Document:

EX-10.2

Exhibit 10.2

[ * ]

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

AGREEMENTS

	 	1.0	 	DEFINITIONS

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

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

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

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

D. [ * ]

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

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

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

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

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

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

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

2.0 ORDERING

2.1 Issuance of Orders

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

[ * ]

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

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

2.2 Acceptance of Orders

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

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

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

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

2.3 Written Authorization to Proceed

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

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

3.0 TITLE AND RISK OF LOSS

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

	 	 	 
	4.0	 	DELIVERY
	[ * ]

4.1

	 	

Schedule

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

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

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

4.2 [ * ]

4.3 Notice of Labor Negotiations

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

5.0 ON-SITE REVIEW AND RESIDENT REPRESENTATIVES

5.1 Review

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

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

5.2 Resident Representatives

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

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

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

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

	 	6.0	 	CREDIT OFFICE VISIBILITY

The Boeing Corporate Credit Office shall obtain Seller financial data from information made
available to the general public via 10-K and 10-Q reporting requirements. In the event the Seller
is no longer required to disclose financial information to the general public via 10-K and 10-Q,
[ * ] Boeing shall treat all such information as Proprietary Information and Materials
subject to the terms of GTA Section 20.0.

7.0 PACKING AND SHIPPING

7.1 General

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

[ * ]

Notwithstanding the provisions of GTA Section 4.0, [ * ]

[ * ] Seller will use only carriers selected by Boeing.

Seller shall follow instructions on the Boeing Traffic website,
http://www.boeing.com/companyoffices/doingbiz/routinginst/routing.htm.

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

7.1.1 Shipping Documentation

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

7.1.2 Insurance

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

7.1.3 Shipping Container Labels

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

7.1.4 Carrier Selection

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

7.1.5 Invoices

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

7.1.6 Noncompliance

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

7.1.7 [ * ]

7.2 Barcode Marking and Shipping

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

8.0 QUALITY ASSURANCE, INSPECTION, REJECTION, & ACCEPTANCE

8.1 Controlling Document

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

	 
	 	 
	8.2

	 	Seller’s Inspection

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

8.2.1 Seller’s Disclosure

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

	 	•	 	Affected process or Product number and name

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

	 	•	 	Quantity and dates delivered

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

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

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

8.2.2 Seller’s Acceptance

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

8.3 Boeing’s Inspection and Rejection

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

[ * ]

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

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

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

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

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

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

8.5 Retention of Records

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

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

8.6 Inspection

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

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

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

	 
	 	 
	8.7

8.8

	 	[ * ]

[ * ]
	 
	 	 
	9.0

	 	EXAMINATION OF RECORDS

Seller shall maintain complete and accurate records showing the sales volume of all Products. Such
records shall support all services performed, allowances or adjustments for changes to Orders and
prices charged by Seller in the performance of each Order, including but not limited to certain
information from shop travelers. Such records (not including Seller’s Product cost information)
may be examined and audited by authorized representatives of Boeing and shall be available to
Boeing’s authorized representatives at Seller’s facility with reasonable prior notice at all
reasonable times during normal business hours from the date of the applicable Order until [ * ]
after final payment under such Order. Seller shall provide assistance to interpret such data if
requested by Boeing. [ * ]

10.0 CHANGES

10.1 Changes Clause

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

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

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

11.0 GENERAL & INTERNATIONAL REQUIREMENTS

11.1 Language

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

11.2 Currency

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

11.3 Import/Export

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

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

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

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

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

12.0 TERMINATION FOR CONVENIENCE

12.1 Basis for Termination; Notice

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

12.2 Termination Instructions

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

	 	A.	 	Immediately stop work as specified in the notice;

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

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

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

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

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

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

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

	 	I.	 	Complete performance of the work not terminated.

12.3 Seller’s Claim

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

12.4 Failure to Submit a Claim

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

12.5 Partial Termination

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

	 	 	 
	12.6	 	Product Price
	[ * ]

12.7

	 	

Exclusions or Deductions

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

[ * ]

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

12.8 Partial Payment/Payment

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

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

	 	 	 
	[ * ]

12.9

	 	

Seller’s Accounting Practices

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

12.10 Records

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

1

13.0 EVENTS OF DEFAULT AND REMEDIES

13.1 Seller Event of Default

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

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

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

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

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

	 	13.2	 	Boeing Event of Default

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

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

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

13.3 Remedies for Non-Performance on Orders

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

	 	 	 
	[ * ]

13.4

	 	

Cancellation of Contract in the Event of Default

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

	 	 	 	 	 
	13.5

	 	[ * ]
	 	

Remedies Generally

No failure on the part of either Party in exercising any right or remedy hereunder, or as
provided by law or in equity, shall impair, prejudice or constitute a waiver of any such right
or remedy, or shall be construed as a waiver of any Event of Default or as an acquiescence
therein. No single or partial exercise of any such right or remedy shall preclude any other or
further exercise thereof or the exercise of any other right or remedy. No acceptance of partial
payment or performance of any of Seller’s obligations hereunder shall constitute a waiver of any
Seller Event of Default or a waiver or release of payment or performance in full by Seller of
any such obligation. No acceptance of partial payment or performance of any of Boeing’s
obligations hereunder shall constitute a waiver of any Boeing Event of Default or a waiver or
release of payment or performance in full by Boeing of any such obligation. All rights and
remedies of the Parties hereunder and at law and in equity shall be cumulative and not mutually
exclusive and the exercise of one shall not be deemed a waiver of the right to exercise any
other. [ * ]

14.0 EXCUSABLE DELAY

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

15.0 SUSPENSION OF WORK

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

	 	 	 
	16.0	 	TERMINATION OR WRONGFUL CANCELLATION
	[ * ]

17.0

	 	

ASSURANCE OF PERFORMANCE

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

18.0 RESPONSIBILITY FOR PROPERTY

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

19.0 LIMITATION OF SELLER’S RIGHT TO ENCUMBER ASSETS

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

20.0 PROPRIETARY INFORMATION AND ITEMS

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

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

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

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

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

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

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

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

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

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

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

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

21.0 COMPLIANCE

21.1 Compliance With Laws

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

21.2 Government Requirements

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

FAR 52.222-26 “Equal Opportunity”

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

FAR 52.222-36 “Affirmative Action for Workers with Disabilities”

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

21.3 Ethic Requirements/Code of Conduct

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

22.0 INTEGRITY IN PROCUREMENT

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

23.0 UTILIZATION OF SMALL BUSINESS CONCERNS

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

	 	 	 
	[ * ]

25.0

25.1

[ * ]

25.2

[ * ]

26.0

	 	

TERMINATION OF AIRPLANE PROGRAM

Program Termination

Termination Liability

PUBLICITY

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

2

27.0 PROPERTY INSURANCE

27.1 Insurance

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

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

27.2 Certificate of Insurance

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

27.3 Notice of Damage or Loss

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

28.0 RESPONSIBILITY FOR PERFORMANCE

[ * ] Seller shall include as part of its subcontracts those applicable provisions of the Contract
that protect Boeing’s rights including but not limited to right of entry provisions, proprietary
information and rights provisions and quality control provisions. In addition, Seller shall
provide to its subcontractor’s sufficient information to document clearly that the work being
performed by Seller’s subcontractor is to facilitate performance under the Contract or any Order.
Sufficient information may include but is not limited to Order number, GTA number or the name of
Boeing’s Procurement Representative.

