FACILITIESCONSTRUCTIONPURCHASEORDERTERMSANDCONDITIONS

APPENDIX“1”

REV. 1 –NOV. 7, 2016

ORIGINAL—SEP 3, 2004

1.Definitions

Thefollowingdefinitionsshallapplyunlessotherwisespecificallystated.

“Buyer”shallmeanLockheedMartinCorporationactingthroughitsLockheedMartinAeronauticsCompany–Ft.Worth,Texas.

“ConstructionshallmeantheBuyer’sRepresentativeEngineer”(CE)

“ContractorES&Hshall mean the Buyer’s Contractor Environment, Safety Health Handbook” Handbook,whichisapplicabletoSellerifSellerperformswork/services

ordeliversgoodsonLMAero-ownedoroperatedfacilities.ThecurrentversionofthisHandbookisincorporatedhereinandismadeaparthereofbythisreference.

“Seller”shallmeanthelegalentitytowhichthisPurchaseOrderisissued.“PO”shallmeanthisPurchaseOrder.

“Government”shallmeantheGovernmentoftheUnitedStatesofAmericaandthoseauthorizedordelegatedresponsibilitytoactonitsbehalf,exceptwherespecificallystatedtobethegovernmentofanyothercountry.

“PrimeContract”shallmeanthecontract(s)underwhichthisPOisissued.

2.General

Sellerisanindependentcontractorinallitsoperationsandactivitieshereunder,andtheemployeesfurnishedbytheSellertoperformworkpursuanttothisPurchaseOrderareSeller’semployeesexclusivelywithoutanyrelationwhatsoevertoBuyer.SaidemployeesshallbepaidbytheSellerforallservicesperformedunderthisPurchaseOrderandtheSellershallberesponsibleforallobligationsandreportscoveringSocialSecurity,UnemploymentInsurance,Workers’Compensation,IncomeTax,andanyotherreportsanddeductionsrequiredbylocal,stateand/orfederallaworregulation.Sellerisnotgranted,expresslyorimpliedly,anyrightorauthoritytocreateanyobligationorliabilityonbehalfoforinthenameofBuyer,ortobindBuyerinanymannerwhatsoever.

Unlessotherwiseindicated,theworkistobefurnishedorperformedatfacilitiesownedbytheUnitedStatesGovernment,designatedasAirForcePlantNo.4,whichispropertyunderFederaljurisdiction.

3.Acceptance

AcceptanceofthisPurchaseOrder,eitherbyacknowledgmentorperformanceofservices,constitutesacceptanceoftheconditionssetforthbelowandonthisPurchaseOrder.Nochange,modification, or revision to this contractshallbe valid unless in writing andsignedbytheauthorizedBuyerProcurementRepresentative.

4.Performance

PerformancemustbeinstrictcompliancewiththescheduleandothertermsandconditionsofthisPurchaseOrder.

5.CompliancewithLawsandRegulations

(a)SellershallcomplywiththeapplicableprovisionsofallFederal,state,andlocallawsandordinancesandalllawfulorders,rulesandregulationspromulgatedthereunderincludingwithoutlimitationtheOccupational,SafetyandHealthAct(OSHA)andtheArmsExportControlAct.SelleragreestoindemnifyBuyeragainstanyloss,cost,damageorliabilitybyreasonofSeller'sviolationofthisclause.

(b)IntheeventSelleranticipatescontractingwithforeignsourcesforworkperformedunderthisPO,theSellershall:1)notifytheBuyersConstructionEngineer;and2)comply withthe International Tariffin Arms Regulation (ITAR)22 CFRSections121-128.

(c)SellershallcomplywiththeToxicSubstancesControlActandanyrulesandregulationspromulgatedandpublishedbytheAdministratoroftheenvironmentalProtectionAdministrationpursuanttoTheToxicSubstancesControlAct(15U.S.C.Sec.2601et.seq.)asamended.

(d)SellershallprovidetoBuyerwitheachdeliveryanyMaterialSafetyDataSheetapplicabletotheItemsandcontainingsuchinformationasrequiredbytheOccupational Safetyand HealthAct of1970 and regulationspromulgatedthereunder.

6.SuspensionofWork

(a)BuyerorBuyer’sRepresentative(CE)mayorderSeller,inwriting,tosuspend,delay,orinterruptalloranypartoftheworkofthisPurchaseOrderfortheperiodoftimethatBuyerdeterminesappropriatefortheconvenienceofBuyer.

(b)Iftheperformanceofalloranypartoftheworkis,suspended,delayed,orinterruptedforanunreasonableperiodoftime,(1)byanactofBuyerintheadministrationofthisPurchaseOrder,or(2)byBuyer’sfailuretoactwithinthetimespecifiedinthisPurchaseOrder(orwithinareasonabletimeifnotspecified),anadjustmentshallbemadeforanyincreaseinthecostofperformanceofthisPurchase Order(excludingprofit)necessarilycausedbythe unreasonablesuspension,delay,orinterruption,andthePurchaseOrdershallbemodifiedinwritingaccordingly.However,noadjustmentshallbemadeunderthisclauseforanysuspension,delay,orinterruptiontotheextentthatperformancewouldhavebeensosuspended, delayed, or interrupted by any other cause, including the fault or

negligenceofSeller,orforwhichanequitableadjustmentisprovidedfororexcludedunderanyothertermorconditionofthisPurchaseOrder.

(c)Aclaimunderthisclauseshallnotbeallowed(1)foranycostsincurredmorethan20daysbeforeSellershallhavenotifiedBuyerinwritingoftheactorfailuretoactinvolved(butthisrequirementshallnotapplytoaclaimresultingfromasuspensionorder),and(2)unlesstheclaim,inanamountstated,isassertedinwritingassoonaspracticableaftertheterminationofthesuspension,delay,orinterruption,butnotlaterthanthedateoffinalpaymentunderthePurchaseOrder.

7.TerminationforDefault

(a)Buyermay,bywrittennoticeofdefaulttoSeller,terminatethewholeoranypartofthisPurchaseOrderifSellerfailsto:(i)performthisPurchaseOrderwithinthetimespecifiedhereinoranyextensionthereof;or(ii)performanyotherprovisionofthisPurchaseOrder;or,(iii)makeprogresssoastoendangerperformanceofthisPurchaseOrderin accordance withits terms,and does not curesuch failurewithinaperiodoften(10)days(orlongerperiodasBuyermayauthorizeinwriting)afterreceiptofnoticefromBuyerspecifyingsuchfailure.

(b)IntheeventBuyerterminatesthisPurchaseOrderinwholeorinpartasprovidedinsubparagraph(a)above,Buyermayprocure,uponsuchtermsandinsuchmannerasBuyermaydeemappropriate,servicessimilartothosesoterminated,andSellershallbeliabletoBuyerforanyexcesscosts.However,SellershallcontinuetheperformanceofthisPurchaseOrdertotheextentnotterminated.

(c)SellershallnotbeliableforanyexcesscostsifthefailuretoperformthisPurchaseOrder arisesoutofunforeseeablecausesbeyond thecontrolandwithoutthefault ornegligenceofSeller.Suchcausesmayinclude,butarenotlimitedto,actsofGodorthepublicenemy,actsoftheGovernmentineitheritssovereignorcontractualcapacity,fires,floods,epidemics,quarantinesrestrictions,strikes,freightembargoes,andunusuallysevereweather;butineverycasethefailuretoperformmustbebeyondthecontrolandwithoutthefaultornegligenceofSeller.Iffailuretoperformiscausedbythedefaultofasubcontractor,andifsuchdefaultarisesoutofunforeseeablecausesbeyondthecontrolofbothSellerandthesubcontractor,andwithoutthefaultornegligenceofeitherofthem,Sellershallnotbeliableforanyexcesscostsforfailuretoperform,unlesstheservicestobefurnishedbythesubcontractorwereobtainablefromothersourcesinsufficienttimetopermitSellertomeettherequireddeliveryschedule.Theterm“subcontractor(s)”shallmeansubcontractor(s)atanytier.

(d)IfthisPurchaseOrderisterminatedasprovidedinsubparagraph(a)above,Buyer,inadditiontoanyotherrightsprovidedinthisPurchaseOrder,mayrequireSellertodelivertoBuyerortheGovernment,inthemannerandtotheextentdirectedbyBuyer,(i)anycompletedservices,and(ii)suchpartiallycompletedservicesandmaterials,plans,drawings,informationandcontractrights(hereinaftercalled“servicesand/ormaterials”)asSellerhasspecificallyproducedorspecificallyacquiredfortheperformanceofsuchpartofthisPurchaseOrderashasbeenterminated;andSellershall,upondirectionofBuyer,protectandpreservepropertyinthepossessionofSellerinwhichBuyerortheGovernmenthasaninterest.PaymentforcompletedservicesdeliveredtoandacceptedbyBuyershallbeatthe

PurchaseOrderprice.Paymentforservicesand/ormaterialsdeliveredtoandacceptedbyBuyerandfortheprotectionandpreservationofpropertyshallbeinanamountagreeduponbyBuyerandSeller.FailuretoagreetosuchamountshallbeadisputeconcerningaquestionoffactwithinthemeaningoftheparagraphofthisPurchaseOrderentitled“Disputes.”BuyermaywithholdfromamountsotherwisedueSellerforsuchcompletedservicesand/ormaterialssuchsumasBuyerdeterminestobenecessarytoprotectBuyerortheGovernmentagainstlossbecauseofoutstandingliensorclaimsofformerlienholders.

(e)If,afternoticeofterminationofthisPurchaseOrderundertheprovisionsofthisparagraph,itisdeterminedforanyreasonthatSellerwasnotindefaultundertheprovisionsabove,orthatthedefaultwasexcusableundertheprovisionsofthisparagraph,therightsandobligationsofthepartiesshallbethesameasifthenoticeofterminationhadbeenissuedpursuanttoaterminationforconvenienceofBuyer.

(f)TherightsandremediesofBuyerprovidedinthisparagraphshallnotbeexclusiveandareinadditiontoanyotherrightsandremediesprovidedbylaworunderthisPurchaseOrder.

8.TerminationforConvenience

(a)Buyer,inaccordancewiththisclause,mayterminateperformanceofworkunderthisPurchaseOrderinwholeorinpartiftheBuyerdeterminesthataterminationisinBuyer’sinterest.TheBuyershallterminatebydeliveringtotheSelleraNoticeofTerminationspecifyingtheextentofterminationandtheeffectivedate.

(b)AfterreceiptofaNoticeofTermination,andexceptasdirectedbytheBuyer,theSellershallimmediatelyproceedwiththefollowingobligations,regardlessofanydelayindeterminingoradjustinganyamountsdueunderthisClause:

(1)Stopworkasspecifiedinthenotice.

(2)Placenofurthersubcontractsororders(referredtoassubcontractsinthisclause)formaterials,services,orfacilities,exceptasnecessarytocompletethecontinuedportionofthecontract.

(3)Terminateallsubcontractstotheextenttheyrelatetotheworkterminated.

