

              

      

       

      Process

       

      AVI ILS
is an interactive system including the customer and AVI Logistics, Product
Engineering and Program Management.  A Supportability Integrated
Product Team (SIPT) will be formed in accordance with the AVI program management
approach.  The SIPT will create and monitor metrics that gauge the
effectiveness of the program’s supportability.  The SIPT creates a
contractor infrastructure that is proactive to a customer’s needs.

       

      AVI works
internally with the Logistics and Product Engineering organizations to increase
product reliability and minimize part obsolescence.

       

      Our
responsive and proactive Logistics organization has used this concept to sustain
multiple product lines for several years and has continuously maintained
exceptional Operational Availability (A0) for customers in the combat
environment for the last few years.

       

      
        	
                2.4.2

              	
                Training
      Program

              

      

       

      
        	
                2.4.2.1

              	
                Training
      Support/Set-up

              

      

       

      Objective:

       

      AVI will
develop a Train-the-Trainer program and provide personnel and support equipment
to execute this program.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
28

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Governing
Documentation

       

      
        	
                CDRL
      A002

              	
                BATMAV
      Operators Manual

              

      

       

      
        	
                CDRL
      A002

              	
                BATMAV
      Training Manual

              

      

       

      Process

       

      The AV
BATMAV training program will be developed using a training IPT consisting of
engineering resources, training instructors, maintenance specialists, and
customer representatives.  The IPT starts with specific requirements
for the BATMAV program and a review of the published training
manual.  The training program will be developed leveraging the lessons
learned from our other UAV training programs.  Established baselines
for instructor-to-student ratios, PowerPoint presentations, formats, curriculum,
and class duration will be used.  Customer inputs and feedback will be
used to further refine the training package.  The finalized product
will be published and used in our Train-the-Trainer program.  The
proposed training team will consist of a chief trainer, certified instructor,
and maintenance specialist.  This team will sustain the training
assets and support the training program.

       

       

      
        	
                2.4.2.2

              	
                Training
      Class

              

      

       

      Objective:

       

      AVI will
operate Train-the-Trainer program and provide personnel and support equipment to
execute this program.

       

      Governing
Documentation:

       

      
        	
                CDRL
      A002

              	
                BATMAV
      Operators Manual

              

      

       

      
        	
                CDRL
      A002

              	
                BATMAV
      Training Manual Process:

              

      

       

      AVI will
use 34 skilled trainers and maintainers to ensure quality BATMAV instructional
support at military installations in CONUS and OCONUS.  Our trainers
consist primarily of former military personnel with real world combat
experience.  In addition, they have all successfully completed
extensive AVI training programs and have recent experience training military
personnel at multiple locations in the United States.

       

      We will
provide Train-the-Trainer course of instruction that is designed to take a
previously untrained individual and qualify him as a BATMAV
Trainer.  Training will consist of a combination of classroom and
flight training using BATMAV Systems.  The training program curriculum
includes:

       

      
        	
                 
      

              	
                ·

              	
                System
      operation, maintenance

              

      

       

      
        	
                 
      

              	
                ·

              	
                Airspace
      management

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
29

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                 
      

              	
                ·

              	
                Troubleshooting
      proficiencies

              

      

       

      
        	
                 
      

              	
                ·

              	
                Air
      tactics, techniques, and
procedures.

              

      

       

      
        	
                2.4.3

              	
                Maintenance

              

      

       

      Objective

       

      The
objective of AVI’s BATMAV two-level maintenance concept is to maximize Ao and
integrate maintenance that is congruent with current Air Force Special
Operations Command (AFSOC) UAV maintenance skill levels.

       

      Governing
Documentation

       

      
        	
                CDRL
      A002

              	
                BATMAV
      Operators Manual

              

      

       

      BATMAV
Technical Manual

       

      MIL-HDBK-502
Department of Defense, Acquisition Logistics

       

       

      Process

       

      O-level
maintenance and repairs will be trained as part of the Train-the-Trainer
program.  Operators will utilize FRKs and Operator Kits to repair and
maintain fielded BATMAV systems in theater.  The combination of spare
parts shipped with each AV, FRKs, and Operator Kits is designed to be sufficient
materials to maintain fielded systems for 20 to 30 days (depending on
operational tempo and environmental conditions).  Resupply will be
directed from our main depot, where stored ISP’s will provide the initial
replacements to the field.  Major D-level maintenance and repairs will
be conducted at our main depot in California.  Repaired items will
become part of a rotable to continue resupply efforts.

       

      
        	
                3.0

              	
                IMS Walkthrough

              

      

       

      The IMS
is located in Volume 1, Appendix A and is provided in Microsoft Project format
on our proposal CD.  The IMS is an integrated, time-phased schedule
that accounts for all activities required to complete the development,
integration, production, testing, logistics, and delivery requirements contained
in our SOW, the Air Force Statement of Objectives (SOO) and other internal AVI
planning documents.  The IMS is designed to ensure AVI management
meets the Air Force’s system performance, quality/test, and delivery schedule
requirements for the BATMAV program in a responsive and efficient
manner.

       

      The
development phase has already begun under the DARPA Wasp contract, shown (for
reference only) on the IMS.  The proof of concept design for the AV
and payload, as well as the initial integration of the OCU software, have
already been completed, as will be demonstrated during the source selection
process.  The remaining developmental items, such as the incremental
changes to the existing GCS and full system integration, will begin upon
contract award.  The system design, integration, test and validation
will be performed following our standard product develop process, QSP 7.3, as
laid out in the BATMAV System Development portion of the IMS.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

         

        
          
            
               

            

            
              Page
30

              
                

              

            

            
               

            

          

        

         

      

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Production
management, planning, and control are accomplished through AVI’s ERP
system.  The production portions of the IMS are representations of how
the effort takes place with the use of ERP.  Production begins with
definition of the system and BOM, then release into document
control.  Production documentation must be completed for some items in
transition from R&D prior to assembly phases.  The management team
plans the delivery schedule and loads the requirements into the ERP
system.  Weekly reports are generated for guiding the Purchasing
department in buying requirements necessary to meet delivery
schedule.  The summarized report includes requirements for all
programs including BATMAV.  The purchasing and receiving of parts will
take place in a combination of three methods: a single buy to cover near-term
requirements; multiple buys over a period of time; or a single blanket purchase
that covers multiple deliveries over a long period of time.  The
latter is preferred, as usually the best price and supplier relationship are
achieved using this method.  In general, all parts are purchased in
time to be received one to two weeks before required.  This is
represented by a lag link between when purchasing begins and the lead time
represented for the purchased item.

       

      The
durations shown for purchased items include the supplier lead time, receiving
and inspection at AVI.  The duration for each was extracted from ERP
lead times.  The purchasing of key parts is shown for each system
subcomponent.  In addition, a single task is used to represent the
fabrication and purchasing of any other subassemblies contributing to each
system component.  Each subcomponent is completed and tested at the
subassembly level and then leads to system level integration.  The
systems flow into pre-ATP final testing and then to Government-witnessed
ATP.  Once signed-off, the systems are shipped to the desired
location.

       

      
        	
                4.0

              	
                Management
      Approach

              

      

       

      AVI
management approach to the proposed BATMAV Program is based upon the classic
disciplines of Department of Defense (DoD) Program Management using an IPT
structure and Performance Management to facilitate the planning and control of
Cost, Schedule and Technical Performance.  This section is organized
to describe: 1) the placement of the program within AVI; 2) the overall
structure of our program team; 3) position descriptions for the key management
personnel; 4) our approach to work planning and performance measurement; and 5)
our management plans and processes.

       

      
        	
                4.1

              	
                Placement
      within AeroVironment

              

      

       

      AVI is a
35-year-old technology company dedicated to the development of Efficient Energy
Systems and UAVs.  Current development programs and products include
the following:

       

      
        	
                 
      

              	
                ·

              	
                SUAV

              

      

       

      
        	
                 
      

              	
                ·

              	
                Unmanned
      Aerial Vehicle R&D

              

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
31

          
            

          

        

        
           

        

      

      
         

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                 
      

              	
                ·

              	
                Industrial
      and Posi-Charge Equipment

              

      

       

      
        	
                 
      

              	
                ·

              	
                Energy
      Technology R&D

              

      

       

      
        	
                 
      

              	
                ·

              	
                Electric
      and Hybrid Vehicle Systems

              

      

       

      The UAS
business segment originated in 1986, with delivery of the first Pointer UAV
System.  Today, this business segment is the largest segment within
the corporation.  AVI remains fully committed to the small UAV product
line and its complete support following delivery to the end users.

       

      AVI’s
organizational structure is depicted in Figure 1.  Tim Conver is the
President and Chief Executive Officer of the corporation.  AVI is
divided into two (2) separate business centers with the corporation providing
financial, legal, information technology and security resources.

       

      The
UAS Division is responsible for research and development, product design,
manufacturing and logistic support of Small UAV systems including Wasp, Pointer,
Raven, Dragon Eye, Swift and Puma UAV systems.  John Grabowsky is the
Vice President and General Manager of this Division, which is located in Simi
Valley, California.  [*]

       

      

      

       

      Figure
1. AeroVironment Inc. Organizational Chart

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
32

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

        

      

       

      
        	
                4.2

              	
                Program
      Management Structure

              

      

       

      
        	
                4.2.1

              	
                BATMAV
      Organizational Structure

              

      

       

      For
program continuity, the existing experienced Wasp program team will also manage
the Air Force’s BATMAV System Program.  This existing organization
will also be retained and augmented as required.  Our BATMAV
Organization structure is depicted in Figure 2.

       

      In
parallel with the Air Force BATMAV program, AeroVironment is conducting the
DARPA/Wasp program.  In each of the key leadership positions we have
assigned the same experienced personnel.  Depending on the respective
time phased workload of the two programs, we will increase staffing, including
deputies, if necessary.