28.1 Subcontracting

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

28.2 Reliance

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

28.3 Assignment

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

[ * ]

3

29.0 NON-WAIVER/PARTIAL INVALIDITY

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

30.0 HEADINGS

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

	 	 	 
	31.0

32.0

33.0

	 	[ * ]

[ * ]

DISPUTES

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

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

	 	 	 
	34.0

35.0

35.1

	 	[ * ]

TAXES

Inclusion of [ * ]

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

35.2 Litigation

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

35.3 Rebates

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

36.0 OFFSET CREDITS

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

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

	 	 	 
	BOEING

	 	SELLER
	 
	 	 
	THE BOEING COMPANY

	 	TITANIUM METALS CORPORATION

	 	 	 
	     

	 	     
	 
	 	 
	Name: [ * ]

	 	Name: [ * ]
	 
	 	 
	Title: Procurement Agent

	 	Title: Boeing Contract Manager
	 
	 	 
	Date: August 2, 2005

	 	Date: August 2, 2005
	 
	 	 

4EX-10.3

Exhibit 10.3

[ * ]

SPECIAL BUSINESS PROVISIONS

THESE SPECIAL BUSINESS PROVISIONS (“SBP”) are entered into as of August 2 , 2005 and effective as
of July 1, 2005 by and between Titanium Metals Corporation (“TIMET”), a Delaware corporation with
its principal office in Denver, Colorado (“Seller”), and The Boeing Company, a Delaware corporation
acting by and through its Boeing Commercial Airplanes division (“Boeing”). Hereinafter, Seller and
Boeing may be referred to each as a “Party” and jointly as “Parties” hereto.

Now, therefore, in consideration of the mutual covenants set forth herein, the Parties agree as
follows:

1.0 DEFINITIONS

The definitions used herein are the same as those used in the GTA. In addition, the following terms
are defined as follows:

	 	A.	 	[ * ]

	 	B.	 	“Contract,” “hereof,” “hereto,” “herein” and similar terms mean this Special Business
Provisions, including all Attachments, Exhibits and Documents, and all amendments,
modifications and supplements hereto.

	 	C.	 	“Drawing” means an electronic or manual depiction of graphics or technical information
representing a Product or any part thereof and which includes the parts list and
specifications relating thereto.

	 	D.	 	“Engineering Release” means engineering Drawings or other Documents, approved by Boeing
and released through Boeing’s engineering Drawing release system, that define the design
requirements of any Product.

	 	E.	 	“Integrated Product Team” or “IPT” or “Design Build Team” or “DBT” means a team
composed of representatives from engineering, operations, SM&P, design-to-cost and other
disciplines as Boeing shall specify, whose objective is to optimize designs for cost,
weight, performance and producibility.

	 	F.	 	“Manufacturing Work Package” or “Work Package” means manufacturing effort that Seller
will provide under this SBP.

	 	G.	 	“Miscellaneous Work” is Seller-performed work or services that includes, but is not
limited to, provision of additional test articles, test support, field support and
Boeing-used supplier facilities.

	 	H.	 	“Obsolescence” means the discontinuation of the requirement for any Product as a result
of engineering or manufacturing change, which has rendered such Product no longer usable in
the production of the Program Airplane or any Derivative.

	 	I.	 	“Person” means any individual, partnership, corporation, limited liability company,
joint venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof or any other entity.

	 	J.	 	“Price” means the amount to be paid by Boeing to Seller for any Product in accordance
with the terms of this SBP.

	 	K.	 	“Prior Agreement” means the “Purchase and Sale Agreement (for titanium products)”
between the Parties amended and restated effective April 19, 2001.

	 	L.	 	“Program” means the design, development, marketing, manufacture, sales and customer
support of Program Airplanes, Derivatives and other Products.

	 	M.	 	“Program Airplane” means a commercial transport aircraft incorporating advanced
technology and having a model designation of 737, 747, 767, 787 for which Seller shall
provide any Product pursuant to this SBP.

	 	N.	 	“Value Engineering” is a single component of total cost management designed to leverage
BCA and Supplier Engineering resources to reduce costs (to Sellers) and prices (to Boeing)
for Products through engineering changes in requirements, processes, or designs which in no
way reduce airplane safety, performance, maintainability, reliability, producibility or
capability.

	 	2.0	 	CONTRACT FORMATION

2.1 Order

Any Order to which this SBP applies will include a statement incorporating this SBP by reference
unless otherwise specifically agreed to in writing by the parties.

	 	 	 
	Each such Order will be governed by and be deemed to include the provisions of this SBP.

	 
	 	 
	2.1.1

2.1.2

	 	[ * ]

Issuance of Orders for Products and Services

Boeing will notify Seller of its requirements for any Product and for any Service under this SBP by
issuing Orders in accordance with the provisions of the GTA. Only Boeing or its designated Service
Provider may issue Orders hereunder. Such Orders will authorize performance, indicate Price (which
is determined in accordance with Attachment 1), establish schedule for delivery or performance in
accordance with then-applicable lead times, provide identification of any such Product or Service,
indicate the part number for which the Products are being supplied and effect payment and
accountability. Any such Order shall include a statement incorporating this SBP by reference and
shall be governed by and be deemed to include the provisions of this SBP. [ * ]

2.2 Entire Agreement

This SBP (and all of the documents incorporated herein and made a part hereof) sets forth the
entire agreement between the Parties pertaining to the subject matter hereof. Provided, however,
that the Parties are also parties to the following agreements which shall remain in effect: (1)
Proprietary Information Agreement effective as of May 2, 2003; (2) Proprietary Information
Agreement effective as of August 2, 2005; (3) Buffer Agreement; (4) Electronic Commerce Trading
Partner Agreement dated as of June 14, 2003.

The Order shall be governed by and be deemed to include the provisions of this GTA and SBP and
sets forth the entire agreement, and supersedes any and all other prior agreements, understandings
and communications between Boeing and Seller related to the subject matter of an Order. Except as
provided elsewhere herein or in the GTA, the rights and remedies afforded to Boeing and Seller
pursuant to any provisions of an Order are in addition to any other rights and remedies afforded by
law or otherwise.

2.3 Incorporated by Reference

General Terms Agreement (“GTA”) [ * ] dated August 2, 2005 and effective as of July 1, 2005 is
incorporated in and made a part of this SBP by this reference.

Whenever agreed to by the Parties, an Administrative Agreement (“AA”) shall be incorporated in and
made a part of this SBP.