(4)AssigntoBuyer,asdirectedbyBuyer,allright,title,andinterestoftheSellerunderthesubcontractsterminated,inwhichcaseBuyershallhavetherighttosettleortopayanyterminationsettlementproposalarisingoutofthoseterminations.

(5)WithapprovalorratificationtotheextentrequiredbyBuyer,settlealloutstandingliabilitiesandterminationsettlementproposalsarisingfromtheterminationofsubcontracts,theapprovalorratificationbeingfinalforpurposesofthisCLAUSE.

(6)AsdirectedbytheBuyer,transfertitleanddelivertoBuyer(i)thefabricatedorunfabricatedparts,workinprocess,completedwork,supplies,andothermaterialproducedoracquiredfortheworkterminated,and(ii)thecompletedor

partiallycompletedplans,drawings,information,andotherpropertythat,ifthecontracthadbeencompleted,wouldberequiredtobefurnishedtoBuyer.

(7)Completeperformanceoftheworknotterminated.

(8)Takeanyactionthatmaybenecessary,orthattheBuyermaydirect,fortheprotectionandpreservationofthepropertyrelatedtothiscontractthatisinthepossessionoftheSellerandinwhichBuyerhasormayacquireaninterest.

(9)Useitsbesteffortstosell,asdirectedorauthorizedbytheBuyer,anypropertyofthetypesreferredtoinsubparagraph(6)above;provided,however,thattheSeller(i)isnotrequiredtoextendcredittoanypurchaserand(ii)mayacquirethepropertyundertheconditionsprescribedby,andatpricesapprovedbytheBuyer.TheproceedsofanytransferordispositionwillbeappliedtoreduceanypaymentstobemadebyBuyerunderthisPurchaseOrder,creditedtothepriceorcostofthework,orpaidinanyothermannerdirectedbytheBuyer.

(c)Aftertermination,theSellershallsubmitafinalterminationsettlementproposaltoBuyerintheformandwiththecertificationprescribedbyBuyer.TheSellershallsubmittheproposalpromptly,butnolaterthan60daysfromtheeffectivedateoftermination,unlessextendedinwritingbytheBuyeruponwrittenrequestoftheSellerwithinthis60dayperiod.However,iftheBuyerdeterminesthatthefactsjustifyit,aterminationsettlementproposalmaybereceivedandactedonafter60daysoranyextension.IftheSellerfailstosubmittheproposalwithinthetimeallowed,theBuyermaydetermine,onthebasisofinformationavailable,theamount,ifany,duetheSellerbecauseoftheterminationandshallpaytheamountdetermined.

(d)Subjecttoparagraph(c)above,theSellerandtheBuyermayagreeuponthewholeoranypartoftheamounttobepaidbecauseofthetermination.Theamountmayincludeareasonableallowanceforprofitonworkdone.However,theagreedamount,whetherunderthisparagraph(d)orparagraph(e)below,exclusiveofcostsshowninsubparagraph(e)(2)below,maynotexceedthetotalPurchase Orderpriceasreducedby(1)theamountofpaymentspreviouslymadeand(2)thePurchaseOrderpriceofworknotterminated.ThePurchaseOrdershallbeamended,andtheSellerpaidtheagreedamount.Paragraph(e)belowshallnotlimit,restrict,oraffecttheamountthatmaybeagreedupontobepaidunderthisparagraph.

(e)IftheSellerandBuyerfailtoagreeonthewholeamounttobepaidtheSellerbecauseoftheterminationofwork,theBuyershallpaytheSellertheamountsdeterminedasfollows,butwithoutduplicationofanyamountsagreeduponunderparagraph(d)above:

(1)ForPurchaseOrderworkcompletedbeforetheeffectivedateofterminationandacceptabletoBuyer,thetotal(withoutduplicationofanyitems)of:

(a)Thecostofthiswork;

(b)Thecostofsettlingandpayingterminationsettlementproposalsunderterminatedsubcontractsthatareproperlychargeabletotheterminatedportionofthecontractifnotincludedinsubdivision(a)above;and

(c)Asum,asprofiton(a)above,determinedbyBuyerunderSection49.202oftheFederalAcquisitionRegulation,ineffectonthedateof thisPurchaseOrder,tobefairandreasonable;however,ifitappearsthattheSellerwouldhavesustainedalossontheentirePurchaseOrderhaditbeencompleted,theBuyershallallownoprofitunderthissubdivision(c)andshallreducethesettlementtoreflecttheindicatedrateofloss.

(2)Thereasonablecostofsettlementoftheworkterminated,including:

(a)Accounting,legal,clerical,andotherexpensesreasonablynecessaryforthepreparationofterminationsettlementproposalsandsupportingdata;

(b)Theterminationandsettlementofsubcontracts(excludingtheamountsofsuchsettlements);and

(c)Storage,transportation,andothercostsincurred,reasonablynecessaryforthepreservation,protection,ordispositionoftheterminationinventory.

(f)Exceptfornormalspoilage,andexcepttotheextentthatBuyerexpresslyassumedtheriskofloss,theBuyershallexcludefromtheamountspayabletotheSellerunderparagraph(e)above,thefairvalue,asdeterminedbytheBuyer,ofpropertythatisdestroyed,lost,stolen,ordamagedsoastobecomeundeliverabletoBuyerortoabuyerofsaidproperty.

(g)ThecostprinciplesandproceduresofPart31oftheFederalAcquisitionRegulation,ineffectonthedateofthiscontract,shallgovernallcostsclaimed,agreedto,ordeterminedunderthisCLAUSE.

(h)InarrivingattheamountduetheSellerunderthisCLAUSE,thereshallbededucted:

(1)AnypaymentstotheSellerundertheterminatedportionofthiscontract;

(2)AnyclaimwhichBuyerhasagainsttheSellerunderthisPurchaseOrder;and

(3)Theagreedpricefor,ortheproceedsofsaleof,materials,supplies,orotherthingsacquiredbytheSellerorsoldundertheprovisionsofthisCLAUSEandnotrecoveredbyorcreditedtoBuyer.

(i)Iftheterminationispartial,theSellermayfileaproposalwiththeBuyerforanequitableadjustmentoftheprice(s)ofthecontinuedportionofthePurchaseOrder.TheBuyershallmakeanyequitableadjustmentagreedupon.AnyproposalbytheSellerforanequitableadjustmentunderthisclauseshallberequestedwithin60daysfromtheeffectivedateofterminationunlessextendedinwritingbytheBuyer.

(1)Buyermay,underthetermsandconditionsitprescribes,makepartialpayments and paymentsagainst costsincurred by theSellerfor the terminatedportionofthePurchaseOrder,iftheBuyerbelievesthetotalofthesepaymentswillnotexceedtheamounttowhichtheSellerwillbeentitled.

(2)Ifthetotalpaymentsexceedtheamountfinallydeterminedtobedue,theSellershallrepaytheexcesstoBuyerupondemand,togetherwithinterestthereoncomputedattheannualrateestablishedunderSection6621oftheInternalRevenueCodeof1986(26U.S.C.6621).InterestshallbecomputedfortheperiodfromthedatetheexcesspaymentwasreceivedbytheSellertothedatetheexcessisrepaid.InterestshallnotbechargedonanyexcesspaymentduetoareductionintheSeller’sterminationsettlementbecauseofretentionorotherdispositionofterminationinventoryuntilten(10)daysafterthedateoftheretentionordisposition,oralaterdatedeterminedbytheBuyerbecauseofthecircumstances.

(j)AsaconditionprecedenttoanypaymentsunderthisCLAUSE,BuyermayrequireSellertofurnishaffidavitsandreleases,inaccordancewiththerequirementsofCLAUSE14“PAYMENTS”ofthisPurchaseOrder,thatnoliensorrightsinremofanykindlieuponorhaveattachedagainstthework,materials,articles,orequipment.

(1)UnlessotherwiseprovidedforinthisPurchaseOrderorbystatute,theSellershallmaintainallrecordsanddocumentsrelatingtotheterminatedportionofthisPurchaseOrderforthree(3)yearsafterfinalsettlement.ThisincludesallbooksandotherevidencebearingontheSeller’scostsandexpensesunderthisPurchaseOrder.TheSellershallmaketheserecordsanddocumentsavailable to BuyerattheSeller’soffice,atall reasonabletimes, without charge.IfapprovedbytheBuyer,photographs,microphotographs,orotherauthenticreproductionsmaybemaintainedinsteadoforiginalrecordsanddocuments.

9.RightsandReservations

Allreports,documents,records,dataandsoftware,includingwithoutlimitation,drawings,specificationsanddocumentation,andallmaterial,includingwithoutlimitation,tools,dies,patterns,samples, devicesandimprovements, andallotherinformationprepared,createdordevelopedinconnectionwiththisPurchaseOrderorfurnishedtoSellerbyBuyer,orpaidforinwholeorinpartbyBuyer(hereinafterreferredtoas“Property”),areandshallbeownedsolelybyBuyerortheGovernment.SellershallnotuseordisclosetoothersalloranypartofsuchPropertywithoutspecificpriorwrittenpermissionofBuyer.SellershalldisclosetoBuyerandherebytransfers,assignsandsetsovertoBuyertheentiretyofanyandallpatents,copyrights,maskworksand/ortradesecretsinsuchProperty,whichmaybepossessedorbecomepossessedbySellerasauthorand/orotherwise.PriortoanyprintingrequiredunderthetermsofthisPurchaseOrder,SellershallrequestinwritingfromBuyerthelegendsandnotices,ifany,tobeaffixedonsuchPropertyatthetimeofprinting.

Anydata,software,materialand/orinformationdevelopedbySellersolelyatitsexpense,and/orsolelyattheexpenseofanyofitssubcontractorsotherthanBuyer,anddeliveredand/orrequiredtobedeliveredhereunder(hereinafterreferredtoas“OtherData”),shallbe furnishedwithoutrestrictionasto Buyer’sright touseand/ordisclosesuchOtherData,andfreeofalllegendsandnoticesunlesssuchOtherDataisspecificallyidentifiedinaProprietaryDataAgreementincorporatedintothisPurchaseOrder.

10.Patents,Copyrights,MaskWorks,andTradeSecrets

(a)Patents,Copyrights,MaskWorks,andTradeSecrets:Selleragreestodefend,indemnifyandholdharmlessBuyer,itscustomersandagents,againstanyliability,includingwithoutlimitation,costs,expensesandattorney’sfees,fororbyreasonofanyactualorallegedinfringementofanypatent,copyright,maskworkortradesecretarisingoutofthemanufacture,use,sale,deliveryordisposalofgoodsorservicesfurnishedunderthisPO.

BuyershallnotifySellerassoonaspracticable ofanyclaim ofinfringementresultingtherefromreceivedbyBuyer.IntheeventofanysuchclaimagainstBuyer,SellershallfurnishtoBuyer,whensonotifiedbyBuyer,allevidenceandinformationinthepossessionofSellerpertainingtosuchclaim.SellershallreporttoBuyerpromptlyandinreasonablewrittendetaileachnoticeorclaimofpatent,copyright,maskworkortradesecretinfringementrelatingtotheperformanceofthisPOofwhichSellerhasknowledge.

TheindemnityandholdharmlessprovisionsofthisclauseshallnotbeapplicabletoactualorallegedpatentinfringementsifthisPOisissuedunderaGovernmentprimecontractwhichcontainsFARClause52.227-1,“AuthorizationandConsent,”withitsAlternate1.Wherepaymentismadefororresultsinexperimental,developmental,orresearchworkperformedunderthisPO,thenunlessthisPOisissuedunderaGovernmentprimecontract,SellershalldiscloseanddoesherebyassigntoBuyerallinventionsresultingtherefromandshallassistBuyer,totheextentreasonablyrequested,insecuringanddefendingpatentprotectionthereon,anddoesgrantBuyertherighttouseforanypurposealldataspecifiedtobedeliveredhereunder.

(b)PatentsandData:TheclausesrelatedtoPatentsandDataintheFARandDFARSwhichareincorporatedintheprimecontract(s)underwhichthisPOisissued,areherebyincorporatedhereinbyreference.Selleriscognizantofsuchprovisionsandagreestocomplywithsuchprovisionsas“Contractor.”Notwithstandingtheforegoing,ifthisPOisnotforexperimental,developmental,orresearchwork,the“PatentRights-RetentionByContractor”clausesdonotapplytoSeller.UnlessotherwisespecifiedinthisPO,alltechnicaldataand/orcomputersoftwareandcomputersoftwaredocumentationwhicharerequiredtobefurnishedbySellerunderthisPOshallbefurnishedwith“UnlimitedRights.”

11.WorkonBuyer’sPremises

WhenSeller,Seller’semployees,agents,representativesorsubcontractorsenterontoBuyer’spremisesforanyreasoninconnectionwiththisPurchaseOrder,Sellerandsuchotherpartiesshallabidebyallrulesandregulationsattheworksiteincludingbutnotlimitedtothosewithrespecttosafety,security,fireprevention,traffic,andwastemanagement,andabidebyallmilitarysecurityregulationsincludingtheBuyer’s“ContractorEnvironment,SafetyHealthHandbook”(PM-8013),thecurrentversionofwhichisincorporatedhereinandmadeaparthereofbythisreference.

Priortocommencementofanywork,Sellershallreviewwiththeiremployees,andsubcontractorsallapplicablesafetyrulesandregulations,includingtheContractorEnvironment,SafetyHealthHandbook.Sellershallberequiredtocertifyinwritingthat

thesesafetyrulesandregulationshavebeenreviewedwithallofitsemployeesandsubcontractors.

BuyerwillnotifySellerorSeller’srepresentativeattheworksiteofanynoncompliancewiththe foregoing rulesand regulationsand thecorrective action to betaken. After receiptofsuchnotice,Sellershallimmediatelytakecorrectionaction.IfSellerfailsorrefusestocomplypromptly,Buyermayissueanorderstoppingallorpartoftheworkuntilsatisfactorycorrective actionhas beentaken. No partofthetimelost due toanysuchstopworkordershallbemadethesubjectofaclaimforanextensionoftimeorforexcesscostsordamagesbySeller.

Sellershallmaintainanaccurate record of,andshallreportto Buyerin themannerandontheformsprescribedbyBuyer,exposuredataandallaccidentsresultingindeath,traumaticinjury,occupationaldisease,anddamagetoproperty,material,suppliesandequipmentincidenttoworkperformedunderthisPurchaseOrder.Sellershalldefend,indemnifyandholdBuyerharmlessfromallclaims,actions,demands,lossesandcausesofactionarisingfrominjury,includingdeath,toanyperson,ordamagetoanyproperty,whensuchinjuryordamageresultsinwholeorinpartfromactsoromissionsofSeller,Seller’semployeesoragents,saveandexceptdamagecausedbythesolenegligenceofBuyer.

12.Bonds

SellershallfurnishperformanceandpaymentbondsinaformacceptabletoBuyerandwithasuretysatisfactorytoBuyer.

(a)Apaymentbond,fortheprotectionofpersonsfurnishingmaterialorlaborinconnectionwiththeperformanceoftheworkunderthisPurchaseOrder,shallhaveapenalsumasfollows:

(1)50percentofthePOpriceifthePOisnotmorethan$1million,

(2)40percentofthePOpriceifthePOismorethan$1millionbutnotmorethan

$5million;or

(3)$2.5millionifthePOpriceismorethan$5million.

(b)Sellershallfurnishaperformancebondequalto100%ofthePurchaseOrderprice.TheperformancebondamountshallincludetaxesimposedbytheUnitedStateswhicharecollected,deducted,orwithheldfromwagespaidbySellerincarryingoutthePurchaseOrder.

(c)AllbondsrequiredhereundershallbecomebindingupontheawardofthePurchaseOrder.

(d)Irrespectiveofwhethertheforegoingrequirementsaremet,ifanysuretyforanybondfurnishedisorbecomesunacceptabletoBuyer,orifanysuchsuretyfailstofurnishreportsastoitsfinancialconditionwhenrequestedbyBuyer,SellershallpromptlyfurnishsuchadditionalsecurityasmayberequiredtoprotecttheinterestsofBuyerortheUnitedStatesandthepersonorbusinessentity(s)supplyinglaborormaterialsinprosecutionoftheworkcontemplatedbythisPurchaseOrder.

13.Insurance

(a)Seller,andanysubcontractorsusedbySellerinconnectionwiththisPO,shallcarryWorker'sCompensationandEmployee'sLiabilityInsurancetocoverSeller'sandsuchsubcontractors'legalliabilityforaccidentstotheirrespectiveemployees.SelleranditssubcontractorsshallcarryadequateComprehensiveGeneralLiabilityandComprehensiveAutomobileLiabilityInsurancecoveringthelegalliabilityofSellerandsuchsubcontractorsforaccidentsarisingoutoftheoperationsofSellerorsuchsubcontractorswhichresultinbodilyinjury,includingdeath,toanypersonorpersons, or anydamageto property.AtBuyer'srequest, Sellershallfurnish toBuyercertificatesfromSellerand/oritssubcontractors’insurersshowingsuchcoverageineffect(intheamountslistedbelow)andagreeingtogiveBuyerten(10)dayspriorwrittennoticeofcancellationofsuchcoverage.

TypeofInsuranceLimitsofMinimumLiability

A. GeneralLiability(toincludepremisesandoperations,elevators,IndependentContractors,andcompletedoperationsandproducts) / SingleLimitsforBodilyInjury
andPropertyDamage:$1,000,000(EachOccurrence)
B. AutomobilePublicLiability(toincludeEmployer’snon-ownershipliabilityandhiredautos) / CombinedSingleLimit:(EachAccident) / $1,000,000
C. WorkersCompensationandEmployers’Liability / EachAccident:
Disease–EachEmployee:Disease–PolicyLimit: / $500,000
$500,000
$500,000

14.Payment

(a)Thebidamount(fixedpricepurchaseorders)shallbesubmittedinwholedollarincrementsonly.AllinvoicessubmittedmonthlyinwholedollarincrementsforpaymentshallreferenceBuyer’spurchaseordernumberandlineitemnumber.

(b)Iftheconstructionscheduleis30daysorless,paymentfortheworkwillbemadeintwopaymentsonlyandnoprogresspaymentswillbemade.

(c)Exceptasprovidedinparagraph(d)belowandasotherwiseprovidedinthisPurchaseOrder,Seller,uponcompletionofallworkcalledforbythePurchaseOrderanduponsubmissionofalldocumentation,includingaproperlycertifiedinvoiceinduplicate,shallbepaidthePurchaseOrderpricefollowingfinalacceptancebyBuyer.

(d)NotwithstandinganyotherprovisionsofthisPurchaseOrder,BuyershallretainduringtheprogressoftheworkunderthisPurchaseOrderandforthirty(30)daysafterthecompletionandfinalacceptancethereof,tenpercent(10%)ofthetotalpriceassetforthinthePurchaseOrder.

(e)Sellerwillbeentitledtoprogresspaymentsinaccordancewiththeprovisionsofthisparagraph(e) if progress payments are specifically authorized. If so authorized,fromtimetotimeasconstructionprogressesbutatintervalsofnotlessthanthirty(30)days,SellermaysubmitinvoicesinduplicatecertifiedbySeller’srepresentativeastopercentageofcompletionofperformanceoftheentirePurchaseOrder.TheamountofeachinvoiceshallbethatpercentageofthetotalPurchaseOrderpriceequaltothepercentageofcompletionofthePurchaseOrder,lessanyamountspreviouslybilledbySeller.Thenetamountofeachinvoicesosubmittedandcertifiedshall,uponapprovalofBuyer,bepaidbyBuyertoSeller,exceptthatBuyershallwithholdapercentagenottoexceedtenpercent(10%)ofeachsuchinvoiceuntilexpirationofthirty(30)daysaftercompletionandfinalacceptancebyBuyeroftheentireworkcalledforbythisPurchaseOrder,oruntilsuchearliertimeasBuyermayapproveitforpayment.

(f)TheGovernmentandBuyer,astheirinterestsmaybe,shallretaintitletoallGovernment-furnishedandBuyer-furnishedproperty.TitletoallfacilitiesandcomponentsshallpasstoandvestintheGovernmentandBuyer,astheirinterestsmaybe,upondeliverybySellerofsuchitemswhicharerequiredtobefurnishedorforwhichSellermaybeentitledtopaymentforhavingfurnished.TitletootherpropertyfurnishedorrequiredtobefurnishedbySellershallpasstoandvestintheGovernmentupon(i)issuanceofthepropertyforuseinperformingthisPurchaseOrder,(ii)commencementofprocessingoruseofthepropertyinperforming,thisPurchaseOrder,orreimbursementofthecostofthepropertybyBuyer,whicheveroccursfirst.TitletoanypropertyshallnotbeaffectedbyitsincorporationintoorattachmenttoanypropertynotownedbytheGovernment,norshallanyitemofpropertybecomeafixtureorloseitsidentityaspersonalpropertybybeingattachedto real property. Notwithstanding that title to property is in theUnited States or BuyerthroughtheoperationofthisArticle,thehandlinganddispositionofsuchpropertyshallbedeterminedbytheapplicableprovisionsofthisPurchaseOrder.

(g)ExcepttotheextentthatBuyershallhaveotherwiseexpresslyassumedriskoflossofpropertyandwithoutregardtotitle,intheeventoftheloss,theft,ordestructionofordamagetopropertybeforeBuyer’sfinalacceptanceoftheworkhereunder,Sellershallbeartheriskofloss.