       

      

       

      

       

      Figure
2. BATMAV Program Structure

       

      

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
33

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Under
this BATMAV Program organization, the R&D, System and Product Engineering,
Manufacturing and Logistic Support managers are responsible for the detailed
planning and implementation of all BATMAV System work.  The BATMAV
Program Manager will oversee the overall program planning, control, and support
tasks.  IPTs will be the basis on which we will plan and accomplish
work throughout the organization.  Government personnel will be
included in the membership of all IPTs.  Short-term (ad hoc) IPTs will
be formed on an as-required basis.  IPTs will be established for
Program Management, System Engineering, and Logistics.  They will be
formed with cross-discipline members from the Air Force, AVI, and trusted
suppliers (as appropriate).

       

      The
existing Wasp Program organization will transition to the planned BATMAV program
organization between proposal submittal and contract award.  The
organization will continue to support both the DARPA and BATMAV program and
additional personnel will be added to ensure both programs are
supported.  Every person on the leadership team (shown in Figure 2) is
already committed to the program and, working together, have formed the backbone
of the proposal team.

       

      Integrated
Product Teams have been used on prior Wasp programs on a formal
basis.  We will continue the application of such cross-discipline
management teams on the BATMAV program.  Each team will be co-chaired
by Air Force and AVI designees.

       

      
        	
                4.2.2

              	
                Organizational
      Commitment

              

      

       

      AVI, the
UAS Division, and the Wasp Program Team are all fully committed to the
development, production and logistic support of BATMAV as a stable, long-term,
product line.  Our BATMAV system is a low-risk extension of a proven
design that is fully backed by the Corporation, performed by the Division’s Wasp
team and managed by the Program Manager that has made it the one of the most
successful Micro Air Vehicles currently in operation.

       

      
        	
                4.2.3

              	
                BATMAV
      Key Positions and Personnel

              

      

       

      All key
positions and personnel within the BATMAV program team are identified in Figure
2.  All key positions are the same as those in the current Wasp UAV
team.  Likewise, all key personnel are the same as the current Wasp
program.  A description of each key position can be found in the
following paragraphs.

       

      
        	
                4.2.3.1

              	
                Program
      Manager – [*]

              

      

       

      The
BATMAV Program Manager is [*].  He reports
directly to the Vice President and General Manager of the UAS
division.  He is the primary contact with the U.S. Air Force program
office and is responsible for all aspects of the planning, execution, and
business operations of the entire BATMAV program.  [*] is well
positioned for this assignment, as he is already Program

       

      

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

         

        
          
            
               

            

            
              Page
34

              
                

              

            

            
               

            

          

        

         

      

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      Manager
of Wasp programs.  The engineering, manufacturing, training, and
logistics of the DARPA Wasp program are under his direction and he has been
responsible for the development of all new technology incorporated into the
Wasp.  In his assignment as Program Manager for all Wasp programs, it
is his responsibility to ensure that all are adequately staffed.  It
will be his responsibility ensure that the BATMAV program has what it needs to
be successful.

       

      
        	
                4.2.3.2

              	
                Contract
      Management – [*]

              

      

       

      The
Contract Manager is responsible for all matters associated with BATMAV contract
negotiations.  He is the primary contact with the Air Force Procuring
Contracting Officer (PCO).  He is responsible for the implementation
of all BATMAV contract terms and conditions.  He maintains a formal
contract change log.  He plans and implements formal BATMAV work
releases to the BATMAV Program office (Finance/Business
Management).  [*]
is currently the Contracts Manager for the ongoing Wasp
programs.

       

      
        	
                4.2.3.3

              	
                Quality
      Assurance Management – [*]

              

      

       

      The
Quality Assurance Manager is responsible for Quality Assurance matters
associated with all UAS programs.  He is personally assigned to and is
responsible for the coordination of all Quality Assurance matters with the Air
Force BATMAV Program.  He is the primary contact with the U.S. Air
Forces delegated DCMA quality assurance representative.  He is
responsible for the implementation of all UAS Quality Assurance
requirements.  He collects and maintains BATMAV Quality performance
data (metrics).  [*]
will continue in this position.  He has the responsibility and
authority to:  ensure that processes needed for the QMS are
established, implemented, and maintained; report to the AVI management team on
the performance of the QMS and any need for improvement; ensure the promotion of
awareness of customer requirements throughout the organization; and ensure
accurate sell-off of product to our customer through DCMA and/or other
Government representatives.

       

      
        	
                4.2.3.4

              	
                Finance
      – [*]

              

      

       

      The
Finance Manager is responsible for all program finance
activities.  [*]
leads the finance function in the UAS division and will personally
establish and execute the financial management system for the
program.  It is her responsibility to ensure a disciplined financial
program based on realistic budgeting, clear tracking and reporting
upkeep.  It will be her responsibility to interpret trend data and to
provide an independent assessment to the Program Manager.  She will be
responsible for providing periodic Estimates at Completion (EACs) for review by
the Program Manager and providing EAC reports to the customer.

       

      

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
35

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                4.2.3.5

              	
                Research
      and Development – [*]

              

      

       

      Research
and Development for Air Force BATMAV will be under the continuing direction of
[*].  He is
responsible for the R&D efforts that led to the BATMAV advancements based on
Wasp, including the configurable AV design and the interchangeable
payload.  He will develop future technology advances for Block III,
including the integration of front/side look IR camera.

       

      
        	
                4.2.3.6

              	
                System / Product Engineering –
      [*]

              

      

       

      AVI has
combined System Engineering and Product Engineering activities under [*].  As System and
Product Engineering Director, he is responsible for all matters associated with
BATMAV Product Engineering.  These responsibilities include production
engineering, tooling design, special test equipment design, reliability
engineering, maintainability engineering and components/materials, as well as
engineering development and qualification testing.  His
responsibilities include product design reviews, ECPs and configuration
management.  He will conduct trade studies and propose design changes
as appropriate, and assure compatibility/interchangeability among major elements
of the BATMAV system improvements.

       

      
        	
                4.2.3.7

              	
                Manufacturing
      – [*]

              

      

       

      [*] will continue in the
position of Production Manager.  He was the Manufacturing Manager that
succeeded in achieving the high first-time yield records of the U.S. Army Raven
B program.  His responsibilities include material acquisition,
material inventory management (including government furnished material),
tooling/test equipment acquisition and maintenance, manufacturing engineering,
assembly/test instructions, fabrication/assembly/test of BATMAV System equipment
and spare assemblies and final acceptance test (including flight test) of BATMAV
systems.  Other responsibilities include change effectivity analysis,
configuration control (hardware and software), and packing and
shipping.

       

      
        	
                4.2.3.8

              	
                Logistics
      – [*]

              

      

       

      [*] will continue as the
Logistics and Repairs Manager.  His responsibilities include safety
engineering, operator training, maintenance training, supply support analysis,
equipment repair/retrofit, acquisition of maintenance tooling/test equipment and
PBL analyses.

       

      
        	
                4.2.3.9

              	
                Training
      – [*]

              

      

       

      [*] will continue as the
Director of Training.  His responsibilities include UAS Instructor
Training and currency standards, operator training, OCONUS logistics support,
curriculum development and technical manuals.  Other responsibilities
include component level repair of all AVI UAS product lines including multiple
AVs, ground control units, battery packs, battery chargers and related ancillary
equipment.

       

      

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
36

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      
        	
                5.0

              	
                Contractor
      Work Breakdown Structure (CWBS)

              

      

       

      
        	
                5.1

              	
                CWBS
      Chart

              

      

       

      The
following CWBS has been generated for the management plan and is shown in Figure
3 for reference.  The CWBS numbering is identical to the subsections
within Section 3.3 of the SOW.

       

      The WBS
dictionary for the program is presented in Section 5.2 of this
document.  The Responsibility Assignment Matrix shows the relationship
of the WBS to the program organization and is shown in Section 5.3 of this
document.

       

      
        	
                 

                WBS

              
	
                1.0

              	
                Management

              	 
      
	 
      	
                1.1

              	
                Production
      Program Support

              
	 
      	
                1.1.1

              	
                Program
      Management

              
	 
      	
                1.1.2

              	
                Contracts

              
	 
      	
                1.1.3

              	
                Finance

              
	 
      	
                1.1.4

              	
                IPTs

              
	 
      	
                1.2

              	
                Engineering
      Management

              
	 
      	
                1.2.1

              	
                System
      Engineering

              
	 
      	
                1.2.2

              	
                Product
      Engineering

              
	 
      	
                1.2.3

              	
                Configuration
      Management

              
	 
      	
                1.2.4

              	
                Obsolescence

              
	 
      	
                1.3

              	
                Overall
      Program Support

              
	 
      	
                1.3.1

              	
                Security

              
	 
      	
                1.3.2

              	
                Safety

              
	 
      	
                1.3.3

              	
                Quality

              
	 
      	
                1.3.4

              	
                Flight
      Operations

              
	
                2.0

              	
                System
      Development

              
	 
      	
                2.1

              	
                Development
      Program - Management Support

              
	 
      	
                2.2

              	
                Develop
      and Integrate BATMAV System

              
	 
      	
                2.3

              	
                System
      Validation, Test and Evaluation

              
	 
      	
                2.4

              	
                System
      Specification & Technical Data

              
	 
      	
                2.5

              	
                Payload
      & Voice Control Interface Control
Documents

              

      

      

       

        
          

        

      

      
        Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      

      
        
           

        

        
          Page
37

          
            

          

        

        
           

        

      

      

      
        	
                

              	
                Contract
      # FA8629-07-D-2376

              	
                

              

      

       

      
        	 
      	
                2.6

              	
                Develop
      Operator's and Training Manuals

              
	 
      	
                2.7

              	
                Configuration
      Management Plan

              
	
                3.0

              	
                Production

              	 
      
	 
      	
                3.1

              	
                System
      Production

              
	 
      	
                3.2

              	
                Initial
      Spares

              
	
                4.0

              	
                Contractor
      Logistics Support

              	 
      
	 
      	
                4.1

              	
                Training
      Program

              
	 
      	
                4.1.1

              	
                Equipment

              
	 
      	
                4.1.2

              	
                Services

              
	 
      	
                4.1.3

              	
                Facilities

              
	 
      	
                4.2

              	
                Maintenance

              

      

      

       

      Figure
3. Contract Work Breakdown Structure

       

      
        	
                5.2

              	
                WBS
      Dictionary

              

      

       

      WBS
1.1 Production Program Support

       

      This
includes the overall management, control and operation of the production
program.  This includes efforts associated with execution and
completion of CDRL data associated with the BATMAV system
production.

