Leonard's Metal, Inc./Lockheed Martin Aeronautics Company
Business Reformation Agreement
Pursuant to discussions (telecom) conducted between Leonard's Metal, Inc. (Marie
Edmondson/Elmer Long) and Lockheed Martin Aeronautics Company (William
Krajewski) on 21 September 2001 the following business reformation agreement is
hereby agreed to and in effect:
Settlement Agreement:
Applicable Lockheed Martin Purchase orders (as amended): # 4411009, # 4410964, #
4411010, # 4411011, # 4411012, # 4411013, # 4411016, # 4411017, # 4411018, #
44111022, # 4411020, # 4411623 and # 4411626
Leonard's Metal Inc. claim for the T50 Program Leading Edge Wing Seals (40
P/N's) [Leonard's Letter dated 17 September 2001]
o Leonard's Metal, Inc. agrees to deliver to Lockheed Martin Aeronautics
Company (Fort Worth, TX) ship sets # 4 -- # 7 (40 P/N's each ship set)
in accordance with the following schedule:
Ship Set # 4 = 31 October 2001 (on or before)
Ship Set # 5 = 21 November 2001 (on or before)
Ship Set # 6 = 02 January 2001 (on or before)
Ship Set # 7 = 06 February 2001 (on or before)
o Lockheed Martin agrees to pay to Leonard's Metal, Inc. the following
lump sum payments per discussion w/Krajewski 9/26/01
Settlement Payment for Ship Set # 1 Payable Upon Receipt of
Invoice
Total Settlement = **********
o Lockheed Martin agrees to enter a business agreement whereby Lockheed
Martin agrees to purchase from Leonard's Metal, Inc. "follow on"
production of T50 Program Leading Edge Wing Seals (40 P/N's, see
"Attachment A" - incorporated herein) at a "not to exceed" ship set
price of ********** each. This ship set price will be in effect until
31 December 2010, providing that Leonard's Metal, Inc. maintain a
Lockheed Martin acceptable level of delivery and quality performance.
OTHER MATTERS:
Lockheed Martin agrees "in good faith" to attempt to maintain (current Master
Agreements to be extended through 31 December 2007) its existing business with
Leonard's Metals, Inc. (see "Attachment B" - incorporated herein) and agrees to
provide Leonard's Metal, Inc. with continued business opportunity to compete on
additional sheet metal projects (providing adequate capability and capacity
exists within Leonard's Metal, Inc) as they may arise within the Lockheed Martin
Aeronautics Company (specifically - F16, C130 and F22 programs) providing that
Leonard's Metal, Inc. maintain a Lockheed Martin acceptable level of delivery
and quality performance.
Lockheed Martin also agrees to consider Leonard's Metal, Inc. for additional
commodity work scope providing Leonard's Metal, Inc. meets Lockheed Martin
necessary and required technical capability, quality, delivery and price
requirements. This additional commodity work scope consideration consists of:
Subcontract type tooling (design and/or build) Subcontract Machining
(specifically with Leonard's Precise (TX) and Tempco (CA) facilities)
/s/ Elmer Long (date) 9/27/01 /s/ William N. Krajewski (date) 9/24/01
- ----------------------------------- --------------------------------------------
Elmer Long William N. Krajewski
Director, Marketing Senior Manager, Airfinance
& Sales Components & Outsourcing
LMI Aerospace Lockheed Martin Aeronautics Company
* The text noted by asterisks has been redacted in connection with a
request to the Securities and Exchange commission for Confidential
Treatment of such text.