Document:

lmi10k031509ex8.htm

    Exhibit 10.8

      EXECUTION
COPY

      

      

      

      

      

      

      LEASE
AGREEMENT

      by and
between

      

      

      CIT CRE LLC,

      a
Delaware limited liability company,

      as
Landlord

      

      

      and

      

      

      LMI FINISHING,
INC.,

      an
Oklahoma corporation,

      as
Tenant

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      Dated as
of:  February 13, 2007

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

      

      
        
          
            
              
                	
                        Section

                      	
                        Page

                      
	 
      	 
      
	
                        Parties

                      	
                        1

                         

                      
	
                        1.

                      	
                        CERTAIN
      DEFINITIONS

                      	
                        1

                      
	 
      	 
      	 
      
	
                        2.

                      	
                        DEMISE
      OF LEASED PREMISES

                      	
                        9

                      
	 
      	 
      	 
      
	
                        3.

                      	
                        TITLE,
      CONDITION AND POSSESSION

                      	
                        9

                      
	 
      	 
      	 
      
	
                        4.

                      	
                        USE
      OF LEASED PREMISES; QUIET ENJOYMENT

                      	
                        10

                      
	 
      	 
      	 
      
	
                        5.

                      	
                        TERM

                      	
                        11

                      
	 
      	 
      	 
      
	
                        6.

                      	
                        MINIMUM
      RENT; INTERIM RENT

                      	
                        11

                      
	 
      	 
      	 
      
	
                        7.

                      	
                        ADDITIONAL
      RENT

                      	
                        12

                      
	 
      	 
      	 
      
	
                        8.

                      	
                        NET
      LEASE: NON-TERMINABILITY.

                      	
                        13

                      
	 
      	 
      	 
      
	
                        9.

                      	
                        PAYMENT
      OF IMPOSITIONS.

                      	
                        14

                      
	 
      	 
      	 
      
	
                        10.

                      	
                        COMPLIANCE
      WITH LAWS AND AGREEMENTS; ENVIRONMENTAL

                        MATTERS

                      	
                        14

                      
	 
      	 
      	 
      
	
                        11.

                      	
                        LIENS;
      RECORDING

                      	
                        18

                      
	 
      	 
      	 
      
	
                        12.

                      	
                        MAINTENANCE
      AND REPAIR

                      	
                        19

                      
	 
      	 
      	 
      
	
                        13.

                      	
                        ALTERATIONS,
      IMPROVEMENTS AND EXPANSIONS

                      	
                        20

                      
	 
      	 
      	 
      
	
                        14.

                      	
                        PERMITTED
      CONTESTS

                      	
                        21

                      
	 
      	 
      	 
      
	
                        15.

                      	
                        INDEMNIFICATION

                      	
                        22

                      
	 
      	 
      	 
      
	
                        16.

                      	
                        INSURANCE

                      	
                        23

                      
	 
      	 
      	 
      
	
                        17.

                      	
                        CASUALTY
      AND CONDEMNATION: CLAIMS

                      	
                        26

                      
	 
      	 
      	 
      
	
                        18.

                      	
                        CASUALTY
      AND CONDEMNATION: RESTORATION

                      	
                        28

                      
	 
      	 
      	 
      
	
                        19.

                      	
                        RESTORATION
      PROCEDURES

                         

                      	
                        28

                      
	
                        20.

                      	
                        ASSIGNMENT
      AND SUBLETTING; PROHIBITION AGAINST LEASEHOLD FINANCING

                      	
                        29

                      
	 
      	 
      	 
      
	
                        21.

                      	
                        SALES
      BY LANDLORD; RIGHT OF FIRST REFUSAL

                      	
                        30

                      
	 
      	 
      	 
      
	
                        22.

                      	
                        EVENTS
      OF DEFAULT

                      	
                        31

                      
	 	 	 
	
                        23.

                      	
                        REMEDIES
      AND DAMAGES UPON DEFAULT

                      	
                        33

                      

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    24.

                  	
                    NOTICES

                  	
                    37

                  
	 
      	 
      	 
      
	
                    25.

                  	
                    ESTOPPEL
      CERTIFICATE

                  	
                    37

                  
	 
      	 
      	 
      
	
                    26.

                  	
                    SURRENDER

                  	
                    37

                  
	 
      	 
      	 
      
	
                    27.

                  	
                    NO
      MERGER OF TITLE

                  	
                    38

                  
	 
      	 
      	 
      
	
                    28.

                  	
                    BOOKS
      AND RECORDS

                  	
                    38

                  
	 
      	 
      	 
      
	
                    29.

                  	
                    NON-RECOURSE
      AS TO LANDLORD

                  	
                    39

                  
	 
      	 
      	 
      
	
                    30.

                  	
                    FINANCING

                  	
                    39

                  
	 
      	 
      	 
      
	
                    31.

                  	
                    SUBORDINATION

                  	
                    40

                  
	 
      	 
      	 
      
	
                    32.

                  	
                    TAX
      TREATMENT: REPORTING

                  	
                    40

                  
	
                     
      

                  	 
      	 
      
	
                    33.

                  	
                    MISCELLANEOUS

                  	
                    40

                  

          

        

      
        
          	
                  SCHEDULES:

                	 
      
	 
      	
                  Schedule
      12(f) Immediate Repairs and Deferred Maintenance
    Expenditures

                
	
                  EXHIBITS:

                	 
      
	 
      	
                  Exhibit
      A – Premises

                
	 
      	 
      
	 
      	
                  Exhibit
      B – Building Equipment

                
	 
      	 
      
	 
      	
                  Exhibit
      C – Minimum Rent Schedule

                
	 
      	 
      
	 
      	
                  Exhibit
      D – Certification Related to the USA Patriot Act

                
	 
      	 
      
	 
      	
                  Exhibit
      E – Determination of Fair Market Rental Value of the Leased
      Premises

                
	 
      	 
      
	 
      	
                  Exhibit
      F – Environmental Reports

                
	 
      	 
      
	 
      	
                  Exhibit
      G – Form of Certification

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      LEASE
AGREEMENT

      

      LEASE AGREEMENT, made as of
this 13th day of February, 2007, between CIT CRE LLC, a Delaware
limited liability company, or nominee, with an address c/o CIT Lending Services
Corporation, 1 CIT Drive, Livingston, NJ 07039 ("Landlord"), and LMI FINISHING, INC., an
Oklahoma corporation, with an address c/o LMI Aerospace, Inc., P.O. Box 900, St.
Charles, Missouri 63302-0900 ("Tenant").

      

      In
consideration of the rents and provisions herein stipulated to be paid and
performed, Landlord and Tenant hereby covenant and agree as
follows:

      

      1.           Certain Definitions.
As used herein, the following terms shall have the following
meaning:

       

      "Additional Rent" has
the meaning assigned to such term in Section 7.

      

      "Adjustment Date" has
the meaning assigned to such term in Section 6.

      

      "Affiliate" of any
Person means any Person (presently existing or hereafter created or acquired)
controlling, controlled by or under common control with the specified Person,
and "control" of a Person (including, with correlative meaning, the terms
"controlled by" and "under common control with") means the power to direct or
cause the direction of the management, policies or affairs of the controlled
Person, whether through ownership of securities or partnership or other
ownership interests, directly or indirectly, by contract or
otherwise.

      

      "Alterations" means
all changes, additions, improvements or repairs to, all alterations,
reconstructions, renewals, replacements or removals of and all substitutions or
replacements for any of the Improvements or Building Equipment, both interior
and exterior, structural and non-structural, and ordinary and
extraordinary.

      

      "Appurtenances" means
all tenements, hereditaments, easements, rights-of-way, rights, privileges in
and to the Land, including (a) easements over other lands granted by any
Easement Agreement and (b) any streets, ways, alleys, vaults, gores or strips of
land adjoining the Land.

      

      "Assignment" means any
assignment of rents and leases from Landlord to a Lender which (a) encumbers any
of the Leased Premises and (b) secures Landlord's obligation to repay a Loan, as
the same may be amended, supplemented or modified from time to
time.

      

      "Building Equipment"
has the meaning assigned to such term in Section 2.

      

      "Capital Growth Rate"
means, at any given time, the yield to maturity of the "on the run" ten (10)
year United States Treasury security plus four hundred (400) basis
points.

       

      "Casualty" means any
injury to or death of any person or any loss of or damage to any property
(including the Leased Premises) included within or related to the Leased
Premises.

      

      "Code" means the
Internal Revenue Code of 1986, as amended.

       

      "Commencement Date" means the date
hereof.

       

      "Condemnation" means a Taking or a
Requisition.

      

      "Condemnation Notice"
means notice or knowledge of the institution of or intention to institute any
proceeding for Condemnation.

      

      "Corporate Control
Criteria" means, if deemed satisfied by any Transferee, that such
Transferee has a Credit Rating of both "BB-" or higher from S&P and "B2" or
higher from Moody's, in each case for the twenty-four (24) consecutive calendar
month period prior to a Permitted Transfer and as of the date of the Permitted
Transfer.

      

      "Corporate Control
Event" means any of the following: (i) a merger or consolidation of
Tenant or Guarantor with or into another Person; (ii) the sale of all or
substantially all of the assets of Tenant or Guarantor to any Person; (iii) the
acquisition by any one Person (including Affiliates of such Person) of fifty
percent (50%) or more of the common stock, voting securities or economic
benefits and burdens (including distributions) of Tenant or Guarantor within any
twelve (12) month period; or (iv) a change in 50% or more of the Board of
Directors of Tenant or Guarantor in any twelve (12) month period.

      

      "Costs" of a Person or
associated with a specified transaction means all costs and expenses incurred by
such Person or associated with such transaction, including reasonable attorneys'
fees and expenses, expert fees and expenses, court costs, brokerage fees, escrow
fees, title insurance premiums, mortgage commitment fees, mortgage points and
recording fees and transfer taxes, as the circumstances require. For all
purposes of this Lease, "attorneys' fees and expenses" and similar statements
include those incurred out of court, at trial, on appeal or in any bankruptcy
proceeding.

      

      "Default Rate" has the
meaning assigned to such term in Section 7(a)(iii).

      

      "Easement Agreement"
or "Easement
Agreements" means any conditions, covenants, restrictions, easements,
declarations, licenses and other agreements listed as Permitted Encumbrances or
as may hereafter affect or benefit the Leased Premises.

      

      "Environmental Law" or
"Environmental
Laws" means (i) whenever enacted or promulgated, any applicable federal,
state, foreign or local law, statute, ordinance, rule, regulation, license,
permit, authorization, approval, consent, court order, judgment, decree,
injunction, code, requirement or agreement with any ' governmental entity, (x)
relating to pollution (or the cleanup thereof), or the protection of any
Environmental Media, air, water vapor, surface water, groundwater, drinking
water supply, land (including land surface or subsurface), plant, aquatic and
animal life from injury caused by a Hazardous Substance or (y) concerning
exposure to, or the use, containment, storage, recycling, reclamation, reuse,
treatment, generation, discharge, transportation, processing, handling,
labeling, production, disposal or remediation of Hazardous Substances, Hazardous
Conditions, Hazardous Activities or Environmental Violations, in each case as
amended and as now or hereafter in effect, and (ii) any common law or equitable
doctrine (including injunctive relief and tort doctrines such as negligence,
nuisance, trespass and strict liability) that may impose liability or
obligations or injuries or damages due to or threatened as a result of the
presence of, exposure to, or ingestion of, any Hazardous Substance. The term
Environmental Law includes the federal Comprehensive Environmental Response
Compensation and Liability Act of 1980 ("CERCLA"), the Superfund Amendments and
Reauthorization Act, the federal Water Pollution Control Act, the federal Clean
Air Act, the federal Clean Water Act, the federal Resources Conservation and
Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments to
RCRA), the federal Solid Waste Disposal Act, the federal Toxic Substance Control
Act, the federal Insecticide, Fungicide and Rodenticide Act, the federal
Occupational Safety and Health Act of 1970, the federal National Environmental
Policy Act and the federal Hazardous Materials Transportation Act, each as
amended and as now or hereafter in effect and any similar state or local
Law.

       

      "Environmental Media"
means soil, fill material, or other geologic materials at all depths,
groundwater at all depths, surface water including storm water and sewerage,
indoor and outdoor air, and all living organisms, including all animals and
plants, whether located on or off the Leased Premises.

      

      "Environmental
Violation" means any one or more of the following, whether occurring
prior to, on or after the date hereof: (a) any direct or indirect discharge,
disposal, spillage, emission, escape, pumping, pouring, injection, leaching,
Release, seepage, filtration or transporting of any Hazardous Substance at,
upon, under, onto or within the Leased Premises or any Environmental Media, or
from the Leased Premises to any Environmental Media, in violation of any
Environmental Law or in excess of any reportable quantity established under any
Environmental Law or which could result in any liability to Landlord, Tenant or
Lender, any Federal, state or local government or any other Person for the costs
of any removal or Remedial Actions or natural resources damage or for bodily
injury or property damage, (b) any deposit, storage, dumping, placement or use
of any Hazardous Substance at, upon, under or within the Leased Premises in
violation of any Environmental Law or in excess of any reportable quantity
established under any Environmental Law or which could result in any liability
to any Federal, state or local government or to any other Person for the costs
of any removal or Remedial Actions or natural resources damage or for bodily
injury or property damage, (c) the abandonment or discarding at the Leased
Premises of any barrels, containers or other receptacles containing any
Hazardous Substances in violation of any Environmental Laws, (d) any activity,
occurrence or condition in connection with the Leased Premises which could
result in any liability, cost or expense to Landlord or Lender or any other
owner or occupier of the Leased Premises, or which could result in a creation of
a lien on the Leased Premises under any Environmental Law, or (e) any violation
of or noncompliance with any Environmental Law in connection with the Leased
Premises.

      

      "Event of Default" has
the meaning assigned to such term in Section 22.

      

      "Existing Environmental
Condition" has the meaning assigned to such term in Section
10(g).

       

      "Expansion" has the
meaning assigned to such term in Section 13.

      

      "Expiration Date"
means the Initial Expiration Date or, if this Lease has been extended for a
Renewal Term in accordance with Section 5, the last day of such Renewal
Term.

      

      "Fair Market Rental Value of
the Leased Premises" means the rent that would be paid by a willing
tenant and accepted by a willing landlord in an arm length's lease of the Leased
Premises in which neither party is under any compulsion to lease, but without
consideration of any concessions, allowances or other inducements then normally
being offered to prospective tenants. Fair Market Rental Value of the Leased
Premises shall be determined by the appraisal process set forth in Exhibit
E.

      

      "Full Rent Commencement
Date" means the first day of the month following the month in which the
Commencement Date occurs.

      

      "GAAP" means generally
accepted accounting principles.

      

      "Government Lists" has
the meaning assigned to such term in Exhibit D.

      

      "Guarantor" means LMI
Aerospace, Inc., a Missouri corporation.

      

      "Hazardous Activity"
means any activity, process, procedure or undertaking which directly or
indirectly (i) procures, generates or creates any Hazardous Substance; (ii)
causes or results in (or threatens to cause or result in) the release, seepage,
spill, leak, flow, discharge or emission of any Hazardous Substance into the
environment (including the air, ground water, watercourses or water systems),
(iii) involves the containment or storage of any Hazardous Substance; or (iv)
would cause the Leased Premises or any portion thereof to become a hazardous
waste treatment, recycling, reclamation, processing, storage or disposal
facility within the meaning of any Environmental Law.

      

      "Hazardous Condition"
means any condition resulting from an act or omission occurring after the date
hereof which would support any claim or liability under any Environmental
Law.

      

      "Hazardous Substance"
or "Hazardous
Substances" means (i) any substance, material, product, petroleum,
petroleum product, derivative, compound or mixture, mineral (including
asbestos), chemical, gas, medical waste, or other pollutant, in each case
whether naturally occurring, man-made or the by-product of any process, that is
toxic, harmful or hazardous or acutely hazardous to the environment or public
health or safety, (ii) those materials included within the definitions of
"hazardous substances," "extremely hazardous substances," "toxic "hazardous
materials," "toxic substances" "toxic pollutants," "hazardous air pollutants"
"toxic air contaminants," "solid waste," "hazardous waste," "pollutants,"
contaminants" or similar categories under any Environmental Laws, or (iii) any
substance supporting a claim under any Environmental Law, whether or not defined
as hazardous as such under any Environmental Law. Hazardous Substances include
any toxic or hazardous waste, pollutant, contaminant, industrial waste,
petroleum or petroleum-derived substances or waste, radon, radioactive
materials, asbestos, asbestos containing materials, urea formaldehyde foam
insulation, lead and polychlorinated biphenyls.

       

      "Impositions" has the
meaning assigned to such term in Section 9.

       

      "Improvements" has the meaning assigned
to such term in Section 2.

      

      "Indemnitee" has the
meaning assigned to such term in Section 15.

      

      "Initial Appraiser"
has the meaning assigned to such term in Exhibit E.

      

      "Initial Expiration
Date" has the meaning assigned to such term in Section 5.

      

      "Initial Valuation"
has the meaning assigned to such term in Exhibit E.

      

      "Insurance
Requirements" means the requirements of all insurance policies required
to be maintained in accordance with this Lease.

      

      "Interim Rent" has the
meaning assigned to such term in Section 6.

      

      "Land" has the meaning
assigned to such term in Section 2.

      

      "Law" means any
constitution, statute, rule of law, code, ordinance, order, judgment, decree,
injunction, rule, regulation, policy, requirement or administrative or judicial
determination, even if unforeseen or extraordinary, of every duly constituted
governmental authority, court or agency, now or hereafter enacted or in
effect.

      

      "Lease" means this
Lease Agreement.

      

      "Lease Guaranty" has
the meaning the Guaranty and Suretyship Agreement dated December 28, 2006 made
by Guarantor to Landlord.

      

      "Lease Year" means (a)
the period commencing on the Full Rent Commencement Date and ending at midnight
on the last day of the twelfth (12th) consecutive calendar month thereafter, and
(b) each succeeding twelve (12) month period occurring during the
Term.

      

      "Leased Premises" has
the meaning assigned to such term in Section 2.

      

      "Legal Requirements"
means the requirements of all present and future Laws (including Environmental
Laws and Laws relating to accessibility to, usability by, and discrimination
against, disabled individuals) and all covenants, restrictions and conditions
now or hereafter of record which may be applicable to Tenant or to any of the
Leased Premises, or to the use, manner of use, occupancy, possession, operation,
maintenance, alteration, repair or restoration of any of the Leased Premises,
even if compliance therewith necessitates structural changes or improvements or
results in interference with the use or enjoyment of any of the Leased
Premises.

      

      "Lender" means any
person or entity (and their respective successors and assigns) which may, after
or contemporaneously with the date hereof, make a Loan to Landlord or is the
holder of any Note.

       

      "Loan" means any loan
made by one or more Lenders to Landlord, which loan is secured by a Mortgage and
an Assignment and is evidenced by a Note.

      

      "Minimum Rent" has the
meaning assigned to such term in Section 6.

      

      "Minimum Rent Payment
Date" has the meaning assigned to such term in Section 6.

       

      "Monetary Obligations"
means Rent and all other sums payable by Tenant under this Lease to Landlord, to
any third party on behalf of Landlord or to any Indemnitee.

      

      "Mortgage" means any
mortgage or deed of trust from Landlord to a Lender which (a) encumbers any of
the Leased Premises and (b) secures Landlord's obligation to repay a Loan, as
the same may be amended, supplemented or modified.

      

      "Net Award" means (a)
the entire award payable to Landlord or Lender by reason of a Condemnation
whether pursuant to a judgment or by agreement or otherwise, or (b) the entire
proceeds of any insurance required under clauses (i), (ii) (to the extent
payable to Landlord or Lender), (iv), (v) or (vi) of Section 16(a), as the case
may be, less any expenses incurred by Landlord and Lender in collecting such
award or proceeds.

      

      "Note" means any
promissory note evidencing Landlord's obligation to repay a Loan, as the same
may be amended, supplemented or modified.

      

      "Owner" has the
meaning assigned to such term in Exhibit D.

      

      "Permitted
Encumbrances" means those covenants, restrictions, reservations, liens,
conditions and easements and other encumbrances of record as of the date hereof,
other than any Mortgage or Assignment, and liens for unpaid real estate taxes
and assessment not yet due and payable.

      

      "Permitted Transfer"
has the meaning assigned to such term in Section 22.

      

      "Permitted Violations"
has the meaning assigned to such term in Section 14.

      

      "Person" means an
individual, partnership, association, corporation, trust or other legal
entity.

      

      "Present Value" of any
amount means such amount discounted by a rate per annum which is the lower of
(a) the Prime Rate at the time such present value is determined or (b) eight
percent (8%) per annum.

      

      "Primary Term" has the
meaning assigned to such term in Section 5.