       

      WBS
1.1.1 Program Management

       

      The
program planning, organizing, directing, coordinating, controlling and approval
actions necessary to accomplish the overall program objectives that are not
associated with the specific systems and facilities and are not included under
Engineering or Logistics Management.  This element also includes
production and maintenance of the WBS, metrics, status reporting and
meetings.

       

      WBS
1.1.2 Contracts

       

      The
management, administration and coordination of the contract to include
reporting, subcontract management, property management and
control.  This includes elements of reporting associated with contract
status and performance.

       

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
38

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      WBS
1.1.3 Finance

       

      The
financial management of the program to include establishing and maintaining a
financial management system and managing and reporting program financial
information.  This element is also to include the hardware and
software necessary to host the financial management system.  This
includes elements of reporting associated with program budget and
cost.

       

      WBS
1.1.4 IPTs

       

      The
establishment, planning, communication and maintenance of joint
Government/contractor IPT organizations to carry out the management and
coordination functions of the program.  This includes overall
management, logistics and engineering IPTs with additional ad-hoc IPTs as
required.

       

      WBS
1.2 Engineering Management

       

      This WBS
element includes the technical and management efforts of directing and
controlling a totally integrated engineering effort of the program.

       

      WBS
1.2.1 System Engineering

       

      The
planning, organizing, directing, coordinating, controlling, approval actions and
integration necessary to accomplish the overall program system engineering and
technical objectives.

       

      WBS
1.2.2 Product Engineering

       

      This
element includes all effort of technical activities associated with the
production and manufacturing of the system.  This includes analysis of
design and production operations, application of manufacturing methods and
tooling in support of producing the system.

       

      WBS
1.2.3 Configuration Management

       

      The
establishment of configuration items and operation of configuration management
for the system and sub system components and software.  This includes
defining the baseline configuration for the configuration items, controlling the
changes to that baseline, accounting and reporting for all approved
changes.  This includes preparing and documenting necessary items in
support of formal ECP submission for Class I changes.

       

      WBS
1.2.4 Obsolescence

       

      This
element includes all effort of technical activities associated with maintaining
and routinely evaluating components for obsolescence.

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
39

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      WBS
1.3 Overall Program Support

       

      This
element includes all task and efforts used to support the production
program.

       

      WBS
1.3.1 Security

       

      This
element includes all to task and activities required ensure that AVI adheres to
the polices, practices, and procedures of the National Industrial Security
Program.

       

      WBS
1.3.2 Safety

       

      The
planning, analysis and reporting of system component, operation and
transportation safety.

       

      WBS
1.3.3 Quality

       

      The
establishment, implementation and operation of a quality assurance program in
support of the system production and supportability.

       

      WBS
1.3.4 Flight Operations

       

      The
establishment, implementation and operation of flight operations.

       

      WBS
2.0 System Development

       

      This
includes the overall management, control and operation of the development
program.  This includes efforts associated with execution and
completion of CDRL data associated with the BATMAV system development
effort.

       

      WBS
2.1 Development Program – Management Support

       

      The
program planning, organizing, directing, coordinating, controlling and approval
actions necessary to accomplish the overall program objectives related to the
system development effort.  This element also includes maintenance of
the WBS, metrics, status reporting and meetings associated with the development
effort.

       

      WBS
2.2 Develop and Integrate BATMAV System

       

      This
element includes all effort of technical activities associated with the design,
development, and integration of BATMAV unique subsystems, including the RF Unit
with omni and directional antennas, and joystick controller as well as the
integration of all software within the system.  This also includes
analysis of design and production operations, application of manufacturing
methods, analysis and balance of reliability, maintainability, reducibility,
safety, human health and interface, environmental protection, and survivability
of the system.

       

      WBS
2.3 System Validation, Test and Evaluation

       

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
40

          
            

          

        

        
           

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

        
This
activity includes the test and evaluation of prototype to production level
assets for acceptance for their intended use.  This includes the labor
and materials required to conduct PPT&E of the BATMAV system and also
includes support for the government run DT&E and
OT&E.

      

       

      WBS
2.4 System Specification & Technical Data

       

      Establishing
and maintaining the system technical requirements and specifications for the
system, including the acceptance test procedure (ATP).  This effort
also includes the preparing technical data in support of the Program Office for
any required waivers.

       

      WBS
2.5 Payload & Voice Control Interface Control Documents

       

      This
element includes the generating and updating ICD for the Swappable Payload and
Voice Control Software ICDs for this program

       

      WBS
2.6 Develop Operator’s and Training Manuals

       

      This
activity includes all labor and material associated with creating the operator’s
and training material, including the manual.

       

      WBS
2.7 Configuration Management Plan

       

      This
effort includes documenting our existing configuration management plan to be
delivered as a contract data item.  The plan will describe our process
for defining the baseline configuration for the configuration items, controlling
the changes to that baseline, accounting and reporting for all approved
changes.

       

      WBS
3.0 BATMAV Production

       

      This
includes the overall tasks associated with producing the BATMAV system hardware
and initial spares package.

       

      WBS
3.1 System Production

       

      This
element includes the labor, materials and tasks associated with producing the
BATMAV system hardware.

       

      WBS
3.2 Initial Spares Production

       

      This
element includes the labor, materials and tasks associated with producing the
BATMAV spares hardware.

       

      WBS
4.0 Contractor Logistics Support

       

      This
element includes all logistics and supportability efforts for the
program.

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
41

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

         

      

      WBS
4.1 Training Program

       

      Deliverable
training services, devices, accessories, aids, equipment, and parts used to
facilitate instruction through which personnel will learn to operate and
maintain the system with maximum efficiency.  This includes all effort
associated with the design, development, and production of deliverable training
equipment as well as the execution of training services.

       

      WBS
4.1.1 Equipment

       

      This
includes all effort associated with the design, development, and production of
deliverable training equipment.

       

      WBS
4.1.2 Services

       

      This
includes all effort associated with the execution of training
services.

       

      WBS
4.1.3 Facilities

       

      This
element covers the training facilities and materials.

       

      WBS
4.2 Maintenance

       

      This WBS
element includes material and labor to support the 2-level maintenance for the
BATMAV system.

       

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
42

          
            

          

        

        
           

        

      

      
        
          

          
            	
                    

                  	
                    
                      Department
      of the Air Force

                       

                      U.S.
      Air Force BATMAV, Contract # FA8629-07-D-2376

                    

                  	
                    

                  

          

           

        

      

      
        	
                5.3

              	
                Responsibility
      Assignment Matrix

              

      

       

      
        	
                WBS

              	
                Program
      Mgmt

              	
                Sys
      / Prod

                Eng.

              	
                Mfg

              	
                Logistics

              	
                SOW

              	
                CDRL

              	
                CLIN

              
	
                1.0

              	
                Management

              	 
      	 
      	 
      	 
      	
                3.3.1

              	 
      	 
      
	 
      	
                1.1

              	
                Production
      Program Support

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1

              	 
      	
                CLIN0002

              
	 
      	
                1.1.1

              	
                Program
      Management

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.1

              	
                A004,
      A008

              	
                CLIN0002

              
	 
      	
                1.1.2

              	
                Contracts

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.2

              	 
      	
                CLIN0002

              
	 
      	
                1.1.3

              	
                Finance

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.3

              	 
      	
                CLIN0002

              
	 
      	
                1.1.4

              	
                IPTs

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.4

              	 
      	
                CLIN0002

              
	 
      	
                1.2

              	
                Engineering
      Management

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2

              	 
      	
                CLIN0002

              
	 
      	
                1.2.1

              	
                System
      Engineering

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.1

              	 
      	
                CLIN0002

              
	 
      	
                1.2.2

              	
                Product
      Engineering

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.2

              	 
      	
                CLIN0002

              
	 
      	
                1.2.3

              	
                Configuration
      Management

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.3

              	 
      	
                NSP

              
	 
      	
                1.2.4

              	
                Obsolescence

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.4

              	 
      	
                NSP

              
	 
      	
                1.3

              	
                Overall
      Program Support

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3

              	 
      	
                NSP

              
	 
      	
                1.3.1

              	
                Security

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.1

              	 
      	
                NSP

              
	 
      	
                1.3.2

              	
                Safety

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.2

              	 
      	
                NSP

              
	 
      	
                1.3.3

              	
                Quality

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.3

              	 
      	
                NSP

              
	 
      	
                1.3.4

              	
                Flight
      Operations

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.4

              	 
      	
                NSP

              
	
                2.0

              	
                System
      Development

              	 
      	 
      	 
      	 
      	
                3.3.2

              	 
      	 
      
	 
      	
                2.1

              	
                Development
      Program - Management Support

              	
                x

              	 
      	 
      	 
      	
                3.3.2.1

              	
                A004,
      A008

              	
                CLIN0001

              
	 
      	
                2.2

              	
                Develop
      and Integrate BATMAV System

              	 
      	
                x

              	 
      	 
      	
                3.3.2.2

              	 
      	
                CLIN0001

              
	 
      	
                2.3

              	
                System
      Validation, Test and Evaluation

              	 
      	
                x

              	 
      	 
      	
                3.3.2.3

              	 
      	
                CLIN0001

              
	 
      	
                2.4

              	
                System
      Specification & Technical Data

              	 
      	
                x

              	 
      	 
      	
                3.3.2.4

              	
                A001,
      A003, A009, A010, A011

              	
                CLIN0001

              
	 
      	
                2.5

              	
                Payload
      & Voice Control Interface Control Documents

              	 
      	
                x

              	 
      	 
      	
                3.3.2.5

              	
                A007

              	
                CLIN0001

              
	 
      	
                2.6

              	
                Develop
      Operators and Training Manuals

              	 
      	
                x

              	 
      	 
      	
                3.3.2.6

              	
                A002

              	
                CLIN0001

              
	 
      	
                2.7

              	
                Configuration
      Management Plan

              	 
      	
                x

              	 
      	 