(h)SellerrecognizesthatallworkistobeperformedatAirForcePlantNo.4,aFederalenclave,andthatnoclaimsbySelleroranysubcontractorinconnectionwiththeworkshallbethebasisforenforcementofmechanics’ormaterialman’s’liensoranysimilarrightsorclaimsunderChapter53oftheTexasPropertyCodeorotherwise.SellershallindemnifyandholdBuyerharmlessfromandagainstanyclaims,demands,liability,costorexpense,includingwithoutlimitationattorneys’fees,arisinginconnectionwiththenonpaymentorallegednonpaymentforworkperformedbyasubcontractatanytier.AsaconditionprecedenttoanypaymentsunderthisPurchaseOrder,BuyermayrequireSellertofurnishaffidavitsthatnoliensorrightsinremofanykindlieuponorhaveattachedagainstthework,materials,articles,orequipment,eitherfororonaccountofanyworkdoneoranymaterials,articles, orequipmentor otheritemfurnishedor usedin connectiontherewith,oranyclaimsordemandsofanykind.Sellerpromisestokeepsaidpropertyfreeandclearofallsuchliensandrightsinrem.Buyer’spaymentissubjecttotheexpressconditionthatnoliensorrightsinremshallsolieorattach.Intheeventanyliensorrightsinremattachto,orareclaimedbyanypersonorentityinanypropertyin

connectionwiththisPurchase Order,Sellershall indemnifyandholdBuyerharmlessagainstallcostsandexpenses,includingwithoutlimitationattorneys’fees,incurredbyBuyerindischargingsuchliensorrightsinremordefendingagainstsuchclaims.

(i)AsconditionsprecedenttofinalpaymentSellershall:

(1)executeandfurnishtoBuyerarelease,intermsacceptabletotheBuyer,ofallclaimsandliensagainstBuyerarisingunderorbyvirtueofthisPurchaseOrder,including,intheeventofanytermination,claimsorliensarisingunderorbyvirtueofsuchtermination;

(2)executeandfurnishBuyeranaffidavitexecutedinduplicatebyadulyauthorizedofficerofSellerthatallchargesforlaborandmaterialsusedintheworkhavebeenpaid,andanindemnificationtoBuyeragainstclaimsbyothersthatsuchchargeshavenotbeenpaid;

(3)returnallbadgesforplantadmissionandallcarpassestoBuyer’srepresentative(ConstructionEngineer).Badgesandpassesmaybereturnedbymailorinperson.Intheeventthatallbadgesandpasseshavenotbeenreturned,Seller’srequestforpaymentwillbeheldwithoutaction.

(j)TheobligationofBuyertomakeanyofthepaymentsrequiredunderthisPurchaseOrdershallbesubjectto:

(1)anyunsettledclaimsagainstSellerforlaborand/ormaterials,

(2)reasonabledeductionsonaccountofdefectsinmaterialand/orworkmanship,

(3)anyotherclaimswhichBuyermayhaveagainstSeller,includingwithoutlimitationanywithholdingof,orreductionin,thepaymentsorpricepayabletoBuyerpursuanttoanyGovernmentprimecontractunderwhichthisPurchaseOrdermaybeissuedarisingoutofanyaction,orfailureordeficiencyinperformance,bySeller.BuyermaywithholdfromorsetoffagainstthePurchaseOrderpriceunderthisPurchaseOrderoranyotherPurchaseOrderbetweenBuyerandSelleranyclaimsoramountsduetoBuyerfromSellerunderthisoranyotherPurchaseOrderandBuyershallbeentitledtopaymentfromSellerofanyclaimsoramountsduenotsosetoff.

(k)SellershallpayallSocialSecurityTaxes,UnemploymentCompensationTaxes,andallotherobligationslawfullyimposedonanyemployeroflabor,atitsownexpense,andshallindemnifyBuyeragainstanyliabilitytherefor.Unlessotherwiseprovided,SelleragreesthatanycompensationpaidbyBuyerforSeller’sperformanceofworkunderthisPurchaseOrderincludesalltaxesleviedbytheFederalGovernmentandbyanystateorpoliticalsubdivisionthereof,otherthansalestaxwhereBuyer’sDirectPaymentExemptionCertificateisissued,andthecostofallbondsrequiredtobefurnishedhereunder.

(l)TexasDirectPaymentExemptionCertificate:TheBuyerwillfurnishtheSellerwithaTexasDirectPaymentExemptionCertificatetobeusedonthiscontractfortheprocurementofmaterials(excludingrentalequipment),whereapplicable.TheSellershallfurnishitssubcontractors,suppliersand/orvendorswithaTexasResaleCertificate,whereapplicable.

15.AssignmentandSubcontracting

SellershallnotassignthisPurchaseOrder oranyportionthereof, norshallSellerallowitssubcontractorsatanytiertoplaceanysubcontracthereunderthatisnotinaccordancewiththesubcontractplaninthebiddocuments,withoutpriorwrittenconsentofBuyer.Allsubcontracts shall contain the provisions required bythis Purchase Order and shall permitassignmentofthosesubcontractstoBuyeruponanyterminationofthisPurchaseOrder.AnyprohibitedassignmentofthisPurchaseOrderbySellershallbenullandvoidandshallbedeemedamaterialbreachofthisPurchaseOrder,andSellershallremainliabletoBuyerforperformanceofitscovenants,duties,liabilitiesandobligationshereunder.

16.Changes

(a)Buyermayatanytime,withinthegeneralscopeofthisPurchaseOrder,makechangesindrawingsandspecifications,issueadditionalinstructions,requireadditionalwork,orvarytheperiodofperformanceofworkandSellershallimmediatelycomplytherewith.AllchangesshallbeissuedbyBuyerinwriting.Nochangeshallreleaseorexonerateanysuretiesuponanybondrequiredorgiven,regardlessofwhetherornotsuchsuretiesreceivenoticeofsuchchanges.SellershallnotundertakeanychangetothisPurchaseOrder,norshallBuyerbeliableforincreasedcostsresultingtherefrom,unlessrequestedbyBuyerinwriting.

(b)Ifany suchchange causes amaterialincreaseor decreaseinthecostof,or thetimerequiredfor,performanceofanypartoftheworkunderthisPurchaseOrder,BuyershallmakeanequitableadjustmenttothetimeofperformanceandtheconsiderationtobepaidtoSeller,andthePurchaseOrdershallbemodifiedinwritingaccordingly.AnyclaimbySellerforadjustmentunderthisArticlemustbeassertedinwritingwithintwenty(20)daysfromthedateofreceiptbySellerofthenotificationofchange.AnyclaimnotsomadebySellershallbedeemedtohavebeenwaived,provided,however,thatifBuyer,initssolediscretion,decidesthatthefactsjustifyit,BuyermayreceiveandactuponaproposalsubmittedbeforefinalpaymentofthePurchaseOrder.AnyfailuretoagreeuponanadjustmentshallberesolvedundertheArticleofthisPurchaseOrderentitled“Disputes,”butnothingprovidedinthisArticleshallexcuseSellerfromproceedingwiththeprosecutionoftheworkaschanged.ExceptasotherwiseprovidedinthisPurchaseOrder,nochargeforextraworkormaterialshallbeallowed.

17.Waiver

Thefailure ofBuyerinoneor moreinstancestoinsiston performanceofanyportionor allofthisPurchaseOrdershallnotbeconstruedtobeawaiverinthefutureofSeller’sperformanceincompliancewiththisPurchaseOrder.

18.Disputes

ExceptasotherwiseprovidedinthisPO,BuyerandSellershallhavetherighttoredressanydisputearisingunderorrelatedtothisPO,whichisnotdisposedofbyagreement,bypursuinganyrightorremedywhichBuyerorSeller,asthecasemaybe,mayhaveatlaw,or in equity, or underthisPO inanyUnited States court ofcompetent jurisdiction. Pendingresolutionofanydispute,Sellershallproceeddiligentlywiththeperformanceofwork,

includingthedeliveryofItemsinaccordancewithBuyer'sdirection.Uponresolutionofanysuchdispute,thisPOshallbeequitablyadjusted,ifnecessary,toreflectsuchresolution.

19.GoverningLaw

ThisPurchaseOrdershallbeconstruedinaccordancewiththelawsofTexas,excludingitschoiceoflawrules.

20.Buyer’sRepresentative

Buyerwilldesignatearepresentative,hereinafterreferredtoastheConstructionEngineer,whowillbeavailableatthesiteofthework,andwhowillhavetheauthoritytoactforBuyerasfollows:

(a)ActasliaisonbetweenBuyerandSelleratthejobsite.

(b)Makefielddecisions,withinthegeneralscopeofthisPurchaseOrder,onbehalfofBuyer.

(c)RelayBuyer’sinstructionsordecisionstoSeller.

(d)InspectandapprovespecifieddetailsandinspectforadherencetodesignandcompletenessofalldetailsshownonBuyer’sdrawings.

(e)SuspendSeller’soperationsforanyactoromissiondetrimentaltosoundpractices.

(f)Directchangeswithinthegeneralscopeofthiscontractprovided:

(1)Theadjustment(increaseordecrease),incontractpricedoesnotexceed

$3,000inanyonecaseandisimplementedduetoanemergencythatcouldeithercauselossordamagetoBuyerand/orpreventsignificantdelays;and,

(2)Suchchangesdonotaffectthetimeofperformanceofthiscontract;and,

(3)SuchchangesareinaccordancewithArticle16,theChangesclause.

21.IdentificationofEmployees

Sellershallberesponsibleforrequiringeachemployeetodisplay,asdirectedbyBuyer,suchidentificationbadgesasmaybefurnishedbyBuyer.Seller’semployeeswillbesubjecttoallcurrentsecurityregulationsandtoinvestigationandclearancebyBuyer’sIndustrialSecurityDepartment.

(a)Seller’sRepresentative.Beforecommencingwork,Sellershallfurnishthename(s)ofitsauthorizedrepresentative(s)whowillbetheforemanorsuperintendentonthejobsite.UponrequestfromBuyer,subjecttotheapprovalofBuyer’sIndustrialSecurityDepartment,aservicerepresentativebadgeandidentificationcardwillbeissued.ThesemustbereturnedtotheBuyer’sConstructionEngineeratthecompletionofthework.

(b)Employees.Abadgewillbe issueddailytoSeller’semployeesprior tothebeginningofeachworkshift.EachemployeemustbeidentifiedbySelleroritsauthorizedrepresentativebeforeabadgeisissued.WheneveritisnecessaryforSellertosecureadditionalemployeesafterthestartofashift,SellershallnotifyBuyer’sIndustrialSecurityDepartment,whichwillissuethenecessarybadgestothoseemployeesupontheirarrivalandidentificationbySellerorauthorizedrepresentative.EachSeller’semployeemustcheckoutwithandturninhisbadgetoarepresentativeofBuyer’sIndustrialSecurityDepartmentattheendofeachshift.Badgesareforidentificationonlyanddonotconferentranceprivileges.

22.ResponsibilityofContractors

(a)IfdirectedbyBuyer,Sellershallaffordothercontractorsreasonableopportunityfortheintroductionandstorageoftheirmaterialsandequipmentandtheexecutionoftheirwork.SellershallproperlyconnectandcoordinateSeller’sworkandothersubcontractorwork.

(b)IfanypartofSeller’sworkdependsupontheworkofanyotherseparatecontractor,forproperexecutionorresultsSellershallinspectandpromptlyreporttoBuyeranydiscrepanciesordefectsinsuchotherworkthatrenderitunsuitableforsuchproperexecutionandresults.FailureofSellertosoinspectandreportshallconstituteanacceptanceoftheothercontractor’sworkasfitandpropertoreceiveSeller’swork,exceptfordefectswhichmaydevelopintheotherseparatecontractor’sworkaftertheexecutionofSeller’swork.