       

      "Prime Rate" means the
annual interest rate as published, from time to time, in the Wall Street Journal
as the "Prime Rate" in its column entitled "Money Rate". The Prime Rate
may not be the lowest rate of interest charged by any "large U.S. money center
commercial banks" and Landlord makes no representations or warranties to that
effect. In the event the Wall Street Journal ceases
publication or ceases to publish the "Prime Rate" as described above, the Prime
Rate shall be the average per annum discount rate (the "Discount Rate") on
ninety-one (91) day bills issued from time to time by the United States Treasury
("Treasury
Bills") at its most recent auction, plus three hundred (300) basis
points. If no such 91-day Treasury Bills are then being issued, the Discount
Rate shall be the discount rate on Treasury Bills then being issued for the
period of time closest to ninety-one (91) days.

       

      "Purchase Agreement"
means the Purchase Agreement dated as of December 28, 2006 between Tenant, as
seller, and Landlord, as purchaser, relating to the Leased
Premises.

      

      "Release" means any
active or passive spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping or disposing of any
Hazardous Substance into any Environmental Media. For the purposes of this
Lease, "Release" also includes any threatened Release.

      

      "Remedial Actions"
means any investigation, work plan preparation removal, repair, cleanup,
abatement, remediation, monitored natural attenuation, natural resource damage
assessment and restoration, closure, post-closure, detoxification or remedial
activity of any kind whatsoever necessary to address any Release, any
Environmental Violation and/or any Hazardous Condition.

      

      "Remediation Plan" has
the meaning assigned to such term in Section 10.

       

      "Renewal Date" has the meaning assigned
to such term in Section 5.

      

      "Renewal Term" has the
meaning assigned to such term in Section 5.

      

      "Rent" means,
collectively, Interim Rent, Minimum Rent and Additional Rent.

       

      "Requesting Party" has the meaning
assigned to such term in Section 25.

      

      "Requisition" means
any temporary requisition or confiscation of the use or occupancy of any of the
Leased Premises by any governmental authority, civil or military, whether
pursuant to an agreement with such governmental authority in settlement of or
under threat of any such requisition or confiscation, or otherwise.

      

      "Responding Party" has
the meaning assigned to such term in Section 25.

      

      "Restoration Fund" has
the meaning assigned to such term in Section 19.

      

      "Set-Off" has the
meaning assigned to such term in Section 8.

      

      "Site Reviewers" has
the meaning assigned to such term in Section 10(c).

      

      "Site Assessment" has
the meaning assigned to such term in Section 10.

      

      "SNDA Provisions" has
the meaning assigned to such term in Section 31.

       

      "State" means, with
respect to any parcel of Land comprising the Leased Premises, the jurisdiction
in which such parcel is located.

      

      "Subleases" has the
meaning assigned to such term in Section 20.

      

      "Surviving
Obligations" means any obligations of Tenant under this Lease, actual or
contingent, which arise on or prior to the expiration or prior termination of
this Lease or rejection in bankruptcy, which survive such expiration,
termination or rejection by their own terms.

      

      "Taking" means (a) any
taking of, or damage to, all or a portion of any of the Leased Premises (i) in
or by condemnation or other eminent domain proceedings pursuant to any Law,
general or special, or (ii) by reason of any agreement with any condemnor in
settlement of or under threat of any such condemnation or other eminent domain
proceeding, or (iii) by any other means, or (b) any de facto condemnation. The
Taking shall be considered to have taken place as of the later of the date
actual physical possession is taken by the condemnor, or the date on which the
right to compensation and damages accrues under the law applicable to the Leased
Premises.

      

      "Term" means the
Primary Term or any Renewal Term, whichever is then in effect.

      

      "Third Appraiser" has
the meaning assigned to such term in Exhibit E.

      

      "Third Party Offer"
has the meaning assigned to such term in Section 21.

      

      "Third Party
Purchaser" has the meaning assigned to such term in Section
21.

      

      "Third Valuation" has
the meaning assigned to such term in Exhibit E.

      

      "Trade Fixtures" means
all machinery; apparatus, furniture, fixtures and equipment now or hereafter
installed by Tenant and used in connection with the conduct of Tenant's business
on the Leased Property, other than fixtures and items of personal property that
are integral to the ownership, maintenance and operation of the Improvements and
which cannot be removed from the Leased Property without adversely affecting the
value, or the general utility or use of such Leased Property.

      

      "Transferee" has the
meaning assigned to such term in Section 22.

      

      "Use" has the meaning
assigned to such term in Section 10.

      

      "Valuation Notice" has
the meaning assigned to such term in Exhibit E.

       

      "Valuation Period" has
the meaning assigned to such term in Exhibit E.

      

      "Work" has the meaning
assigned to such term in Section 13.

       

      2.           Demise of Premises.
Landlord hereby demises and lets to Tenant, and Tenant hereby takes and leases
from Landlord, for the Term and upon the provisions hereinafter specified, the
following described property (collectively, the "Leased Premises"):

      

      (a)           the
premises described in Exhibit A hereto,
together with the Appurtenances (collectively, the "Land");

      

      (b)           all
buildings, structures and other improvements now or hereafter constructed on the
Land (collectively, the "Improvements");
and

      

      (c)           the
fixtures, machinery, equipment and other property described in Exhibit B hereto (collectively, the
"Building
Equipment").

      

      3.           Title, Condition and
Possession.

      

      (a)           The
Leased Premises are demised and let subject to (i) the rights of any Persons in
possession of the Leased Premises, (ii) the existing state of title of any of
the Leased Premises, including any Permitted Encumbrances, (iii) any state of
facts which an accurate survey or physical inspection of the Leased Premises
might show, (iv) all Legal Requirements, including any existing violation of any
thereof, and (v) the condition of the Leased Premises as of the Commencement
Date, without representation or warranty by Landlord.

      

      (b)           LANDLORD
LEASES AND WILL LEASE AND TENANT TAKES AND WILL TAKE THE LEASED PREMISES AS IS. TENANT ACKNOWLEDGES THAT
LANDLORD (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER CAPACITY) AND THE
INDEMNITEES HAVE NOT MADE AND WILL NOT MAKE, NOR SHALL LANDLORD OR ANY OF THE
INDEMNITEES BE DEEMED TO HAVE MADE, ANY WARRANTY OR REPRESENTATION, EXPRESS OR
IMPLIED, WITH RESPECT TO ANY OF THE LEASED PREMISES, INCLUDING ANY WARRANTY OR
REPRESENTATION AS TO (i) ITS FITNESS, DESIGN OR CONDITION FOR ANY PARTICULAR USE
OR PURPOSE, (ii) THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, (iii) THE
EXISTENCE OF ANY DEFECT, LATENT OR PATENT, (iv) LANDLORD'S TITLE THERETO, (v)
VALUE, (vi) COMPLIANCE WITH SPECIFICATIONS, (vii) LOCATION, (viii) USE, (ix)
CONDITION, (x) MERCHANTABILITY, (xi) QUALITY, (xii) DESCRIPTION, (xiii)
DURABILITY, (xv) OPERATION, INCOME, EXPENSES, ENTITLEMENTS OR ZONING, (xv) THE
EXISTENCE OF ANY HAZARDOUS SUBSTANCE, ENVIRONMENTAL VIOLATION, RELEASE,
HAZARDOUS CONDITION OR HAZARDOUS ACTIVITY OR (xvi) COMPLIANCE OF THE LEASED
PREMISES WITH ANY LAW OR LEGAL REQUIREMENT; AND ALL RISKS INCIDENT THERETO ARE
TO BE BORNE BY TENANT. TENANT ACKNOWLEDGES THAT THE LEASED PREMISES ARE OF ITS
SELECTION AND TO ITS SPECIFICATIONS AND HAVE BEEN INSPECTED BY TENANT AND ARE
SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR DEFICIENCY IN ANY OF THE
LEASED PREMISES OF ANY NATURE, WHETHER LATENT OR PATENT, NEITHER LANDLORD NOR
ANY INDEMNITEES SHALL HAVE ANY RESPONSIBILITY OR LIABILITY WITH RESPECT THERETO
OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING STRICT LIABILITY IN
TORT). THE PROVISIONS OF THIS SECTION 3(b) HAVE BEEN NEGOTIATED, AND ARE
INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY LANDLORD
OR ANY INDEMNITEE, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED
PREMISES, ARISING PURSUANT TO THE UNIFORM COMMERCIAL CODE OR ANY OTHER LAW NOW
OR HEREAFTER IN EFFECT OR ARISING OTHERWISE.

       

      (c)           Tenant
represents to Landlord that Tenant has examined the title to the Leased Premises
prior to the execution and delivery of this Lease and has found the same to be
satisfactory for the purposes contemplated hereby. Tenant acknowledges that fee
simple title (both legal and equitable) is in Landlord and that Tenant has only
the leasehold right of possession and use of the Leased Premises as provided
herein.

      

      4.           Use of Leased Premises;
Quiet Enjoyment.

      

      (a)           Tenant
may occupy and use the Leased Premises for the operation of any lawful business
purpose related to the conduct of Tenant's business. Tenant shall not use or
occupy or permit any of the Leased Premises to be used or occupied, nor do or
permit anything to be done in or on any of the Leased Premises, in a manner
which would or might (i) violate any Law, Legal Requirement or Easement
Agreement, (ii) make void or voidable or cause any insurer to cancel any
insurance required by this Lease, or make it difficult or impossible to obtain
any such insurance at commercially reasonable rates, (iii) cause structural
injury to any of the Improvements, (iv) constitute a public or private nuisance
or waste, or (v) violate or not be permitted pursuant to, a Permitted
Encumbrance.

      

      (b)           Subject
to the provisions hereof, so long as no Event of Default has occurred and is
continuing, Tenant shall quietly hold, occupy and enjoy the Leased Premises
throughout the Term, without any hindrance, ejection or molestation by Landlord
with respect to matters that arise after the date hereof; provided that Landlord or its agents may enter
upon and examine any of the Leased Premises at such reasonable times as Landlord
may select and upon two (2) business days' prior notice to Tenant (except in the
case of an emergency, in which no notice shall be required) for the purpose of
inspecting the Leased Premises, verifying compliance or non-compliance by Tenant
with its obligations hereunder and the existence or non-existence of an Event of
Default or event which with the passage of time and/or giving of notice would
constitute an Event of Default, showing the Leased Premises to prospective
Lenders and purchasers and taking such other action with respect to the Leased
Premises as is permitted by any provision hereof.

      

      (c)           Tenant
shall not abandon or vacate the Leased Premises and Tenant shall operate its
business at the Leased Premises pursuant to the terms and provisions of this
Lease. If Tenant ceases to do business at all or a material portion of the
Leased Premises for a period longer than six (6) months, then Landlord may
request that the Tenant use commercially reasonable efforts to attempt to sublet
the Leased Premises.

       

      5.           Term.

      

      (a)           Subject
to the provisions hereof, Tenant shall have and hold the Leased Premises for an
initial term (such term, as the same may be extended in the manner set forth
hereinafter, being referred to herein as the “Primary Term”) commencing on the
Commencement Date and ending on February 28, 2025 (the "Initial Expiration
Date"). If, on or prior to the Initial Expiration Date or the expiration of any
Renewal Term this Lease shall not have been sooner terminated, then on the
Initial Expiration Date and on the fifth, tenth, and fifteenth anniversaries of
the Initial Expiration Date (the Initial Expiration Date and each such
anniversary being referred to herein as a "Renewal Date"), Tenant shall have the
right to extend the Term for an additional period of five years (each such
extension period, a "Renewal Term"). In order to extend the then Term for a
Renewal Term, Tenant shall notify Landlord at least twelve (12) months prior to,
but no earlier than fifteen (15) months prior to, each Renewal Date that Tenant
desires to extend the then Term for a Renewal Term. It is a condition to the
extension of the Term of the Lease at each Renewal Date that (a) no Event of
Default shall have occurred or be continuing as of the date Tenant gives notice
to Landlord of Tenant's intention to so extend the Term for an additional
five-year period, and (b) no Event of Default shall have occurred and be
continuing as of such Renewal Date. Any such extension of the Term shall be
subject to all of the provisions of this Lease, as the same may be amended,
supplemented or modified (except that Tenant shall have no right to any
additional renewal terms).

      

      (b)           The
Primary Term and/or any Renewal Term may also be extended upon the occurrence of
certain events as set forth in Section 13(a).

      

      (c)           During
the last year of the Term (as the same may be renewed pursuant to Section 5(a)),
Landlord shall have the right to advertise the availability of the Leased
Premises for sale or reletting, to erect signs upon the Leased Premises
indicating such availability and to show the Leased Premises to prospective
tenants at such reasonable times as Landlord may select. Landlord shall also
have the right at any time to show the Leased Premises to prospective purchasers
or Lenders at such reasonable times as Landlord may select.

      

      6.           Minimum Rent; Interim
Rent. Commencing on the Full Rent Commencement Date and continuing
throughout the Primary Term, Tenant shall pay to Landlord, as annual minimum
rent for the Leased Premises during the first Lease Year, the amount of One
Hundred Fifty-Two Thousand, Seven Hundred Forty and no/100 Dollars
($152,740.00). The annual minimum rent for the second Lease Year and every Lease
Year thereafter, beginning with the first day of the second Lease Year and
continuing on the first day of third Lease Year and every Lease Year thereafter
throughout the Primary Term (the first day of each such Lease Year being
referred to herein as an "Adjustment Date"), shall be increased by an amount
equal to two and three-tenths percent (2.3%) of the Minimum Rent payable
immediately prior to the Adjustment Date. During any Renewal Term, such annual
minimum rent shall be equal to ninety five percent (95%) of the Fair Market
Rental Value of the Leased Premises. Such annual minimum rent, as so adjusted
for any Lease Year during the Primary Term or any Renewal Term, is referred to
herein as the "Minimum Rent". The Minimum Rent is set forth in the schedule
attached hereto as Exhibit C, and shall be subject to 'increases pursuant to
Section 13(a). Minimum Rent shall be paid monthly in advance on the first day of
each month during the Primary Term or any Renewal Term (each such day being a
"Minimum Rent Payment Date") in the
amount of the annual Minimum Rent then in effect divided by twelve (12). Monthly
Minimum Rent for the first Lease Year shall be Twelve Thousand, Seven Hundred
Twenty-Eight and 33/100 Dollars ($12,728.33) per month. Each such rental payment
shall be made, at Landlord's sole discretion, to Landlord at its address set
forth above or to such one or more other Persons, at such addresses and in such
proportions as Landlord may direct by ten (10) days' prior written notice to
Tenant (in which event Tenant shall give Landlord notice of each such payment
concurrent with the making thereof). Pro rata minimum rent for the Leased
Premises (based on the annual Minimum Rent for the first Lease Year as set forth
in Exhibit C) for the period commencing on the Commencement Date and ending on
the day preceding the Full Rent Commencement Date (the "Interim Rent") shall be
payable, in advance, on the Commencement Date.

       

      If
required by Landlord, Tenant shall pay the Interim Rent and Minimum Rent to
Landlord (or to a Lender designated by Landlord) monthly by ACH and in
immediately available funds.

      

      7.           Additional
Rent.

      

      (a)           Tenant
shall pay and discharge, as additional rent (collectively, “Additional Rent")
the following amounts:

      

      (i)             except
as otherwise specifically provided herein, all Costs of Tenant, Landlord, Lender
and any other Persons specifically referenced herein which are incurred in
connection or associated with (A) the use, non-use, occupancy, possession,
operation, condition, design, construction, maintenance, alteration, repair or
restoration of any of the Leased Premises, (B) the performance of any of
Tenant's obligations under this Lease, (C) any Condemnation proceedings, (D) the
adjustment, settlement or compromise of any insurance claims involving or
arising from any of the Leased Premises, (E) the prosecution, defense or
settlement of any litigation involving or arising from any of the Leased
Premises or this Lease, (F) the exercise or enforcement by Landlord, its
successors and assigns, of any of its rights or remedies under this Lease, (G)
any amendment to or modification or termination of this Lease made at the
request of Tenant, and/or (H) any act undertaken by Landlord (or its counsel) at
the request of Tenant, or incurred in connection with any act of Landlord
performed on behalf of Tenant;

      

      (ii)             after
the date which is five (5) business days after the date on which all or any
portion of any installment of Interim Rent or Minimum Rent is due and not paid,
an amount equal to five percent (5%) of the amount of such unpaid installment or
portion thereof. The foregoing late fees are not a penalty, and Tenant's
obligation to pay Landlord late fees as set forth above shall be in addition to
all of Landlord's other rights and remedies hereunder or at law and shall not be
construed as liquidated damages or as limiting Landlord's remedies in any
manner;

       

      (iii)             interest
at the rate (the "Default Rate") of three percent (3%) per annum in excess of
the Prime Rate on the following sums until paid in full: (A) all overdue
installments of Interim Rent or Minimum Rent from the respective due dates
thereof, (B) all overdue amounts of Additional Rent relating to obligations
which Landlord shall have paid on behalf of Tenant, from the date of Landlord's
notice of the payment made by Landlord, and (C) all other overdue amounts of
Additional Rent, from the date when any such amount becomes
overdue;

       

      (iv)             concurrently
with each payment of Interim Rent or Minimum Rent, any rent tax, sales tax,
excise tax, privilege tax or other tax then payable with respect to real
property rents, and any penalties in connection therewith; and

      

      (v)             any
other items specifically required to be paid by Tenant under this Lease,
including items in Section 12 that reference this Section 7.

      

      (b)           Tenant
shall pay and discharge (i) any Additional Rent referred to in Section 7(a)(i)
when the same shall become due, provided that amounts which are billed to
Landlord or any third party, but not to Tenant, shall be paid within five (5)
days after Landlord's demand for payment thereof, and (ii) any other Additional
Rent, within five (5) days after Landlord's demand for payment
thereof.

      

      (c)           In
no event shall amounts payable under Section 7(a)(ii), (iii) and (iv) exceed the
maximum amount permitted by applicable Law.

      

      8.           Net Lease;
Non-Terminability.

      

      (a)           This
is a net lease and all Monetary Obligations shall be paid by Tenant without
notice or demand and without set-off, counterclaim, recoupment, abatement,
suspension, deferment, diminution, deduction, reduction or defense
(collectively, a "Set-Off').

      

      (b)           Except
as otherwise expressly provided herein, this Lease and the rights of Landlord
and the obligations of Tenant hereunder shall not be affected by any event or
for any reason, including the following: (i) any damage to or theft, loss or
destruction of any of the Leased Premises, (ii) any Casualty or Condemnation,
(iii) Tenant's acquisition of ownership of any of the Leased Premises other than
pursuant to an express provision of this Lease, (iv) any default on the part of
Landlord hereunder or under any Note, Mortgage, Assignment or any other
agreement, (v) any latent or other defect in any of the Leased Premises, (vi)
the breach of any warranty of any seller or manufacturer of any of the Building
Equipment, (vii) any violation of any provision of this Lease by Landlord,
(viii) the bankruptcy, insolvency, reorganization, composition, readjustment,
liquidation, dissolution or winding-up of, or other proceeding affecting
Landlord, (ix) the exercise of any remedy, including foreclosure, under any
Mortgage or Assignment, (x) any action with respect to this Lease (including the
disaffirmance hereof) which may be taken by Landlord, any trustee, receiver or
liquidator of Landlord or any court under the Federal Bankruptcy Code or
otherwise, (xi) any interference with Tenant's use of the Leased Premises by
parties other than Landlord, (xii) market or economic changes, or (xiii) any
other cause, whether similar or dissimilar to the foregoing, any present or
future Law to the contrary notwithstanding.

      

      (c)           The
obligations of Tenant hereunder shall be separate and independent covenants and
agreements, all Monetary Obligations shall continue to be payable in all events
(or, in lieu thereof, Tenant shall pay amounts equal thereto), and the
obligations of Tenant hereunder shall continue unaffected unless the requirement
to pay or perform the same shall have been terminated pursuant to an express
provision of this Lease. All Rent payable by Tenant hereunder shall constitute
"rent" for all purposes (including Section 502(b)(6) of the Bankruptcy
Code).

       

      (d)     Except as
otherwise expressly provided herein, Tenant shall have no right and hereby
waives all rights which it may have under any Law (i) to quit, terminate or
surrender this Lease or any of the Leased Premises, or (ii) to any Set-Off of
any Monetary Obligations.