      	
                3.3.2.7

              	
                A006

              	
                CLIN0001

              
	
                3.0

              	
                Production

              	 
      	 
      	 
      	 
      	
                3.3.3

              	 
      	 
      
	 
      	
                3.1

              	
                System
      Production

              	 
      	 
      	
                x

              	 
      	
                3.3.3.1

              	
                A001,
      A003

              	
                CLIN0002

              
	 
      	
                3.2

              	
                Initial
      Spares

              	 
      	 
      	
                x

              	 
      	
                3.3.3.2

              	 
      	
                CLIN0003

              
	
                4.0

              	
                Contractor
      Logistics Support

              	 
      	 
      	 
      	 
      	
                3.3.4

              	 
      	 
      
	 
      	
                4.1

              	
                Training
      Program

              	 
      	 
      	 
      	 
      	
                3.3.4.1

              	 
      	 
      
	 
      	
                4.1.1

              	
                Equipment

              	 
      	 
      	 
      	
                x

              	
                3.3.4.1.1

              	 
      	
                CLIN0004

              
	 
      	
                4.1.2

              	
                Services

              	 
      	 
      	 
      	
                x

              	
                3.3.4.1.2

              	 
      	
                CLIN0004

              
	 
      	
                4.1.3

              	
                Facilities

              	 
      	 
      	 
      	
                x

              	
                3.3.4.1.3

              	 
      	
                CLIN0004

              
	 
      	
                4.2

              	
                Maintenance

              	 
      	 
      	 
      	
                x

              	
                3.3.4.2

              	 
      	
                CLIN0005

              

      

      

       

      
        
          
            

          
Use or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

        Attachment
4, Integrated Master Plan (IMP)

      

      
        
           

        

        
          Page
43

          
            

          

        

        
           

        

      

      
        

        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

        

      

      
        	
                WBS

              	
                Program
      Mgmt

              	
                Sys
      / Prod

                Eng.

              	
                Mfg

              	
                Logistics

              	
                SOW

              	
                CDRL

              	
                CLIN

              
	
                1.0

              	
                Management

              	 
      	 
      	 
      	 
      	
                3.3.1

              	 
      	 
      
	 
      	
                1.1

              	
                Production
      Program Support

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1

              	 
      	
                CLIN0002

              
	 
      	
                1.1.1

              	
                Program
      Management

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.1

              	
                A004,
      A008

              	
                CLIN0002

              
	 
      	
                1.1.2

              	
                Contracts

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.2

              	 
      	
                CLIN0002

              
	 
      	
                1.1.3

              	
                Finance

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.3

              	 
      	
                CLIN0002

              
	 
      	
                1.1.4

              	
                IPTs

              	
                x

              	 
      	 
      	 
      	
                3.3.1.1.4

              	 
      	
                CLIN0002

              
	 
      	
                1.2

              	
                Engineering
      Management

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2

              	 
      	
                CLIN0002

              
	 
      	
                1.2.1

              	
                System
      Engineering

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.1

              	 
      	
                CLIN0002

              
	 
      	
                1.2.2

              	
                Product
      Engineering

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.2

              	 
      	
                CLIN0002

              
	 
      	
                1.2.3

              	
                Configuration
      Management

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.3

              	 
      	
                NSP

              
	 
      	
                1.2.4

              	
                Obsolescence

              	 
      	
                x

              	 
      	 
      	
                3.3.1.2.4

              	 
      	
                NSP

              
	 
      	
                1.3

              	
                Overall
      Program Support

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3

              	 
      	
                NSP

              
	 
      	
                1.3.1

              	
                Security

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.1

              	 
      	
                NSP

              
	 
      	
                1.3.2

              	
                Safety

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.2

              	 
      	
                NSP

              
	 
      	
                1.3.3

              	
                Quality

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.3

              	 
      	
                NSP

              
	 
      	
                1.3.4

              	
                Flight
      Operations

              	
                x

              	 
      	 
      	 
      	
                3.3.1.3.4

              	 
      	
                NSP

              
	
                2.0

              	
                System
      Development

              	 
      	 
      	 
      	 
      	
                3.3.2

              	 
      	 
      
	 
      	
                2.1

              	
                Development
      Program - Management Support

              	
                x

              	 
      	 
      	 
      	
                3.3.2.1

              	
                A004,
      A008

              	
                CLIN0001

              
	 
      	
                2.2

              	
                Develop
      and Integrate BATMAV System

              	 
      	
                x

              	 
      	 
      	
                3.3.2.2

              	 
      	
                CLIN0001

              
	 
      	
                2.3

              	
                System
      Validation, Test and Evaluation

              	 
      	
                x

              	 
      	 
      	
                3.3.2.3

              	 
      	
                CLIN0001

              
	 
      	
                2.4

              	
                System
      Specification & Technical Data

              	 
      	
                x

              	 
      	 
      	
                3.3.2.4

              	
                A001,
      A003, A009, A010, A011

              	
                CLIN0001

              
	 
      	
                2.5

              	
                Payload
      & Voice Control Interface Control Documents

              	 
      	
                x

              	 
      	 
      	
                3.3.2.5

              	
                A007

              	
                CLIN0001

              
	 
      	
                2.6

              	
                Develop
      Operators and Training Manuals

              	 
      	
                x

              	 
      	 
      	
                3.3.2.6

              	
                A002

              	
                CLIN0001

              
	 
      	
                2.7

              	
                Configuration
      Management Plan

              	 
      	
                x

              	 
      	 
      	
                3.3.2.7

              	
                A006

              	
                CLIN0001

              
	
                3.0

              	
                Production

              	 
      	 
      	 
      	 
      	
                3.3.3

              	 
      	 
      
	 
      	
                3.1

              	
                System
      Production

              	 
      	 
      	
                x

              	 
      	
                3.3.3.1

              	
                A001,
      A003

              	
                CLIN0002

              
	 
      	
                3.2

              	
                Initial
      Spares

              	 
      	 
      	
                x

              	 
      	
                3.3.3.2

              	 
      	
                CLIN0003

              
	
                4.0

              	
                Contractor
      Logistics Support

              	 
      	 
      	 
      	 
      	
                3.3.4

              	 
      	 
      
	 
      	
                4.1

              	
                Training
      Program

              	 
      	 
      	 
      	 
      	
                3.3.4.1

              	 
      	 
      
	 
      	
                4.1.1

              	
                Equipment

              	 
      	 
      	 
      	
                x

              	
                3.3.4.1.1

              	 
      	
                CLIN0004

              
	 
      	
                4.1.2

              	
                Services

              	 
      	 
      	 
      	
                x

              	
                3.3.4.1.2

              	 
      	
                CLIN0004

              
	 
      	
                4.1.3

              	
                Facilities

              	 
      	 
      	 
      	
                x

              	
                3.3.4.1.3

              	 
      	
                CLIN0004

              
	 
      	
                4.2

              	
                Maintenance

              	 
      	 
      	 
      	
                x

              	
                3.3.4.2

              	 
      	
                CLIN0005

              

      

      

       

      
        
          
            

          

          
            Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

            Attachment
5, Contract Work Breakdown Structure (CWBS)

             

          

          b

            
              
                 

              

              
                Page
1

                
                  

                

              

              
                 

              

            

          

        

      

       

      
        
          	
                  

                	
                  Contract
      # FA8629-07-D-2376

                	
                  

                

        

      

       

      Table
1. Required Information for Using GFP/Base Support (Section L, Table
8.7)

      

      
        	
                Quantity

              	
                Federal Stock #

              	
                Nomenclature

              	
                Duration

              	
                Rental Value

              	
                Reason for Need

              	
                Cross Ref. To Cost Prop.

              
	 
      
	
                1

              	 
      	
                FalconView
      s/w

              	
                Length
      of contract

              	
                No
      cost

              	
                BAO
      Kit compatibility

              	
                N/A

              
	
                1

              	 
      	
                UAV
      Tool s/w

              	
                Length
      of contract

              	
                No
      cost

              	
                BAO
      Kit compatibility

              	
                N/A

              
	
                1

              	 
      	
                AFRL/HE
      Voice Control s/w

              	
                Length
      of contract

              	
                No
      cost

              	
                BAO
      Kit compatibility

              	
                N/A

              
	
                1

              	 
      	
                EtherRoute
      s/w

              	
                Length
      of contract

              	
                No
      cost

              	
                BAO
      Kit compatibility

              	
                N/A

              
	
                1

              	 
      	
                Panasonic
      CF- 18 Toughbook computer

              	
                Length
      of contract

              	
                $4,000
      est.

              	
                BAO
      Kit compatibility

              	
                N/A

              
	
                3

              	
                N/A

              	
                Training
      Facilities

              	
                17
      days each

              	
                Not
      known

              	
                To
      support "Train- the-Trainer"

              	
                N/A

              

      

      

       

      
        
          
            

          

          
            Use
or disclosure of information contained on this page is subject to the
restrictions stated on the title page of this document.

            Attachment
6, GFP Listing

          

          
            
               

            

            
              Page
1

              
                

              

            

            
               

            

          

      

      FA8629-07-D-2376

      Attachment
7

       

      WIDE AREA WORK FLOW – RECEIPT AND
ACCEPTANCE (WAWF-RA) ELECTRONIC INVOICING AND RECEIVING REPORT
INSTRUCTIONS (07 Feb 2006)

       

      1.      CONTRACTORS SHALL SUBMIT INVOICES
THROUGH WAWF-RA FOR PAYMENT.  SUBMISSION
OF INVOICES VIA ANY OTHER METHOD SHALL DELAY PAYMENT.  HARD
COPIES OF INVOICES ARE NO LONGER ACCEPTABLE METHODS OF SUBMISSION AND MAY BE
RETURNED TO THE CONTRACTOR.

       

      2.      The
contractor shall be paid after submission of a properly prepared invoice and
after final inspection and acceptance by the Government.  In
accordance with DFARS 252.232-7003, use of electronic payment requests is
mandatory.  Wide Area Workflow – Receipt and Acceptance (WAWF-RA) is
the Department of Defense System preferred choice for submission of electronic
payment requests and receipt and acceptance documents.  Information
found here will aid in the submission of an invoice through
WAWF-RA.

