Attachment Attachment 1

This document pretains to SES-LIC-20100304-00296 for License on a Satellite Earth Station filing.

IBFS_SESLIC2010030400296_804862

                                                              Northrop Grumman Corporation
                                                                              Attachment 1
                                                                            FCC Form 312
                                                                                Page 1 of 2


    EXPLANATION OF LEGAL PROCEEDINGS IN RESPONSE TO QUESTION 37

       On February 27, 1990, Northrop Corporation, the predecessor to Northrop Grumman
Corporation, pled guilty to thirty-four (34) counts of violations of 18 U.S.C. § 1001. The plea
agreement was entered in the matter of United States of America v. Northrop Corporation, et al.,
Case No. CR89-303(A) PAR, before the United States District Court for the Central District of
California. Northrop Corporation pled guilty to allegations that certain certificates of
conformance were false because particular Flight Data Transmitters had either failed
Performance Verification Testing (“PRVT”) or had been subjected to incomplete PRVT.

        Subsidiaries of Northrop Grumman Corporation acquired in 2001, Litton Applied
Technology Division and Litton Systems Canada, Ltd., were parties to United States v. Litton
Applied Technology Division and Litton Systems Canada, Ltd., No. CR 99-373 U.S.D.C. for the
Central District of California. On June 30, 1999, Litton Applied Technology Division pled
guilty to making false statements and mail fraud related to sales commissions paid to a
Taiwanese consultant. On the same date, Litton Systems Canada, Ltd. pled guilty to providing
false and misleading information to the U.S. Government with respect to sales commissions paid
to Greek and Taiwanese consultants. The entities paid fines totaling $18.5 million.

        On December 11, 2002, TRW Inc. (“TRW) was merged into Northrop Grumman
Corporation. Prior to the merger, TRW had undertaken internal investigations and made
voluntary disclosures to the U.S. Government concerning cost-estimating, mischarging and other
irregularities discovered in certain of its current or former government contracting businesses in
the mid-1980s and cooperated in U.S. Government investigations regarding these matters. After
completion of the investigations relating to one of these matters, a subsidiary of TRW, TRW
Electronic Products Inc. (“EPI”), pled guilty on September 3, 1987, to 10 counts of false
statements and agreed to pay criminal fines totaling $100,000 to settle mischarging issues on
certain government contracts. The settlement also involved payments and credits of $4.1 million
by EPI to settle certain civil and administrative claims.

        In a separate statement on September 3, 1987, the Department of Defense agreed not to
debar or suspend TRW from government contracting based on either the EPI guilty plea or
information provided to the Department relating to the three other matters voluntarily disclosed
by TRW in connection with unrelated businesses in San Diego, California, Cleveland, Ohio and
Sunnyvale, California. As part of the settlement, TRW made a good-faith payment of $17
million (including the payment by EPI) as restitution for estimated United States Government
losses in the four matters. TRW also agreed to take certain corrective action internally and to
continue to demonstrate its commitment to contractor integrity.

      In connection with the government contract accounting irregularities at TRW’s former
Compressor Components Division in Cleveland, Ohio, TRW pled guilty on August 25, 1988 to


                                                               Northrop Grumman Corporation
                                                                               Attachment 1
                                                                             FCC Form 312
                                                                                 Page 2 of 2


three counts of conspiracy to defraud the United States Government and agreed to pay criminal
fines and penalties of $3 million. All issues relating to the payment of restitution were referred
to a civil proceeding (see discussion below). TRW also made an additional payment of $3
million as restitution for estimated United States Government losses with respect to the
government contract accounting irregularities that occurred in Cleveland.

       On January 18, 2001, TRW Vehicle Safety Systems Inc., then a wholly owned subsidiary
of TRW, pled guilty to federal and state criminal charges in plea agreements with the United
States Government and the State of Arizona. VSSI paid a $6 million criminal penalty to the
United States and a $6 million criminal penalty to Arizona. The plea agreements also required
VSSI to establish an environmental management system at two airbag factories in Arizona and
one in Nevada.



Document Created: 2010-03-04 11:13:55
Document Modified: 2010-03-04 11:13:55

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