      

      9.           Payment of
Impositions. Tenant shall, before interest or penalties are due thereon,
pay and discharge all taxes (including real and personal property, franchise,
sales and rent taxes, and any penalties in connection therewith), all charges
for any easement or agreement maintained for the benefit of any of the Leased
Premises (including any Easement Agreement), all assessments and levies, all
permit, inspection and license fees, all rents and charges for water, sewer,
utility and communication services relating to the any of Leased Premises, all
ground rents and all other public charges whether of a like or different nature,
even if unforeseen or extraordinary, imposed upon or assessed against (i)
Tenant, (ii) Tenant's leasehold interest in the Leased Premises, (iii) any of
the Leased Premises, (iv) Landlord as a result of or arising in respect of the
acquisition, ownership, occupancy, leasing; use, possession or sale of any of
the Leased Premises, any activity conducted on any of the Leased Premises, or
the Rent, in each case whether accruing before or after the Commencement Date
(collectively, the "Impositions"); provided,
however, that nothing herein shall obligate Tenant to pay (A) income,
excess profits or other taxes of Landlord which are determined on the basis of
Landlord's net income or net worth (unless such taxes are in lieu of or a
substitute for any other tax, assessment or other charge upon or with respect to
the Leased Premises which, if it were in effect, would be payable by Tenant
under the provisions hereof or by the terms of such tax, assessment or other
charge), (B) any estate, inheritance, succession, gift or similar tax imposed on
Landlord, or (C) any capital gains tax imposed on Landlord in connection with
the sale of the Leased Premises to any Person. If any Imposition may be paid in
installments without interest or penalty, Tenant shall have the option to pay
such Imposition in installments so long as each installment is timely paid and
Landlord receives evidence of each such payment. Tenant shall prepare and file
all tax reports required by governmental authorities which relate to the
Impositions. Tenant shall deliver to Landlord (1) copies of all settlements and
notices pertaining to the Impositions which may be issued by any governmental
authority within ten (10), days after Tenant's receipt thereof, (2) receipts for
payment of all taxes required to be paid by Tenant hereunder within ten (10)
days after the due date thereof, and (3) receipts for payment of all other
Impositions within ten (10) days after Landlord's request therefor.

      

      10.           Compliance with Laws and
Agreements; Environmental Matters.

      

      (a)           Tenant
shall, at its expense, comply with and conform to, and cause the Leased Premises
and any other Person occupying any part of the Leased Premises to comply with
and conform to, all Insurance Requirements and Legal Requirements (including all
applicable Environmental Laws). Tenant shall not at any time (i) cause, permit
or suffer to occur any Environmental Violation or (ii) permit any sublessee,
assignee or other Person occupying the Leased Premises under or through Tenant
to cause, permit or suffer to occur any Environmental Violation. Without
limiting the foregoing, Tenant shall not use, store, transport, dispense, sell,
Release or discharge any Hazardous Substances, except in strict compliance with
all Environmental Laws.

       

      (b)           Tenant,
at its sole cost and expense, will at all times promptly and faithfully abide
by, discharge and perform all of the covenants, conditions and agreements
contained in any Easement Agreement or in any other contract or agreement
relating to the Leased Premises on the part of Landlord or the occupier to be
kept and performed thereunder. Tenant will not alter, modify, amend or terminate
any Easement Agreement, give any consent, approval or waiver thereunder, or
enter into any new Easement Agreement without, in each case, the prior written
consent of Landlord.

      

      (c)           Upon
at least two (2) business days' prior written notice from Landlord, Tenant shall
(after the Commencement Date) permit such persons as Landlord may designate
("Site Reviewers") to visit the
Leased Premises and perform environmental site investigations and assessments
("Site Assessments") on the
Leased Premises for the purpose of determining whether there exists on the
Leased Premises any Environmental Violation or any condition which could result
in any Environmental Violation. Such Site Assessments may include both above and
below the ground testing for Environmental Violations and such other tests as
may be necessary, in the opinion of the Site Reviewers, to conduct the Site
Assessments. If Site Reviewers determine that the testing of soil and/or
groundwater at the Leased Premises is necessary, Site Reviewers shall provide
Tenant with a detailed written explanation setting forth a reasonable basis for
the performance of such testing at the Leased Premises. Tenant shall supply to
the Site Reviewers such historical and operational information regarding the
Leased Premises as may be reasonably requested by the Site Reviewers to
facilitate the Site Assessments, and shall make available for meetings with the
Site Reviewers appropriate personnel having knowledge of such matters. So long
as (i) Tenant is not in default hereunder and (ii) Landlord does not have
reasonable cause to suspect that an Environmental Violation has occurred on the
Leased Premises (in either situation Tenant shall be responsible for the cost of
the site assessment), Landlord shall pay for the cost of such site assessment
conducted by Landlord no more frequently than once every other Lease Year;
provided, however, that if the results of such assessment indicate that a
Hazardous Condition or an Environmental Violation exists, then Tenant shall pay
for the cost of such site assessment. If such Environmental Violation is
determined to be related to Existing Environmental Conditions at the Leased
Premises, then Tenant shall have all rights and obligations with regard to the
Existing Environmental Conditions as are set forth in Section 10(e) and 10(g) of
this Lease.

      

      (d)           If
an Environmental Violation, Hazardous Condition, or Existing Environmental
Condition is found to exist and, in Tenant's reasonable judgment, the cost of
remediation of the same is likely to exceed $25,000, Tenant shall provide
Landlord with written notice within ten (10) days of such discovery. If in
Landlord's reasonable judgment, the cost of such remediation is likely to exceed
$100,000, then, within ten (10) days after Landlord's request therefor, Tenant
shall provide Landlord with adequate financial assurances that Tenant will take
Remedial Actions to effect such remediation in accordance with applicable
Environmental Laws. Such financial assurances shall be a bond or letter of
credit reasonably satisfactory to Landlord in form and substance and in an
amount equal to or greater than Landlord's reasonable estimate, based upon a
Site Assessment performed pursuant to Section 10(c), of the anticipated cost of
such Remedial Actions.

       

      (e)           If
any Environmental Violation, Hazardous Condition, or Existing Environmental
Condition occurs or is found to exist (for example, but without limitation, a
detection of a leak in an underground tank or a petroleum spillage by a tanker),
Tenant, at its sole expense, shall take any and all Remedial Actions and other
actions as necessary to cure such Environmental Violation, Hazardous Condition,
or Existing Environmental Condition in strict compliance with Environmental Laws
and take any other action with regard to the Existing Environmental Conditions
specifically set forth in Exhibit
F. Tenant shall be responsible for all reporting, investigation and/or
remediation requirements under any Environmental Law with respect to any
Environmental Violation, Hazardous Condition, or Existing Environmental
Condition, all at Tenant's sole cost and expense. If Tenant fails to correct any
Environmental Violation, Hazardous Condition, or Existing Environmental
Condition which occurs or is found to exist or fails to take such steps as may
be required by the applicable governmental authorities in accordance with
applicable Environmental Laws, Landlord shall have the right (but no obligation)
to take any and all actions as Landlord shall deem necessary or advisable in
order to cure such Environmental Violation, Hazardous Condition or Existing
Environmental Condition, all at Tenant's sole cost and expense, and as
Additional Rent.

      

      (f)           From
and after the Commencement Date, the Use of any Hazardous Substances at the
Leased Premises shall not be permitted, unless such Use is in full compliance
with all Environmental Laws and any other applicable local, state and federal
statutes, orders, ordinances, rules and regulations. As used in this Lease, the
"Use" of Hazardous Substances
means the receipt, handling, generation, storage, use, dispensing, treatment,
recycling, sale, transfer, transportation, introduction, or incorporation of
Hazardous Substances into, on, about, under or from the Leased Premises, whether
by Tenant or by any contractor, subcontractor, subtenant, licensee,
concessionaire, or invitee of Tenant.

      

      (g)           Tenant
shall notify Landlord immediately after (1) becoming aware of any actual,
alleged or threatened Environmental Violation or Hazardous Condition; (2) any
and all enforcement actions, initiation of Remedial Actions or other
governmental or regulatory actions (excluding routine actions such as permit
renewals) instituted, completed or threatened pursuant to any Environmental Laws
affecting the Leased Premises; (3) all claims made or threatened by any third
person against Tenant or the Leased Premises relating in any way whatsoever to
Hazardous Substances, Environmental Violations or Hazardous Conditions; (4)
Tenant's knowledge of any Release of Hazardous Substances at, on, in, under or
from the Leased Premises or on, in or under any adjoining property; or (5)
Tenant's noncompliance with any of the covenants contained in this Section 10,
and Tenant shall forward to Landlord immediately upon receipt thereof copies of
all orders, reports, notices, permits, applications or other communications
relating to any such violation or noncompliance. Tenant shall provide Landlord
with information reasonably requested by Landlord concerning Hazardous
Substances in connection with the Leased Premises, regardless of whether there
is an Environmental Violation. Landlord and Tenant acknowledge that each has
received notice of the Environmental Violations, if any, or Hazardous
Conditions, if any, identified in the environmental reports and/or any separate
Environmental Violations or Hazardous Conditions listed on Exhibit F (collectively, the "Existing
Environmental Conditions"). So long as Tenant is not in default under its
obligations hereunder, Landlord consents to any corrective action and
remediation performed by Tenant pursuant to a remediation plan submitted by
Tenant to, and approved by, the applicable governmental authorities (the "Remediation Plan") in compliance with
Environmental Laws with regard to any such Existing Environmental Conditions [to
the extent additional remedial measures are not specifically set forth in Exhibit F with regard to Existing
Environmental Conditions]. So long as (i) Tenant is not in default hereunder,
and (ii) Landlord has approved such Remediation Plan, such approval not to be
unreasonably withheld, Tenant shall have the exclusive right to take any action
deemed necessary to implement such Remediation Plan, including (1)
communications with regulatory authorities, third parties and environmental
contractors, (2) preparation of corrective action plans, (3) performance of
environmental testing of soil and/or groundwater, and (4) performance of
corrective action, including installation of temporary and permanent monitoring
wells, removal or impacted soil and groundwater, and preparation of any reports
relating to such corrective action. Landlord shall cooperate with Tenant with
regard to any action that is necessary in order for Tenant to satisfy Tenant's
obligations relating to Existing Environmental Conditions.

       

      (h)           All
future leases, subleases or concession agreements relating to the Leased
Premises entered into by Tenant shall contain covenants of the other party to
not at any time (i) cause any Environmental Violation to occur or (ii) permit
any Person occupying the Leased Premises through said subtenant or
concessionaire to cause any Environmental Violation to occur.

      

      (i)           Tenant
shall indemnify, defend (with counsel acceptable to Landlord), release and hold
Landlord and all Indemnitees (as set forth in Section 15) harmless from any and
all claims, demands, judgments, damages, penalties, fines, Costs, liabilities or
losses (including claims for diminution in value of the Leased Premises, stigma
related damages, damages for the loss of or restriction on use of rentable or
usable space or of any amenity of the Leased Premises, damages arising from any
adverse impact on marketing the Leased Premises, and all sums paid in settlement
of claims, and all reasonable attorneys' fees and Costs, reasonable consultant
fees and costs and reasonable expert fees and costs) whether direct or indirect,
known or unknown, foreseen or unforeseen, that may arise on account of or in any
way be connected with any alleged, threatened or actual (1) the presence of,
Tenant's Use of, or any Release of, Hazardous Substance in, on, under, about or
from any part of the Leased Premises, whether or not such Hazardous Substances
existed on the Leased Premises prior to the Commencement Date or migrated to the
Leased Premises from other properties in the vicinity of the Leased Premises;
(2) violation of any Environmental Law applicable to the Leased Premises; (3)
Environmental Violation or Hazardous Condition with respect to the Leased
Premises; including, but not limited to, (a) damages from injury to or
destruction or loss of natural resources, including the reasonable costs of
assessing such injury, destruction or loss, incurred pursuant to Section 107 of
CERCLA, or any successor section or act or provision of any similar state or
local Law, or (b) liability for costs and expenses of abatement, correction or
clean-up, fines, damages, response costs or penalties which arise from the
provisions of any other Environmental Laws; (4) breach or default by Tenant of
any of Tenant's covenants set forth in this Section 10; (5) the costs associated
with response costs and for costs of removal and Remedial Actions, including all
necessary plans and reports, incurred by the U.S. Environmental Protection
Agency, or any other federal, state or local governmental agency or entity or by
any other Person, incurred pursuant to the CERCLA, RCRA, or any other applicable
Environmental Laws; (6) oversight charges, fines, damages or penalties arising
from the presence or Release of Hazardous Substances, and any related Remedial
Actions, incurred pursuant to the provisions of CERCLA, RCRA, or any other
applicable Environmental Laws; (7) liability to third Parties arising out of the
presence or Release of Hazardous Substances for personal injury, bodily injury,
or property damage arising under any statutory or common law theory, including
damages assessed for the maintenance of a public or private nuisance or any
trespass, the costs of Remedial Actions, or for the carrying on of an abnormally
dangerous activity; (8) direct or indirect compensatory, consequential, or
punitive damages arising out of any claim based on the presence or Release of
Hazardous Substances or damage or threatened damage to Environmental Conditions;
(9) Costs, fees and expenses of attorneys, consultants and experts incurred or
sustained in making any investigation on account of any claim, in prosecuting or
defending any action brought in connection therewith, in obtaining or seeking to
obtain a release therefrom, or in enforcing any of the agreements herein
contained; and (10) Rent during any period in which Remedial Actions are being
taken. The foregoing indemnity, defense, release and hold harmless obligations
of Tenant shall apply to Tenant's Use of Hazardous Substances irrespective of
whether any activities related to such Use were or will be undertaken in
accordance with Environmental Laws or other applicable laws, regulations, codes
and ordinances. Tenant specifically agrees that it shall not sue or seek
contribution from any Indemnitee or any successors or assigns thereof in any
matter relating Environmental Violation and/or Hazardous Substance liability.
All reasonable Costs and expenses related to this Section incurred by Landlord
shall be repaid by Tenant to Landlord as Additional Rent. This Section 10(i)
shall survive the expiration, termination or rejection in bankruptcy of the
Lease.

       

      (j)           Tenant
shall, within five (5) days after request by Landlord at any time during the
Term, execute the Certification Related to the USA Patriot Act in the form
attached hereto as Exhibit
D.

      

      11.           Liens:
Recording.

      

      (a)           Tenant
shall not, directly or indirectly, create or permit to be created or to remain
and shall promptly discharge or remove any lien, levy or encumbrance on any of
the Leased Premises or on any Rent or any other sums payable by Tenant under
this Lease, other than any Mortgage or Assignment, the Permitted Encumbrances
and any mortgage, lien, encumbrance or other charge created by or resulting
solely from any act or omission of Landlord. NOTICE IS HEREBY GIVEN THAT
LANDLORD SHALL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR
TO BE FURNISHED TO TENANT OR TO ANYONE HOLDING OR OCCUPYING ANY OF THE LEASED
PREMISES THROUGH OR UNDER TENANT, AND THAT NO MECHANICS' OR OTHER LIENS FOR ANY
SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF
LANDLORD IN AND TO ANY OF THE LEASED PREMISES. LANDLORD MAY AT ANY TIME, AND AT
LANDLORD'S REQUEST TENANT SHALL PROMPTLY, POST ANY NOTICES ON THE LEASED
PREMISES REGARDING SUCH NON-LIABILITY OF LANDLORD.

      

      (b)           Tenant
shall (subject to Landlord's prior review and execution) execute, deliver and
record, file or register all such instruments as may be required or permitted by
any present or future Law in order to evidence the respective interests of
Landlord and Tenant in the Leased Premises, and shall cause a memorandum of this
Lease (or, if such a memorandum cannot be recorded, filed or registered, this
Lease), and any supplement hereto or thereto, to be recorded, filed or
registered in such manner and in such places as may be required or permitted by
any present or future Law in order to protect the validity and priority of this
Lease.

       

      12.           Maintenance and
Repair.

      

      (a)           Tenant
shall, at its own cost and expense, keep the Leased Premises, including all
portions thereof, in good order and condition at all times on and after the
Commencement Date to and including the date of the termination of the Term, by
lapse of time or otherwise. Tenant shall timely and properly maintain, repair
and replace all of the Leased Premises and all of its component parts, including
parking lot surfaces and stripes, all landscaping, mechanical systems,
electrical and lighting systems, plumbing and sewage systems, fixtures and
appurtenances, interior walls, columns and floors, and ceilings, so as to
preserve and protect the useful life, utility and value of such components, and
in all events so as to preserve the effectiveness of any warranty relating
thereto, such repairs and replacements to be at least in quality and class to
the original work. If any segment of the Leased Premises shall become obsolete,
non-functional, or uneconomic to repair, Tenant shall remove such item from the
Leased Premises and promptly replace it with an item of comparable initial value
and function. Promptly upon installation of any equipment, other than any Trade
Fixtures, Tenant shall deliver to Landlord the original warranty (which shall
specify Landlord as the owner of the equipment and Tenant's having a
non-exclusive license and authority of Landlord solely to enforce such warranty
during the Term of the Lease) relating to such equipment. Within thirty (30)
days following Landlord's written request therefor, Tenant shall deliver to
Landlord a written statement showing all removals and replacements of such
systems or components since the last such report, including manufacturers, model
numbers, and serial numbers. Landlord may, upon two (2) business days' prior
notice (except that no notice shall be required if an Event of Default exists),
cause independent private inspectors to make inspections of the Leased Premises
or any segments thereof to determine Tenant's compliance under this Section 12.
If such inspection by Landlord reveals that the Leased Premises, or any portion
thereof, including any equipment thereon, is not in the condition required by
this Lease in any material respect, then Tenant shall pay for such additional
inspections performed by Landlord through the inspection approving the condition
of such Leased Premises as being in conformity with the Lease. In addition,
Tenant shall pay the cost of any such inspection at the Leased Premises by or on
behalf of Landlord while an Event of Default exists.

      

      (b)           If
any Improvement, now or hereafter constructed, shall (i) encroach upon any
setback or any property, street or right-of-way adjoining the Leased Premises,
(ii) violate the provisions of any restrictive covenant affecting the Leased
Premises, (iii) hinder or obstruct any easement or right-of-way to which any of
the Leased Premises is subject or (iv) impair the rights of others in, to or
under any of the foregoing, Tenant shall, promptly after receiving notice or
otherwise acquiring knowledge thereof, either (A) obtain from all necessary
parties waivers or settlements of all claims, liabilities and damages resulting
from each such encroachment, violation, hindrance, obstruction or impairment,
whether the same shall affect Landlord, Tenant or both, or (B) take such action
as shall be necessary to remove all such encroachments, hindrances or
obstructions and to end all such violations or impairments, including, if
necessary, making Alterations.

       

      (c)           Landlord
may, but is not required to, after three (3) business days' notice to Tenant
(except in the case of an emergency, in which case no notice to Tenant shall be
necessary), enter the Leased Premises and make such repairs, alterations,
improvements, additions, replacements or maintenance as Landlord deems necessary
to cure any default of Tenant hereunder, and Tenant shall pay Landlord as
Additional Rent forthwith (and in any event within thirty (30) days) after being
billed for same by Landlord the cost thereof plus an administrative fee of three
percent (3%) of such cost, which bill shall be accompanied by reasonably
supporting documentation. Such amounts shall bear interest at the Default Rate
from the date of expenditure by Landlord to the date of repayment by
Tenant.

      

      (d)           Except
as expressly provided elsewhere in this Lease, it is intended by Tenant and
Landlord that Landlord shall have no obligation, in any manner whatsoever, to
build any improvements on the Leased Premises, to maintain or make any repairs,
replacements, alterations or renewals of any nature or description to the Leased
Premises (or any equipment therein), whether structural or nonstructural, all of
which obligations are intended, as between Landlord and Tenant, to be those of
Tenant. Tenant expressly waives the benefit of any statute now or in the future
in effect which would otherwise afford Tenant the right to make repairs at
Landlord's expense or to terminate this Lease because of Landlord's failure to
keep the Leased Premises in good order, condition and repair.

      

      (e)           Tenant
shall maintain at the Leased Premises, and turn over to Landlord upon expiration
or termination of this Lease, then current operating manuals and original
warranties (to the extent applicable) for the equipment then located on the
Leased Premises.

      

      (f)           Without
limiting the generality of this Section 12, Tenant shall complete each of the
items identified in Table 1 of Schedule
12(f) on or before the first anniversary of the Full Rent Commencement
Date.

      

      13.           Alterations. Improvements
and Expansions.

      

      (a)           Tenant
shall have the right, without having obtained the prior written consent of
Landlord, to make (i) Alterations or a series of related Alterations that, as to
any such Alterations or series of related Alterations, do not cost in excess of
$100,000, (ii) to make Improvements or a series of related Improvements that, as
to any such Improvements or series of related Improvements, do not cost in
excess of $100,000, and (iii) to install equipment in the Improvements or
accessions to the Building Equipment that, as to such accessions, do not cost in
excess of $100,000, so long as at the time of construction or installation of
any such Alterations, Improvements or installation of such accessions no Event
of Default exists and the value and utility of the Leased Premises is not
diminished thereby. If the cost of any Alterations, series of related
Alterations, Improvements, series of related Improvements, equipment or
accessions thereto is in excess of $100,000 (each, an "Expansion") the prior written approval
of Landlord shall be required. In the event that Landlord grants such prior
written approval to Tenant for the undertaking of an Expansion, Landlord will
pay for the approved costs of such Expansion and the Minimum Rent shall be
increased over the remaining Term so as to allow Landlord to recover the cost of
such Expansion plus a return on capital equal to the prevailing Capital Growth
Rate. Also, if such approval is granted and such Expansion is undertaken within
the last five (5) years of any Term, then the current Term shall be increased by
five (5) years from the date of the conclusion of such Expansion and the Minimum
Rent (as set forth in Exhibit C
before giving effect to such Expansion) shall be adjusted to a blended rate
based on the (1) the current Minimum Rent in effect at such time, including
annual escalations thereof, and (2) the lease rate on the Expansion as agreed
upon by Landlord and Tenant.