       

      3.      Invoices
shall be submitted (Type an X in the appropriate block):

       

      a.      T After Delivery
of Supplies or Services

      b.      T Monthly (After
Performance)

      c.      £ Quarterly
(After Performance)

      d.      £ Semi-annually
(After Performance)

      e.      £ Yearly (After
Performance)

      

      4.      The
following codes are required
to properly route your invoices and/or receiving reports through WAWF-RA.
Missing elements in the following areas may cause delays in the payment
process.

       

      a.      ISSUE
DATE: . .

      b.      CONTRACT
NUMBER: . .

      c.      DELIVERY
ORDER NUMBER: . . (Note to contractor : Blank unless completed )

      d.      CAGE
CODE: . .

      e.      PAY
OFFICE DODAAC: . . 

      

      5.      The
contractor shall submit invoices using the following format for Payment
Type.  Be advised that only the selections noted below shall be used
in the submittal process.  THE CONTRACTOR SHALL STRICTLY AHERE
TO THE SELECTION NOTED BELOW TO AVOID DELAYS IN THE PAYMENT
PROCESS.  SUBMISSION
OF INVOICE OTHER THAN THAT SPECIFIED BELOW MAY DELAY PAYMENT AND/OR CAUSE
INVOICE TO BE RETURNED.

       

      a.      £ Invoice (Note
to contractor:  To be used ONLY
if authorized by the Contracting Officer)

      b.      £ Invoice 2n1
(Services Only)

      c.      £ Construction
Payment Invoice

      d.      £ Commercial
Item Financing (Note to contractor:  To be used ONLY
if authorized by the Contracting Officer)

      
        
           

        

        
          Page 1 of
4

          
            

          

        

        
           

        

      

      FA8629-07-D-2376

      Attachment
7

       

      e.      £ Performance
Based Payment (Note to contractor:  To be used ONLY
if authorized by the Contracting Officer)

      f.     
 £
Progress Payments (Note to contractor:  To be used ONLY
if authorized by the Contracting Officer)

      g.      £  Receiving
Report

      h.      x Invoice and Receiving
Report (COMBO)

       Note:
Inspection = .. (source, destination)

       Note:
Acceptance = .. (source, destination)

      i.       £ Public
Voucher

       

      (Note to
contractor:  If no selection is specified above, contractor shall
utilize the combined Invoice and Receiving Report (COMBO)
format.  (Exceptions to utilizing the Invoice and Receiving Report
(COMBO) is based upon the specific contract type awarded where progress
payments, fast payment may be involved (e.g., construction contracts, or
contract financing.) However, these exceptions will be identified elsewhere
within the contract award document and authorized by the Contracting
Officer.  When in doubt, contact the Contracting Officer for
clarification.  When the COMBO method is used, be advised that the
contractor shall create both a receiving report and invoice.  Also
note that if the contractual document requires attachments to be submitted
(e.g., a copy of a paid freight bill), this can be accomplished by following
instructions under Software User’s Manual on the WAWF-RA site regarding
“attachments”.

       

      6.      The
following additional codes are required to properly route your invoices and/or
receiving reports through WAWF-RA.  Note that if errors are received
in the creation of your document, stop and call the Contracting Officer for
verification of code required.  Also note that some fields shown may
or may not be included depending upon the type of invoice
created.  Fields are provided

       

      a.      ISSUE
BY DODAAC:  FA8629

      b.      ADMIN
DODAAC: S0512A (Note to contractor:  This field may also be referred
to as ADMIN BPN)

      c.      INSPECT
BY DODAAC:       EXT:  .. (Note to
contractor:  These fields may be blank if not filled out by the
contracting office, EXT may be blank even if the Inspect By DODAAC is
shown.)

      d.      MARK
FOR CODE: Leave Blank

      e.      SHIP
TO
CODE:      ..   EXT:  . .
(Note to contractor:  EXT may be blank even if the first code here is
shown.  Also note this may also be referred to as Service Acceptor
Code or Contracting Officer Code.  In the future, this code may be
referred to as BPN)

      f.      SHIP
FROM CODE: Leave Blank

      g.      SHIPMENT
NUMBER: (Note to contractor:  This field is created and provided
by the contractor.  If no shipment number is completed in the WAWF
process, the invoice number will be the default number.)

      h.      INVOICE
NUMBER:   (Note to contractor:  This is the invoice
number and is created and provided by the contractor)

      i.     
 ADDRESSES TAB (Note to Contractor:  WAWF-RA will pre-populate
the address information, ensure it is correct.)

      j.       DISCOUNT
TAB (Note to contractor:  This allows for prompt payment
discounts)

      
        
           

        

        
          Page 2 of
4

          
            

          

        

        
           

        

      

      FA8629-07-D-2376

      Attachment
7

       

      k.      FOB:
.. . (D, S, V) (D denotes destination shipping, S denotes shipment address same
as contractor’s address, V denotes shipment from other than contractor’s
address.) (Note to contractor:  If other than Destination (D),
submission of a paid freight bill may be required as an attachment to
substantiate shipping charge.)

      

      7.      When
creating invoices and/or receiving reports, the contractor shall select the
“Additional E-mail Notifications” link and enter the e-mail addresses
below.  The Government will advise the contractor of changes to these
e-mail notifications by letter or e-mail vs. contract
modification.  Upon receipt of the change(s), the contractor shall
include the new e-mail notifications when creating invoices and/or receiving
reports.  Contractor should send an email notification to the
addressees listed below upon submittal of an invoice through Wide Area Work Flow
(WAWF-RA).

       

      a.      INSPECTOR:  .
..

      b.      ACCEPTOR:  .
..

      c.      CONTRACT
ADMINISTRATOR:  [*]

      d.      CONTRACTING
OFFICER:  [*]

      e.      ADDITIONAL
CONTACT:  . .

       

      8.      Questions
concerning payments should be directed to the Defense Finance Accounting
Services (DFAS) located in Block . . of the contract/order.  The
contract, purchase order, or invoice number is required when inquiring about
payment status.  Payment information may also be accessed from the
DFAS web site at http://www.dod.mil/dfas/money/vendor/

       

      9.      Detailed
information regarding WAWF-RA is available on the Internet at https://wawf.eb.mil.  Note
that the Software Users Manual posted to WAWF-RA is an excellent source for
information when completing the invoice submission process.  WAWF-RA
training is also available at http://www.wawftraining.com.

       

      10.    DEFINITIONS.  Following
is a list of definitions that may be helpful.  Additional information
can be found at http://farsite.hill.af.mil/
and http://www.dod.mil/dfas/commpay/contractorpayment/

       

      SECTION J – LIST OF
ATTACHMENTS -

       

      Attachment No. 1 –
Glossary of Invoicing Terms

       

      BPN: Business Partner
Number.  An integrated electronic infrastructure the Government uses
to manage (i.e., collect, validate, access and maintain) the information it
needs to transact business with its contractors.  The BPN is located
at http://www.bpn.gov.

      CAGE CODE: Commercial
and Government Entity Code.  A CAGE Code is a five (5) position code
that identifies companies doing or wishing to do business with the Federal
Government. http://www.ccr.gov/

      

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
           

        

        
          Page 3 of
4

          
            

          

        

        
           

        

      

      FA8629-07-D-2376

      Attachment
7

       

      COMMERCIAL ITEM
FINANCING is a form of contract financing resulting from the Federal
Acquisition Streamlining Act (FASA) of 1994.  Use of this type of
invoicing shall be approved by the Contracting officer.

      CONTRACTING OFFICER:
The person with the authority to enter into, administer, and/or terminate
contracts and make related determinations and findings.

      CONTRACTOR: Also
known as vendor

      DODAAC: Department of
Defense Activity Address Code.  A six position code that uniquely
identifies a unit, activity, or organization that has the authority to
requisition and/or receive materiel

      DELIVERY ORDER: An
order for supplies placed against an established contract or with Government
sources.

      F.O.B. DESTINATION:
Free on board at destination; i.e., the seller or consignor
delivers the goods on seller’s or consignor’s conveyance at
destination.

      F.O.B. ORIGIN: Free
on board at origin; i.e., the seller or consignor
places the goods on the conveyance.  Unless the contract provides
otherwise, the buyer or consignee is responsible for the cost of shipping and
risk of loss.

      INSPECTION: means
examining and testing supplies or services (including, when appropriate, raw
materials, components, and intermediate assemblies) to determine whether they
conform to contract requirements.

      INVOICE: means a
contractor’s bill or written request for payment under the contract for supplies
delivered or services performed (see also “proper invoice”).

      MUST: see
SHALL.

      PERFORMANCE BASED
PAYMENTS: A provision for the use of Performance Based Payments (PBPs) as
an alternative to progress payments for contract financing.  Use of
Performance Based Payment method shall be approved by the Contracting
Officer

      PROGRESS PAYMENTS:
Progress payments are payments made based on the cost incurred by the contractor
as work progresses under the contract.  Use of Progress payment method
shall be approved by the Contracting Officer.

      PROPER INVOICE: An
invoice that meets the minimum standards specified in FAR 32.905(b). RECEIVING REPORT:
Written evidence that indicates Government acceptance of supplies delivered or
services performed.

      SHALL: The
imperative.

      SHOULD: An expected
course of action or policy that is to be followed unless inappropriate for a
particular circumstance.

      TAXPAYER IDENTIFICATION
NUMBER (TIN): The number required by the IRS to be used by the offeror in
reporting income tax and other returns.

      WINS: Web Invoicing
System. https://ecweb.dfas.mil/wins/login.jsp  DFAS has implemented a
Web Invoicing System (WInS) available through the Internet system in addition to
the traditional Value Added Network (VAN) based EDI.