(c)ShouldSellercausedamagetotheworkorpropertyofanyseparatecontractorontheproject,Sellershall,uponduenotice,settlewithsuchothercontractor.IfsuchseparatecontractorsuesBuyerforanydamageallegedtohavebeencausedbySeller,BuyershallnotifySellerwhoshalldefendsuchproceedingsandpayallcostsinconnectiontherewith.IfanyjudgmentagainstBuyerarisestherefrom,SellershallsatisfyjudgmentorindemnifyBuyer,asBuyerdetermines.

(d)Sellershalldoallcutting,fitting,orpatchingofitsworkthatmayberequiredtoreceiveorbereceivedbytheworkofothercontractorsasreasonablyimpliedbythisPurchaseOrder.Sellershallnotendangeranyworkofothercontractorsbycutting,excavating,orotherwisealteringanywork,andshallnotcutoraltertheworkofanyothercontractorexceptwiththewrittenconsentofBuyer.

(e)Anycostcausedbydefectiveorill-timedworkshallbebornebythepartyresponsibletherefor.

23.NoticesandModifications

(a)Nonotice,order,direction,determination,requirement,consent,approvalorratificationunderthisPurchaseOrdershallbeofanyeffectunlessinwriting.

(b)byanauthorizedrepresentativeofBuyer.

(c)Allnoticesrequiredorpermittedhereundershallbeinwriting,deliveredpersonallyorsentbyUnitedStatescertifiedorregisteredmailaddressedtoSellerorBuyer,as

applicable,totheaddressesonthisPurchaseOrder,withpostagefullyprepaid.Noticesshallbeeffectiveatthetimeofmailing.

24.Indemnity

SellershallholdharmlessandindemnifyBuyer,andiftheBuyersorequestsdefendBuyer,againstanyandalllosses,claims,liabilities,damages,actions,costsandexpenses,includingwithoutlimitationattorneys’fees,arisingoutoforresultingfromSeller’sundertakingorperformanceunderthisPurchaseOrder,andincludingwithoutlimitation,losses,claims,liabilities,damages,actions,costsandexpensesofanyoftheemployees,representatives,agentsor subcontractors ofSellerorof subcontractorsatanytier,engagedinsuchundertakingsorperformance.

25.NotificationofDebarment/SuspensionStatus

SellershallprovideimmediatenoticetoBuyerintheeventofbeingsuspended,debarred,proposedfordebarmentordeclaredineligiblefortheawardofcontracts,byanyFederalAgency,duringtheperformanceofthisPO.

26.Venue

ThisPurchaseOrdershallbedeemedtohavebeenexecutedbythepartiesandrequireperformance inFort Worth,TarrantCounty,Texasandno suitor actionunder thisPurchaseOrderorforanybreachthereofshallbemaintainableexceptinFortWorth,TarrantCounty,Texas.

27.PerformanceofWork

(a)SellershallstartandcompletetheworkinsuchorderofprocedureasmaybeprescribedbyBuyerorBuyer’sRepresentative(CE).

(b)Sellershallsuperviseanddirectthework,usinghisbestskillandattention.Unlessotherwisedirected,Sellershallbesolelyresponsibleforallconstructionmeans,methods,techniques,sequences,andproceduresandforcoordinatingallportionsoftheworkrequiredunderthisPurchaseOrder.Atalltimesduringperformanceofthecontractanduntiltheworkiscompletedandaccepted,SellershalldirectlysuperintendtheworkorassignandhaveontheworksiteacompetentsuperintendentwhoissatisfactorytoBuyerandhasauthoritytoactforSeller.

(c)Sellershallberesponsiblefortheactsandomissionsofallhisemployeesandallsubcontractors, theiragents and employees,andall otherpersonsperforming any oftheworkunderaPurchaseOrderwithSeller.

(d)Scope.AllworkwhichismanifestlynecessarytocarryouttheintentofthedrawingsandspecificationsorwhichiscustomarilyperformedforsuchworkshallbeperformedbySeller.Anyrequirementshownonthedrawingsbutomittedfromthespecifications,oranyrequirementshowninthespecificationsbutomittedfromthedrawingsshallbeconsideredasbeingrequiredunderthePurchaseOrderasifsetforthinboth.

(e)ProtectionofExistingStructures,UtilitiesandWork.Sellershallprotectallexistingstructures,utilities,andworkofanykindagainstdamageorinterruptionofservicewhichmayresultfromoperationsofSeller.DamageorinterruptionofserviceresultingfromfailuretodososhallberepairedorrestoredpromptlybyandattheexpenseofSeller.

(f)Workmanship.Workmanshipshallbeofthehighestgradethroughoutandinaccordancewithgoodcommercialpractices.AllworkersemployedbySellerfortheworkunderthisPurchaseOrdershallbeexperiencedandskilledintheirrespectivetrades.

(g)Completion.Sellershallberesponsibleforandassumetheriskofanylossofordestructionof,ordamagetoanyandallmaterialsorpropertyacquiredordeliveredandworkperformeduntilcompletionandfinalacceptance,includingmaterialsorpropertyfurnishedbyBuyerortheGovernment.UponcompletionofthisPurchaseOrder,theworkshallbedeliveredcompleteandundamaged.

(h)TemporaryBuildings.Sellershallerectandremove,withoutadditionalexpensetoBuyer,suchtemporarystorageshedsandofficesnecessaryforthework.SuchstructuresshallbesubjecttoBuyerapproval.

(i)ProtectiveMeasures.Sellershallprotectthematerialsandworkfromdeteriorationanddamageduringconstructionandduringcoldweather,furnishallheatnecessaryfortheproperconductofthework.Sellershall,inaddition,takeallmeasurestoadequatelyprotectadjacentproperty.

28.WarrantyofConstruction

(a)InadditiontoanyotherwarrantiesinthisPurchaseOrder,Sellerwarrants,thatworkperformedunderthisPurchaseOrderconformstothePurchaseOrderrequirementsandisfreeofanydefectinequipment,material,ordesignfurnished,orworkmanshipperformedbySelleroranyofSeller’ssubcontractorsorsuppliersatanytier.

(b)Unlessotherwisespecified,thiswarrantyshallcontinueforaperiodofone(1)yearfromthedateoffinalacceptanceofthework.IftheBuyertakespossessionofanypartoftheworkbeforefinalacceptance,thiswarrantywithrespecttosuchpartoftheworkshallcontinueforaperiodofone(1)yearfromthedateBuyertakespossession.

(c)SellershallremedyattheSeller’sexpenseanyfailuretoconform,oranydefect.Inaddition,SellershallremedyattheSeller’sexpenseanydamage,lossor destructiontothefacilitiesatAirForcePlant4,andforexpensesincidentaltosuchloss,destructionordamagetoBuyerorGovernmentownedorcontrolledrealorpersonalproperty,whenthatdamageistheresultof:

(1)Seller’sfailuretoconformtoPurchaseOrderrequirements;or

(2)Anydefect of equipment, material, workmanship,or designfurnished by Seller;or

(3)Negligence, willful misconduct, or lack of good faith by Seller, Seller’semployees,orSeller’ssubcontractors’employees.

(d)Sellershallrestoreanyworkdamagedinfulfillingthetermsandconditionsofthisclause.Seller’swarrantywithrespecttoworkrepairedorreplacedwillrunforaperiodofone(1)yearfromthedateofrepairorreplacement.

(e)BuyershallnotifySeller,inwriting,withinareasonabletimeafterthediscoveryofanyfailure,defect,ordamage.

(f)IfSellerfailstoremedyanyfailure,defect,ordamagewithinareasonabletimeafterreceiptofnotice,Buyershallhavetherighttoreplace,repair,orotherwiseremedythefailure,defect,ordamageatSeller’sexpense.

(g)Withrespecttoallwarranties,expressorimplied,fromsubcontractors,manufacturers,orsuppliersforworkperformedandmaterialsfurnishedunderthisPurchaseOrder,Sellershall:

(1)Obtainallwarrantiesthatwouldbegiveninnormalcommercialpractices;

(2)Requireallwarrantiestobeexecuted,inwriting,forthebenefitofBuyer;and,

(3)EnforceallwarrantiesforthebenefitofBuyer.

(h)IntheeventSeller’swarrantyunderthisarticlehasexpired,BuyermayonitsownbehalforinthenameofSellerbringsuitatitsexpensetoenforceasubcontractor’s,manufacturer’s,orsupplier’swarranty.SellershallcooperatewithBuyerinconnectionwithanysuchsuit.

(i)UnlessadefectiscausedbythenegligenceofSellerorsubcontractororsupplieratanytier,SellershallnotbeliablefortherepairofanydefectsofmaterialordesignfurnishedbyBuyer,norfortherepairofanydamagethatresultsfromanydefectinBuyer-furnishedmaterialordesign.

(j)ThiswarrantyshallnotlimitBuyer’srightsundertheInspectionofConstructionclauseofthisPurchaseOrderwithrespecttolatentdefects,grossmistakes,orfraud.

(k)Defectsin design or manufactureofequipment specifiedby Buyeron a “brandnameandmodel”basis,shallnotbeincludedinthiswarranty.Inthisevent,Sellershallrequireanysubcontractors,manufacturers,orsuppliersthereoftoexecutetheirwarranties,inwriting,directlytoBuyer.

(l)Year2000compliant,asusedinthisclause,meansthatwithrespecttoinformationtechnology,thattheinformationtechnologyaccuratelyprocessesdate/timedata(includingbutnotlimitedto,calculating,comparing,andsequencing)from,to,andbetweenthetwentiethandtwenty-firstcenturies,andtheyears1999and2000andleap year calculations,to theextent that other information technology, usedincombinationwiththeinformationtechnologybeingacquired,properlyexchangesdate/timedatawithit.AnyandallproductsprovidedhereunderwillbeYear2000compliantatthetimeofdeliverytoLockheedMartinCorporation(LockheedMartin),includingbutnotlimitedtoaccuratelyinputting,storing,manipulating,comparing,

calculating,updating,displaying,outputting,andtransferringsuchdatesanddataunlessotherwiseexpresslyprovidedhereinbyLockheedMartin.ThisprovisiontakesprecedenceoverallotherprovisionsofthisagreementwithrespecttoYear2000compliance.Intheeventofadiscoveryofanynoncompliance,eitherbefore,concurrentwith,orsubsequenttodeliveryofagoodorserviceunderthisagreement,thediscoveringpartyshallnotifytheotherpartywithinfive(5)businessdaysofdiscovery.Ifthedefectivegoodorserviceisbeingpresentedforacceptanceorhasalreadybeendelivered,atLockheedMartin'soption,thedefectivegoodorserviceshallberepairedorreplacedwithinten(10)businessdaysofsuchnoticeatnocosttoLockheedMartin.Nothinginthisprovisionshallbeconstruedtolimitanyotherrightsorremediesunderthiscontract,atlaworinequitythatLockheedMartinmayhavewithrespecttoYear2000compliance.

(m)TherightsandremediesofBuyerprovidedinthisclauseshallnotbeexclusiveandareinadditiontoanyotherrightsandremediesprovidedatlaw,inequity,orunderthisPO.