In addition to any other documents incorporated elsewhere in this SBP or GTA by reference, the
documents set forth in Section 2.3.1 shall be incorporated in and made a part of this SBP by
reference with full force and effect, as if set out in full text. It is Seller’s responsibility to
comply with the latest revision of these documents subject to the provisions contained in Section
2.3.2.

2.3.1 Supporting Documentation and Priority

All Documents (as this term is herein defined) are by this reference incorporated herein and made a
part of this SBP subject to the requirements of Section 2.3. For purposes of this SBP, “Document”
means all specifications, Drawings, documents, publications and other similar materials, whether in
a tangible or intangible form, as exist on the date of this Contract, which relate to the
manufacture and sale of Products or the provision of Services to Boeing pursuant to this SBP,
including, but not limited to, the Documents listed below, and any other Documents specifically
referred to in this SBP or in such other Documents. Reference in any Document to “Contractor” or
“Seller” or “Supplier” shall mean Seller for the purposes of this SBP. In the event of any
inconsistency between the terms and conditions of this SBP and the terms and conditions of any
Document, the terms and conditions of the SBP shall control. In the event any provisions of any
Document or Documents conflict among themselves, Boeing and Seller will jointly resolve such
conflict and revise such Document or Documents accordingly. In resolving any such conflicts, this
SBP shall be read as a whole and in a manner most likely to accomplish its purposes.

2.3.2 Revision of Documents

Subject to the terms of SBP Section 2.3, Boeing may at any time amend or revise any Document
prepared by Boeing; provided, however, that (a) Boeing shall have supplied any such amendment or
revision to Seller in writing within a reasonable amount of time prior to its effective date, (b)
Seller will implement such amendment or revision as quickly as possible, subject to paragraph (d)
below, (c) if such change increases or decreases the cost or time required to perform any Order,
Boeing and Seller shall negotiate an equitable adjustment in the price or schedule, or both, to
reflect the increase or decrease, including the application of any required Cost Adjustment Element
as described in Attachment 1 to SBP to reasonably and fairly compensate for the effect of such
amendment or revision and (d) if Seller is unable to implement any of the amendments or revisions
Boeing and Seller will negotiate regarding such implementation, and except that stated addresses
and designees for each Party contained therein may be modified unilaterally by such Party, and any
modification of any Document executed by Seller must be reflected promptly therein by amendment
thereto.

2.3.3 Compliance

Seller shall, subject to the terms of this SBP Section 2.3, promptly comply with the provisions of
all Documents, including any revisions subject to SBP Section 2.3.2 thereto.

	 	 	 
	2.3.4	 	List of Certain Documents
	[ * ]

2.4

	 	

Order of Precedence

In the event of a conflict or inconsistency between any of the terms of the following Documents,
the following order of precedence shall control:

[ * ]

In resolving any such conflicts, these documents shall be read as a whole and in a manner most
likely to accomplish their purposes.

Each Party shall promptly report to the other Party in writing any inconsistencies discovered in
these Documents, even if the inconsistency is resolvable using the above rules.

2.5 Survival

Without limiting any other survival provision contained herein and notwithstanding any other
provision of this SBP or the GTA to the contrary, the representations, covenants, agreements and
obligations of the Parties set forth in GTA Section 8.5 “Retention of Records”, GTA Section 12.3
“Seller’s Claim”, GTA Section 16.0 “Termination or Wrongful Cancellation”, GTA Section 18.0
“Responsibility for Property”, GTA Section 20.0 ‘ Proprietary Information and Items”, GTA Section
24.0 “Boeing’s Rights in Seller’s Patents, Copyrights, Trade Secrets and Tooling”, GTA Section 27.0
“Property Insurance”, GTA Section 29.0 “Non-Waiver/Partial Invalidity”, this SBP Section 2.5
“Survival”, SBP Section 5.0 “Applicable Law”, SBP Section 29.0 “On-Site Support”(if applicable),
and SBP Section 43.0 “Supplements and Modifications”(if applicable), shall survive any
cancellation, termination or expiration of this SBP, any assignment of this SBP or any payment and
performance of any or all of the other obligations of the Parties hereunder. Termination or
cancellation of any part of this SBP shall not alter or affect any part of this SBP that has not
been terminated or cancelled.

	 	 	 
	3.0

3.1

3.1.1

	 	PERIOD OF PERFORMANCE AND PRICES

Performance

Period of Performance

The period of performance for this SBP shall be from the effective date identified in the first
paragraph of this SBP and ending December 31, 2010.

3.1.2 Extension of Contract

Seller and Boeing may extend the period of performance of this SBP by mutual written agreement of
both parties. Boeing and Seller shall endeavor to reach any such agreement regarding extension no
later than [ * ]

Notwithstanding the provisions herein, each Party reserves the right to commence new negotiations
with the other Party concerning pricing and other terms for additional quantities of Products.

3.2 Pricing

3.2.1 Product Pricing

The Prices of Products ordered and scheduled for delivery under this SBP on or after

[ * ] are set forth in SBP Attachment 1. Prices are in United States Dollars.

A list of Seller’s traditional shipping locations is included as Attachment 22.

[ * ]

In addition, when the Products will be imported into the United States by way of aircraft, the
Seller has the responsibility of requiring, and ensuring, that the forwarder/carrier provide, via
email, a pre-alert and confirmed on-board notification to Boeing’s contracted broker no less than [
* ] prior to the shipment’s leaving the port of export. The pre-alert must include a copy of the
completed commercial invoice, the airway bill, flight details, and confirmed on-board information.
For identification of Boeing’s contracted broker contact Boeing Traffic at
http://www.boeing.com/companyoffices/doingbiz/flash.html.

3.2.2 Manufacturing Configuration

Unit pricing for each Product or part number shown in SBP Attachment 1 is based on the latest
revisions of the Specifications at the time of the signing of this SBP and any amendments thereof,
subject to GTA Section 10.

3.2.3 Packaging

The Prices shown in SBP Attachment 1 include all normal and reasonable packaging costs (normal and
reasonable packaging is further described in GTA Section 7). For export shipments or shipments
requiring packaging in excess of normal packaging, Boeing shall pay for such additional packaging
charges. Seller shall package Product in accordance with the applicable requirements set forth in
the GTA for the location issuing the Order, as appropriate. Upon Boeing’s request, Seller will
provide discreet packaging costs.

	 	 	 	 	 
	3.2.4	 	 	 	Local Transportation Devices
	3.3

	 	[ * ].
	 	

Subject Matter of Sale

Subject to the provisions of this SBP, Seller shall sell to Boeing and Boeing shall purchase from
Seller certain Products as set forth in SBP Attachment 1. [ * ]

	 	 	 
	3.3.1	 	Nonrecurring Work
	3.3.1.1	 	Tooling - General
	3.3.1.2

3.3.1.3

3.3.1.4

3.3.1.5

3.3.1.6

3.3.1.7

3.3.1.8

	 	[ * ]

Static and Fatigue Test Articles

[ * ]

Contractor-Use Tooling (also known as Seller-Use Tooling)

[ * ]

Common — Use Tooling

[ * ]

Use of Casting, Forging and Extrusion Tools

[ * ]

Initial Planning

[ * ]

Weight Status Reporting

[ * ]

Integrated Product Team

Seller shall participate and/or locate at Boeing’s facilities key personnel for Integrated Product
Teams as requested by Boeing.