       

      
        
           

        

        
          Page 4 of
4

          
            

          

        

        
           

        

      

      FA8629-07-D-2376/P00004

      Attachment
#8

      Catolog
Listing

       

       

      
        	 
      	 
      	
                FY
      07

              	
                FY
      08

              	
                FY
      09

              	
                FY
      10

              	
                FY
      11

              
	
                CATALOG
      PRICES

              	
                Qty

              	
                1
      – 25

              	
                26
      - 50

              	
                51
      +

              	
                1
      - 25

              	
                26
      - 50

              	
                51
      +

              	
                1
      - 25

              	
                26
      - 50

              	
                51
      +

              	
                1
      - 25

              	
                26
      - 50

              	
                51
      +

              	
                1
      - 25

              	
                26
      - 50

              	
                51
      +

              
	
                ASSY,
      WASP AIRFRAME

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              
	
                MOUNT,
      FIN, WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ASSY,
      AVIONICS, WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                LEFT
      SERVO ASSEMBLY

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                RIGHT
      SERVO ASSEMBLY

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                PROPELLER,
      WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                FIN,
      WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ASSY,
      CAMERA

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ASSY,
      MOTOR AND MOUNT, WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ASSY,
      PITOT TUBE, WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ASSY,
      HATCH, WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ASSY,
      BATTERY PACK, WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                LEFT
      WING TIP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                RIGHT
      WING TIP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                HUB
      & CABLES

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                OMNI
      RF UNIT, GC2 WASP

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                GCU
      BATTERY

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                JOYSTICK

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                E/O
      PAYLOAD

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                I/R
      PAYLOAD

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                E/O
      PAYLOAD SHELL

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                I/R
      PAYLOAD SHELL

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                BUNGEE
      LAUNCHER

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                LAUNCH
      DUMMY

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                HAND
      CONTROLLER

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                AIR
      VEHICLE

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              	
                [*]

              
	
                UNIVERSAL
      BATTERY CHARGER

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                WASP
      BATTERY ADAPTER

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                TOUGHBOOK

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                SYSTEM
      PACKAGING (4 AV SYSTEM)

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                SYSTEM
      PACKAGING UPGRADE (4 AV SYSTEM) FIELD REPAIR KIT

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                RF
      CABLE - 100 FT

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                AIR
      VEHICLE CASE

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                PAYLOAD
      POUCH

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                FLIGHT
      LOG - WASP III

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                OPERATOR
      MANUAL OPERATOR KIT

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                *
      CAMELBACK BACKPACK

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

      

      * Minimum
Buy On The Bacpack Is Qty 200

      
         

        [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      FA8629-07-D-2376/P00004

      Attachment
#9

      Listing
of Initial Spares Package

      

      

      
        	
                ISP

              	
                Qty

              	
                Unit
      Price

              	
                Extended
      Price

              
	
                ASSY,
      WASP AIRFRAME

              	
                [*]

              	
                [*]

              	
                [*]

              
	
                MOUNT,
      FIN, WASP

              	 
      	 
      	 
      
	
                ASSY,
      AVIONICS, WASP

              	 
      	 
      	 
      
	
                LEFT
      SERVO ASSEMBLY

              	 
      	 
      	 
      
	
                RIGHT
      SERVO ASSEMBLY PROPELLER, WASP

              	 
      	 
      	 
      
	
                FIN,
      WASP

              	 
      	 
      	 
      
	
                ASSY,
      CAMERA

              	 
      	 
      	 
      
	
                ASSY,
      MOTOR AND MOUNT, WASP

              	 
      	 
      	 
      
	
                ASSY,
      PITOT TUBE, WASP

              	 
      	 
      	 
      
	
                ASSY,
      HATCH, WASP

              	 
      	 
      	 
      
	
                ASSY,
      BATTERY PACK, WASP

              	 
      	 
      	 
      
	
                LEFT
      WING TIP

              	 
      	 
      	 
      
	
                RIGHT
      WING TIP

              	 
      	 
      	 
      
	
                HUB
      & CABLES

              	 
      	 
      	 
      
	
                OMNI
      RF UNIT, GC2 WASP

              	 
      	 
      	 
      
	
                GCU
      BATTERY

              	 
      	 
      	 
      
	
                JOYSTICK

              	 
      	 
      	 
      
	
                E/O
      PAYLOAD

              	 
      	 
      	 
      
	
                I/R
      PAYLOAD

              	 
      	 
      	 
      
	
                E/O
      PAYLOAD SHELL

              	 
      	 
      	 
      
	
                I/R
      PAYLOAD SHELL

              	 
      	 
      	 
      
	
                FIELD
      REPAIR KIT

              	 
      	 
      	 
      

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    ORDER
      FOR SUPPLIES OR SERVICES

                  	 	
                     PAGE
      1 OF 8

                  
	
                     1.

                  	
                    CONTRACT/PURCH
      ORDER/AGREEMENT NO.

                  	 	
                     2.

                  	
                    DELIVERY
      ORDER/ CALL NO.

                  	 	
                     3.

                  	
                    DATE
      OF ORDER/CALL

                    (YYYYMMMDD)

                  	 	
                     4.

                  	
                    REQUISITION/PURCH
      REQUEST NO.

                  	 	
                     5.

                  	
                    PRIORITY

                  
	 
      	
                    FA8629-07-D-2376

                  	 	 
      	
                    0001

                  	 	 
      	
                    22
      DEC 2006

                  	 	 
      	
                    SEE
      SCHEDULE

                  	 	 
      	
                    DO-A1

                  

          

        

        
          	
                   6.

                	
                  ISSUED
      BY 356
      AESG/PK

                	
                  CODE

                	 	
                  FA8629 

                	
                   7.

                	
                  ADMINISTERED
      BY (if Other than
      6)

                	
                  CODE

                	 	
                  S0512A 

                	
                   8.

                	
                  DELIVERY
      FOB

                
	
                   USAF/AFMC

                	 
      	
                  DCMA
      LOS ANGELES

                	
                  o
      DESTINATION

                
	
                   AERONAUTICAL
      SYSTEMS CENTER (ASC)

                	 
      	
                  P.O.
      BOX 9608

                	
                  x
      OTHER

                
	
                   670
      AESS, 1895 FIFTH STREET

                	 
      	
                  MISSION
      HILLS CA 91346-9608

                	 
      	
                  (See Schedule If
      other)

                
	
                   WRIGHT-PATTERSON
      AFB OH 45433-7200

                	 
      	
                  DCMALOSANGELES@DCMA.MIL

                
	
                   NANCY
      G. LEGGETT      937-255-1696

                	 
      	 
      
	
                   nancy.leggett@wpafb.af.mil

                	 
      	
                  SCD:
      C       PAS:
  (NONE)

                

        

        
          
            
              	
                       9.    
      CONTRACTOR

                    	
                      CODE

                    	
                      60107

                    	 	
                      FACILITY

                    	 	 	 	
                       10.

                    	
                      DELIVER TO FOB
      POINT BY (Date)
      

                    	
                       11.

                    	
                      X
      IF BUSINESS IS

                    
	 
      	 
      	 
      	 
      	 	 
      	 	 	 	 
      	
                      (YYYYMMMDD) SEE
    SCHEDULE

                    	 
      	
                       

                    
	
                       NAME

                       AND

                       ADDRESS

                    	
                      AEROVIRONMENT,
      INC. 

                      181
      W. HUNTINGTON DR. STE 202 

                      MONROVIA
      CA 91016-3456 

                      (626)
      357-9983

                    	 	 
      	 
      	
                      x

                    	
                      SMALL

                    
	 	
                       12.

                    	
                      DISCOUNT
      ITEMS

                    	
                      o

                    	
                      SMALL DISAD-VANTAGED

                    
	 	 
      	 
      	
                      o

                    	
                      WOMEN-
      OWNED

                    
	 
      	
                        
      N

                    	 
      
	 
      	 
      	 
      	 
      	 	 
      	 	 	 	 13.	
                      MAIL
      INVOICES TO ADDRESS IN BLOCK 
      

                    
	 
      	 
      	 
      	 
      	 	 
      	 	 	 	
                       

                    	
                      SEE
      BLOCK 15 (PAYMENT OFFICE)

                    
	 
      	 
      	 
      	 
      	 	 
      	 	 	 	 
      	
                       

                    

            

          

        

        
          	
                   14.  SHIP
      TO

                	 
      	
                  CODE   
      

                	 
      	
                   15.

                	
                  PAYMENT
      WILL BE MADE BY

                	
                  CODE  
      

                	
                  HQ0339   
      

                	
                  MARK
      ALL

                
	
                   SEE
      SCHEDULE

                	 
      	 
      	 
      	 
      	
                  DFAS
      COLUMBUS CENTER

                	
                  PACKAGES
      AND

                
	 
      	 
      	 
      	 
      	 
      	
                  DFAS-CO/WEST
      ENTITLEMENT OPS

                	
                  PAPERS
      WITH

                
	 
      	 
      	 
      	 
      	 
      	
                  P.O.
      BOX 182381

                	
                  IDENTIFICATION

                
	 
      	 
      	 
      	 
      	 
      	
                  COLUMBUS
      OH 43218-2381

                	
                  NUMBERS
      IN

                
	 
      	 
      	 
      	 
      	 
      	
                  EFT:T

                	
                  BLOCKS
      1 AND 2.

                

        

        
          	
                  16.

                	
                  DELIVERY/

                	 
      	
                  This
      delivery order/call is issued on another Government agency or in
      accordance with and subject to terms and conditions of above numbered
      contract.

                
	
                  TYPE

                	
                  CALL

                	
                  x

                
	
                  OF

                	
                  PURCHASE

                	
                  o

                	
                  Reference
      your

                	
                  furnish the following
      on items specified herein.

                
	
                  ORDER

                	 
      	 
      	
                  ACCEPTANCE.  THE
      CONTRACTOR HEREBY ACCEPTS THE OFFER REPRESENTED BY THE NUMBERED PURCHASE
      ORDER AS IT MAY PREVIOUSLY HAVE BEEN OR IS NOW MODIFIED, SUBJECT TO ALL OF
      THE TERMS AND CONDITIONS SET FORTH, AND AGREES TO PERFORM THE
      SAME.