29.InspectionofConstruction

(a)Definition.“Work”includes,butisnotlimitedto,materials,workmanship,andmanufactureandfabricationofcomponents.

(b)SellershallmaintainanadequateinspectionsystemandperformsuchinspectionsnecessarytoensurethattheworkperformedunderthePurchaseOrderconformstoPurchaseOrder requirements. Seller shall maintaincompleteinspection records andmakethemavailabletoBuyerandifthisPOisissuedpursuanttoaGovernmentprimecontractsuchrecordsshallbemadeavailabletotheGovernment.AllworkshallbeconductedunderthegeneraldirectionofBuyerandissubjecttoBuyerandGovernmentinspectionandtestatallplacesandatallreasonabletimesbeforeacceptancetoensurestrictcompliancewiththetermsofthePurchaseOrder.

(c)BuyerorGovernmentinspectionsandtestsareforthesolebenefitofBuyerandGovernmentanddonot:

(1)RelieveSellerofresponsibilityforprovidingadequatequalitycontrolmeasures;

(2)Relieve Seller of responsibility for damage to or loss of material beforeacceptance;

(3)Constituteorimplyacceptance;or

(4)AffectthecontinuingrightsofBuyerafteracceptanceofcompletedworkunderParagraph(i)below.

(d)ThepresenceorabsenceofBuyer’sinspectordoesnotrelieveSellerfromanyPurchaseOrderrequirement,noristheinspectorauthorizedtochangeanytermorconditionofthespecificationwithoutBuyer’swrittenauthorization.

(e)Sellershallpromptlyfurnish,withoutadditionalcharge,allfacilities,labor,andmaterialreasonablyneededforperformingsafeandconvenientinspectionsandtestsasmayberequiredbyBuyerorBuyer’sRepresentative(CE).Buyermay

chargetoSelleranyadditionalcostofinspectionortestwhenworkisnotreadyatthetimespecifiedbySellerforinspectionortest,orwhenpriorrejectionmakesreinspectionorretestnecessary.Buyershallperformallinspectionsandtestsinamannerthatwillnotunnecessarilydelaythework,providedthatBuyerhasbeengivenreasonablepriorwrittennoticethattheworkisreadyforsuchinspectionsortests.Special,fullsize,andperformancetestsshallbeperformedasdescribedinthePurchaseOrder.

(f)Sellershall,withoutcharge,replaceorcorrectworkwhichBuyersdeterminesnottoconformtothePurchaseOrderrequirements,unlessinthepublicinterestBuyerconsentstoaccepttheworkwithanappropriateadjustmentinprice.Sellershallpromptlysegregateandremoverejectedmaterialfromthepremises.

(g)IfSellerdoesnotpromptlyreplaceorcorrectrejectedwork,Buyermay(1)replaceorcorrecttheworkandchargethecosttoSelleror(2)terminatefordefaultSeller’srighttoproceed.

(h)If,beforeacceptanceoftheentirework,Buyerdecidestoexaminealreadycompletedworkbyremovingitortearingitout,Seller,onrequest,shallpromptlyfurnish allnecessaryfacilities,laborandmaterial.Iftheworkisfound to bedefectiveornonconforminginanymaterialrespectduetothefaultofSelleroritssubcontractorsorifsuchremovalortearingoutwasmadenecessaryduetoSellercoveringworkwhichwasrequiredordirectedbyBuyertobekeptaccessibleforinspection,Sellershallincurtheexpensesoftheexaminationandofsatisfactoryreconstruction.However,iftheworkisfoundtomeetPurchaseOrderrequirementsandwasnotprematurelycoveredormadeinaccessible,Buyershallmakeanequitableadjustmentfortheadditionalservicesinvolvedintheexaminationandreconstruction,including,ifcompletionoftheworkwastherebydelayed,anextensionoftime.

(i)UnlessotherwisespecifiedinthePurchaseOrder,Buyershallaccept,aspromptlyaspracticableaftercompletionandinspection,allworkrequiredbythePurchaseOrderorthatportion ofthe workwhich Buyerdetermines inits solediscretioncanbeacceptedimmediately.Acceptanceshallbefinalandconclusiveexceptforlatentdefects,fraud,grossmistakesamountingtofraud,orBuyer’srightsunderanywarrantyorguaranteeorotherprovisionsofthisPurchaseOrder.

30.SpecialPlantConditions

(a)AllocationofWork.Thespecificationsaredividedintosectionsinanefforttoseparatetheworkbymajortradesinsofaraspossible.AnyoverlappingoftradesorfailuretoincludeallworkofagiventradeundertheappropriateheadingwillnotrelieveSellerofhisresponsibilitytoprovideaturnkeyjob,completeineveryrespect.

(b)Interferences.Astheworkprogresses,BuyerwillcooperatewithSellerinlocatingandidentifyinginterferencesinthework.Wheninterferencesareencounteredinthework,SellershallnotifyBuyerforverificationandidentification.Inallcases,Sellershallproceedwithextremecareinthevicinityofutilitiesandexistinginstallations.SellershallrepairorreplaceanySellerdamagedinstallationsorutilitiestothesatisfactionofBuyerwithnoadditionalcosttoBuyer.

(c)ConcurrencewithPlantOperations.Sellerwillberequiredtoconductallphasesoftheworkinsuchamannerastoprecludethepossibilityofanyinterferenceswithordelay toBuyer’spersonneland/orproductionworkand shallbepreparedatalltimestoreadilyyieldrightofwaytoBuyer’stransportationsystem.Removalofexcavatedmaterialanddebris,deliveryofmaterial,andothertraffictoandfromtheworkareawillbescheduledsoasnottointerferewithBuyer’splantoperations.

(d)Seller’sVehicles.Seller’strucksorvehiclesidentifiedwithpermanenttypeletteringwillbeallowedintheplantarea.NoprivatelyownedvehicleswillbeadmitteduntilpropercertificationandevidenceofrequiredinsurancecoverageisfiledwithandapprovedbyBuyer,andavehiclepassissecuredfromBuyer’sConstructionEngineer.

(e)EquipmentLimitations.BuyerreservestherighttolimitthetypeofequipmentusedbySeller.Useofequipmentthatmaycausedamagetonearbyequipmentand/orendangerpersonnelwillbeespeciallycontrolled.

(f)In-PlantTraffic.SellershallscheduleandarrangeworkoperationssothatallofBuyer’strafficwillhavefreedomofmovementthroughtheareaatalltimes.Sellerwillbe advisedbyBuyerastothe sequenceofconstructionnecessaryforexistingtrafficconditions.

(g)PersonnelandDeliveryofMaterials.Allpersonnel,includingthosedeliveringmaterials,shallbeinstructedbySellerastotheapplicableplantregulationsandthelocationofthejobsite.

(h)SafetyMeasures.Sellerwillberequiredtoprovideallsafetyequipmentandshieldsandanyothermeansnecessarytoprecludethepossibilityofinjuryand/ordamagetoSeller’sandBuyer’spersonnel,equipment,propertyorproduct,asdeterminedbythelocationofthejobsite.

(i)ProtectionofOtherWorkParts,etc.ItistheresponsibilityofSellernottodamageanyparts,materials,equipment,etc.ofanyoperationsrequiredtocompletethiswork.Sellerwillbeheldfinanciallyresponsibleforallofitsdamages.

(j)EntrancetothePlant.Entranceofpersonnel,vehiclesandallothermaterialswillbeallowedonlythroughgatesdesignatedbyBuyer.

(k)MedicalAffiliation.Priortocommencementofwork,SellershallfurnishBuyerwiththenameofitsaffiliatedphysicianandhospitaltobeusedincaseofaccident.

(l)Overhead Work.Sellerwillbeallowedtowork overexistingdoorsonlyonweekendsorwiththeapprovalofBuyer’sConstructionEngineer.Allfloorareas,parts,materials,equipment,etc.shallbecoveredwithdropclothsorotherwiseprotectedfromforeignmaterialwhenworkisbeingperformedoverhead.Beforetheendofeachworkperiod,Sellerwillberequiredtocleanalldebris,dust,anddirtthatfallsonfloors,equipment,etc.asaresultofitsoperations.

(m)Waste Materials. Seller shall be responsiblefor all waste materials and debrisaccumulatingastheresultofexcavation,demolition,etc.andshalldisposeofsameasdirectedbyBuyer’sConstructionEngineer.Sellershallalsoberesponsibleforall

hazardouswastegeneratedintheperformanceofitsworkandshallcomplywithall

1)applicablelaws;2)OSHARegulations;and3)Buyer’sproceduresasdirectedbyBuyer’sConstructionEngineer.

(n)EnvironmentalMatters.SellerandSeller’ssubcontractorsshallperformallworkunderthisPOinaccordancewithenvironmentallawsandpermitrequirements.SellershallberesponsibleforanypenaltiesorfinesresultingtherefromandforanyandalldamageandenvironmentalremediationasaresultofanyactsoromissionsofSellerorSellerssubcontractororanyotherpartyactingonbehalfofSeller.

(o)Protection of Existing Utilities. Sellershallprotect all existing utilitiesagainst damagewhichmayresultininterruptionofserviceduringtheprogressofthework.AllutilityservicelineswhicharedamagedshallberepairedwithoutdelaybySellerandatnoadditionalexpensetoBuyer.AllrepairsnecessarytoreinstatefireprotectionsystemstotheirdesigncapabilitiesshallbemadeimmediatelybyqualifiedpersonnelatSeller’sexpense.

(p)ConstructionWater.Constructionwaterisavailablenearthejobsite.Sellershallfurnishallvalves,fittings,hoses,etc.,asrequired.Alltemporarylines,fittings,etc.,shallbefurnished,installed,connected,andmaintainedbySellerinaworkmanlikemannersatisfactorytoBuyer,andshallberemovedbySellerinlikemannerathisexpensepriortoacceptanceofthework.

(q)DrinkingWaterandToiletFacilities.Thesefacilitiesareavailablenearthejobsite.

(r)LunchRoomFacilities.Sellermayusethevendingmachinesduringtheday.Sellerwillberestrictedfromusingthelunchroom facilitiesexceptfrom11:45a.m.to12:45p.m.

(s)CompressedAir, Electric Power andLighting. Located nearthework site are100 psicompressedairand120/208V3phaseand440V3phasepowerwhichwillbemadeavailabletoSelleratthevariouslightingandpowerpanels.Alltemporarylinesshallbefurnished,installed,connected,andmaintainedbySellerinaworkmanlikemannersatisfactorytoBuyer,andshallberemovedbySellerinlikemanneratSeller’sexpensepriortoacceptanceofthework.

(t)ServiceTie-InstoNewLines.Sellershallfirstinstallallofthenewlinesexceptfortie-ins. Thelinesshallthenbetested asspecified.Tie-ins tonewlinesmustbedoneatBuyer’sconveniencesoastocausetheleastamountofinterruptionofexistingoperations.Sellershallsetupandpreparehisworkandreadyallneededmaterialssothatthetie-inscanbeaccomplishedinaminimumperiodoftime.AnyutilityconnectiontobemadethatwillinterruptserviceshallbeclearedwithBuyer’sConstructionEngineeratleasttwenty-four(24)hoursinadvance.BuyerwillnotbeobligatedforanyadditionalcostoverthePurchaseOrderpriceinregardtothisphaseofthework.