       

      (b)           If
Tenant makes any Alterations pursuant to this Section 13 or as required by
Section 12 or 17 (such Alterations and actions being hereinafter collectively
referred to as "Work"), whether or not Landlord's consent is required, then (i)
the market value of the Leased Premises shall not be lessened by any such Work
or its usefulness impaired, (ii) all such Work shall be performed by Tenant in a
good and workmanlike manner, using only licensed contractors and new materials,
(iii) all such Work shall be expeditiously completed in compliance with all
Legal Requirements, (iv) all such Work shall comply with the Insurance
Requirements, (v) if any such Work involves the replacement of Building
Equipment or parts thereof, all replacement Building Equipment or parts shall
have a value and useful life equal to the greater of (A) the value and useful
life on the date hereof of the Building Equipment being replaced or (B) the
value and useful life of the Building Equipment being replaced immediately prior
to the occurrence of the event which required its replacement, (vi) Tenant shall
promptly discharge or remove all liens filed against any of the Leased Premises
arising out of such Work, (vii) Tenant shall procure and pay for all permits and
licenses required in connection with any such Work, (viii) all such Work, shall
be the property of Landlord and shall be subject to this Lease, and Tenant shall
execute and deliver to Landlord any document requested by Landlord evidencing
the assignment to Landlord of all estate, right, title and interest (other than
the leasehold estate created hereby) of Tenant or any other Person thereto or
therein, and (ix) Tenant shall comply, to the extent requested by Landlord or
required by this Lease, with the provisions of Section 19(a), whether or not
such Work involves restoration of the Leased Premises.

      

      14.           Permitted Contests.
Notwithstanding any other provision of this Lease, Tenant shall not be required
to (a) pay any Imposition, (b) discharge or remove any lien referred to in
Section 11 or 13 or (c) take any action with respect to any encroachment,
violation, hindrance, obstruction or impairment referred to in Section 12(b)
(such non-compliance with the terms hereof being hereinafter referred to
collectively as "Permitted
Violations"), so long as at the time of such contest no Event of Default
exists and so long as Tenant shall contest, in good faith, the existence, amount
or validity thereof, the amount of the damages caused thereby, or the extent of
its or Landlord's liability therefor by appropriate proceedings which shall
operate during the pendency thereof to prevent or stay (i) the collection of, or
other realization upon, the Permitted Violation so contested, (ii) the sale,
forfeiture or loss of any of the Leased Premises or any Rent to satisfy or to
pay any damages caused by any Permitted Violation, (iii) any interference with
the use or occupancy of any of the Leased Premises, (iv) any interference with
the payment of any Rent, or (v) the cancellation or increase in the rate of any
insurance policy or a statement by the carrier that coverage will be denied.
Tenant shall provide Landlord security which is satisfactory, in Landlord's
reasonable judgment, to assure that such Permitted Violation is corrected,
including all Costs, interest and penalties that may be incurred or become due
in connection therewith. While any proceedings which comply with the
requirements of this Section 14 are pending and the required security is held by
Landlord, Landlord shall not have the right to correct any Permitted Violation
thereby being contested unless Landlord is required by law to correct such
Permitted Violation and Tenant's contest does not prevent or stay such
requirement as to Landlord. Each such contest shall be promptly and diligently
prosecuted by Tenant to a final conclusion, except that Tenant, so long as the
conditions of this Section 14 are at all times complied with, has the right to
attempt to settle or compromise such contest through negotiations. Tenant shall
pay any and all losses, judgments, decrees and Costs in connection with any such
contest and shall, promptly after the final determination of such contest, filly
pay and discharge the amounts which shall be levied, assessed, charged or
imposed or be determined to be payable therein or in connection therewith,
together with all penalties, fines, interest and Costs thereof or in connection
therewith, and perform all acts the performance of which shall be ordered or
decreed as a result thereof. No such contest shall subject Landlord to the risk
of any civil or criminal liability.

       

      15.           Indemnification.

      

      (a)           In
addition to the indemnification obligations set forth in Section 10, commencing
as of the Commencement Date, Tenant shall pay, protect, indemnify, defend, save
and hold harmless Landlord, Lender and all other Persons described in Section 29
(each an "Indemnitee") from and
against any and all liabilities, losses, damages (including punitive damages),
penalties, Costs (including attorneys' fees and costs), causes of action, suits,
claims, demands or judgments of any nature whatsoever, howsoever caused, without
regard to the form of action and whether based on strict liability, negligence
or any other theory of recovery at law or in equity, arising from (i) any matter
pertaining to the acquisition (or the negotiations leading thereto), ownership,
use, non-use, occupancy, operation, condition, design, construction,
maintenance, repair or restoration of the Leased Premises, (ii) any casualty in
any manner arising from the Leased Premises, whether or not Indemnitee has or
should have knowledge or notice of any defect or condition causing or
contributing to said casualty, or (iii) any violation by Tenant of any provision
of this Lease, any contract or agreement to which Tenant is a party, any Legal
Requirement or any Permitted Encumbrance or any encumbrance Tenant consented to
or any Mortgage or Assignment.

      

      (b)           In
case any action or proceeding is brought against any Indemnitee by reason of any
such claim, (i) Tenant may, except in the event of a conflict of interest or a
dispute between Tenant and any such Indemnitee or during the continuance of an
Event of Default, retain its own counsel and defend such action (it being
understood that Landlord may employ counsel of its choice to monitor the defense
of any such action, all at Tenant's cost and expense), and (ii) such Indemnitee
shall notify Tenant to resist or defend such action or proceeding by retaining
counsel reasonably satisfactory to such Indemnitee, and such Indemnitee will
cooperate and assist in the defense of such action or proceeding if reasonably
requested so to do by Tenant. In the event of a conflict of interest or dispute
or during the continuance of an Event of Default, Landlord shall have the right
to select counsel, and the cost of such counsel shall be paid by
Tenant.

      

      (c)           Tenant
acknowledges and agrees that Landlord (except in the event of, and then only to
the extent directly attributable to, Landlord's gross negligence or willful
misconduct), any Lender and all Indemnitees shall not be liable, under any
circumstances, for any loss, injury, death or damage to person or property
(including the business or any loss of income or profit therefrom) of Tenant,
Tenant's members, officers, directors, shareholders, agents, employees,
contractors, customers, invitees or any other person in or about the Leased
Premises, whether the same are caused by (1) fire, explosion, falling plaster,
steam, dampness, mold, electricity, gas, water, rain or other act of God, (2)
breakage, leakage or other defects of sprinklers, wires, appliances, plumbing
fixtures, water or gas pipes, roof, air conditioning, lighting fixtures, street
improvements, or subsurface improvements, (3) theft, acts of God, acts of the
public enemy, riot, strike, insurrection, war, terrorism, power failures,
blackouts, energy or power shortages, court order, requisition or order of
governmental body or authority, (4) any act or omission of any other occupant of
the Leased Premises or any other party, (5) operations in construction of any
private, public or quasi-public work, or (6) any other cause, including damage
or injury which arises from the condition of the Leased Premises, from occupants
of adjacent property, from the public, or from any other sources or places, and
regardless of whether the cause of such damage or injury or the means of
repairing the same are inaccessible to Tenant, or which may arise through
repair, alteration or maintenance of any part of the Leased Premises or failure
to make any such repair, from any condition or defect in, on or about the Leased
Premises including any Environmental Violation, Hazardous Condition and/or
Hazardous Activity, or the presence of any mold or any Hazardous Substance, or
from any other condition or cause whatsoever.

       

      (d)           All
obligations of Tenant under this Section 15 shall survive any termination,
expiration or rejection in bankruptcy of this Lease.

      

      16.           Insurance.

      

      (a)           Commencing
as of the Commencement Date and continuing thereafter throughout the Term,
Tenant shall maintain the following insurance on or in connection with the
Leased Premises:

       

      (i)            "All-risk"
real and personal property insurance against physical loss or damage to the
Improvements and Building Equipment as provided under a "special form" property
insurance policy including flood (if the Leased Premises is in a flood zone),
windstorm and earthquake coverage in amounts not less than the full replacement
cost of the Improvements and Building Equipment. Such policies shall contain a
replacement cost endorsement, an agreed amount endorsement (deleting any
co-insurance provisions), a law and ordinance endorsement, and shall contain
deductibles not more than $25,000 per occurrence;

      

      (ii)            Commercial
general liability insurance including products liability and business automobile
liability insurance (including owned, non-owned and hired automobile liability)
and excess liability or umbrella coverage against claims for personal and bodily
injury, death or property damage occurring on, in or as a result of the use of
the Leased Premises, in an amount not less than $5,000,000 per occurrence/annual
aggregate, but not less than $10,000,000 for aviation products liability or such
higher amount as may be maintained from time to time, and all other coverage
extensions that are usual and customary for properties of this size and type;
there shall be severability of interest as though separate policies were issued
to each additional insured except with respect to limits of
liability;

      

      (iii)            Worker's
compensation insurance to the extent required by law covering all persons
employed by Tenant in connection with any work done on or about any of the
Leased Premises for which claims for death, disease or bodily injury may be
asserted against Landlord, Tenant or any of the Leased Premises;

       

      (iv)            Comprehensive
boiler, machinery and equipment breakdown insurance on any of the Building
Equipment or any other machinery or equipment on or in the Leased Premises for
full replacement cost;

      

      (v)            Business
income/interruption insurance to include loss of rents at limits sufficient to
cover one hundred percent (100%) of the annual Rent payable to Landlord with a
period of indemnity not less than one (1) year from time of loss. Such insurance
shall name Landlord as loss payee with respect to Rent payable to or for the
benefit of Landlord under this Lease;

      

      (vi)            During
any period in which substantial Alterations or Improvements at the Leased
Premises are being undertaken, builder's risk insurance covering the total
completed value including any "soft costs" with respect to the Improvements
being altered or repaired (on a completed value, non-reporting basis),
replacement cost of work performed and equipment, supplies and materials
furnished in connection with such construction or repair of Improvements or
Building Equipment, together with such "soft cost" endorsements and such other
endorsements as Landlord may reasonably require and general liability, worker's
compensation and automobile liability insurance with respect to the Improvements
being constructed, altered or repaired;

      

      (vii)            Breach
of warranty coverage as found in a lender's loss payable endorsement and/or
mortgagee's clause to apply to Landlord so that any violations of the terms,
conditions or warranties of any insurance policy by the named insured or others
will not invalidate the coverage insofar as the interests of Landlord are
concerned; and

      

      (viii)            Such
other insurance (or other terms with respect to any insurance required pursuant
to this Section 16, including amounts of coverage, deductibles, and form of
mortgagee clause) as Landlord or Lender may reasonably require, which at the
time is usual and commonly obtained in connection with properties similar in
type of building size, use and location to the Leased Premises, including, if
deemed appropriate by Landlord, terrorism insurance.

      

      (b)           The
insurance required by Section 16(a) shall be written by companies which have a
rating by A. M. Best Company of not less than A-/VII or otherwise reasonably
acceptable to Landlord, and are approved to write insurance policies by the
State Insurance Department for the State. The insurance policies (i) shall be
for such terms and deductibles as Landlord may reasonably approve and (ii) shall
be in amounts sufficient at all times to satisfy any coinsurance requirements
thereof. The insurance referred to in Sections 16(a)(i), 16(a)(iv), 16(a)(v),
16(a)(vi), 16(a)(vii), 16(a)(viii), 16(a)(ix), and 16(a)(x) shall name Landlord
as owner (and as an additional insured/landlord) and as sole loss payee as its
interest may appear (at Landlord's request, Lender will be named as loss payee
and as a mortgagee insured pursuant to a standard non-contributory mortgagee
endorsement in favor of, and acceptable to, Landlord and Lender). The insurance
referred to in Section 16(a)(ii), 16(a)(vii), 16(a)(viii), 16(a)(ix), and
16(a)(x) shall name Landlord and Lender as additional insureds, If said
insurance or any part thereof shall expire, be withdrawn, become void, voidable,
unreliable or unsafe for any reason, including a breach of any condition thereof
by Tenant or the failure or impairment of the capital of any insurer, or if for
any other reason whatsoever said insurance shall become reasonably
unsatisfactory to Landlord, Tenant shall immediately obtain new or additional
insurance reasonably satisfactory to Landlord. All insurance required to be
maintained by Tenant under Section 16(a) shall be primary to, and
non-contributing with, any insurance maintained by Landlord.

       

      (c)           Each
policy required by any provision of Section 16(a), except clause (iii) thereof,
shall provide that it may not be cancelled or modified except after thirty (30)
days' prior notice to Landlord and Lender. Each such policy shall also provide
that any loss otherwise payable thereunder shall be payable notwithstanding (i)
any act or omission of Landlord or Tenant which might, absent such provision,
result in a forfeiture of all or a part of such insurance payment, (ii) the
occupation or use of any of the Leased Premises for purposes more hazardous than
those permitted by the provisions of such policy, (iii) any foreclosure or other
action or proceeding taken by Lender pursuant to any provision of the Mortgage,
Note, Assignment or other document evidencing or securing the Loan upon the
happening of an event of default therein or (iv) any change in title to or
ownership of any of the Leased Premises.

      

      (d)           Tenant
shall pay as they become due all premiums (and deductibles) for the insurance
required by Section 16(a), shall renew or replace each policy and deliver to
Landlord evidence of the payment of the full premium therefor or installments
due prior to the due dates thereof, and in no event later than ten (10) days
prior to the expiration date or cancellation (for nonpayment) of such policy.
Landlord shall have the option, but never the responsibility, to make premium
payments. Landlord shall not be responsible for warranties or representations to
underwriters. Prior to the Commencement Date, Tenant shall deliver to Landlord a
certificate of insurance evidencing all insurance coverages required to be
maintained by Tenant hereunder, together with an endorsement(s) adding Landlord
and Lender as additional insureds thereunder. Tenant shall promptly forward to
Landlord copies of all original policies and endorsements upon Tenant's receipt
thereof.

       

      (e)           Any
insurance which Tenant is required to obtain pursuant to Section 16(a) may be
carried under a "blanket" or umbrella policy or policies covering other
properties or liabilities of Tenant, provided that such "blanket" or umbrella
policy or policies otherwise comply with the provisions of this Section 16 and
provided, further, that Tenant shall provide to Landlord a statement of values
which shall be reviewed annually and amended as necessary based on replacement
cost valuations. The original or a certified copy of each such "blanket" or
umbrella policy shall promptly be delivered to Landlord upon
request.

      

      (f)           Tenant
shall promptly comply with and conform to (i) all provisions of each insurance
policy required by this Section 16 and (ii) all requirements of the insurers
thereunder applicable to Landlord, Tenant or any of the Leased Premises or to
the use, manner of use, occupancy, possession, operation, maintenance,
alteration or repair of any of the Leased Premises, even if such compliance
necessitates Alterations or results in interference with the use or enjoyment of
any of the Leased Premises.

      

      (g)           Tenant
shall not carry separate insurance concurrent in form or contributing in the
event of a Casualty with that required in this Section 16 unless (i) Landlord
and Lender are included therein as additional insureds, with loss payable as
provided herein, and (ii) such separate insurance complies with the other
provisions of this Section 16. Tenant shall immediately
notify Landlord of such separate insurance and shall deliver to Landlord
certificates of such insurance and, if requested, the original policies
thereof;

       

      (h)           All
policies shall contain full waivers of subrogation against Landlord.
Additionally, the policy limits for all policies required to be maintained by
Tenant hereunder shall not in any way affect or limit Tenant's indemnification,
defense, release and hold harmless obligations set forth in this
Lease.

      

      (i)           The
per occurrence and annual aggregate limits for all insurance required to be
maintained by Tenant hereunder may be increased by Landlord from time to time to
reflect current market conditions (not more frequently than once every five
years) or to meet Lender requirements.

      

      (j)           Tenant
shall provide Landlord with acceptable forms of evidence of the insurance
required by Section 16(a) containing the original signature of the insurance
underwriter or a duly authorized agent or broker prior to the closing/funding
and prior to the termination, cessation or replacement of coverage thereafter
throughout the term of the agreement.

      

      (k)           Tenant
agrees that the insurance maintained by Tenant does not release Tenant from
liability as contained within the terms of this Lease, and that Landlord is
under no obligation or duty to ascertain the existence or adequacy of insurance.
Tenant shall do nothing to interrupt or disallow any insurance required under
the terms of this Lease. All insurance maintained by Tenant shall be
underwritten with insurers or reinsurers, if applicable, acceptable to
Landlord.

      

      17.           Casualty and Condemnation:
Claims.

       

      (a)           If
any Casualty to the Leased Premises occurs, Tenant shall give Landlord and
Lender immediate notice thereof. So long as no Event of Default exists Tenant is
hereby authorized to negotiate all claims under any of the insurance policies
required by Section 16(a) (except public liability insurance claims payable to a
Person other than Tenant, Landlord or Lender) and to execute and deliver all
necessary proofs of loss, receipts, vouchers and releases required by the
insurers, and Landlord shall have the right to join with Tenant therein, so long
as Tenant provides Landlord with copies of all correspondence to and from the
insurance carrier or its representative. Any final adjustment, settlement or
compromise of any such claim shall, however, be subject to the prior written
approval of Landlord, which shall not be unreasonably withheld or delayed, and
Landlord shall have the right to prosecute or contest, or to require Tenant to
prosecute or contest, any such claim, adjustment, settlement or compromise. If
an Event of Default exists, Tenant shall not be entitled to adjust, collect or
compromise any such claim or to participate with Landlord in any adjustment,
collection and compromise of the Net Award payable in connection with a
Casualty. Tenant agrees to sign, upon the request of Landlord, all such proofs
of loss, receipts, vouchers and releases. Each insurer is hereby authorized and
directed to make payment under said policies directly to Landlord or, if
required by the Mortgage, to Lender instead of to Landlord and Tenant jointly,
and Tenant hereby appoints each of Landlord and Lender as Tenant's
attorneys-in-fact to endorse any draft therefor.  The rights of
Landlord under this Section 17(a) shall be extended to Lender if and to the
extent that any Mortgage so provides.

       

      (b)           Tenant,
immediately upon receiving a Condemnation Notice, shall notify Landlord and
Lender thereof.  So long as no Event of Default exists, Tenant is
authorized to negotiate the amount of any Net Award and Landlord shall have the
right to join with Tenant herein (so long as Tenant provides Landlord with
copies of all correspondence to and from the condemning authority or its
representative). Any final adjustment, settlement or compromise of any such Net
Award shall, however, be subject to the prior written approval of Landlord,
which shall not be unreasonably withheld or delayed, and Landlord shall have the
right to prosecute or contest, or to require Tenant to prosecute or contest, any
such claim, adjustment, settlement or compromise relating to a Net Award. If an
Event of Default exists, Landlord shall be authorized to collect, settle and
compromise the amount of any Net Award and Tenant shall not be entitled to
participate with Landlord in any Condemnation proceeding or negotiations under
threat thereof or to contest the Condemnation or the amount of the Net Award
therefor. No agreement with any condemnor in settlement or under threat of any
Condemnation shall be made by Tenant without the written consent of Landlord
which shall not be unreasonably withheld, conditioned or delayed. Subject to the
provisions of this Section 17(b), Tenant hereby irrevocably assigns to Landlord
any award or payment to which Tenant is or may be entitled by reason of any
Condemnation, whether the same shall be paid or payable for Tenant's leasehold
interest hereunder (including bonus value) or otherwise; but nothing in this
Lease shall impair Tenant's right to any award or payment on account of Tenant's
Trade Fixtures, equipment or other tangible property which is not part of the
Building Equipment, moving expenses or loss of business, if available, to the
extent that and so long as (i) Tenant shall have the right to make, and does
make, a separate claim therefor against the condemnor and (ii) such claim does
not in any way reduce either the amount of the award otherwise payable to
Landlord for the Condemnation of Landlord's fee interest in the Leased Premises
or the amount of the award (if any) otherwise payable for the Condemnation of
Tenant's leasehold interest hereunder. The rights of Landlord under this Section
17(b) shall also be extended to Lender if and to the extent that any Mortgage so
provides.

       

      18.            Casualty and Condemnation:
Restoration. If any Casualty (whether or not insured against) or
Condemnation shall occur, this Lease shall continue, notwithstanding such event,
and there shall be no abatement or reduction of any Monetary Obligations.
Promptly after such Casualty or Condemnation, Tenant, as required in Sections
12(a) and 13(b), shall commence and diligently continue to restore the Leased
Premises as nearly as possible to their value, condition and character
immediately prior to such event (assuming the Leased Premises to have been in
the condition required by this Lease). So long as no Event of Default exists,
any Net Award up to and including $50,000 shall be paid by Landlord to Tenant
and Tenant shall restore the Leased Premises in accordance with the requirements
of Sections 12(a) and 13(b) of this Lease. Any Net Award in excess of $50,000
shall be made available by Landlord (or Lender, if required by the terms of any
Mortgage) to Tenant for the restoration of any of the Leased Premises pursuant
to and in accordance with the provisions of Section 19 hereof.