	 	 	 	 	 
	3.4	 	 	 	Type Design and Type Certification Data Development and Protection
	3.5

4.0

	 	[ * ]

[ * ] 
	 	

Seller Authorized Representative (AR) Requirements and Obligations

GOVERNING QUALITY ASSURANCE REQUIREMENTS

In addition to those general quality assurance requirements set forth in the GTA, the work
performed under this SBP shall be in accordance with the requirements set forth in SBP Attachment
10.

	 	 	 	 	 
	4.1	 	 	 	Seller Authorized Representative (AR) Requirements and Obligations
	5.0

	 	[ * ]
	 	

APPLICABLE LAW

This Contract shall be governed by the laws of the State of Washington. No consideration shall be
given to Washington’s conflict of law rules. This Contract excludes the application of the 1980
United Nations Convention on Contracts for the International Sale of Goods. Seller hereby
irrevocably consents to and submits itself to the jurisdiction of the applicable courts of King
County Washington and the federal courts of Washington State for the purpose of any suit, action or
other judicial proceeding arising out of or connected with any Order or the performance or subject
matter thereof. Seller hereby waives and agrees not to assert by way of motion, as a defense, or
otherwise, in any such suit, action or proceeding, any claim that (a) Seller is not personally
subject to the jurisdiction of the above-named courts, (b) the suit, action or proceeding is
brought in an inconvenient forum or (c) the venue of the suit, action or proceeding is improper.

	 	 	 
	6.0	 	PRODUCT SUPPORT AND ASSURANCE; ON TIME DELIVERY
	6.1	 	Warranty
	[ * ]

	 	

	 
	 	 
	6.1.1

	 	Claim Against Seller

Any claim against Seller for breach of the warranties set forth in this Section 6.1 shall be made
in writing no later than [ * ] after delivery of such Product by Seller, after which time any such
claim shall be deemed waived and barred.

6.1.2 Implied Warranty

[ * ]

6.1.3 Permitted Assignees

This warranty shall run to Boeing, its successors, and their permitted assignees. Products
required to be repaired, corrected or replaced shall be subject to this SBP Section 6.1 and GTA
Section 8.3 “Boeing’s Inspection and Rejection” in the same manner and to the same extent as
Products originally delivered under this SBP, but only as to the repaired, corrected or replaced
part or parts thereof. Even if the Parties disagree about the existence of a breach of this
warranty, Seller shall promptly comply with Boeing’s direction to: [ * ] If the Parties later
determine that Seller did not breach this warranty, the Parties shall equitably adjust the invoiced
amounts.

	 	6.2	 	Integrated Materials Management (IMM) Program

If requested by Boeing, Seller shall, as may be applicable for a materials supplier, participate in
and support Boeing’s Integrated Materials Management (IMM) Program pursuant to terms and conditions
mutually agreed upon in writing by the Parties that will achieve an efficient and low cost supply
chain infrastructure pursuant to the goals and strategies of the IMM Program as set forth below:

	 	A.	 	Provide a Boeing integrated solution for customers’ material management operations;

	 	B.	 	Provide guaranteed service levels to customers’ maintenance operations;

	 	C.	 	Reduce inventory and process costs with better service levels to customers;

	 	D.	 	Enable supply chain and customers to reduce costs and share benefits.

IMM on-site functions may be located at customers’ facilities and may include, demand planning,
inventory management, repair and overhaul services and replenishment management. IMM global
functions may include, planning and collaboration, global operations, systems integration, network
supplier management, global logistics management, quality assurance, human resources,
parts/services engineering, finance and accounting, communications, product development.

	 	 	 
	[ * ]

7.0

7.1

	 	

PAYMENT

Recurring Price

Unless otherwise provided under the applicable Order or written agreement between the Parties,
payment shall be [ * ] All payments shall be in United States Dollars.

Except as otherwise provided on an applicable Order identifying Pay-From Receipt, payment due
dates, including discount periods, shall be computed from the later of (a) the invoice date for the
Product or (b) the date of receipt of a correct (proper) invoice. Any discount shall not apply to
freight or other specified charges. All payments are subject to adjustment for shortages, credits
and rejections. [ * ]

Boeing may dispute payment amounts due, provided that Boeing provides a complete reason as to the
dispute. Once a dispute has been resolved, payment terms will be [ * ] from the date of
resolution.

In the event Boeing fails to make payments when due, Seller reserves the right to assert whatever
remedies it may have under law.

	 	 	 	 	 
	7.2	 	 	 	Nonrecurring Price/Special Charges
	
 
	 	[ * ]
	 	

	 
	 	 	 	 
	7.3

	 	 	 	Payment Method

All payments hereunder shall be made by Boeing through Seller’s automated payment system.

	 	7.4	 	Payment Errors

If an error in payment (over payment or under payment) is discovered by Boeing or Seller, a written
notification will be submitted to the other Party and resolution of the error will occur in a
timely manner after discovery of such error.

	 	 	 
	7.5	 	Credit for Certain Orders
	[ * ]

8.0

	 	

SCHEDULE ACCELERATION/DECELERATION

In addition to Boeing’s right to direct a change in quantity or schedule under GTA Section 10.0,
upon receipt of written notification from Boeing’s Procurement Representative of Boeing’s desire to
increase its quantity or accelerate schedule requirements (“Acceleration Request”) and/or decrease
its quantity or decelerate schedule requirements by canceling all or any part of an Order or push
out the delivery date(s) specified on any Order (“Deceleration Request”);

(a) In the event of an Acceleration Request, Boeing shall provide written notification to Seller
specifying all demand and prioritization information. Seller shall provide, in cooperation with
Boeing, a formal proposal specifying the manner and extent to which Seller can address Boeing’s
demand requirements and enumerating the anticipated additional costs resulting from various action
proposals that may be made by Seller. Based on Boeing’s feedback Seller will develop a milestone
chart, implement the agreed upon action proposal and provide ongoing status reports.

(b) In the event of a Deceleration Request, Boeing shall provide to Seller written notification of
any anticipated deceleration as soon as possible prior to the effectiveness of the deceleration
request. Seller shall, at no added cost to Boeing, accept the cancellation of all or any part of
an Order or permit Boeing to push-out the delivery dates on Orders, with respect only to Orders for
which the delivery dates are later than the then-effective manufacturing lead-times described in
SBP Section 12.5.

Provided, however, that Seller’s obligations under this SBP Section 8.0 shall be limited to
circumstances in which Boeing experiences “significant and sudden” changes to its program(s) build
rates and/or model/fleet specific program.