(u)FirePrecautions.SellerwillberequiredtoobserveallofBuyer’scurrentsafetyandfireregulationsandtocomplywiththerequirementsoftheNationalFireProtectionAssociation(NFPA)andNationalFireCodes,inordertoprovidereasonablefireprotectionforAirForcePlant4realpropertyandpersonalproperty.SellerisrequiredtonotifyBuyerofanyfireincidentsoccurringatAirForcePlant4immediately.

(v)MeansofEgress.Itshallbethecontractor’sresponsibilitytopost appropriatebarriersandsignsasrequiredbyFireProtectionServices.Asignindicatingtheappropriatealternateexitshallbeposedateveryobstructedorimpairedexit.

TheSellershallcontacttheCEand/ortheFireProtectionServicestoinformthemofthependingobstructionandtoobtaindirection,astowhatmeasuresarerequiredinprovidingequivalentsafety.

FireProtectionServiceswillprovidetheCEwiththeappropriatemeasurestobetakenpriortoobstructinganymeansofegress,alongwiththealternativeexittobeusedinlieuofthoseexitstobeobstructed.

(w)Allfederal,state,orlocalenvironmentalagencyreportablemishapsshallbereportedwithin24hourstotheBuyerConstructionEngineer.

(x)BannedMaterials.SellerwarrantsandrepresentsthatitemsdeliveredunderthisPurchaseOrderdonotcontainPolychlorinatedBiphenyls(PCBs),2,4-Dichlorophenoxyaceticacid,2,4,5-Trichlorophenoxyaceticacid,asbestos,benzene,dioxins,hydrazine,mercuryorpentachlorophenol,andagreestoindemnifyBuyeragainstanyloss,cost,damageorliability,includingremovalcosts,byreasonofSeller’sviolationofthiswarranty.

(y)SellerIdentificationSigns.SellerwillprovidesignswithSeller’snameandPurchaseOrderNumberforareasoutsideofanybuildingusedformaterialsstorage,workinprogress,orequipmentstorage.Signsaretobeapproximately16”x24”metal,whitebackgroundwithblackletters.Eachsiteistobeidentified.

(z)WeekendWork.Sellershallscheduleallweekendwork,(bothSeller’sforcesandSeller’ssubcontractorforces),withBuyer’sConstructionEngineerby9:00a.m.ofthepriorThursday.SellershallgiveBuyeralistofsubcontractorsandthescopeofworkwiththeweekendschedule.

(aa) ProjectInvitationSuspension

(1)If,intheopinionofBuyerorBuyer’sRepresentative(CE),SellerisfailingtoproperlyexecutecontractualobligationsunderthisPurchaseOrder,BuyermaytemporarilyceasetoinviteSellertobidonadditionalworkuntilSellerhassatisfactorilyresolveddeficienciesregardingcontractualobligations.Failuretoproperlyexecutecontractualobligationsincludes,butisnotlimitedto,unsatisfactoryprogressrelatedtotheconstructionscheduleanddelaysresultingfromSelleroperationsornegligence.

(2)InadditiontoBuyer’soptionsunderParagraph(1),if,intheopinionofBuyer,SellerismishandlingorimproperlydisposingofhazardousmaterialsorwasteproductsatBuyer’sfacility,BuyermayorderSellertoceaseworkunderthePurchaseOrderuntilsuchviolationsarecorrectedtothesatisfactionofBuyer.Duringthisworkstoppage,BuyershallnotbeobligatedtoSellerforprogresspayments,andnoextensionsoftimeshallbegivenforthecompletionofSeller’swork.

(bb)CloseoutDocuments.SellershallsubmittoBuyer’sConstructionEngineer,allrequiredcloseoutdocumentswithinthirty(30)calendardaysaftercompletionofallwork(excludingadministrativetasks)associatedwiththisproject.Closeoutdocumentsinclude,withoutlimitation,itemssuchas:payrollreports,as-builtandoriginaltracingdrawings,operationandmaintenancedata,securityemployeebadges(ifexpired),finalinvoiceandotherrequireddocuments.

(cc)ContractorEmployeeCommunication.Allnon-Englishspeakingcontractorpersonnel,whileonLockheedMartinoccupiedsites,shallbeaccompaniedbyabilingual,fluentEnglishspeakingandreadingcontractoremployeeatalltimes.DirectcommunicationbetweenContractorpersonnelandLockheedMartinpersonnelisnecessarytoensureaclearunderstandingofworktobeperformedandanypotentialhazardsontheoccupiedsite.

31.ProhibitedCarriers

Nomaterialorsuppliespurchased,manufacturedorotherwiseacquiredforuseintheperformanceofortobedeliveredunderthisPOshallbetransportedonvessels,aircraftorothercarriersleasedtoorfrom,owned,operated,orcontrolledbyanyprohibitedcountryidentifiedintheInternationalTrafficinArmsRegulations (“ITAR”),22 CFR126.Novessel,aircraft,orothercarriershall,whilecarryinganysuchmaterial,makeanenroutestopinanyprohibitedcountryidentifiedintheITAR,22CFR126.TheSellershallinserttheprovisionsofthisparagraphinallsubcontractshereunder.

32.ReleaseofInformation

Nopublicrelease(including,withoutlimitation,newsreleases,articles,manuscripts,brochures,advertisements,stillandmotionpictures,speeches,tradeassociationmeetings,symposia,photographs,films, announcements,discussions,denialsorconfirmationsofsame)regardinganypartofthesubjectmatterofthisPO oranyphaseofanyprogramhereundershallbemadewithoutthepriorwrittenapprovalofBuyer.Selleragreesthatforeveryinstance,ifany,whereBuyerprovidessuchpriorwrittenapproval,Seller,inanyresultingrelease,shallincludeinformation,ifany,providedbyBuyerstatingwhichGovernmentagencysponsorsorsponsoredtherelatedprojectoreffort.

SellerfurtheragreestoincludethisparagraphinanysubcontractawardedasaresultofthisPO.

33.POSeverability-InvalidProvisions

IfanyoftheprovisionsofthisPOshallcontraveneorbedeterminedtobeinvalidunderthelawsoftheUnitedStatesorofanycountryinwhichthe workisbeingperformed,suchcontraventionor invalidity shallnotinvalidate the whole PO, but thePOshallbeconstruedasifnotcontainingtheparticularprovisionorprovisionsheldtobeinvalid,andtherightsandobligationsofthepartiesshallbeconstruedandenforcedaccordingly.BuyerandSellershallthenendeavortoagreeonamutuallyacceptablealternativeprovision.

34.ContractualCommitments

Thepartiesagreethatthereshallbenoadjustmentintheprice,timeforperformanceoranyotherprovisionof this POunlessanauthorized representativeofBuyer'sprocurementdepartmentshallhaveissuedawrittenorderdirectingachangehereto.

35.GovernmentContracts

IfthisPurchaseOrderisissuedunderaUnitedStatesGovernmentprimecontract,thefollowingcertificationsandrepresentationsareapplicable.

(a)ThisclausecontainscertificationsandrepresentationsthatarematerialrepresentationsoffactuponwhichBuyerwillrelyinmakingawardstoSeller.Bysubmittingitswrittenoffer,orprovidingoral offers/quotationsattherequestofBuyer,oraccepting anyContract,Seller certifiestothe representationsand certificationsassetforthbelowinthisclause.ThesecertificationsshallapplywheneverthesetermsandconditionsareincorporatedbyreferenceinanyContract,agreement,othercontractualdocumentoranyquotation,requestforquotation(oralorwritten),requestforproposalorsolicitation(oralorwritten),issuedbyBuyer.SellershallimmediatelynotifyBuyerofanychangeofstatuswithregardtothesecertificationsandrepresentations.

(1)FAR52.203-11CertificationandDisclosureRegardingPaymentstoInfluenceCertainFederalTransactions(Applicabletosolicitationsandcontractsexceeding$100,000)

(i)Thedefinitionsandprohibitionscontainedintheclause,atFAR52.203-12, Limitationon Paymentsto Influence CertainFederal Transactionsareherebyincorporatedbyreferenceinparagraph(b)ofthiscertification.

(ii)SellercertifiesthattothebestofitsknowledgeandbeliefthatonandafterDecember23,1989:

(a)NoFederal appropriatedfundshavebeen paidorwill bepaid toanypersonforinfluencingorattemptingtoinfluenceanofficeroremployeeofanyagency,aMemberofCongress,anofficeroremployeeofCongress,oranemployeeofaMemberofCongressonhisorherbehalfinconnectionwiththeawardingofanyFederalcontract,themakingofanyFederalgrant,themakingofanyFederalloan,theenteringintoofanycooperativeagreement,andtheextension,continuation,renewal,amendmentormodificationofanyFederalcontract,grant,loan,orcooperativeagreement;

(b)IfanyfundsotherthanFederalappropriatedfunds(includingprofitorfeereceivedunderacoveredFederaltransaction)havebeenpaid,orwillbepaid,toanypersonforinfluencingorattemptingtoinfluenceanofficeroremployeeofanyagency,aMemberofCongress,anofficeroremployeeofCongress,oranemployeeofaMemberofCongressonhisorherbehalfinconnectionwithasolicitationororder,theofferorshallcompleteandsubmit,withits

offer,OMBstandardformLLL,DisclosureofLobbyingActivities,inaccordancewithitsinstructions,and

(c)Heorshewillincludethelanguageofthiscertificationinallsubcontracts atanytierand require thatallrecipients of subcontractawardsinexcessof$100,000shallcertifyanddiscloseaccordingly.

(iii)Submissionof thiscertification and disclosureisa prerequisitefor makingorenteringintoacontractasimposedbysection1352,title31,UnitedStatesCode.Anypersonwhomakesanexpenditureprohibitedunderthisprovisionorwhofailstofileoramendthedisclosureformtobefiledoramendedbythisprovision,shallbesubjecttoacivilpenaltyofnotlessthan$10,000,andnotmorethan$100,000,foreachsuchfailure.

(2)FAR52.209-5CertificationRegardingDebarment,Suspension,ProposedDebarment,andOtherResponsibilityMatters.

(i)Sellercertifiesthat,tothebestofitsknowledgeandbelief,thatSellerand/oranyofitsPrincipals,(asdefinedinFAR52.209-5,)arenotpresentlydebarred,suspended,proposedfordebarment,ordeclaredineligiblefortheawardofcontractsbyanyFederalagency.

(ii)SellershallprovideimmediatewrittennoticetoBuyerif,anytimepriortoawardofanycontract,itlearnsthatitscertificationwaserroneouswhensubmittedorhasbecomeerroneousbyreasonofchangedcircumstances.