      

      19.            Restoration
Procedures.

      

      (a)           Landlord
(or Lender if required by any Mortgage) shall hold Net Award in excess of
$50,000 in a fund (the "Restoration
Fund") and disburse amounts from the Restoration Fund only in accordance
with the following conditions:

      

      (i)             prior
to commencement of restoration, (A) the architects, contracts, contractors,
plans and specifications for the restoration shall have been approved by
Landlord, (B) Landlord and Lender shall be provided with mechanics' lien
insurance (if available) and acceptable performance and payment bonds which
insure satisfactory completion of and payment for the restoration, are in an
amount and form and have a surety acceptable to Landlord, and name Landlord and
Lender as additional dual obligees, and (C) appropriate waivers of mechanics'
and materialmen's liens shall have been filed;

      

      (ii)             at
the time of any disbursement, no Event of Default shall exist and no mechanics'
or materialmen's liens shall have been filed against any of the Leased Premises
and remain undischarged;

      

      (iii)             disbursements
shall be made from time to time in an amount not exceeding the cost of the work
completed since the last disbursement, upon receipt of (A) satisfactory
evidence, including architects' certificates, of the stage of completion, the
estimated total cost of completion and performance of the work to date in a good
and workmanlike manner in accordance with the contracts, plans and
specifications, (B) waivers of liens, (C) contractors' and subcontractors' sworn
statements as to completed work and the cost thereof for which payment is
requested, (D) a satisfactory bringdown of title insurance and (E) other
evidence of cost and payment so that Landlord can verify that the amounts
disbursed from time to time are represented by work that is completed, in place
and free and clear of mechanics' and materialmen's lien claims;

      

      (iv)             each
request for disbursement shall be accompanied by a certificate of Tenant, signed
by the president or a vice president of Tenant, describing the work for which
payment is requested, stating the cost incurred in connection therewith, stating
that Tenant has not previously received payment for such work and, upon
completion of the work, also
stating that the work has been fully completed and complies with the applicable
requirements of this Lease;

      (v)            Landlord
may retain ten percent (10%) of the restoration fund until the restoration is
fully completed, including all "punch list" items;

      

      (vi)            if
the Restoration Fund is held by Landlord, the Restoration Fund shall not be
commingled with Landlord's other funds and shall bear interest at a rate agreed
to by Landlord and Tenant; and

      

      (vii)            such
other reasonable conditions as Landlord or Lender may impose.

      

      (b)           Prior
to commencement of restoration and at any time during restoration, if the
estimated cost of completing the restoration work free and clear of all liens,
as determined by Landlord, exceeds the amount of the Net Award available for
such restoration, the amount of such excess shall, upon demand by Landlord, be
paid by Tenant to Landlord to be added to the Restoration Fund. Any sum so added
by Tenant which remains in the Restoration Fund upon completion of restoration
shall be refunded to Tenant. For purposes of determining the source of funds
with respect to the disposition of funds remaining after the completion of
restoration, the Net Award shall be deemed to be disbursed prior to any amount
added by Tenant.

      

      (c)           If
any sum remains in the Restoration Fund after completion of the restoration and
any refund to Tenant pursuant to Section 19(b), such sum shall be retained by
Landlord.

      

      20.           Assignment and Subletting;
Prohibition against Leasehold Financing.

      

      (a)           Without
the prior written consent of Landlord, unless guaranteed in writing by Tenant by
a written instrument in form and substance satisfactory to Landlord, Tenant may
not:

       

      (i)            assign,
mortgage or pledge this Lease, voluntarily or involuntarily, whether by
operation of law or otherwise, except to Tenant's Affiliates; or

      

      (ii)            sublet
any of the Leased Premises at any time to any other Person.

      

      Any such
purported assignment or sublease in violation of this Section 20(a) shall be
null and void. Whether or not Landlord consents to any proposed assignment,
mortgage, sublease or other transfer, Tenant shall, within ten (10) days after
request in writing by Landlord, reimburse Landlord for all Costs and expenses
incurred by Landlord in connection with its review thereof.

      

      (b)           If
Tenant assigns all its rights and interest under this Lease with Landlord's
consent, the assignee under such assignment shall expressly assume all the
obligations of Tenant hereunder, actual or contingent, including obligations of
Tenant which may have arisen on or prior to the date of such assignment, by a
written instrument delivered to Landlord at the time of such assignment. Each
sublease of any of the Leased Premises shall be subject and subordinate to the
provisions of this Lease. No assignment or sublease shall affect or reduce any
of the obligations of Tenant hereunder, and all such obligations shall continue
in full force and effect as obligations of a principal and not as obligations of
a guarantor, as if no assignment or sublease had been made. No assignment or
sublease shall impose any additional obligations on Landlord under this
Lease.

       

      (c)           Tenant
shall, within ten (10) days after the execution and delivery of any assignment
or sublease consented to by Landlord, deliver a duplicate original copy thereof
to Landlord which, in the event of an assignment, shall be in recordable
form.

      

      (d)           As
security for performance of its obligations under this Lease, Tenant hereby
grants, conveys and assigns to Landlord all right, title and interest of Tenant
in and to all subleases (the "Subleases") now in existence or hereinafter
entered into for any or all of the Leased Premises, any and all extensions,
modifications and renewals thereof and all rents, issues and profits therefrom.
Landlord hereby grants to Tenant a license to collect and enjoy all rents and
other sums of money payable under any Sublease of any of the Leased Premises,
provided, however, that Landlord shall
have the absolute right at any time during the continuance of an Event of
Default upon notice to Tenant and any subtenants to revoke said license and to
collect such rents and sums of money and to apply the same to installments of
Interim Rent or Minimum Rent next due and owing. Tenant shall not accept any
rents under any Sublease more than thirty (30) days in advance of the accrual
thereof nor do nor permit anything to be done, the doing of which, nor omit or
refrain from doing anything, the omission of which, will or could be a breach of
or default in the terms of any of the Subleases.

      

      21.           Sales by Landlord; Right of
First Refusal.

      

      (a)           Landlord
may sell or transfer the property comprising the Leased Premises at any time to
any third party (each, a "Third Party
Purchaser"); provided, however,
that prior to any such sale or transfer, Landlord shall give notice to Tenant of
the terms offered by the Third Party Purchaser (the "Third Party Offer") and offer to sell
or transfer such property to Tenant on the same terms and conditions as are set
forth in the Third Party Offer. Tenant shall then have ten (10) days after
receipt of Landlord's offer to either accept or reject such offer in writing. If
Tenant does not accept or reject such offer within such period of ten (10) days,
then Tenant will be deemed to have rejected Landlord's offer, and Landlord shall
be free to sell such property to such Third Party Purchaser or to any other
Person on terms no less favorable to Landlord than those set forth in the Third
Party Offer at any time within one hundred eighty (180) days after Tenant's
rejection of Landlord's offer. It is a condition to Tenant's right of first
refusal that (a) no Event of Default shall have occurred or be continuing as of
the date on which Landlord receives the Third Party Offer which shall trigger
such right of first refusal, and (b) no Event of Default shall have occurred or
be continuing as of the date on which Tenant seeks to exercise a right of first
refusal by accepting Landlord's offer to sell or transfer such property to
Tenant.

      

      (b)           In
the event of any such transfer to a Third Party Purchaser, Tenant shall attorn
to such Third Party Purchaser as Landlord, provided such Third Party Purchaser or
Landlord has notified Tenant in writing of such transfer. At the request of
Landlord, Tenant will execute such documents confirming the agreement referred
to above and such other agreements as Landlord or the Third Party Purchaser may
reasonably request, provided that such
agreements do not increase the liabilities and obligations of Tenant hereunder.
Whenever Landlord transfers its interest in the Leased Premises (whether to a
Third Party Purchaser or an Affiliate or subsidiary of Landlord), Landlord shall
be automatically released from further performance under this Lease and from all
further liabilities and expenses hereunder, provided the transferee of Landlord's interest
assumes all liabilities and obligations of Landlord hereunder from the date of
such transfer.

       

      22.            Events of Default.
The occurrence of any one or more of the following (after expiration of any
applicable cure period as provided in Section 22) shall, at the sole option of
Landlord, constitute an "Event of
Default" under this Lease:

      

      (a)           Tenant
shall fail to pay any Interim Rent or Minimum Rent as and when the same becomes
due, and such failure continues for five (5) days after Landlord gives written
notice thereof to Tenant, provided that
if Tenant is more than five (5) days late in the payment of Interim Rent or
Minimum Rent in any twelve (12) consecutive months period, only one notice need
be given by Landlord during such twelve (12) consecutive months and any
subsequent failure to pay Interim Rent or Minimum Rent on or before its due date
within such twelve (12) consecutive months shall constitute an Even of Default
after five (5) days without notice;

      

      (b)           Tenant
shall fail to pay any Additional Rent or any other Monetary Obligation as and
when the same becomes due and payable and such failure continues for more than
five (5) days after Landlord gives written notice thereof to
Tenant;

      

      (c)           a
default occurs under Section 20;

      

      (d)           Tenant
shall fail to perform and observe, or there shall occur a violation or breach
of, any other provision hereof, not otherwise specifically mentioned in this
Section 22 as and when such performance or observance is due and such failure,
violation, or breach continues for more than thirty (30) days after Landlord
gives written notice thereof to Tenant; provided, however, that if such failure,
violation or breach is not reasonably susceptible to cure within such period of
thirty (30) days, an Event of Default shall not exist as long as Tenant
commences with due diligence and dispatch the curing of such failure, violation
or breach within such period of thirty (30 days and thereafter prosecutes with
diligence and dispatch and completes the curing of such failure, violation or
breach within a reasonable time not to exceed one hundred eighty (180)
days;

      

      (e)           any
representation or warranty made by Tenant herein or in any certificate, demand
or request made pursuant hereto proves to be incorrect, now or hereafter, in any
material respect;

       

      (f)           a
default beyond any applicable cure period or at maturity by Tenant in any
payment of principal or interest on any obligations for borrowed money having an
original principal balance of $10,000,000 or more in the aggregate, or in the
performance of any other provision contained in any instrument under which any
such obligation is created or secured (including the breach of any covenant
thereunder), (x) if such payment is a payment at maturity or a final payment, or
(y) if an effect of such default is to cause, or permit any Person to cause,
such obligation to become due prior to its stated maturity;

       

      (g)           a
default by Tenant beyond any applicable cure period in the payment of rent
under, or in the performance of any other material provision of, any other lease
or leases that have, in the aggregate, rental obligations over the terms thereof
of $500,000 or more if the landlord under any such lease or leases commences to
exercise its remedies thereunder;

      

      (h)           a
final, non-appealable judgment or judgments for the payment of money in excess
of $10,000,000 in the aggregate shall be rendered against Tenant and the same
shall remain undischarged for a period of sixty (60) consecutive
days;

      

      (i)           Tenant
shall (A) file, or consent by answer or otherwise to the filing against Tenant
of, a petition for relief or reorganization or arrangement or any other petition
in bankruptcy or for liquidation or to take advantage of any bankruptcy,
insolvency or other debtors' relief law of any jurisdiction, (B) make a general
assignment for the benefit of creditors, (C) consent to the appointment of a
custodian, receiver, trustee or other officer with similar powers for itself or
for any substantial part of the Leased Premises, (D) be unable to pay its debts
as they mature or shall admit in writing its inability to pay its debts when
due, or (E) take action for the purpose of any of the foregoing;

      

      (j)           a
court or governmental authority shall enter an order, judgment or decree (A)
appointing, without the consent of Tenant, a custodian, receiver, trustee or
other officer with similar powers with respect to Tenant or any substantial part
of the Leased Premises, (B) constituting an order for relief or approving a
petition for relief or reorganization or arrangement or any other petition in
bankruptcy, insolvency or other debtors' relief law of any jurisdiction, or (C)
ordering the dissolution, winding-up or liquidation of Tenant; and such order,
judgment or decree shall remain undischarged or unstayed sixty (60) days after
it is entered;

      

      (k)           Tenant
shall be liquidated or dissolved or shall begin proceedings towards its
liquidation or dissolution;

      

      (1)    the estate or
interest of Tenant in any of the Leased Premises shall be levied upon or
attached in any proceeding and such estate or interest is about to be sold or
transferred or such process shall not be vacated or discharged within sixty (60)
days after it is made;

      

      (m)           Tenant
shall fail to convey the Additional Properties to Landlord on or before February
28, 2007 in accordance with the terms of the Purchase Agreement;

      

      (n)           Tenant
shall fail to perform or observe, or there shall occur a violation or breach of,
or a misrepresentation by Tenant under, any provision of any agreement or any
other document between Tenant and Lender, if such failure, violation, breach or
misrepresentation gives rise to a default beyond any applicable cure period with
respect to any Loan;

      

      (o)           Guarantor
shall engage, enter into, or publicly announce a Corporate Control Event, unless
each of the following conditions precedent is satisfied (a "Permitted Transfer"):

      

      (i)            the
successor to or transferee of Tenant of Guarantor (the "Transferee") has a tangible net worth
computed in accordance with GAAP consistently applied at least equal to the
tangible net worth of Guarantor immediately prior to such Corporate Control
Event, and satisfies the Corporate Control Criteria;

       

      (ii)            proof
reasonably satisfactory to Landlord of such required net worth and satisfaction
of the Corporate Control Criteria shall have been delivered to Landlord at least
twenty (20) days prior to the effective date of any such Corporate Control
Event;

      

      (iii)            the
Transferee agrees directly with Landlord, by written instrument in form and
substance reasonably satisfactory to Landlord, to be bound by all of the
obligations and liabilities of Tenant under this lease or Guarantor under the
Lease Guaranty, as the case may be;

      

      (iv)            in
no event shall the originally named Tenant or Guarantor (or the entity into
which Tenant or Guarantor is merged or consolidated) be released from its
obligations under the Lease or the Lease Guaranty, as the case may
be;

      

      (v)            any
such transfer or transaction is for a legitimate, regular business purpose of
Tenant or Guarantor and the Transferee, other than the direct or indirect
transfer of Tenant's interest in this Lease;

      

      (vi)            no
Event of Default then exists or will exist immediately after giving effect to
such Corporate Control Event; or

      

      (p)           a
default, event of default or breach of any term or provision by Tenant (or an
Affiliate of Tenant) under any agreement or document between Tenant (or an
Affiliate of Tenant) and Landlord (or an Affiliate of Landlord);
and

      

      (q)           an
"Event of Default" as such term is defined in the Lease Guaranty.

      

      23.           Remedies and Damages Upon
Default

      

      (a)           If
an Event of Default shall have occurred and is continuing, Landlord shall have
the right, at its sole option, then or at any time thereafter, to exercise its
remedies and to collect damages from Tenant in accordance with this Section 23,
subject in all events to applicable Law, without demand upon or notice to Tenant
except as otherwise provided in Section 22 and this Section 23.

      

      (i)            Landlord
may give Tenant notice of Landlord's intention to terminate this Lease on a date
specified in such notice and upon such date, this Lease, the estate hereby
granted and all rights of Tenant hereunder shall expire and terminate. Upon such
termination, Tenant shall immediately surrender and deliver possession of the
Leased Premises to Landlord in accordance with Section 26. If Tenant does not so
surrender and deliver possession of all of the Leased Premises, Landlord may
re-enter and repossess any of the Leased Premises not surrendered, with legal
process, by summary proceedings, ejectment or any other lawful means or
procedure. Upon or at any time after taking possession of any of the Leased
Premises, Landlord may, by peaceable means or legal process, remove any Persons
or property therefrom. Landlord shall be under no liability for or by reason of
any such entry, repossession or removal. Notwithstanding such entry or
repossession, Landlord may collect the damages set forth in Section
23(b).

       

      (ii)            After
repossession of any of the Leased Premises, Landlord shall have the right to
relet any of the Leased Premises to such tenant or tenants, for such term or
terms, for such rent, on such conditions and for such uses as Landlord in its
sole discretion may determine, and collect and receive any rents payable by
reason of such reletting. Landlord may make such Alterations in connection with
such reletting as it may deem advisable in its sole discretion. Notwithstanding
any such reletting, Landlord may collect the damages set forth in Section
23(b).

      

      (iii)            Landlord
may declare by notice to Tenant the entire Interim Rent or Minimum Rent (in the
amount of Interim Rent or Minimum Rent then in effect) for the remainder of the
then current Term to be immediately due and payable. Tenant shall immediately
pay to Landlord all such Interim Rent or Minimum Rent discounted to its Present
Value, all accrued Rent then due and unpaid, all other Monetary Obligations
which are then due and unpaid and all Monetary Obligations which arise or become
due by reason of such Event of Default (including any Costs of Landlord). Upon
receipt by Landlord of all such accelerated Interim Rent or Minimum Rent and
Monetary Obligations, this Lease shall remain in full force and effect and
Tenant shall have the right to possession of the Leased Premises from the date
of such receipt by Landlord to the end of the Term, and subject to all the
provisions of this Lease, including the obligation to pay all increases in
Interim Refit or Minimum Rent and all Monetary Obligations that subsequently
become due, except that (A) no Interim Rent or Minimum Rent which has been
prepaid hereunder shall be due thereafter during the said Term, (B) Tenant shall
have no option to extend or renew the Term.

      

      (b)           The
following constitute damages to which Landlord shall be entitled if Landlord
exercises its remedies under Section 23(a)(i) or 23(a)(ii):

      

      (i)            If
Landlord exercises its remedy under Section 23(a)(i) but not its remedy under
Section 23(a)(ii) (or attempts to exercise such remedy under Section 23(a)(ii)
and is unsuccessful in reletting the Leased Premises) then, upon written demand
from Landlord, Tenant shall pay to Landlord, as liquidated and agreed final
damages for Tenant's default and in lieu of all current damages beyond the date
of such demand (it being agreed that it would be impracticable or extremely
difficult to fix the actual damages), and not as a penalty, an amount equal to
the Present Value of all Interim Rent or Minimum Rent from the date of such
demand to the date on which the Term is scheduled to expire hereunder in the
absence of any earlier termination, re-entry or repossession. Tenant shall also
pay to Landlord all of Landlord's Costs in connection with the repossession of
the Leased Premises and any attempted reletting thereof, including all brokerage
commissions, legal expenses, reasonable attorneys' fees, employees' expenses,
costs of Alterations and expenses and preparation for reletting.

      

      (ii)            If
Landlord exercises its remedy under Section 23(a)(ii), then Tenant shall, until
the end of what would have been the Term in the absence of the termination of
the Lease, and whether or not any of the Leased Premises shall have been relet,
be liable to Landlord for, and shall pay to Landlord, on the date on which the
same are due and payable under the terms of this Lease all Monetary Obligations
which would be payable under this Lease by Tenant in the absence of such
termination less the net proceeds, if any, of any reletting pursuant to Section
23(a)(ii), after deducting from such proceeds all of Landlord's Costs (including
the items listed in the last sentence of Section 23(b)(i) hereof) incurred in
connection with such repossessing and reletting; provided that if Landlord has not relet the
Leased Premises, such Costs of Landlord shall be considered to be Monetary
Obligations payable by Tenant. Landlord shall also be entitled to recover from
Tenant as damages for loss of the bargain, and not as a penalty, an amount equal
to the sum of (1) the Present Value of the excess, if any, of (a) all Interim
Rent and Minimum Rent payable under this Lease from the date of termination,
reentry or repossession, as the case may be, over (b) the greater of (x) amount
of the base rent obtained by Landlord after reletting the Leased Premises, or
(y) the Fair Rental Value of the Leased Premises, plus (2) all of Landlord's
Costs (including the items listed in the last sentence of Section 23(b)(i)
hereof). As used herein the "Fair
Rental Value" of the Leased Premises means an amount equal to the fair
market rental value of the Leased Premises considered as unencumbered by this
Lease and available for the highest and best use that may be made thereof.
Tenant shall be and remain liable for all sums aforesaid, and Landlord may
recover such damages from Tenant and institute and maintain successive actions
or legal proceedings against Tenant for the recovery of such damages. Nothing
herein contained shall be deemed to require Landlord to wait to begin such
action or other legal proceedings until the date when the Term would have
expired by its own terms had there been no such Event of Default.

       

      (c)           Notwithstanding
anything to the contrary herein contained, in lieu of or in addition to any of
the foregoing remedies and damages, Landlord may exercise any remedies and
collect any damages available to it at law or in equity. If Landlord is unable
to obtain full satisfaction pursuant to the exercise of any remedy, it may
pursue any other remedy which it has hereunder or at law or in equity, it being
understood that the remedies set forth herein are not exclusive and are
cumulative in addition to any remedies allowed now or after the date hereof by
applicable law.