9.0 NOTICES

9.1 Addresses

For all matters requiring the approval or consent of either Party, such approval or consent shall
be requested in writing and is not effective until given in writing. Notices shall be deemed
delivered (a) on the business day when personally delivered or when received by e-mail, (b) one (1)
business day after deposit with a recognized overnight business delivery service, or (c) on the
business day when sent by verified facsimile to the facsimile number provided in this Section 9.1,
with original forwarded by recognized overnight business delivery service. Notices and other
communications shall be given in writing by personal delivery, recognized overnight business
delivery service, facsimile, or electronic transmission addressed to the respective party as
follows:

To Boeing: Attention: [ * ]

	 	 	 
	To Seller:

Titanium Metals Corporation

[ * ]

Facsimile: [ * ]

	 	BOEING COMMERCIAL AIRPLANES

GLOBAL PARTNERS

[ * ]

E-mail: [ * ]

Facsimile: [ * ]

Attention: [ * ]

E-mail: [ * ]

	 
	 	 
	
 
	 	And:
	 
	 	 
	
 
	 	Attention: [ * ]

Titanium Metals Corporation

[ * ]

E-mail: [ * ]

Facsimile: [ * ]

Any Party may change its address or facsimile number by giving notice to the others in accordance
with the provisions of this Section 9.1.

	 	 	 
	10.0

	 	OBLIGATION TO PURCHASE AND SELL/VOLUME AND SHARE/

REMEDIES

Boeing agrees to purchase from Seller and Seller agrees to supply to Boeing the Products, on the
terms and subject to the conditions contained in the Contract.

11.0 COST PERFORMANCE VISIBILITY

Consistent with the limitations identified in GTA Section 9.0, when requested by Boeing, Seller
shall provide all necessary cost support data, source documents for direct and indirect costs, and
assistance at the Seller’s facility in support of cost and performance reviews performed by the
Parties pursuant to cost reduction initiatives as set forth in SBP Section 12.6.

The Cost Performance Review (CPR) process is the tool which the Parties will use to measure
Seller’s performance against the goals and objectives of Boeing as set forth in SBP Section 12.6.
Boeing and Seller shall implement a structured process called CPR to review and identify areas,
processes and strategies to reduce or eliminate costs for the Product(s) set forth in this SBP.
The CPR process will address those activities which are a direct result of both Parties’
involvement. Seller will use commercially reasonable efforts to provide the resources and data
sufficient to support the CPR process in accordance with the structure set forth in SBP Attachment
9.

	 	 	 
	12.0	 	CHANGE PROVISIONS
	12.1

12.2

[ * ]

12.3

	 	[ * ]

Computation of Equitable Adjustment

Obsolescence

Seller may not submit a claim for obsolete material or Product in its possession resulting from an
individual change order or termination that has a total claim value of

	 	 	 
	[ * ] or less.

12.4

12.5

[ * ]

12.6

	 	

Change Absorption (Nonrecurring/Recurring)

Planning Schedule/Forecasting

Total Cost Management/Lean Manufacturing Process Improvement

A. Total Cost Management

[ * ]

	 	B.	 	Boeing Generated Technical and Cost Improvement

[ * ]

	 	C.	 	Lean Manufacturing/Process Improvement

[ * ]

	 	D.	 	Cooperation on Research and Development Initiatives

	 	 	 	 	 
	12.7

12.8

12.9

[ * ]

	 	[ * ]

	 	

[ * ]

[ * ]

Derivative Aircraft

	 
	 	 	 	 

1

	 	 	 	 	 
	 
	 	 	 	 
	13.0

13.1

	 	 	 	SPARES AND OTHER PRICING

Spares

For purposes of SBP Section 13.0, the following requirements and definitions shall apply:

	 	A.	 	AIRCRAFT ON GROUND (AOG) — means the highest Spares priority. Seller will expend best
efforts to provide the earliest possible shipment of any Spare designated AOG by Boeing.
Such effort includes but is not limited to working twenty-four (24) hours a day, seven days
a week and use of premium transportation. Provided, however, that all additional costs, if
any, incurred by Seller as a result of such prioritization requests from Boeing shall be
paid by Boeing. Seller shall contact Boeing upon receipt of any AOG Spare request to
confirm the accuracy and priority of the request. Seller shall provide Boeing with the
anticipated additional cost, if any, associated with complying with the AOG Spare request
and shall use best efforts to specify the delivery date of any such AOG Spare within [ * ]
of receipt of an AOG Spare request. Seller shall only proceed to take action upon such AOG
Spare request after receiving written direction from Boeing to proceed.

	 	B.	 	DEMAND DATE – means a date provided to Seller by Boeing when Boeing wants the
Product(s) on-dock. Seller will use best efforts to provide a commitment to Boeing no
later than [ * ] from notification of demand date.

	 	C.	 	SELLER’S FULL MANUFACTURING LEADTIME SPARE — means a Spare in which the Demand Date is
equal to or greater than Seller’s normal manufacturing lead-time or the Demand Date is less
than Seller’s normal manufacturing lead-time but Seller’s best effort commitment is
Seller’s normal manufacturing lead-time.

	 	D.	 	SELLER’S LESS THAN FULL MANUFACTURING LEADTIME SPARE — means a Spare in which the
Demand Date is less than Seller’s normal manufacturing lead-time and Seller’s best effort
commitment to meet the Demand Date is less than Seller’s normal manufacturing lead-time

	 	E.	 	PURCHASED ON ASSEMBLY REQUIREMENT (POA) [ * ].

	 	F.	 	IN-PRODUCTION SPARE — means any Spare which is in the current engineering configuration
for the Product and is used on a model aircraft currently being manufactured by Boeing at
the time of the Order.

	 	G.	 	NON-PRODUCTION SPARE — means any Spare which is used on model aircraft no longer being
manufactured by Boeing (Post Production) or is in a non-current engineering configuration
for the Product (Out of Production).

	 	H.	 	BOEING PROPRIETARY SPARE — means any Spare, which is manufactured (i) by Boeing, or
(ii) to Boeing’s detailed designs with Boeing’s authorization or (iii) in whole or in part
using Boeing’s Proprietary Materials.

13.1.1 Spares Support

The Demand Date initiative is Boeing’s means of providing Seller greater visibility of Customer
requirements and expectations for Spares. Seller agrees to work with Boeing during the term of
this SBP to identify and address those elements in the manufacturing or support processes which are
critical to supporting the Demand Date initiative. Where possible, the Parties will work to
improve those critical elements.

Seller shall provide Boeing with the name and number of a twenty-four (24) hour contact for
coordination of AOG requirements. Such contact shall be equivalent to the coverage provided by
Boeing to its Customers as outlined in SBP Attachment 4 “Boeing AOG Coverage”.

Seller shall notify Boeing as soon as possible via fax, telecon, or as otherwise agreed to by the
Parties of each AOG requirement shipment using the form identified in SBP Attachment 5 “Boeing AOG
Shipping Notification”. Such notification shall include time and date shipped, quantity shipped,
Order, pack slip, method of transportation and air bill if applicable. Seller shall also notify
Boeing immediately upon the discovery of any delays in shipment of any requirement and identify the
earliest revised shipment possible.