(3)FAR52.222-22PreviousContracts andComplianceReports.Seller representsthatifSellerhasparticipatedinapreviouscontractorsubcontractsubjecteithertoEqualOpportunityclause(FAR52.222-26)ofthisSolicitation/PO,theclauseoriginallycontained in Section 310 ofExecutiveOrder No. 10925, or theclausecontainedinSection201ofExecutiveOrderNo.11114,(i)Sellerhasfiledallrequiredcompliancereportsand(ii)thatrepresentationsindicatingsubmissionofrequiredcompliancereports,signedbyproposedsubcontractors,willbeobtainedbeforesubcontractawards.

(4)FAR52.222-25AffirmativeActionCompliance.Sellerrepresents(1)thatSellerhasdevelopedandhasonfileateachestablishment,affirmativeactionprogramsrequiredbytherulesandregulationsoftheSecretaryofLabor(41CFR60-1 and60-2), or (2)thatintheevent suchaprogram does not presentlyexist,SellerwilldevelopandplaceinoperationsuchawrittenAffirmativeActionComplianceProgramwithin120daysfromtheawardofthisPurchaseOrder.

(5)FAR52.223-1CleanAirandWaterCertification(ApplicabletosolicitationsandContractsexceeding$100,000).

(i)Sellercertifies thatanyfacilitytobeusedintheperformance ofacontractisnotlistedontheEnvironmentalProtectionAgencyListofViolatingFacilities.

(ii)SellershallimmediatelynotifytheBuyerProcurementRepresentative,beforeanycontractaward,orthereceiptofanycommunicationfromtheAdministrator,oradesignee,oftheEnvironmentalProtectionAgency,indicatingthatanyfacilitythattheOfferorproposestousefortheperformanceofanycontractisunderconsiderationtobelistedontheEPAlistofViolatingFacilities.

(6)FAR52.223-13CertificationofToxicChemicalReleaseReporting(Applicabletocompetitivesolicitations/POswhichexceed$100,000)

(i)SubmissionofthiscertificationisaprerequisiteformakingorenteringintothiscontractimposedbyExecutiveOrder12969,August8,1995.

(ii)Sellercertifiesthat—

(a)AstheowneroroperatoroffacilitiesthatwillbeusedintheperformanceofthisPOthataresubjecttothefilingandreportingrequirementsdescribedinsection313oftheEmergencyPlanningandCommunityRight-to-KnowActof1986(EPCRA)(42U.S.C.11023)andsection6607ofthePollutionPreventionActof1990(PPA)(42U.S.C.13106),SellerwillfileandcontinuetofileforsuchfacilitiesforthelifeofthecontracttheToxicChemicalReleaseInventoryForm(FormR)asdescribedinsections313(a)and(g)ofEPCRAandsection6607ofPPA;or

(b)NoneofitsownedoroperatedfacilitiestobeusedintheperformanceofthisPOissubjecttotheFormRfilingandreportingrequirementsbecauseeachsuchfacilityisexemptforatleastoneofthefollowingreasons:

(1)Thefacilitydoesnotmanufacture,processorotherwiseuseanytoxicchemicalslistedundersection313(c)ofEPCRA,42

U.S.C.11023(c);

(2)Thefacilitydoesnothave10ormorefull-timeemployeesasspecifiedinsection313.(b)(1)(A)ofEPCRA42U.S.C.11023(b)(1)(A);

(3)Thefacilitydoesnotmeetthereportingthresholdsoftoxicchemicals established under section 313(f) of EPCRA, 42

U.S.C.11023(f)(includingthealternatethresholdsat40CFR372.27,providedanappropriatecertificationformhasbeenfiledwithEPA);

(4)ThefacilitydoesnotfallwithinStandardIndustrialClassificationCode(SIC)designations20through39assetforthinFARsection19.102oftheFederalAcquisitionRegulation;or

(5)Thefacility is not locatedwithin anyStateoftheUnitedStates,theDistrictofColumbia,theCommonwealthofPuertoRico,

Guam,AmericanSamoa,theUnitedStatesVirginIslands,theNorthernMarianaIslands,oranyotherterritoryorpossessionoverwhichtheUnitedStateshasjurisdiction.

IfthisPurchaseOrderisissuedunderaUnitedStatesGovernmentprimecontractorSubcontract,thenallthesubparagraphslistedbelowinthisArticle35,GovernmentContracts,areapplicabletoSeller’sPurchaseOrderandshallbecontrolling overanyconflictingtermsandconditionssetforthelsewhereinthisPurchaseOrder.

(a)Article16,Changes.AddthefollowingclauseasArticle16(c):

Inadditiontosubparagraphs16(a)and16(b),SelleragreesthatuponBuyer'srequest,itwillfromtimetotimeenterintowrittenamendmentsofthisPOtoincorporate additionalprovisionshereinorto changetheprovisionshereof,asBuyermayreasonablydeemnecessaryinordertocomplywiththeprovisionsoftheprimecontract(s)oramendmentstotheprimecontract(s).IfanysuchamendmenttothisPOcausesanincreaseordecreaseinthecostofthisPO,orthetimerequiredforperformanceofthisPO,anequitableadjustmentshallbemadeinthepriceordeliveryschedule,orboth,inaccordancewiththeprovisionsofthePO's“Changes”clause.

(b)Article30,SpecialPlantConditions.Addthefollowingclauses:

(1)PostingofNotices.

(a)WageRateInformation.BuyerwillfurnishtoSelleranappropriatenumber of copies of thewage determinationdecision listing the prevailingminimumwageprovisionsthatareapplicabletothisPurchaseOrderandanappropriatenumberofcopiesofthenoticeentitled“WageRateInformation.”Forthedurationofthejob,Sellerwillberesponsibleforkeepingthisinformationpostedatthesiteoftheworkinaprominentplacewhereitcanbeeasilyseenbytheworkers.

(b)EqualEmploymentOpportunity.BuyerwillfurnishSelleranappropriatenumberofcopiesofthenoticeentitled“EqualEmploymentOpportunity.”Forthedurationofthejob,Sellerwillberesponsibleforkeepingthisinformationpostedatthesiteoftheworkinaprominentplacewhereitcanbeeasilyseenbytheworkers.

(2)PayrollDocuments.

(a)SellershallsubmitweeklytoBuyertwocertifiedcopiesofallpayrolls,includingthesubmissionofcertifiedcopiesofthepayrollsofallsubcontractors.ThepayrollsshallbeonaformapprovedbyBuyerandshallcontainallinformationthatBuyermaydeemnecessary.

(b)Sellerwillberequiredtofurnishcertificationinduplicatethateachapprenticeisregisteredinanapprovedapprenticeshipprogram.

(3)WageRates.GeneralWageDeterminationissuedundertheDavis-BaconandRelatedActsareapplicableforthisPurchaseOrder.

(4)DPASRating.Thisisaratedordercertifiedfornationaldefenseuse,andSellerwillberequiredtofollowalltheprovisionsoftheDefensePrioritiesandAllocationSystemRegulation(15CFRPart700).

(c)DeleteArticle19,GoverningLawinitsentiretyandsubstitutethefollowing:GoverningLaw:ThisPOshallbeconstrued,interpretedandappliedinaccordancewiththeFederallawofGovernmentcontractsasenunciatedandappliedbyFederaljudicialbodiesandboardsofcontractappeals.TotheextentthattheFederallawofGovernmentcontractsisnotdispositive,thelawsofTexasshallapply,excludingitschoice-of-lawrules.

(d)Addthefollowingto“BONDS,”Article12(e):Otherthanenforcementofanyrightsagainst Seller or anypersons withwhom a personmay be in privity,thesole remedyofsubcontractorsunderthisPurchaseOrderfornonpaymentofanymoneysdueorallegedtobeduefor thework underthisPurchaseOrderoranysubcontracthereundershallbetheMillerActorotherapplicablepaymentbond.Sellershallincludeinallsubcontractsthesubstanceofthisparagraph(e),includingthissentence,modifiedtoidentifytheparties.

(e)Add:Rescission,AdjustmentorTerminationforIllegalorImproperActivity

(1)IntheeventtheGovernmenttakesactionpursuanttoFAR52.203-8,“Cancellation,Rescission,andRecoveryofFundsforIllegalorImproperActivity,”tocancelthesolicitationorrescindtheprimecontracttowhichthisPOrelates,andsuchactionresultsfromSeller'sviolationofsubsection(a),(b),(c)or(d)oftheOfficeofFederalProcurementPolicyAct(41.U.S.C.423)(“theAct”)asamendedbysection4304oftheNationalDefenseAuthorizationActforFiscalYear1996(Pub.L.104-106),Buyermay(1)rescindthisPO;(2)recoverfromSellerallamountspaidbyBuyertoSellerinconnectionwiththisPO;(3)recoverfromSelleranyamounts,includinganypenaltyprescribedbylaw,whichBuyerisrequiredtopaytotheGovernment;and(4)recoverfromSelleranyothercosts,expenses,liabilities,incurredbyBuyerinconnectionwithSeller'sviolationoftheAct.

(2)SelleragreestopayBuyertheamountBuyer'spriceorfeeisreducedbytheGovernmentpursuanttoFARclause52.203-10,entitled“PriceorFeeAdjustmentforIllegalorImproperActivity,”totheextentsuchreductionresultsfromSeller'sviolationoftheAct,asamended(41U.S.C.423),andasimplementedintheFAR.IntheeventtheGovernmentterminatesfordefaultanyofBuyer'sprimecontractsunderwhichthisPOisissued,asaresultofSellerviolationoftheAct,BuyershallhavetherighttoterminatethisPOfordefaultinwholeorinpart.

(3)Buyer'srightsandremediesunderthisclauseshallbeinadditiontoanyotherrightsandremediesprovidedbylaw,regulation,orunderthisPO.

(f)EliminationofClassIOzone-DepletingSubstances:IfSellerhasnotobtainedspecificauthorizationfromBuyerortheGovernmenttocontinuetheuseofClassIODS,thenSellershallnotifyBuyerifanyofthesesubstanceshavebeenrequiredin

theperformanceofthisPOorwillbedeliveredaspartofenditem(s)orservice(s)underthisPO.

(g)Indemnity/CommercialItems:Thisclauseappliesonlytotheportion,ifany,ofthisPOforthepurchaseofacommercialitem(s)asdefinedinFAR2.101.IntheeventBuyerissubjecttoanyliability,damage,orexpense,includingwithoutlimitationGovernmentwithholdingofpayments,duetoafindingordeterminationbytheContractingOfficerthatanitemdesignatedhereinasacommercialitemisnotacommercial item,then Selleragrees to indemnifyandholdBuyer harmlesstothe fullextentofanysuchliability,damage,orexpenseresultinginwholeorinpartfromsuchfindingordetermination.Additionally,intheeventofsuchfindingordetermination,theclausesofFARII(A)andDFARSII(A)shallbeapplicabletotheportion,ifany,ofthePOpertainingtotheitemsregardingwhichsuchfindingordeterminationwasmade.

(h)RecycleandRecoveredMaterial:Buyerstronglypromotestheuseofrecycledandrecoveredmaterialsandproducts.SellershalluserecycledandrecoveredmaterialsintheproductsidentifiedontheEnvironmentalProtectionAgency’sComprehensiveProcurementGuidelines(availableontheinternetat(