                

        

        
          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  NAME
      OF CONTRACTOR

                	 
      	 
      	
                  SIGNATURE

                	 
      	 
      	
                  TYPED
      NAME AND TITLE

                	 
      	 
      	
                  DATE
      SIGNED(YYYYMMMDD)

                	 
      
	
                  o

                	
                    If this box is marked,
      supplier must sign Acceptance and return the following number of
      copies:

                	 
      

        

        
          	
                  17.  ACCOUNTING
      AND APPROPRIATION DATA/LOCAL USE

                
	 
	
                  18.  ITEM
      NO.

                	
                  19.  SCHEDULE
      OF SUPPLIES/SERVICES

                	
                  20.  QUANTITY
      ORDERED/ ACCEPTED*

                	
                  21.  UNIT

                	
                  22.  UNIT
      PRICE

                	
                  23.  AMOUNT

                
	 	 	 	 	 	 
	 
      	 
      	 
      	 
      	 
      	 
      

        

        
          
            
              
                	 
      	
                         

                      	 24.	
                        UNITED
      STATES OF AMERICA

                      	 	 25. 	
                         TOTAL

                      	
                        [*]

                      
	
                        “If
      quantity accepted by the Government is same as quantity ordered, indicate
      by X.  If different, enter actual quantity accepted below
      quantity ordered and encircle.

                      	 
      	 	 
      	 
      	 	 	 
      	 
      
	 
      	 	 
      	 
      	 	 29. 	
                         DIFFERENCES

                      	 
      
	 
      	
                         

                      	
                         BY:

                      	
                        NANCY
      G. LEGGETT

                      	
                        CONTRACTING/ORDERING
      OFFICER    

                      	 	 	 
      	 
      

              

              
                	 26.	
                        QUANTITY
      IN COLUMN 20 HAS BEEN

                      	 	 27.	
                          SHIP
      NO

                      	 28.	
                        D.O.
      VOUCHER NO.

                      	 30. 	
                        INITIALS

                      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      	 	 	 
      	 	 	 	
                         
      

                      	 
      
	 
      	
                        £
      INSPECTED

                      	 
      	 	
                        £
      RECEIVED

                      	 
      	
                        £
      ACCEPTED, AND CONFORMS TO THE CONTRACT EXCEPT AS
    NOTED

                      	 	
                        £
      PARTIAL

                      	 32.	
                        PAID
      BY

                      	 33.	
                        AMOUNT
      VERIFIED CORRECT FOR

                      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      	 	
                        o FINAL

                      	 	 	 	 
      	 
      
	 
      	
                        DATE

                      	 
      	 	
                        SIGNATURE
      AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

                      	 	 	
                        
                           

                        

                      	 	 	 34.	
                        CHECK
      NUMBER

                      	 
      
	 	 	 32.	
                         PAYMENT

                      	 	 	 	
                         

                      	 
	 36.	
                        I
      CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT.

                      	
                        £
      COMPLETE

                      	 	 	  35.	
                        BILL
      OF LADING

                      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      	 	
                        o PARTIAL

                      	 	 	 	
                         

                      	 
      
	 
      	
                        DATE

                      	 
      	 	
                        SIGNATURE
      AND TITLE OF CERTIFYING OFFICER

                      	 	
                        £
      FINAL

                      	 	 	 	 
      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      	 	 	 
      	 	 	 	 
      	 
      

              

            

          

        

        
          	 37.	
                    RECEIVED
      AT

                	 38.	
                   RECEIVED BY (Print)

                	 39. 	
                  DATE
      RECEIVED

                  (YYYYMMMDD)

                	 40.	
                   TOTAL
      CON-TAINERS

                	 41.
      	
                  S/R
      ACCOUNT NO.

                	 42.
      	
                  S/R
      VOUCHER NO.

                
	 	 	 	 	 	 	 	 	 	 	 	 

        

        

        DD
FORM 1155, JAN 1998 (EG)

        [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    
      
        	
                ITEM

              	
                SUPPLIES
      OR SERVICES

              	
                Qty

                Purch
      Unit

              	
                Unit
      Price

                Total
      Item Amount

              

      

      

      
        	
                1001

              	 
      	
                1

              	
                [*]

              
	 
      	 
      	 
      	
                Lot

              	
                [*]

              
	 
      	
                Noun:

              	
                DEVELOPMENT
      AND INTEGRATION

              
	 
      	
                NSN:

              	
                N -
      Not Applicable

              
	 
      	
                Contract
      type:

              	
                U -
      COST PLUS FIXED FEE

              
	 
      	
                Inspection:

              	
                SOURCE

              
	 
      	
                Acceptance:

              	
                SOURCE

              
	 
      	
                FOB:

              	
                DESTINATION

              
	 
      	
                Descriptive
      Data:

                The
      contractor shall provide development and integration efforts in accordance
      with (IAW) the Statement of Work (SOW) listed in Section J of this order
      and the System Specification attached to the basic
    contract.

              
	 
      	 
      
	
                100101

              	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                Funding
      Info Only

              	 
      
	 
      	
                ACRN:

              	
                AA

              	
                [*]

              	
                [*]

              
	 
      	
                PR/MIPR:

              	
                [*]

              	 
      	
                [*]

              
	 
      	 
      	
                [*]

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                100102

              	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                Funding
      Info Only

              	 
      
	 
      	
                ACRN:

              	
                AB

              	
                [*]

              	
                [*]

              
	 
      	
                PR/MIPR:

              	
                [*]

              	 
      	
                [*]

              
	 
      	 
      	
                [*]

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                1006

              	 
      	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Lot

              	
                [*]

              
	 
      	
                Noun:

              	
                DATA

              	 
      	 
      	 
      
	 
      	
                ACRN:

              	
                AA

              	 
      	 
      	 
      
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      	 
      
	 
      	
                DD1423
      is Exhibit:

              	
                A

              	 
      	 
      	 
      
	 
      	
                Contract
      type:

              	
                U -
      COST PLUS FIXED FEE

              	 
      	 
      
	 
      	
                Inspection:

              	
                SOURCE

              	 
      	 
      
	 
      	
                Acceptance:

              	
                SOURCE

              	 
      	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall provide data in accordance with Contract Date
      Requirements List, DD Form 1423, designated as Exhibit A, Section J,
      hereof. Data Requirements are not separately priced (NSP). The costs for
      data are included in the costs of CLIN
1001.

              

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

        
          

        

        NSD\93685.2

      

       

      
        
          
          

        

        
          PAGE 2
OF 8

          
            

          

        

        
          
          

        

      

       

      
        	
                ITEM

              	
                SUPPLIES
      OR SERVICES

              	
                Qty

                Purch
      Unit

              	
                Unit
      Price

                Total
      Item Amount

              
	 
      	 
      	 
      	 
      

      

      

      
        	
                2002

              	 
      	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Each

              	
                [*]

              
	 
      	
                Noun:

              	
                BATMAV
      SYSTEMS

              	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      
	 
      	
                PR/MIPR:

              	
                [*]

              	 
      	
                [*]

              
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      
	 
      	
                Contract
      type:

              	
                J -
      FIRM FIXED PRICE

              	 
      
	 
      	
                Inspection:

              	
                DESTINATION

              	 
      
	 
      	
                Acceptance:

              	
                DESTINATION

              	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall deliver BATMAV systems in accordance with (IAW) the
      Statement of Work (SOW) listed in Section J of this order and the Systems
      Specification attached to the basic contract.

                 

                Price for this option CLIN shall
      be [*] per system
      for a total of [*].

              
	 
      	 
      
	
                2003

              	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Each

              	
                [*]

              
	 
      	
                Noun:

              	
                INITIAL
      SPARES

              	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      
	 
      	
                PR/MIPR:

              	
                [*]

              	 
      	
                [*]

              
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      
	 
      	
                Contract
      type:

              	
                J -
      FIRM FIXED PRICE

              	 
      
	 
      	
                Inspection:

              	
                DESTINATION

              	 
      
	 
      	
                Acceptance:

              	
                DESTINATION

              	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall deliver BATMAV initial spares in accordance with (IAW)
      the Statement of Work (SOW) listed in Section J of this order and the
      Systems Specification on the basic contract. The list of spares for this
      delivery order is shown as Attachment 3 to this order.

                 

                Price for this option CLIN shall
      be [*]

              
	 
      	 
      
	
                2004

              	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Each

              	
                [*]

              
	 
      	
                Noun:

              	
                TRAINING

              	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      
	 
      	
                PR/MIPR:

              	
                [*]

              	
                [*]

              
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      
	 
      	
                Contract
      type:

              	
                J -
      FIRM FIXED PRICE

              	 
      
	 
      	
                Inspection:

              	
                DESTINATION

              	 
      
	 
      	
                Acceptance:

              	
                DESTINATION

              	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall deliver training in accordance with (IAW) the Statement
      of Work (SOW) listed as  Attachment 1, Section J of this order
      and the Systems Specification on the basic contract.

                 

                Each
      class shall consist of 6 students and each student will be provided a
      Training Reference Manual as part of the class. (in accordance with CDRL
      A002).

                 

                [*] classes at [*] each for a total of
      [*]

              

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

        
          

        

        NSD\93685.2

      

       

      
        
          
          

        

        
          PAGE 3
OF 8

          
            

          

        

        
          
          

        

      

       

      
        	
                ITEM

              	
                SUPPLIES
      OR SERVICES

              	
                Qty

                Purch
      Unit

              	
                Unit
      Price

                Total
      Item Amount

              

      

      

      
        	
                2005

              	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Lot

              	
                [*]

              
	 
      	
                Noun:

              	
                REPAIR
      AND RETURN

              	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      
	 
      	
                PR/MIPR:

              	
                [*]

              	
                [*]

              
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      
	 
      	
                Contract
      type:

              	
                Y -
      TIME AND MATERIALS

              	 
      
	 
      	
                Inspection:

              	
                DESTINATION

              	 
      
	 
      	
                Acceptance:

              	
                DESTINATION

              	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall deliver repair and return service in accordance with
      (IAW) the Statement of Work (SOW) listed as Attachment 1, Section J of
      this order and the Systems Specification on the basic contract. The
      cost  will consist of a loaded labor rate, and a price for
      material for each repair and return effort (if additional
      material  is necessary).

                 

                Cost
      for this option CLIN is [*] (excluding all
      materials except consumables)

                 

                Period
      of performance shall be 12 months after delivery of BATMAV
      systems.