13.1.2 Reclassification or Re-exercises

Boeing may instruct Seller to re-prioritize or reclassify an existing requirement in order to
improve or otherwise change the established shipping schedule. Seller shall use best efforts to
meet the revised requirement as set forth above in the definitions of the requirements, subject to
Boeing’s responsibility for all additional costs, if any, caused thereby. Seller’s commitment of a
delivery schedule shall be given in accordance with that set forth above for the applicable
classification but in no case shall it exceed [ * ] from notification by Boeing.

	 	 	 
	13.1.3	 	Spare Pricing
	[ * ]	 	 
	13.1.3.1	 	Aircraft on Ground (AOG) Requirement
	[ * ]	 	 
	13.1.3.2	 	Seller’s Less Than Manufacturing Lead-time Spare
	[ * ]	 	 

2

	 	 	 
	13.1.3	 	Spare Pricing
	[ * ]	 	 
	13.1.3.1	 	Aircraft on Ground (AOG) Requirement
	[ * ]	 	 
	13.1.3.2	 	Seller’s Less Than Manufacturing Lead-time Spare
	[ * ]	 	 
	 
	 	 
	13.1.4

	 	Spares Special Handling

[ * ] If Boeing directs delivery of Spares to a place other than that designated in SBP Section
3.2.1, Boeing shall reimburse Seller for shipping charges, including insurance, paid by Seller to
the designated place of delivery which exceed the original cost of shipping contemplated in this
SBP. Such charges shall be shown separately on all invoices.

13.2 Expedite of Production Requirements

Any expedite charges to be paid for short flow production requirements shall be pre-approved by the
Procurement Representative. Seller shall provide data to verify expedite charges. If Seller fails
to meet their committed delivery, Boeing shall not be obligated to pay the agreed upon amount.

	 	 	 	 	 
	13.3	 	 	 	Tooling
	13.3.1	 	 	 	Responsible Party
	13.3.2

13.3.3

13.3.3.1

13.3.3.2

13.3.3.3

13.3.3.4

	 	[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]
	 	

Boeing Furnished Tooling

Additional Tooling Requirement

Title to Tooling

Use and Disposition of Tooling

Accountability for Tooling

Certified Tool Lists

	 
	 	 	 	 

3

	 	 	 	 	 
	13.3	 	 	 	Tooling
	13.3.1	 	 	 	Responsible Party
	 
	 	 	 	 
	13.4

[ * ]

13.5

13.5.1

	 	

	 	Pricing of Boeing’s Supporting Requirements

Pricing of Requirements for Modification or Retrofit

Boeing Responsibility or Regulatory Requirement

[ * ]

	 	13.5.2	 	Contract Aftermarket Modification or Retrofit Work Performed by Boeing

	 	 	 
	[ * ]	 	 
	13.6	 	Pricing of Similar Products
	[ * ]

14.0

14.1

	 	

STATUS REPORTS/REVIEWS

General Reports / Reviews

When requested by Boeing, Seller shall update and submit, at a minimum, monthly status reports or
data requested by Boeing using a method mutually agreed upon by Boeing and Seller. Boeing has the
right to impose more frequent reporting on Seller to achieve program objectives.

When requested by Boeing, Seller shall provide to Boeing a manufacturing milestone chart
identifying the major purchasing, planning and manufacturing operations for the applicable
Product(s).

Program reviews will be held at Seller’s facility or Boeing’s facilities as reasonably requested by
Boeing. The topics of these reviews may include raw material status, manufacturing status,
production status, Seller’s current and future capacity assessments, inventory, Boeing’s
requirements, changes, forecasts and other issues pertinent to Seller’s performance under this SBP.
Reviews will allow formal presentations and discussion of status reports as set forth above.

	 	 	 
	14.2	 	Diversity Reporting
	14.3

	 	[ * ]

Program Manager

Seller will assign one or more persons to perform program manager responsibilities to oversee and
manage Seller’s and Boeing’s performance hereunder.

	 	 	 	 	 
	14.4	 	 	 	Certified Tool List
	14.5

	 	[ * ]
	 	

Problem Reports

Seller shall provide a detailed report notifying Boeing of program problems/issues that could
impact Seller’s ability to deliver Products on time and otherwise in conformance with the terms of
the GTA and SBP. The report shall contain a detailed description of the problem, impact on the
program or affected tasks, and corrective/remedial action, with a recovery schedule. Submittal of
a report in no way relieves Seller of any obligations under the GTA and SBP nor does it constitute
a waiver of any rights and remedies Boeing may have with respect to any default.

Problem reports shall be submitted to the Boeing Procurement Representative on a weekly basis. In
special circumstances, Seller will notify Boeing promptly of critical issues and may provide a
written report of a critical issue in advance of the weekly report). Status reports may include,
but are not limited to, the following topics, as applicable given the circumstances:

	 	A.	 	Delivery schedule updates, schedule impact issues and corrective action;

	 	B.	 	Technical/manufacturing progress since the previous report period, including
significant accomplishments, breakthroughs, problems and solutions;

	 	C.	 	Identification of changes to key manpower or staffing levels;

	 	D.	 	Identification of the critical events/activities expected within the next month and a
discussion of potential risk factors;

	 	E.	 	Progress on open action items, including closure dates;

	 	F.	 	Raw material status;

	 	G.	 	Identification of quality and manufacturing issues and resolutions;

	 	 	 
	[ * ]

14.6

	 	

[ * ]
	 
	 	 
	15.0

	 	INTERNATIONAL COOPERATION
	 
	 	 
	15.1

	 	Market Access and Sales Support

Seller agrees to use commercially reasonable efforts to work with Boeing to develop a contracting
strategy, which supports Boeing’s market access, and international business strategy. Boeing and
Seller agree to work together to identify countries where Seller may subcontract in support of
Boeing’s market access and international business strategy. With respect to work covered by this
SBP, and if requested by Boeing, Seller agrees to use commercially reasonable efforts to procure
from subcontractors or suppliers, in countries selected by Boeing, goods and services relating to
Seller’s performance of this Contract. Such direction may occur at any time during the performance
of this SBP. Although not required to do so, Seller may satisfy such support requests through
purchases not related to this SBP. If Seller is requested by Boeing to subcontract any part of its
Product(s) and Seller anticipates an increase or decrease to the Price for such Product(s) as a
result of such direction, Seller shall immediately notify Boeing in writing. Boeing shall respond
within [ * ] on whether Seller is to proceed and Boeing shall be responsible for any increase or
receive credit for any decrease in the Price for such Product(s).