      

      (d)           Landlord
shall not be required to mitigate any of its damages hereunder. If any Law shall
validly limit the amount of any damages provided for herein to an amount which
is less than the amount agreed to herein, Landlord shall be entitled to the
maximum amount available under such Law.

      

      (e)           No
termination of this Lease, repossession or reletting of the Leased Premises,
exercise of any remedy or collection of any damages pursuant to this Section 23
shall relieve Tenant of any Surviving Obligations.

      

      (f)           THE
PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EACH OF
THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LEASE, AND ANY AGREEMENT
CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR THE COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
PARTY (INCLUDING ANY ACTION TO RESCIND OR CANCEL THIS LEASE AND ANY CLAIMS OR
DEFENSES ASSERTING THAT THIS LEASE WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID
OR VOIDABLE).  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
UNDERSIGNED TO EXECUTE THIS LEASE.

       

      (g)           Upon
the occurrence of any Event of Default, Landlord shall have the right (but no
obligation) to perform any act required of Tenant hereunder and, if performance
of such act requires that Landlord enter the Leased Premises, Landlord may enter
the Leased Premises for such purpose. Any such payment or performance by
Landlord of Tenant's obligations under this Lease shall be on Tenant's account
and at Tenant's sole cost and expense, and as Additional Rent
hereunder.

      

      (h)           No
failure of Landlord (i) to insist at any time upon the strict performance of any
provision of this Lease or (ii) to exercise any option, right, power or remedy
contained in this Lease shall be construed as a waiver, modification or
relinquishment thereof. A receipt by Landlord of any sum in satisfaction of any
Monetary Obligation with knowledge of the breach of any provision hereof shall
not be deemed a waiver of such breach, and no waiver by Landlord of any
provision hereof shall be deemed to have been made unless expressed in a writing
signed by Landlord.

      

      (i)           Tenant
hereby waives and surrenders, for itself and all those claiming under it,
including creditors of all kinds, (i) any right and privilege which it or any of
them may have under any present or future Law to redeem any of the Leased
Premises or to have a continuance of this Lease after termination of this Lease
or of Tenant's right of occupancy or possession pursuant to any court order or
any provision hereof, and (ii) the benefits of any present or future Law which
exempts property from liability for debt or for distress for rent. Tenant hereby
expressly waives the service of notice of intention to re-enter provided for in
any statute now or hereafter in force, or to institute legal proceedings to that
end, and also waives any and all right of redemption provided for in any statute
now or hereafter in force in case Tenant shall be dispossessed by a judgment or
by warrant of any court or judge. The terms "enter", "re-enter", "entry" or "re-entry", as used in this Lease, are
not restricted to their technical legal meanings.

      

      (j)           Except
as otherwise provided herein, all remedies are cumulative and concurrent and no
remedy is exclusive of any other remedy. Each remedy may be exercised at any
time an Event of Default has occurred and is continuing and may be exercised
from time to time. No remedy shall be exhausted by any exercise
thereof.

      

      (k)           Tenant
shall pay all of Landlord's legal costs, expenses and reasonable attorneys'
fees, expert fees and consultant fees in exercising any of Landlord's rights and
remedies against Tenant, whether set forth herein or at law or
equity.

      

      (l)           If
Landlord elects to terminate this Lease on account of any Event of Default on
the part of Tenant, then Landlord may: (i) terminate any sublease, license,
concession, or other consensual arrangement for possession entered into by
Tenant and affecting any of the Leased Premises; or (ii) choose to succeed to
Tenant's interest in such arrangement. No payment by a subtenant with respect to
a sublease shall entitle such subtenant to possession of the Leased Premises
after termination of this Lease and Landlord's election to terminate the
sublease by the subtenant. If Landlord elects to succeed to Tenant's interest in
such arrangement, then Tenant shall, as of the date of notice given by Landlord
to Tenant of such election, have no further right to, or interest in, any rent
or other consideration receivable under that arrangement.

       

      24.           Notices.  All
notices, demands, requests, consents, approvals, offers, statements and other
instruments or communications required or permitted to be given pursuant to the
provisions of this Lease shall be in writing and shall be deemed to have been
given and received for all purposes when delivered in person or by Federal
Express or other reliable 24-hour delivery service or five (5) business days
after being deposited in the United States mail, by registered or certified
mail, return receipt requested, postage prepaid, addressed to the other party at
its address stated above or when delivery is refused. A copy of any notice given
by Tenant to the originally named Landlord shall simultaneously be given by
Tenant to Reed Smith LLP, 435 Sixth Avenue, Pittsburgh, Pennsylvania 15219,
Attn: Chairman Real Estate Department, and to CIT Capital USA Inc., 505 Fifth
Avenue, New York, New York 10017, Attn: General Counsel. For the purposes of
this Section, any party may substitute another address stated above (or
substituted by a previous notice) for its address by giving fifteen (15) days'
notice of the new address to the other party, in the manner provided
above.

      

      25.           Estoppel Certificate.
At any time upon not less than ten (10) days' prior written request by either
Landlord or Tenant (the "Requesting
Party") to the other party (the "Responding Party"), the Responding
Party shall deliver to the Requesting Party a statement in writing, executed by
an authorized officer of the Responding Party, certifying (a) that, except as
otherwise specified, this Lease is unmodified and in full force and effect, (b)
the dates to which Interim Rent, Minimum Rent, Additional Rent and all other
Monetary Obligations have been paid, (c) that, to the knowledge of the signer of
such certificate and except as otherwise specified, no default by either
Landlord or Tenant exists hereunder, (d) such other matters as the Requesting
Party may reasonably request, and (e) if Tenant is the Responding Party that,
except as otherwise specified, there are no proceedings pending or, to the
knowledge of the signer, threatened, against Tenant before or by any court or
administrative agency which, if adversely decided, would materially and
adversely affect the financial condition and operations of Tenant. Any such
statements by the Responding Party may be relied upon by the Requesting Party,
any Person whom the Requesting Party notifies the Responding Party in its
request for the Certificate is an intended recipient or beneficiary of the
Certificate, any Lender or their assignees and by any prospective purchase or
mortgagee of any of the Leased Premises. Any certificate required under this
Section 25 and delivered by Tenant shall state that, in the opinion of each
person signing the same, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to the subject matter
of such certificate, and shall briefly state the nature of such examination or
investigation. In addition to the rights of Landlord and Tenant to obtain
estoppel certificates, Tenant shall, upon Lender's request at any time, and from
time to time during the existence of the Loan, and upon any foreclosure of the
Loan or transfer in lieu thereof, deliver to Lender an estoppel certificate
executed by Tenant, which Tenant shall provide in the same manner and with the
same content and effect as estoppel certificates to be delivered by Tenant to
Landlord, except that the estoppel certificate to Lender shall include such
additional information as Lender may reasonably request.

       

      26.           Surrender. Upon the
expiration or earlier termination of this Lease, Tenant shall peaceably leave
and surrender the Leased Premises to Landlord in the same condition in which the
Leased Premises was at the commencement of this Lease, except as repaired,
rebuilt, restored, altered, replaced or added to as permitted or required by any
provision of this Lease, and except for ordinary wear and tear. Upon such
surrender, Tenant shall (a) remove from the Leased Premises all personal
property, Trade Fixtures and equipment (other than the Building Equipment) which
is owned by Tenant or third parties other than Landlord and (b) repair any
damage caused by such removal. The personal property, Trade Fixtures and
equipment not so removed shall become the property of Landlord. Landlord may
thereafter cause such property to be removed from the Leased Premises. The cost
of removing and disposing of such property and repairing any damage to any of
the Leased Premises caused by such removal shall be paid by Tenant to Landlord
upon demand. Landlord shall not in any manner or to any extent be obligated to
reimburse Tenant for any such property which becomes the property of Landlord
pursuant to this Section 26. If Tenant holds over in possession after the
expiration of the Term, then such holding over shall not be deemed to extend the
Term or renew this Lease, but rather the tenancy thereafter shall continue as a
tenancy at sufferance pursuant to the terms and conditions herein contained, at
one hundred fifty percent (150%) of the Interim Rent or Minimum Rent in effect
on the date of such expiration (plus the requirement that Tenant pay to Landlord
all Additional Rent); and Tenant shall indemnify, defend, protect (with counsel
selected by Landlord) and hold Landlord and all Indemnitees wholly free and
harmless of, from and against any and all damages, losses, costs, expenses and
claims arising therefrom, including reasonable attorneys' fees and costs. This
Section 26 shall survive expiration, termination or rejection in bankruptcy of
the Lease.

      

      27.           No Merger of Title.
There shall be no merger of the leasehold estate created by this Lease with the
fee estate in any of the Leased Premises by reason of the fact that the same
Person may acquire or hold or own, directly or indirectly, (a) the leasehold
estate created hereby or any part thereof or interest therein and (b) the fee
estate in any of the Leased Premises or any part thereof or interest therein,
unless and until all Persons having any interest in the interests described in
(a) and (b) above which are sought to be merged shall join in a written
instrument effecting such merger and shall duly record the same.

      

      28.           Books and
Records.

      (a)           Tenant
shall keep adequate records and books of account with respect to the finances
and business of Tenant generally and with respect to the Leased Premises, in
accordance with GAAP consistently applied, and shall permit Landlord and Lender
by their respective agents, accountants and attorneys, upon three (3) business
days' prior written notice to Tenant, to visit and inspect the Leased Premises
and examine (and make copies of) the records and books of account and to discuss
the finances and business with the officers of Tenant, at such reasonable times
as may be requested by Landlord; provided, however, that Landlord shall not make
such request more than once during any consecutive twelve-month period. Upon the
request of Lender or Landlord (either telephonically or in writing), Tenant
shall provide the requesting party with copies of any information to which such
party would be entitled in the course of a personal visit.

      

      (b)           Tenant
shall deliver to Landlord and to Lender within ninety (90) days of the close of
each fiscal year, annual audited financial statements of Tenant prepared by a
nationally recognized firm of independent certified public accountants. Tenant
shall also furnish to Landlord within forty-five (45) days after the end of each
of the three first calendar quarters in each calendar year unaudited financial
statements and all other quarterly reports of Tenant, certified by,
respectively, Tenant's chief financial officer. All financial statements of
Tenant shall be prepared in accordance with GAAP consistently applied. All
annual financial statements shall be accompanied by an opinion of said
accountants stating that (A) there are no qualifications as to the scope of the
audit and (B) the audit was performed in accordance with GAAP.

       

      (c) All
financial statements required under this Section 28 shall be accompanied by the
certification of the president or a vice president of Tenant in the form
attached hereto as Exhibit G,
dated within five (5) days of the delivery of such statement, stating that (A)
the affiant knows of no Event of Default, or event which, upon notice or the
passage of time or both, would become an Event of Default which has occurred and
is continuing hereunder or, if any such event has occurred and is continuing,
specifying the nature and period of existence thereof and what action Tenant has
taken or proposes to take with respect thereto and (B) except as otherwise
specified in such affidavit, that Tenant has fulfilled all of its obligations
under this Lease which are required to be fulfilled on or prior to the date of
such affidavit.

      

      29.           Non-Recourse as to
Landlord. Anything contained herein to the contrary notwithstanding, any
claim based on or in respect of any liability of Landlord under this Lease shall
be enforced only against the Leased Premises and not against any other assets,
properties or funds of (i) Landlord, (ii) Landlord's members, and any entity
controlling, controlled by, or in common control of Landlord or Landlord's
members, any director, officer, general partner, shareholder, limited partner,
beneficiary, employee, consultant, contractor or agent of Landlord or any
general partner of Landlord or any of its general partners (or any legal
representative, heir, estate, successor or assign of any thereof), (iii) any
predecessor or successor limited liability company, partnership or corporation
(or other entity) of Landlord or any of its members, managers, general partners,
shareholders, officers, directors, employees or agents, either directly or
through Landlord or its general partners, shareholders, officers, directors,
employees or agents or any predecessor or successor partnership or corporation
(or other entity), (iv) any Lender, and any lender to a Person holding an
interest in Landlord, (v) any Person affiliated with any of the foregoing, or
any director, officer, employee or agent of any thereof; or (vi) the heirs,
successors, personal representatives and assigns of any of the
foregoing.

      

      30.           Financing. If
Landlord desires to obtain a Loan, Tenant shall, upon request of Landlord,
supply any such Lender with such notices and information as Tenant is required
to give to Landlord hereunder and to extend the rights of Landlord hereunder to
any such Lender and to consent to such financing if such consent is requested by
such Lender. Tenant shall execute a non-disturbance and attornment agreement,
which may require Tenant to confirm that (a) Lender and its assigns will not be
liable for any misrepresentation, act or omission of Landlord, (b) Lender and
its assigns will not be subject to any counterclaim, demand or offset which
Tenant may have against Landlord, (c) Lender and its assigns will not be bound
by any amendment to this Lease not consented to in writing by Landlord, and (d)
Landlord has assigned its interest in the Lease to Lender and no consent or
approval of Landlord pursuant to this Lease shall be effective without Lender's
consent.

       

      31.           Subordination. This
Lease, any memorandum of this Lease and Tenant's interest hereunder shall be
subordinate to any Mortgage or other security instrument presently recorded or
hereafter placed upon the Leased Premises by Landlord, and to any and all
advances made or to be made thereunder, to the interest thereon, and all
renewals, replacements and extensions thereof; provided, however, that such
Mortgage or other security instrument (or a separate contemporaneous or
subsequent instrument in recordable form duly executed by Lender and delivered
to Tenant) shall include commercially reasonable subordination, non-disturbance
and attornment provisions ("SNDA
Provisions"), which Tenant will execute and deliver, without cost to
Landlord or Lender. Such SNDA Provisions may provide, among other matters, that
if any foreclosure proceedings are initiated by Lender or a deed in lieu is
granted (or if any ground lease is terminated), Tenant agrees, upon written
request of any such holder or any purchaser at foreclosure sale, to attorn and
pay Rent to such party and to execute and deliver any instruments necessary or
appropriate to evidence or effectuate such attornment, provided such Lender or purchaser at a
foreclosure sale shall agree to accept this Lease and not disturb Tenant's
occupancy, so long as Tenant does not default and fail to cure within the time
permitted hereunder. The SNDA Provisions shall also include such other
provisions as may be commercially reasonably requested by Lender. However, in
the event of attornment, Lender shall not be: (i) liable for any act or omission
of Landlord, or subject to any offsets or defenses which Tenant might have
against Landlord (prior to such Lender becoming Landlord under such attornment),
or(ii) liable for any security deposit or bound by any prepaid Rent not actually
received by Lender. The SNDA provisions may also include provisions set forth in
the last sentence of Section 30 of this Lease.

      

      32.           Tax Treatment,
Reporting. Landlord and Tenant each acknowledge that each shall treat
this transaction as a true lease for state law purposes and shall report this
transaction as a Lease for Federal income tax purposes. For Federal income tax
purposes each shall report this Lease as a true lease with Landlord as the owner
of the Leased Premises and Building Equipment and Tenant as the lessee of such
Leased Premises and Building Equipment including: (1) treating Landlord as
the owner of the property eligible to claim depreciation deductions under
Section 167 or 168 of the Code with respect to the Leased Premises and Building
Equipment, (2) Tenant reporting its Rent payments as rent expense under
Section 162 of the Code, and (3) Landlord reporting the Rent payments as
rental income.

      

      33.           Miscellaneous.

      

      (a)           The
Section headings in this Lease are used only for convenience in finding the
subject matters and are not part of this Lease or to be used in determining the
intent of the parties or otherwise interpreting this Lease.

      

      (b)           As
used in this Lease, the singular shall include the plural and any gender shall
include all genders as the context requires and the following words and phrases
shall have the following meanings: (i) "including" shall mean "including without
limitation"; (ii) "provisions" shall mean "provisions, terms, agreements,
covenants and/or conditions"; (iii) "lien" shall mean "lien, charge,
encumbrance, title retention agreement, pledge, security interest, mortgage
and/or deed of trust"; (iv) "obligation" shall mean "obligation, duty,
agreement, liability, covenant and/or condition"; (v) "any of the Leased
Premises" shall mean "the Leased Premises or any part thereof or interest
therein"; (vi) "any of the Land" shall mean "the Land or any part
thereof or interest therein"; (vii) "any of the Improvements" shall mean "the
Improvements or any part thereof or interest therein"; and (viii) "any of the
Building Equipment" shall mean "the Building Equipment or any part thereof or
interest therein".

       

      (c)           Any
act which Landlord is permitted to perform under this Lease may be performed at
any time and from time to time by Landlord or any person or entity designated by
Landlord, Each appointment of Landlord as attorney-in-fact for Tenant hereunder
is irrevocable and coupled with an interest. Except as otherwise specifically
provided herein, Landlord shall not unreasonably withhold or delay its consent
whenever such consent is required under this Lease, except that with respect to
any assignment of this Lease or subletting of the Leased Premises not expressly
permitted by the terms of this Lease. Time is of the essence with respect to the
performance by Tenant of all of its obligations under this Lease.

      

      (d)           Landlord
shall in no event be construed for any purpose to be a partner, joint venturer
or associate of Tenant or of any subtenant, operator, concessionaire or licensee
of Tenant with respect to any of the Leased Premises or otherwise in the conduct
of their respective businesses.

      

      (e)           This
Lease and any documents which may be executed by Tenant on or about the
effective date hereof at Landlord's request constitute the entire agreement
between the parties and supersede all prior understandings and agreements,
whether written or oral, between the parties hereto relating to the Leased
Premises and the transactions provided for herein. Landlord and Tenant are
business entities having substantial experience with the subject matter of this
Lease and have each fully participated in the negotiation and drafting of this
Lease. Accordingly, this Lease shall be construed without regard to the rule
that ambiguities in a document are to be construed against the
drafter.

      

      (f)           This
Lease may be modified, amended, discharged or waived only by an agreement in
writing signed by the party against whom enforcement of any such modification,
amendment, discharge or waiver is sought.

      

      (g)           Subject
to the terms and provisions of Section 20 hereof, the covenants of this Lease
shall run with the land and bind Tenant, its successors and assigns and all
present and subsequent encumbrancers and subtenants of any of the Leased
Premises, and shall inure to the benefit of Landlord, its successors and
assigns. If there is more than one Tenant, the obligations of each shall be
joint and several.

      

      (h)           If
any one or more of the provisions contained in this Lease shall for any reason
be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Lease, but this Lease shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

      

      (i)           This
Lease shall be governed by and construed and enforced in accordance with the
Laws of the State.

      

      (j)           Except
as otherwise expressly stated in this Lease, any consent or approval required to
be obtained from Landlord may be granted by Landlord in its sole discretion. In
any instance in which Landlord agrees not to act unreasonably, Tenant hereby
waives any claim for damages against or liability of Landlord which is based
upon a claim that Landlord has unreasonably withheld or unreasonably delayed any
consent or approval requested by Tenant, and Tenant agrees that its sole remedy
shall be an action for declaratory judgment. If with respect to any required
consent or approval Landlord is required by the express provisions of this Lease
not to unreasonably withhold or delay its consent or approval, and if it is
determined in any such proceeding referred to in the preceding sentence that
Landlord acted unreasonably, the requested consent or approval shall be deemed
to have been granted; however, Landlord shall have no liability whatsoever to
Tenant for its refusal or failure to give such consent or approval. Tenant's
sole remedy for Landlord's unreasonably withholding or delaying, consent or
approval shall be as provided in this Section.

       

      (k)    Landlord and Tenant
each represents to the other that no broker has been involved in this Lease.
Landlord and Tenant agree that if any claim for brokerage commissions are ever
made against Landlord or Tenant in connection with this Lease, all claims shall
be handled and paid by the party whose actions or alleged commitments form the
basis of such claim.

       

      (l)    This Lease
may be executed in one or more counterparts, each of which shall constitute an
original, and all of which together shall constitute one and the same
instrument.

      

      [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, this Lease Agreement is executed as of the day and year first
above written.

      

      
        
          
            	
                    LANDLORD:

                     

                  
	
                    CIT CRE LLC, a Delaware
      limited liability company

                     

                    By:  /s/ Roy
      Rosenbaum                     
      

                            Roy
      Rosenbaum

                            Vice
      President

                     

                     

                  
	
                    TENANT:

                     

                  
	
                    LMI FINISHING, INC., an
      Oklahoma corporation

                     

                    By:
      /s/ Lawrence E.
      Dickinson            
      

                    Title:
        Vice
      President

                  

          

           

           

           

          

            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

            EXHIBIT
A

            

            

            

            

            LEASED
PREMISES

            

             

            

            
              
                	
                        Address

                      	
                        City

                      	
                        State

                      
	 
      	 
      	 
      
	
                        2104
      North 170th
      East Avenue

                      	
                        Tulsa

                      	
                        Oklahoma

                      

              

            

            

            

            [attach
legal description]lmi10k031509ex9.htm

    Exhibit 10.9

       

       

      

      MASTER
AGREEMENT

      

      

      

      between

      

      

      

      APB
WINGLETS COMPANY, LLC.,

      D.B.A.
AVIATION PARTNERS BOEING

      

      

      

      and

      

      

      

      LMI
AEROSPACE, INC.