              
	 
      	 
      
	
                2006

              	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Lot

              	
                [*]

              
	 
      	
                Noun:

              	
                DATA

              	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      
	 
      	
                DD1423
      is Exhibit:

              	
                A

              	 
      
	 
      	
                Contract
      type:

              	
                J -
      FIRM FIXED PRICE

              	 
      
	 
      	
                Inspection:

              	
                DESTINATION

              	 
      
	 
      	
                Acceptance:

              	
                DESTINATION

              	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall provide data in accordance with Contract Date
      Requirements List, DD Form 1423, designated as Exhibit A, Section J,
      hereof. Data Requirements are not separately priced (NSP). The costs for
      data are included in the costs of CLIN 2002.

              
	 
      	 
      
	
                2007

              	 
      	
                [*]

              	
                [*]

              
	 
      	 
      	 
      	
                Lot

              	
                [*]

              
	 
      	
                Noun:

              	
                ADDITIONAL
      TEST ASSETS

              	 
      
	 
      	
                ACRN:

              	
                AB

              	 
      
	 
      	
                PR/MIPR:

              	
                [*]

              	
                [*]

              
	 
      	
                NSN:

              	
                N -
      Not Applicable

              	 
      
	 
      	
                Contract
      type:

              	
                J -
      FIRM FIXED PRICE

              	 
      
	 
      	
                Inspection:

              	
                DESTINATION

              	 
      
	 
      	
                Acceptance:

              	
                DESTINATION

              	 
      
	 
      	
                FOB:

              	
                DESTINATION

              	 
      
	 
      	
                Descriptive
      Data:

                The
      contractor shall provide additional test assets for the BATMAV program,
      consisting of 4 additional systems  in accordance with SOW
      paragraph 3.3.2.3.4. Each system includes 2 air vehicles, 1 ground
      station, one  infrared (I/R) camera payload, 1 electro-optical
      camera payload, and 1 operator's kit as described in SOW paragraph
      3.3.2.3. The contractor shall also provide 1 additional I/R payload and 1
      additional E/O payload in accordance with SOW paragraph
      3.3.2.3.4.

              

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

        
          

        

        NSD\93685.2

      

       

      
        
          
          

        

        
          PAGE 4
OF 8

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  ITEM

                	
                  SUPPLIES
      OR SERVICES

                	
                  Qty

                  Purch
      Unit

                	
                  Unit
      Price

                  Total
      Item Amount

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                  2008

                	 
      	
                  [*]

                	 
      	
                  [*]

                
	 
      	 	 
      	
                  Lot

                	
                   

                	
                  [*]

                
	 
      	
                  Noun:

                	
                  TRAINING
      FOR DT/OT TEST TEAM

                	 
      
	 
      	
                  ACRN:

                	
                  AB

                	 
      
	 
      	
                  PR/MIPR:

                	
                  [*]

                	
                  [*]

                
	 
      	
                  NSN:

                	
                  N -
      Not Applicable

                	 
      
	 
      	
                  Contract
      type:

                	
                  J -
      FIRM FIXED PRICE

                	 
      
	 
      	
                  Inspection:

                	
                  DESTINATION

                	 
      
	 
      	
                  Acceptance:

                	
                  DESTINATION

                	 
      
	 
      	
                  FOB:

                	
                  DESTINATION

                	 
      
	 
      	
                  Descriptive
      Data:

                  The
      contractor shall provide training to the DT and OT test team in accordance
      with SOW paragraph 3.3.2.3 and
3.3.4.1.2.

                

        

      

       

       

      
        	
                ITEM

              	
                SUPPLIES
      SCHEDULE DATA

              	
                QTY

              	
                SHIP
      TO

              	
                MARK
      FOR

              	
                TRANS
      PRI

              	
                DATE

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                1001

              	 
      	
                [*]

              	
                U

              	 
      	 
      	
                30
      Sep 2007

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                DEVELOPMENT
      AND INTEGRATION

              	 
      
	 
      	
                ACRN:

              	
                [*]

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                1006

              	 
      	
                [*]

              	
                U

              	 
      	 
      	
                ASREQ

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                DATA

              	 
      	 
      	 
      	 
      
	 
      	
                ACRN:

              	
                AA

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                2002

              	 
      	
                [*]

              	
                F2FT13

              	 
      	 
      	
                07
      Nov 2007

              
	 
      	 
      	
                [*]

              	
                F2FT13

              	 
      	 
      	
                14
      Nov 2007

              
	 
      	 
      	
                [*]

              	
                F2FT13

              	 
      	 
      	
                21
      Nov 2007

              
	 
      	 
      	
                [*]

              	
                F2FT13

              	 
      	 
      	
                28
      Nov 2007

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                BATMAV
      SYSTEMS

              	 
      	 
      	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                2003

              	 
      	
                [*]

              	
                F2FT13

              	 
      	 
      	
                28
      Nov 2007

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                INITIAL
      SPARES

              	 
      	 
      	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                2004

              	 
      	
                [*]

              	
                U

              	 
      	 
      	
                ASREQ

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                TRAINING

              	 
      	 
      	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      	 
      	 
      

      

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

        
          

        

        NSD\93685.2

      

       

      
        
          
          

        

        
          PAGE 5
OF 8

          
            

          

        

        
          
          

        

      

       

      
        	
                ITEM

              	
                SUPPLIES
      SCHEDULE DATA

              	
                QTY

              	
                SHIP
      TO

              	
                MARK
      FOR

              	
                TRANS
      PRI

              	
                DATE

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                2005

              	 
      	
                [*]

              	
                FA8629

              	 
      	 
      	
                28
      Nov 2008

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                REPAIR
      AND RETURN

              	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                2006

              	 
      	
                [*]

              	
                FA8629

              	 
      	 
      	
                ASREQ

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                DATA

              	 
      	 
      	 
      	 
      
	 
      	
                ACRN:

              	
                AC

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                2007

              	 
      	
                [*]

              	
                U

              	 
      	 
      	
                4    MARO

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                ADDITIONAL
      TEST ASSETS

              	 
      
	 
      	
                ACRN:

              	
                AB

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                2008

              	 
      	
                [*]

              	
                U

              	 
      	 
      	
                ASREQ

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Noun:

              	
                TRAINING
      FOR DT/OT TEST TEAM

              	 
      
	 
      	
                ACRN:

              	
                AB

              	 
      	 
      	 
      	 
      

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

        
          

        

        NSD\93685.2

      

       

      
        
          
          

        

        
          PAGE 6
OF 8

          
            

          

        

        
          
          

        

      

       

      
        	
                ACRN

              	
                Appropriate/Lmt
      Subhead/Supplemental Accounting Data

              	
                Obligation
      Amount

              
	 
      	 
      	 
      
	
                AA

              	 
      	 
      	 
      	
                [*]

              
	 
      	
                57
      63600 296 4720 675138 4XFDBA 59200 48011F 503000 F03000

              
	 
      	
                Funding
      breakdown:

              	
                On
      CLIN 1001:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 100101:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 1006:

              	
                [*]

              	 
      
	 
      	
                Descriptive
      data:

                FSR:
      011929 PSR: H53912 DSR: 074976 for PR No. F4FDBV6209B001, dated 28 July
      2006.

                 

                FSR:
      011929 PSR: H53912 DSR: 133674 for PR No. F4FDBV7212B001, dated 18 July
      2007.

              
	 
      	 
      
	
                AB

              	 
      	
                [*]

              
	 
      	
                57
      73600 297 4720 675138 4G9751 59200 48011F 503000 F03000

              
	 
      	
                Funding
      breakdown:

              	
                On
      CLIN 100102:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 2007:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 2008:

              	
                [*]

              	 
      
	 
      	
                Descriptive
      data:

                FSR:
      014465 PSR: 298736 DSR: 003781 for PR No. F4FDBV6355B002, dated
      11

                December
      2006.

                 

                FSR:
      014465 PSR: 298736 DSR: 092944 for PR No.F4FDBZ7093B001, dated 03 April
      2007.

                 

                FSR:
      014465 PSR: 298736 DSR: 133688 for PR No. F4FDBV7212B001, dated 18
      July

                2007.

              
	 
      	 
      	 
      	 
      	 
      
	
                AC

              	 
      	 
      	 
      	
                [*]

              
	 
      	
                57
      73080 177 4720 837100 000000 00000 48011F 503000 F03000

              
	 
      	
                Funding
      breakdown:

              	
                On
      CLIN 2002:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 2003:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 2004:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 2005:

              	
                [*]

              	 
      
	 
      	 
      	
                On
      CLIN 2006:

              	
                [*]

              	 
      
	 
      	
                Descriptive
      data:

                FSR:
      028211 PSR: 127787 DSR: 331977 PR No: F4FDBZ7143B006, dated 23 May
      2007

              

      

       

       

      [*]  Certain
information on this page has been omitted and filed separately with the
Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

       

      
        CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

        
          

        

        NSD\93685.2

         

      

      
        
          
          

        

        
          PAGE 7
OF 8

          
            

          

        

        
          
          

        

      

      

      
        	
                DOCUMENT

              	
                PGS

              	
                DATE

              	
                TITLE

              
	 
      	 
      	 
      	 
      
	
                EXHIBIT
      A

              	
                15

              	
                30
      JAN 2007

              	
                DD
      FORM 1423 - CONTRACT DATA REQUIREMENTS LIST (CDRL)

              
	
                ATTACHMENT
      1

              	
                16

              	
                31
      MAY 2007

              	
                STATEMENT
      OF WORK

              
	
                ATTACHMENT
      2

              	
                3

              	
                07
      FEB 2007

              	
                WIDE
      AREA WORKFLOW - RECEIPT AND ACCEPTANCE (WAWF-RA) ELECTRONIC INVOICING AND
      RECEIVING REPORT INSTRUCTIONS

              
	
                ATTACHMENT
      3

              	
                1

              	
                07
      SEP 2007

              	
                LISTING
      OF INITIAL SPARES PACKAGE

              

      

      

      CONFORMED DELIVERY ORDER FA8629-07-D-2376 0001 (01/22/2008) 

      
        

      

      NSD\93685.2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]