15.2 Offset Assistance

Seller shall use commercially reasonable efforts to cooperate with Boeing in the fulfillment of any
non-United States offset program obligation that Boeing may have accepted as a condition of the
sale of a Boeing product. In the event that Seller is requested by Boeing to solicit bids and/or
proposals for, or to procure or offer to procure any goods or services relating to the work covered
by this SBP from any source outside of the United States, Boeing shall be entitled, to the
exclusion of all others, to all industrial benefits and other “offset” credits which may result
from such solicitations, procurements or offers to procure. Seller shall take any actions that may
be required on its part to assure that Boeing receives such credits. Seller shall document on SBP
Attachment 2 all offers to contract and executed contracts with such subcontractors or suppliers
including the dollars contracted. Seller shall provide to Boeing an updated copy of SBP Attachment
2 for the [ * ] ending [ * ] of each year. The reports shall be submitted on the [ * ] and the [ *
] respectively. If Seller is requested by Boeing to subcontract any part of its Product(s) to a
country in which Boeing has an offset obligation, an equitable price adjustment, increase or
decrease, for Seller’s costs and expenses will be made by Boeing.

15.3 Credit Against Aircraft Sales

It is understood that Boeing may wish to claim part or all of the value of this SBP as credit
against a current or future Boeing offset obligation in [ * ]. The full value of this SBP shall be
held in account by the governments of of [ * ] and may be applied, at Boeing’s sole determination,
to satisfy any future offset obligations Boeing may accept as a condition of the sale of any Boeing
product in [ * ]. Seller will use commercially reasonable efforts to assist Boeing in working with
the appropriate government officials to obtain the offset credit being sought.

4

16.0 BOEING FURNISHED MATERIAL/SUPPLIER BANKED MATERIAL

16.1 Boeing Furnished Material

Material, including but not limited to raw material, standards, detail components and assemblies,
furnished to Seller by Boeing shall be administered in accordance with a Bonded Stores Agreement
between Boeing and Seller.

Seller shall provide Boeing with required on-dock dates for all material. Seller’s notice shall
provide Boeing with sufficient time to competitively acquire the material if, in its sole and
absolute discretion, it desires to do so.

[ * ]

17.0 PARTICIPATION

17.1 Other Boeing Entities

[ * ], Seller agrees that any Boeing division or Boeing subsidiary (“Boeing Entity”) not
specifically included in this SBP may, by issuing a purchase order, work order, or other release
document, place Orders through Boeing’s Service Provider or Procurement Representative under this
SBP during the term hereof or any written extension thereof, under the terms, conditions and
pricing specified by this SBP. Seller agrees that the prices set forth herein may be disclosed by
Boeing on a confidential basis to Boeing Entities wishing to invoke this SBP Section 17.1. Seller
shall notify the Boeing Procurement Representative named in SBP Section 9.0 of Boeing Entities not
specifically referenced herein who frequently use this SBP.

17.2 Boeing Subcontractors / Suppliers

The Parties agree that the intent of the Contract is for all Orders by Boeing for purchases of
Product should be directed to and processed by Boeing’s Service Provider or Boeing’s Procurement
Representative. Seller shall not be precluded from selling its products directly to any customers
who elect not to place orders through Boeing’s Service Provider.

17.3 Notification of Contract

In the event a purchaser known by Seller to be an eligible Boeing Entity places an Order for
Product or services covered by this SBP but fails to reference this SBP or otherwise seek the
prices established by this SBP, Seller shall notify Boeing’s Procurement Representative of such
inquiry by such purchaser and seek direction from the Boeing Procurement Representative regarding
the manner in which such inquiry shall be handled.

5

	 	 	 	 	 
	17.4	 	 	 	Notification of Price Reductions
	18.0

	 	[ * ]
	 	

INVENTORY AT CONTRACT COMPLETION
	 
	 	 	 	 
	19.0

19.1

19.2

19.3

19.4

19.5

20.0

	 	[ * ]
	 	OWNERSHIP OF INTELLECTUAL PROPERTY

Technical Work Product

[ * ]

Inventions and Patents

[ * ]

Works of Authorship and Copyrights

[ * ]

Pre-Existing Inventions and Works of Authorship

[ * ]

Inapplicability

[ * ]

ADMINISTRATIVE AGREEMENTS

Administrative Agreements are used for administrative matters not specifically addressed elsewhere
and set forth-certain obligations of the Parties relating to the administration of each Order. The
Administrative Agreements, if any, are identified and incorporated in SBP Section 2.3.

	 	 	 	 	 
	21.0	 	 	 	GUARANTEED WEIGHT REQUIREMENTS
	22.0

23.0

	 	[ * ]

[ * ]

[ * ]
	 	

SELLER DATA REQUIREMENTS

DEFERRED PAYMENT

	 
	 	 	 	 

6

	 	 	 	 	 
	21.0	 	 	 	GUARANTEED WEIGHT REQUIREMENTS
	 
	 	 	 	 
	24.0

25.0

26.0

	 	[ * ]

[ * ]
	 	SOFTWARE PROPRIETARY INFORMATION RIGHTS

CONFIGURATION CONTROL

INFRINGEMENT

Except as provided hereinbelow, Seller will indemnify, defend, and hold harmless Boeing and its
customers from all claims, suits, actions, awards (including, but not limited to, awards based on
intentional infringement of patents known to Seller at the time of such infringement, exceeding
actual damages, and/or including attorneys’ fees and/or costs), liabilities, damages, costs and
attorneys’ fees related to the actual or alleged infringement of any United States or foreign
intellectual property right (including, but not limited to, any right in a patent, copyright,
industrial design or semiconductor mask work, or based on misappropriation or wrongful use of
information or documents) and arising out of the manufacture, sale or use of Products by either
Boeing or its customers. Boeing and/or its customers will duly notify Seller of any such claim,
suit or action; and Seller will, at its own expense, fully defend such claim, suit or action on
behalf of Boeing and/or its customers. Seller shall have no obligation under this Section 26.0
with regard to any infringement arising from: (i) Seller’s compliance with Specifications issued by
Boeing where infringement could not reasonably be avoided in complying with such Specifications or
(ii) use or sale of Products for other than their intended application. For purposes of this
Section 26.0 only, the term Customer shall not include the United States Government; the term
Boeing shall include The Boeing Company and all Boeing subsidiaries and all officers, agents, and
employees of Boeing or any Boeing subsidiary; and the term Seller shall include Titanium Metals
Corporation and all of its subsidiaries and the respective officers, agents and employees of each.

	 	 	 	 	 
	27.0	 	 	 	RAW MATERIAL PROGRAM
	27.1	 	 	 	Boeing Raw Material Strategy
	27.2

	 	[ * ]
	 	

[ * ]

28.0 DIGITIZATION OF PROPRIETARY INFORMATION AND MATERIALS

Seller grants, to Boeing a license under Seller’s copyrights for the purpose of converting such of
Seller’s Proprietary Information and Materials as Boeing may have a right to know hereunder to a
digital format (“Digital Materials”) and make such Digital Materials available to those of its
employees who have a need to know the same for company internal use through a computer data base
system. Except as otherwise specifically agreed to in writing by the Parties, said license set
forth hereunder shall survive termination or cancellation of this SBP relative to Digital Materials
included in Boeing’s computer data base system prior to receipt of such notice of termination or
cancellation.