      

      

      

      

      

      

      

      

      APB-LMI-001

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      TABLE OF
CONTENTS

      TITLE
PAGE

      TABLE OF
CONTENTS

      AMENDMENT
PAGE

      RECITAL
PAGE

      

      
        	
                1.0

              	
                DEFINITIONS

              	
                1

              
	 
      	 
      	 
      
	
                2.0

              	
                TERM
      OF AGREEMENT, ORDERS

              	
                3

              
	 
      	
                2.1

              	
                Term
      of Agreement

              	
                3

              
	 
      	
                2.2

              	
                Follow-on
      Models

              	
                3

              
	 
      	
                2.3

              	
                Order
      Quantity

              	
                3

              
	 
      	
                2.4

              	
                Issuance
      of Orders

              	
                4

              
	 
      	
                2.5

              	
                Orders
      Containing Additional Terms

              	
                4

              
	 
      	
                2.6

              	
                Written
      Authorization to Proceed

              	
                4

              
	 
      	
                2.7

              	
                Rejection
      of Purchase Order

              	
                5

              
	 
      	 
      	 
      	 
      
	
                3.0

              	
                TITLE
      AND RISK OF LOSS

              	
                5

              
	 
      	 
      	 
      
	
                4.0

              	
                DELIVERY
      PROCESS/INVOICE EVENT

              	
                5

              
	 
      	
                4.1

              	
                Delivery
      Requirements

              	
                5

              
	 
      	
                4.2

              	
                Delivery
      Process

              	
                5

              
	 
      	
                4.3

              	
                Shipment
      Notification

              	
                5

              
	 
      	
                4.4

              	
                Non-Excusable
      Delay

              	
                6

              
	 
      	 
      	
                4.4.1.

              	
                Delivery
      Performance

              	
                6

              
	 
      	 
      	
                4.4.2.

              	
                Notification

              	
                6

              
	 
      	 
      	
                4.4.3.

              	
                Mitigation

              	
                6

              
	 
      	 
      	
                4.4.4.

              	
                APB’s
      Rights

              	
                6

              
	 
      	
                4.5

              	
                Notice
      of Labor Disputes

              	
                7

              
	 
      	 
      	 
      	 
      
	
                5.0

              	
                ON-SITE
      REVIEW AND RESIDENT REPRESENTATIVES

              	
                7

              
	 
      	
                5.1

              	
                Review

              	
                7

              
	 
      	
                5.2

              	
                Resident
      Representatives

              	
                7

              
	 
      	 
      	 
      	 
      
	
                6.0

              	
                PAYMENT/PRICING

              	
                8

              
	 
      	
                6.1

              	
                Product
      Pricing

              	
                8

              
	 
      	
                6.2

              	
                Payment

              	
                8

              
	 
      	
                6.3

              	
                Amortization
      of Nonrecurring Price

              	
                8

              
	 
      	 
      	 
      	 
      
	
                7.0

              	
                PACKING
      AND SHIPPING

              	
                8

              
	 
      	
                7.1

              	
                Packaging

              	
                8

              
	 
      	
                7.2

              	
                General

              	
                9

              
	 
      	
                7.3

              	
                Requirements
      for each Shipment

              	
                9

              
	 
      	
                7.4

              	
                Tariff
      Declaration

              	
                9

              
	 
      	
                7.5

              	
                Unit
      Container Markings

              	
                9

              
	 
      	
                7.6

              	
                Shipping
      Container Markings

              	
                9

              
	 
      	 
      	 
      	 
      
	
                8.0

              	
                QUALITY
      ASSURANCE, INSPECTION, REJECTION, & ACCEPTANCE

              	
                10

              
	 
      	
                8.1

              	
                QA/Inspection/PMA

              	
                10

              
	 
      	
                8.2

              	
                Quality
      Management System

              	
                10

              
	 
      	 
      	
                8.2.1.

              	
                Supplier
      Quality Plan

              	
                10

              
	 
      	 
      	
                8.2.2.

              	
                Inspection

              	
                10

              

      

      

      

      
        
          
            i

          

          
            Master Agreement
No. APB-LMI-001  

            
              

            

          

          
             

          

        

      

      

      

      
        	 
      	 
      	 
      	 
      	 
      
	 
      	
                8.3

              	
                Federal
      Aviation Administration or Equivalent Government Agency

                Inspection

              	
                11

              
	 
      	
                8.4

              	
                APB’s
      Inspection, Acceptance and Rejection

              	
                11

              
	 
      	
                8.5

              	
                Certificate
      of Conformity (C of C)

              	
                12

              
	 
      	
                8.6

              	
                Airworthiness
      Tag Requirement

              	
                12

              
	 
      	
                8.7

              	
                Retention
      of Records; Compliance with Standards

              	
                12

              
	 
      	
                8.8

              	
                Digital
      Data Control System

              	
                12

              
	 
      	
                8.9

              	
                First
      Article Inspection

              	
                13

              
	 
      	
                8.10

              	
                Tool
      Control System

              	
                13

              
	 
      	
                8.11

              	
                Direct
      Sales/Regulatory Approvals

              	
                13

              
	 
      	 
      	 
      	 
      
	
                9.0

              	
                PRODUCTION
      RATE

              	
                13

              
	 
      	 
      	 
      
	
                10.0

              	
                CHANGES

              	
                13

              
	 
      	
                10.1

              	
                Change
      Orders

              	
                13

              
	 
      	
                10.2

              	
                Examination
      of Records for Changes

              	
                14

              
	 
      	
                10.3

              	
                Computation
      of Equitable Adjustment

              	
                14

              
	 
      	
                10.4

              	
                Obsolescence

              	
                14

              
	 
      	
                10.5

              	
                Configuration

              	
                14

              
	 
      	 
      	
                10.5.1

              	
                Configuration
      Changes

              	
                15

              
	 
      	
                10.6

              	
                Planning
      Schedule

              	
                15

              
	 
      	 
      	 
      
	
                11.0

              	
                ACCELERATION/DECELERATION
      AT NO COST

              	
                15

              
	 
      	 
      	 
      
	
                12.0

              	
                PRODUCT
      SUPPORT AND ASSURANCE

              	
                15

              
	 
      	
                12.1

              	
                Warranty

              	
                15

              
	 
      	
                12.2

              	
                Insurance

              	
                16

              
	 
      	 
      	
                12.2.1

              	
                Products
      and Completed Operations Liability

              	
                16

              
	 
      	 
      	
                12.2.2

              	
                Property
      Insurance

              	
                17

              
	 
      	 
      	 
      	
                12.2.2.1

              	
                Certificate
      of Insurance

              	
                17

              
	 
      	 
      	 
      	
                12.2.2.2

              	
                Notice
      of Damage or Loss

              	
                17

              
	 
      	
                12.3

              	
                Manufacturing/Design
      Indemnities

              	
                17

              
	 
      	
                12.4

              	
                Notice
      of Claim

              	
                18

              
	 
      	 
      	 
      	 
      
	
                13.0

              	
                TERMINATION
      FOR CONVENIENCE

              	
                18

              
	 
      	
                13.1

              	
                Basis
      for Termination; Notice

              	
                18

              
	 
      	
                13.2

              	
                Termination
      Instructions

              	
                18

              
	 
      	
                13.3

              	
                LMI’s
      Claim

              	
                19

              
	 
      	
                13.4

              	
                Failure
      to Submit a Claim

              	
                19

              
	 
      	
                13.5

              	
                Partial
      Termination

              	
                19

              
	 
      	
                13.6

              	
                Exclusions
      or Deductions

              	
                19

              
	 
      	
                13.7

              	
                Partial/Payment

              	
                20

              
	 
      	
                13.8

              	
                LMI’s
      Accounting Practices

              	
                20

              
	 
      	
                13.9

              	
                Records

              	
                20

              
	 
      	 
      	 
      	 
      
	
                14.0

              	
                EVENTS
      OF DEFAULT AND REMEDIES

              	
                20

              
	 
      	
                14.1

              	
                Events
      of Default

              	
                20

              
	 
      	
                14.2

              	
                Remedies

              	
                21

              

      

      

      

      
        
          
            ii

          

          
            Master
Agreement No. APB-LMI-001  

            
              

            

          

          
             

          

        

      

      

      

      
        	
                15.0

              	
                EXCUSABLE
      DELAY

              	
                22

              
	 
      	 
      	 
      
	
                16.0

              	
                SUSPENSION
      OF WORK

              	
                23

              
	 
      	 
      	 
      	 
      
	
                17.0

              	
                TERMINATION
      OR CANCELLATION AND INDEMNITY AGAINST

              	 
      
	 
      	
                SUBCONTRACTOR
      CLAIMS

              	
                23

              
	 
      	 
      	 
      
	
                18.0

              	
                ASSURANCE
      OF PERFORMANCE

              	
                23

              
	 
      	
                18.1

              	
                LMI
      to Provide Assurance

              	
                23

              
	 
      	
                18.2

              	
                Meetings
      and Information

              	
                24

              
	 
      	 
      	 
      	 
      
	
                19.0

              	
                LEAD
      TIMES

              	
                24

              
	 
      	 
      	 
      	 
      
	
                20.0

              	
                PERFORMANCE
      VISIBILITY

              	
                24

              
	 
      	 
      	 
      	 
      
	
                21.0

              	
                RESPONSIBILITY
      FOR APB PROPERTY

              	
                24

              
	 
      	 
      	 
      	 
      
	
                22.0

              	
                LIMITATION
      OF LMI’S RIGHT TO ENCUMBER ASSETS

              	
                24

              
	 
      	 
      	 
      	 
      
	
                23.0

              	
                PROPRIETARY
      INFORMATION AND MATERIALS

              	
                25

              
	 
      	
                23.1

              	
                License
      of LMI’s Background Proprietary Information and Inventions

              	
                27

              
	 
      	 
      	 
      
	
                24.0

              	
                COMPLIANCE
      WITH LAWS

              	
                28

              
	 
      	
                24.1

              	
                LMI’s
      Obligation

              	
                28

              
	 
      	
                24.2

              	
                Export
      Controls

              	
                28

              
	 
      	 
      	 
      
	
                25.0

              	
                INTEGRITY
      IN PROCUREMENT

              	
                28

              
	 
      	 
      	 
      	 
      
	
                26.0

              	
                INFRINGEMENT

              	
                28

              
	 
      	 
      	 
      	 
      
	
                27.0

              	
                NOTICES

              	
                29

              
	 
      	
                27.1

              	
                Addresses

              	
                29

              
	 
      	
                27.2

              	
                Effective
      Date

              	
                29

              
	 
      	
                27.3

              	
                Approval
      or Consent

              	
                29

              
	 
      	 
      	 
      	 
      
	
                28.0

              	
                PUBLICITY

              	
                29

              
	 
      	 
      	 
      	 
      
	
                29.0

              	
                RESPONSIBILITY
      FOR PERFORMANCE

              	
                29

              
	 
      	
                29.1

              	
                Flowdown
      of Requirements

              	
                29

              
	 
      	
                29.2

              	
                Performance
      during Disputes

              	
                30

              
	 
      	
                29.3

              	
                Disputes

              	
                30

              
	 
      	
                29.4

              	
                Subcontracting

              	
                30

              
	 
      	
                29.5

              	
                Reliance

              	
                31

              
	 
      	
                29.6

              	
                Assignment

              	
                31

              
	 
      	 
      	 
      	 
      
	
                30.0

              	
                PRODUCT
      SUPPORT

              	
                31

              
	 
      	
                30.1

              	
                Policy

              	
                31

              
	 
      	
                30.2

              	
                Scope

              	
                31

              
	 
      	
                30.3

              	
                AOG
      Response

              	
                32

              
	 
      	
                30.4

              	
                Routine/
      Class II Response

              	
                32

              
	 
      	
                30.5

              	
                Designation
      by APB

              	
                32

              
	 
      	
                30.6

              	
                Reclassifications
      or Re-exercises

              	
                32

              
	 
      	
                30.7

              	
                Spare
      Parts Pricing

              	
                32

              
	 
      	
                30.8

              	
                Packaging
      of Spare Parts

              	
                32

              
	 
      	
                30.9

              	
                Special
      Handling

              	
                33

              
	 
      	
                30.10

              	
                LMI’s
      Spares Point of Contact

              	
                33

              
	 
      	
                30.11

              	
                Communication
      Response Times

              	
                33

              
	 
      	
                30.12

              	
                General
      Product Support Requirements

              	
                33

              

      

      

      

      
        
          
            iii

          

          
            Master
Agreement No. APB-LMI-001  

            
              

            

          

          
             

          

        

      

       

      

      
        	 
      	 
      	
                30.12.1

              	
                Resolution
      of Product Warranty Claims

              	
                33

              
	 
      	 
      	
                30.12.2

              	
                Technical
      Assistance Requests-Product Manufacture

              	
                34

              
	 
      	 
      	
                30.12.3

              	
                Agreement
      to Manufacture and Sell

              	
                34

              
	 
      	 
      	 
      
	
                31.0

              	
                TOOLING

              	
                34

              
	 
      	 
      	 
      	 
      
	
                32.0

              	
                APB-OWNED
      TOOLING

              	
                34

              
	 
      	 
      	 
      	 
      
	
                33.0

              	
                STATUS
      REPORTS/REVIEWS

              	
                35

              
	 
      	 
      	 
      	 
      
	
                34.0

              	
                APB-FURNISHED
      MATERIAL AND DATA

              	
                35

              
	 
      	 
      	 
      	 
      
	
                35.0

              	
                INVENTORY
      AT CONTRACT COMPLETION

              	
                35

              
	 
      	 
      	 
      	 
      
	
                36.0

              	
                CONFIGURATION
      CONTROL OF PRODUCTS

              	
                35

              
	 
      	 
      	 
      	 
      
	
                37.0

              	
                NON-WAIVER

              	
                36

              
	 
      	 
      	 
      	 
      
	
                38.0

              	
                HEADINGS

              	
                36

              
	 
      	 
      	 
      	 
      
	
                39.0

              	
                PARTIAL
      INVALIDITY

              	
                36

              
	 
      	 
      	 
      	 
      
	
                40.0

              	
                APPLICABLE
      LAW; JURISDICTION

              	
                36

              
	 
      	 
      	 
      	 
      
	
                41.0

              	
                AMENDMENT

              	
                36

              
	 
      	 
      	 
      	 
      
	
                42.0

              	
                LIMITATION

              	
                36

              
	 
      	 
      	 
      	 
      
	
                43.0

              	
                LITIGATION

              	
                37

              
	 
      	
                43.1

              	
                Rebates

              	
                37

              
	 
      	 
      	 
      	 
      
	
                44.0

              	
                ENTIRE
      AGREEMENT/ORDER OF PRECEDENCE/SURVIVAL

              	
                37

              
	 
      	
                44.1

              	
                Entire
      Agreement

              	
                37

              
	 
      	
                44.2

              	
                Incorporated
      by Reference

              	
                37

              
	 
      	
                45.3

              	
                Order
      of Precedence

              	
                37

              
	 
      	 
      	 
      	 
      
	
                45.0

              	
                SURVIVAL

              	
                38

              

      

       

      
 

      
        
          
            iv

          

          
            Master
Agreement No. APB-LMI-001  

            
              

            

          

          
             

          

        

      

      
 

      AMENDMENTS/ADDENDUMS

      

      
        	
                Amend

                Number

              	
                Description

              	
                Date

              	
                Approval

              
	
                 
      

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

              	 
      	 
      	 
      

      

      

       

      
        
          
            
              v

            

            
              Master
Agreement No. APB-LMI-001  

              
                

              

            

            
               

            

          

        

        
 

      

      MASTER
AGREEMENT

      

      

      THIS
MASTER AGREEMENT is entered into as of ___________, by and between LMI
AEROSPACE, INC., ("LMI') with Corporate Headquarters in St. Charles, Missouri,
doing business in Savannah, Georgia, and APB Winglets Company, LLC. ("APB"),
D.B.A. Aviation Partners Boeing, a Limited Liability Company (LLC) with its
principal office in Seattle, Washington.

      

      PREAMBLE

      

      
        	
                A.

              	
                APB
      designs, purchases, tests, certifies, installs, sells, and supports
      Blended Winglet Systems. A Blended Winglet system is a curved wingtip
      device and all associated hardware installed on Boeing commercial
      aircraft.

              

      

      

      
        	
                B.

              	
                LMI
      desires to provide procurement, manufacturing, and kitting of wing
      modification parts and assemblies for the 767-300ER/F aircraft in
      accordance with the terms of this
Agreement.

              

      

      

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

      

      1.0                      DEFINITIONS

      

      The
definitions set forth below shall apply to this Agreement and any Order. Words
importing the singular number shall also include the plural number and vice
versa and reference to "including" shall mean "including but not limited
to."

      

      
        
          	
                  A.

                	
                  "Agreement"
      means this Master Agreement as amended from time to time by addendum or
      otherwise.

                
	 
      	 
      
	
                  B.

                	
                  “Aircraft"
      means airplanes modified by APB containing Product(s) supplied by LMI to
      APB under this Agreement.

                
	 
      	 
      
	
                  C.

                	
                  "Airplane-On-Ground"
      or "AOG" means the highest Spare Part priority.

                
	 	 
	
                  D.

                	
                  "APB"
      means APB Winglets Company, LLC.

                
	 
      	 
      
	
                  E.

                	
                  "APB
      Proprietary Spare" means any Spare Part which is manufactured (i) by APB,
      or (ii) to APB's detailed designs with APB's authorization or (iii) in
      whole or in part using APB's proprietary materials.

                
	 
      	 
      
	
                  F.

                	
                  "Assembly"
      means one or more machined or formed parts that are mechanically
      assembled.

                
	 
      	 
      
	
                  G.

                	
                  “Correction"
      means Repair, correction or provision of a defective Product to bring it
      into compliance with all requirements of an applicable warranty, or at
      LMI's option, replacement of such Product with a new Product that meets
      all requirements of the warranty.

                

        

         

         

        
          
            1

          

          
            Master Agreement No.
APB-LMI-001

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  H.

                	
                  "Customer"
      means any owner, lessee, operator or user or designee of such owner,
      lessee or operator of an aircraft or any Product and any other individual,
      partnership, corporation or entity which has or acquires any interest in
      any Product from, through or under APB.

                
	 
      	 
      
	
                  I.

                	
                  "Detail
      Part" means a subcomponent of an Assembly or Kit.

                
	 
      	 
      
	
                  J.

                	
                  "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.

                
	 
      	 
      
	
                  K.

                	
                  "First
      Article" ("FA") means the first Shipset of Products to be shipped in place
      to APB.

                
	 
      	 
      
	
                  L.

                	
                  "First
      Part Qualification" means the first representative parts or kits
      manufactured utilizing production processes to verify that the production
      processes are capable of yielding parts in compliance with the respective
      Engineering drawing and specifications.

                
	 
      	 
      
	
                  M.

                	
                  "FAA"
      means the United States Federal Aviation Administration or any successor
      agency thereto.

                
	 
      	 
      
	
                  N.

                	
                  "FAR"
      means the Federal Aviation Regulations in effect on the date of this
      Agreement.

                
	 
      	 
      
	
                  O.

                	
                  "In-Production
      Requirement" means any Spare Part which is in the current engineering
      configuration for the Product and is used on an aircraft model currently
      being modified.

                
	 
      	 
      
	
                  P.

                	
                  "Kit"
      means a collection of machined or formed parts manufactured according to a
      specific Bill of Material and usually supplied as one part, or kit,
      number, including both right hand and left hand
  components.

                
	 
      	 
      
	
                  Q.

                	
                  "LMI"
      has the meaning given in the Preamble.

                
	 
      	 
      
	
                  R.

                	
                  "Material
      Representative" means the individual designated from time to time by APB
      as being primarily responsible for interacting with LMI regarding this
      Agreement and any Order.

                
	 
      	 
      
	
                  S.

                	
                  "Non-Production
      Requirement" means any Spare Part which is no longer being manufactured in
      production or is in a non-current engineering configuration for the
      Product.

                
	 
      	 
      
	
                  T.

                	
                  "Order"
      means each purchase order issued by APB and accepted by LMI under the
      terms of this Agreement.

                
	 
      	 
      
	
                  U.

                	
                  "Product"
      means goods, including components and parts thereof, services, documents,
      data, software, software documentation and other information or items
      furnished or which may be furnished to APB under any Order, including
      Tooling, with respect to wing modification parts or kits, for the
      767-300-ER/F wing modification program.

                

           

           

          
            
              2

            

            
              Master Agreement No.
APB-LMI-001

              
                

              

            

            
              
              

            

          

           

          
            	
                    V.

                  	
                    "Production
      Phase" means the period after which APB has obtained an STC for the
      767-300ERF winglet system.