	 	 	 	 	 
	29.0	 	 	 	ON-SITE SUPPORT
	29.1	 	 	 	Indemnification Negligence of Seller or subcontractor
	29.2

29.3

29.4

29.5

29.6

29.7

29.8

	 	[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]
	 	

Commercial General Liability

Automobile Liability

Workers’ Compensation

Certificates of Insurance

Self-Assumption

Protection of Property

Compliance with Boeing Site Requirements

[ * ]

	 	30.0	 	BOEING TECHNICAL / MANUFACTURING ASSISTANCE REGARDING SELLER’S NONPERFORMANCE

	 	 	 	 	 
	31.0

	 	[ * ]
	 	

U.S. CUSTOMS INVOICE REQUIREMENTS

Where appropriate, Seller will provide the necessary information for clearance through customs.
Customs invoice requirements are set forth in Attachment 12 to this SBP.

32.0 STRATEGIC ALIGNMENT

[ * ]

33.0 CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT)

C-TPAT is a voluntary initiative between business and government to protect global commerce from
terrorism and increase the efficiencies of global transportation. The program calls for importers,
carriers and brokers to establish policies to enhance their own security practices and those of
their business partners involved in their supply chain. Such practices may include but are not
limited to the following:

Procedural Security –Procedures in place to protect against unmanifested material being
introduced into the supply chain;

Physical Security –Buildings constructed to resist intrusion, perimeter fences, locking
devices, and adequate lighting;

Access Controls –Positive identification of all employees, visitors and suppliers;

Personnel Security –Employment screening, background checks and application verifications;
and

Education and Training Awareness –Security awareness training, incentives for

participation in security controls.

Seller agrees to work with Boeing and appropriate industry and governmental agencies, as necessary,
to develop and implement policies and procedures consistent with the C-TPAT initiative (which shall
not mean that Seller is itself C-TPAT certified) to ensure the safe and secure transport of
Products under this SBP.

	 	 	 	 	 
	34.0	 	 	 	[ * ]
	35.0	 	 	 	DELIVERY - TITLE AND RISK OF LOSS
	35.1	 	 	 	Delivery Point and Schedule
	35.2

35.3

	 	[ * ]

[ * ]

[ * ]
	 	

Delivery Schedule of Other Products and Performance of Services

Transportation Routing Instructions

	 
	 	 	 	 

7

	 	 	 	 	 
	34.0	 	 	 	[ * ]
	35.0	 	 	 	DELIVERY - TITLE AND RISK OF LOSS
	35.1	 	 	 	Delivery Point and Schedule
	 
	 	 	 	 
	35.4

35.4.1

35.5

36.0

36.1

36.2

36.3

36.4

36.5

36.6

37.0

37.1

37.2

37.2.1

37.2.2

	 	[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]
	 	Notification of Shipment

Title and Risk of Loss

Notice of Delay — Premium Effort

PACKAGING AND SHIPPING

Product Packaging

Consolidated Shipments and Markings

Freight Charges

Packing Sheet and Test Reports

Additional Copies

Price Inclusive

ADDITIONAL QUALITY ASSURANCE REQUIREMENTS

Federal Aviation Administration Inspection

Repair Authorization

Boeing-Performed Work

Reimbursement for Repairs

	 
	 	 	 	 

8

	 	 	 	 	 
	34.0	 	 	 	[ * ]
	35.0	 	 	 	DELIVERY - TITLE AND RISK OF LOSS
	35.1	 	 	 	Delivery Point and Schedule
	 
	 	 	 	 
	38.0

39.0

39.1

40.0

40.1

40.2

41.0

42.0

43.0

44.0

44.1

44.2

	 	[ * ]

[ * ]

[ * ]

[ *

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]
	 	CHANGES

EXAMINATION OF RECORDS

Reports

EVENTS OF DEFAULT AND REMEDIES

Additional Event of Default Not Applicable

Interest on Overdue Amounts

CUSTOMER CONTACT

SUBCONTRACTING

SUPPLEMENTS AND MODIFICATIONS

INCREMENTAL RELEASE AND CYCLE TIME REQUIREMENTS

Incremental Release

Cycle Time Requirements

	 
	 	 	 	 

9

	 	 	 	 	 
	34.0	 	 	 	[ * ]
	35.0	 	 	 	DELIVERY - TITLE AND RISK OF LOSS
	35.1	 	 	 	Delivery Point and Schedule
	 
	 	 	 	 
	45.0

45.1

45.2

46.0

46.1

46.2

46.3

46.4

46.5

46.6

46.7

46.8

46.9

46.10

46.11

47.0

	 	[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]

[ * ]
	 	SURPLUS PRODUCTS

Return of Surplus Products

Use of Surplus Products

INTEGRATED PRODUCT TEAM

Purpose

Qualifications

Removal of Personnel

Work Schedule

Equipment and Supplies

Employment Status

Team Leader

Discipline

Insurance

Indemnification

Compensation

SELLER ASSISTANCE

[ * ]

	 	48.0	 	DEFINE AND CONTROL AIRPLANE CONFIGURATION / MANUFACTURING RESOURCE MANAGEMENT (DCAC/MRM)

[ * ]

	 	49.0	 	ELECTRONIC ACCESS AND EXCHANGE OF DIGITAL PRODUCT DEFINITION

	 	 	 	 	 
	49.1	 	 	 	Exchange of Digital Product Definition Between Boeing and Seller
	49.2

	 	[ * ]
	 	

System/Software Compatibility between Boeing and Seller

[ * ]

	 	49.3	 	Electronic Access, Communications and Data Exchange via Telecommunications

Any electronic communications and data exchange via telecommunications between the parties shall be
pursuant to a trading partner agreement executed prior to or concurrently with this SBP. Provided,
that any amendments to the SBP, change authorizations and any other matter requiring written
authorization shall be communicated in writing and not solely by electronic communication.

Any electronic access to Boeing by Seller shall be pursuant to an electronic access or similar
agreement.

10

50.0 AMENDMENT

No provision of this Contract may be changed or modified except by a writing signed on behalf of
Boeing and Seller which makes express reference to this Contract.

	 	51.0	 	AUTHORITY

Each individual executing this Contract below hereby certifies that this Contract has been duly
approved and authorized by the party on behalf of whom such individual is executing and that such
individual has been duly authorized by such party to execute this Contract on behalf of such party.

EXECUTED in duplicate as of the date and year first set forth above by the duly authorized
representatives of the Parties.

	 	 	 
	BOEING

	 	SELLER
	 
	 	 
	THE BOEING COMPANY

	 	Titanium Metals Corporation

	 	 	 
	     

	 	     
	 
	 	 
	Name: [ * ]

	 	Name: [ * ]
	 
	 	 
	Title: Procurement Agent

	 	Title: Boeing Contract Manager
	 
	 	 
	Date: August 2, 2005

	 	Date: August 2, 2005

[ * ]

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]