                  
	 
      	 
      
	
                    W.

                  	
                    "Repair"
      means to make a Product serviceable by replacing or processing failed or
      damaged parts.

                  
	 
      	 
      
	
                    X.

                  	
                    "Repairable
      Product" means a Spare Parts classification assigned by APB. Indicates
      that a failed or damaged Product can be restored to a serviceable
      condition.

                  
	 
      	 
      
	
                    Y.

                  	
                    "Routine"
      means a Spare Part required in LMI's normal lead-time.

                  
	 
      	 
      
	
                    Z.

                  	
                    "Shipset"
      means the total quantity of Product necessary for one (1) airplane. Left
      hand wing modification parts and right hand wing modification parts are
      necessary for one (1) airplane.

                  
	 
      	 
      
	
                    AA.

                  	
                    "Spare
      Part" ("Spares") means any Product, regardless of whether the Product is a
      wing modification Kit or Detail Part, which is intended for use or sale as
      a spare part.

                  
	 
      	 
      
	
                    BB.

                  	
                    "Supplemental
      Type Certificate" or "STC" means a certification vehicle obtained from the
      FAA used by third parties to supplement the OEM Type Certificate for an
      airplane model.

                  

          

        

      

      

      2.0                      TERM
OF AGREEMENT, ORDERS

      

      2.1                      Term
of Agreement

      

      This
Agreement is in effect for five years, commencing as of the date referenced
above. It can be extended by mutual agreement at any time, but not later than
180 days prior to its expiration. Either party may initiate the extension
discussion through notifying the other party of its desire to extend the
Agreement.

      

      2.2                      Follow-on
Models

      

      This
Agreement is not intended to extend to any follow-on models to the 767 family,
should APB elect to undertake the development of those models. APB presently
anticipates that follow on model work packages will be subject to a separate RFQ
process. Assuming satisfactory performance by LMI under the Agreement, LMI will
have the right to participate in any such RFQ.

      

      2.3                      Order
Quantity

      

      Subject
to Section 6.1 regarding final determination of prices, APB agrees to purchase
from LMI 100 Shipsets of wing modification machined parts for the 767-300ER and
767-300F program. APB has the option to order 200 additional Shipsets upon the
terms and condition set forth in this Agreement, at the Base Price finally
determined according to Section 6.1. LMI will be prepared to make initial
deliveries on or about February 1, 2008.

       

       

      
        
          3

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      2.4                      Issuance
of Orders

      

      APB
expects to issue Orders to LMI annually for Products. For the first year only
there will be at least two orders, one initial Order for two Shipsets to support
flight testing, and one Order after testing and certification is completed for
the balance of the first year's production articles. Thereafter, Orders will
generally be issued one per calendar year, generally six months before the
beginning of the calendar year. Each Order shall contain a description of the
Products ordered, a reference to the applicable specifications and Drawings, the
quantities and prices, the delivery schedule, the terms and place of delivery,
and any special conditions.

      

      Each
Order shall be governed by and be deemed to include the provisions of this
Agreement. The following note will be contained in any Order to which this
Agreement is applicable:

      

      "Order is
subject to Master Agreement between APB and LMI dated [] as amended from time to
time."

      

      Any terms
and conditions on the face of the Order which conflict with or are additional
requirements to this Agreement will take precedence over this
Agreement.

      

      2.5                      Orders
Containing Additional Terms

      

      To the
extent any Order includes special conditions, special delivery terms or any
other terms or conditions that are additional to or different from those set
forth in this Agreement, such Order is APB's offer to LMI in respect of such
additional terms. Acceptance by LMI is strictly limited to the additional terms
in the Order. APB will not be bound by any term or condition that is different
from or in addition to the provisions of the Order, whether or not such term or
condition will materially alter the Order. LMI's commencement of performance or
acceptance of the Order in any manner shall conclusively evidence LMI's
acceptance of the Order as written. APB may revoke any Order prior to APB's
receipt of LMI's written acceptance or LMI's commencement of
performance.

      

      2.6                      Written
Authorization to Proceed

      

      The
Material Representative may give written authorization on behalf of APB to LMI
to commence performance before APB issues an Order. If such written authority to
proceed or "ATP" specifies that an Order will be issued, APB and LMI shall
proceed as if an Order had been issued. The parties shall promptly consult and
use commercially reasonable efforts to agree on any open terms that would
otherwise be required in an Order. If APB does not specify in its ATP that an
Order shall be issued, APB's obligation is strictly limited to the terms of the
ATP.

      

      LMI may
not proceed with any work under this Agreement without an explicit written ATP
or written Order from APB. LMI may elect to proceed at risk prior to receipt of
any such ATP or Order. In such case APB accepts no liability whatsoever for
costs or other obligations incurred should an ATP or Order not be issued for any
reason.

       

       

      
        
          4

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

      
2.7                      Rejection
of Purchase Order

      

      Any
rejection by LMI of an Order shall be in writing and specify the reasons for
rejection and any changes or additions that would make the Order acceptable to
LMI. LMI may not reject (and accordingly shall accept) any Order that complies
with the provisions of this Agreement and does not include additional terms or
conditions.

      

      3.0                      TITLE
AND RISK OF LOSS

      

      Title to
and risk of any loss of or damage to the Products shall pass in accordance with
Ex Works (INCOTERMS 2000). Accordingly, title and risk of loss shall pass to APB
when the Products have been completed, passed inspection by LMI's final
inspectors in accordance with Article 8.0, invoiced to APB, made available for
shipment, and placed in storage at its facilities in Savannah, Georgia in
accordance with Article 4.0. LMI will be liable to APB for any damage to the
Products prior to pick up by the carrier that is caused by LMI's fault or
negligence.

      

      4.0                      DELIVERY
PROCESS/INVOICE EVENT

      

      4.1                      Delivery
Requirements

      

      LMI shall
make all deliveries to or at the direction of APB strictly in accordance with
the quantities, delivery schedule, and other requirements specified in the
applicable Order. LMI may not make early deliveries or partial deliveries
without APB's prior written authorization. Deliveries inconsistent with the
terms of an Order may be returned to LMI at LMI's sole expense.

      

      4.2                      Delivery
Process

      

      APB will
request LMI to "Ship-in-Place" Products according to the delivery schedule set
fort in the applicable Purchase Order. Ship-in-Place means that LMI has
completed and invoiced APB for the Products in accordance with the Order
schedule, and risk and title has passed to APB, however, the physical location
of the Products is at LMI's facilities in Savannah, Georgia. For Ship-in-Place,
LMI shall package the completed Products and store in an LMI-controlled secure
inventory warehouse.

      

      4.3                      Shipment
Notification

      

      APB will
notify LMI when APB-owned inventory is required to be shipped to APB Customers.
A shipment notification form and instructions will be provided to LMI at least
four days prior to the scheduled ship date. LMI will confirm receipt of the
shipment notification. A customs invoice will be supplied by LMI as required.
APB shall make arrangements for the transport of Products from EXW LMI Savannah,
Georgia to the destination designated by APB in the shipment notification.
Payment in accordance with Article 6.0 of this Agreement shall be applicable
from the date of Ship-in-Place and not the date of actual delivery to APB's
Customers.

       

       

      
        
          5

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      4.4        Non-Excusable Delay
4.4.1 Delivery Performance

      

      4.4.1                      Delivery
Performance

      

      Delivery
shall be in accordance with the schedule set forth in the applicable Order. Any
failure by LMI to meet a delivery schedule that is not an Excusable Delay as
defined Article 15.0 shall be considered a "Non-Excusable Delay".

      

      4.4.2                      Notification

      

      If a
Non-Excusable Delay is expected to occur or occurs that causes or may cause a
delay in the performance by LMI of its obligations under the Agreement, LMI
shall:

      

      
        	
                a.

              	
                notify
      APB of such Non-Excusable Delay immediately upon becoming aware of the
      same;

              
	 
      	 
      
	
                b.

              	
                describe
      the event causing the Non-Excusable Delay in reasonable
      detail;

              
	 
      	 
      
	
                c.

              	
                provide
      an evaluation of the obligations affected;

              
	 
      	 
      
	
                d.

              	
                indicate
      the probable duration and extent of such delay;

              
	 
      	 
      
	
                e.

              	
                notify
      APB of the measures that will be taken; and

              
	 
      	 
      
	
                f.

              	
                submit
      to APB an action plan to recover such
delay.

              

      

      

      
        	
                4.4.3

              	
                Mitigation

              

      

      

      If, as a
consequence of a Non-Excusable Delay, LMI fails or anticipates that it shall
fail to meet a delivery schedule, LMI shall use its best efforts, including
overtime, to mitigate such delay. LMI shall be responsible for and shall,
subject to the provisions of Section 4.4.4, pay all direct costs which may be
incurred by APB as a consequence of the Non-Excusable Delay. LMI shall send the
Product by another means of transportation and/or to a destination other than
the one specified in the Agreement, at LMI's expense, in order to minimize
delay

      

      4.4.4                      APB's
Rights

      

      
        	
                 
      

              	
                In
      the event of a Non-Excusable Delay during the Production Phase, APB may
      claim as
      liquidated damages the
following:

              

      

      
        
        

      

      

      
        	
                a.

              	
                *                   
      

              

      

      

      
        	
                b.

              	
                *                   
      

              

      

      

      
        	
                 
      

              	
                (i)

              	
                *                   
      

              

      

       

       

       

      * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

       

      
        
          6

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (ii)

              	
                *                   
      

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                *                   
      

              

      

      

      The
foregoing remedy is in addition to all other rights and remedies APB may have at
law and/or under this Agreement, including under Article 14.0 "Events of Default
and Remedies".

      

      4.5                      Notice
of Labor Disputes

      

      LMI shall
immediately notify APB of any actual or potential labor dispute that may disrupt
the timely performance of an Order and/or impair the quality of any Product to
be delivered. LMI shall include the substance of this Section 4.5, including
this sentence, in any subcontract relating to an Order if a labor dispute
involving the subcontractor would have the potential to delay the timely
performance of such Order. Each subcontractor, however, shall only be required
to give the necessary notice and information to its next higher-tier
subcontractor.

      

      5.0                      ON-SITE
REVIEW AND RESIDENT REPRESENTATIVES

      

      5.1                      Review

      

      At APB's
request, LMI shall provide at APB's facility or at a place designated by APB, a
review explaining the status of the Order, actions taken or planned relating to
the Order and any other relevant information. Nothing herein may be construed as
a waiver of APB's rights to proceed against LMI because of any
delinquency.

      

      APB's
authorized representatives may enter LMI's plant at all reasonable times to
conduct preliminary inspections and tests of any Product and work-in-process.
LMI shall include in its subcontracts issued in connection with an Order a like
provision giving APB the right to enter the premises of LMI's subcontractors
when requested by APB. LMI may accompany APB to LMI's
subcontractors.

      

      5.2                      Resident
Representatives

      

      APB may
in its discretion and for such periods as it deems necessary assign resident
personnel at LMI's facilities. LMI shall furnish, free of charge, all office
space, secretarial service, and other facilities and assistance reasonably
required by APB's representatives at LMI's plant. The resident team will provide
communication and coordination to ensure timely performance of the Order. APB's
resident team shall be allowed access to all work areas relevant to wing mod kit
component production or kitting, order status reports and management review
necessary to assure timely performance and conformance with the requirements of
each Order. Notwithstanding such access, and all other inspections, reviews and
the like contemplated by this Agreement, LMI shall be solely responsible to
perform in accordance with each Order.

       

       

       

      
        * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

      

       

       

      
        
          7

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

      
6.0                      PAYMENT/PRICING

      

      6.1                      Product
Pricing

      

      Estimated
prices for Products scheduled for delivery under this Agreement are set forth in
Attachment A. Prices are in United States dollars, EXW (INCOTERMS 2000) LMI
Aerospace, Inc., Savannah, Georgia. Prices include an estimated Base Price and
an estimated Nonrecurring Price. It is understood between the parties that the
price estimates, which are provided by LMI, are based on a Kit of parts deemed
similar to the 767 program. Within a reasonable time after receipt of
engineering drawings and finalization of designs post flight test, LMI will
submit its final Base Price and final Nonrecurring Price on a revised Attachment
A which will be considered an amendment to this Agreement if accepted by APB.
APB will indicate its acceptance by countersigning the revised Attachment A and
returning it to LMI.

      

      If the
Base Price or the Nonrecurring Price for the final engineered parts is
substantially higher than LMI's estimated price, then LMI and APB will review
engineering changes on a part by part basis versus the quoted estimated price,
and endeavor to resolve through discussion the price differences.

       

      Under
such provisions, if the parties are unable to reach agreement on final prices,
APB may exercise its right to request price estimates from third parties to
produce Products or components of Products. If APB is able to obtain a lower
price quotation of either the Base Price or the Nonrecurring Price, then APB may
elect to procure Products from third parties, and will not be obligated to
purchase any further Shipsets under Section 2.3.

      

      6.2                      Payment

      

      Unless
otherwise provided in the applicable Order, payment of the Base Price will be
paid Net 30 days from date of invoice except as otherwise agreed to by the
parties. Invoicing will take place on completion of the Product and submission
of Certificate of Conformity ("C of C"). All payments will be made by check, and
are subject to adjustment for shortages, credits and rejections.

      

      6.3                      Amortization
of Nonrecurring Price

      

      Any
applicable nonrecurring costs will be amortized over the first 100 Shipsets. Any
subsequent nonrecurring costs (caused by engineering change, for example) will
be mutually negotiated between the parties and amortized over the Shipsets
remaining in the initial 100 Shipset buy.

      

      7.0                      PACKING AND
SHIPPING

      

      7.1                      Packaging

      

      The
prices shown for Winglet Modification Kits in Attachment A include packaging
costs and all materials and labor required to package Products. Packaging shall
be furnished by LMI in accordance with D37520-0 through -4, "Boeing Supplier
Part Protection Guide".

       

       

      
        
          8

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      7.2                      General

      

      LMI shall
prepare for shipment and suitably pack all Products to prevent damage or
deterioration and comply with any special instructions stated in the applicable
Order. APB shall pay no charges for preparation, packing, crating or cartage
unless stated in the applicable Order. Consistent with EXW (Incoterms 2000), LMI
shall be responsible for making Products available to the freight forwarder and
loading the Products on departure and bear the risks and costs of such
loading.

      

      APB may
elect, if reasonable conditions exist, to request LMI to prepay, and if APB so
elects LMI shall prepay, shipping and freight-forwarder costs, and invoice APB
separately for these additional costs. Where APB has not identified a carrier,
APB shall request LMI to secure the lowest transportation rates and comply with
the appropriate carrier tariff for the mode of transportation specified by
APB.

      

      7.3                      Requirements
for each Shipment

      

      Unless
otherwise directed by APB, all standard routing shipments forwarded on one day
must be consolidated to the extent practical. Each container must be
consecutively numbered and marked as set forth herein and below. Container and
Order numbers must be clearly set out on the applicable bill of lading. Two
copies of the packing sheets must be attached to the No. 1 container of each
shipment and one copy in all other individual containers. Each pack sheet must
include as a minimum the following: (a) LMI's name, address and phone 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 pack slip
number; (f) nomenclature; (g) unit of measure; (h) name and address of consignee
if other than APB; (i) warranty data and certifications as applicable; (j)
rejection tag, if applicable; (k) LMI's Certificate of Conformity; and (1)
identification of optional material used, if applicable.

       

      7.4                      Tariff
Declaration

      

      LMI may
not make any declaration concerning the value of the Products shipped, except on
Products where the tariff rating or rate depends on the released or declared
value, and in such event the value shall be released or declared as determined
by APB

      

      7.5                      Unit
Container Markings

      

      The
following markings shall be included on each unit container: (a) LMI's name; (b)
LMI's part number, if applicable; (c) APB part number, if applicable; (d) part
nomenclature; (e) Order number or identification of ATP; (f) quantity of
Products in container; (g) unit of measure; (h) serial number, if applicable;
(i) date (quarter/year) identified as assembly or rubber cure date, if
applicable; (j) precautionary handling instructions or marking as
required.

      

      7.6               Shipping
Container Markings

      

      The
following markings/labels shall be included on each shipping container: (a) name
and address of consignee; (b) name and address of LMI (as consignor); (c) Order
number; (d) part number as shown on the Order; (e) quantity of Products in
container; (f) unit of measure; (g) box number; (h) total number of boxes in
shipment; and, (i) precautionary handling, labeling or marking as
required.

       

       

      
        
          9

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

      
8.0                      QUALITY
ASSURANCE, INSPECTION, REJECTION, & ACCEPTANCE

      

      8.1                      QA/Inspection/PMA

      

      All work
performed under this Agreement shall be in accordance with the requirements of
the FAA approved Master Drawing List for each Product as maintained by
APB.

      

      FAA
conformity on the first two Shipsets of Product will be required prior to
shipment. The Conformity inspection will be performed by an FAA designee. The
FAA designee verifies and documents product configuration and compliance with
engineering requirements. Thereafter, APB will issue a PMA licensing letter to
LMI to produce Products in accordance with APB's STC. LMI is required to obtain
FAA PMA for subsequent Shipsets of all Products prior to their
shipment.

      

      8.2                      Quality
Management System

      

      LMI shall
maintain a Quality Management System that meets or exceeds AS9100 Rev. B/ISO
9001:2000, or equivalent quality system, as amended from time to time, which is
incorporated herein and made a part hereof by this reference and as applicable
to Customer and/or regulatory authority standards. As part of this Quality
Management System, LMI shall provide and maintain without additional charge to
APB, an inspection system that complies with all specifications stated in this
Agreement or the applicable Order. The Quality Management System will meet or
exceed the requirements of Title 14 of the Code of Federal Regulations (14CFR) §
21.303(h) (1) through (9).

      

      LMI shall
tender to APB for acceptance only Products that have been provided and processed
by approved sources in accordance with all specifications reflected in
engineering drawings. All controlled finished and special processes must be
performed in accordance with LMI special process approval as defined in the
applicable Quality Inspection Plan as required by Section 8.2.1. If
applicable, any proprietary processing must be performed by Boeing D1-4426
approved sources.

      

      LMI shall
perform a verification of engineering drawing dimensional requirements on all
Products or shall submit a statistically valid sampling plan to APB for
approval. LMI's personnel shall perform the inspection, witness the inspection,
or have an APB approved inspection delegation procedure.

      

      8.2.1                   Supplier
Quality Plan

      

      A
Supplier Quality Plan is required for all Products supplied under this Agreement
that meets the standards of AS9100 Section 7.1. Prior to manufacture of the
Products, LMI will provide a mutually agreed upon Quality Plan. Copies of the
plan shall be made available to APB's Customer and government representative
upon request.

      

      8.2.2                   Inspection

      

      As part
of the Quality Plan, LMI shall prepare records evidencing all inspections made
under the system and the outcome of such inspections. These records shall be
complete and made available in a timely manner to APB upon request during
performance of the work under the Order and for seven years
afterwards.

       

       

      
        
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APB-LMI-001

          
            

          

        

        
          
          

        

      

      
APB may
perform reviews and evaluations as reasonably necessary to ascertain compliance
with the requirements of this Agreement. Such reviews and evaluations shall be
conducted in a manner that will not unduly delay work under any applicable
Order. The parties acknowledge that, notwithstanding such reviews, LMI controls
the day-to-day production, delivery and associated documentation of its work,
and therefore, APB's right of review, whether exercised or not, does not release
LMI of any of its obligations of testing, inspection, quality control and
associated documentation.

      

      8.3                      Federal
Aviation Administration or Equivalent Government Agency Inspection

      

      APB,
APB's Customers and the FAA or any equivalent government agencies or regulatory
agencies shall have the right to inspect and test the material and workmanship
of all the Products, review relevant quality related records and audit LMI at
all places and times including, when practical, during the period of manufacture
or provision of services. If any such audit, inspection or test is made on the
premises of LMI, LMI shall furnish, without additional charge to the foregoing
parties, reasonable facilities and assistance for the safe and convenient
performance of audit, inspection or test.

       

      8.4                      APB's
Inspection, Acceptance and Rejection

      

      Nonconforming
Product: Notwithstanding (i) prior inspection, (ii) payment for, or (iii)
use of the Products ordered hereunder, APB shall have the following rights with
respect to any Products that do not conform to all requirements of the
Order:

      

      
        	
                 
      

              	
                (i)

              	
                APB
      shall have the right to reject such Product(s). Rejection must occur
      within 60 days of delivery to APB's Customer; failure to reject within
      such period shall be deemed acceptance of the Product (but such failure to
      reject, or any other acceptance of the Products or inspections in
      connection therewith, shall be without prejudice to rights under LMI's
      warranty). All such rejected Product(s) shall be returned to LMI at LMI's
      risk and expense, transportation collection and declared at full value
      unless LMI advises otherwise, for full credit or refund, at APB's option.
      The rejected Product(s) returned to LMI shall not be replaced by LMI
      except upon written instructions from APB. Rejected Product(s) shall not
      again be tendered to APB for acceptance without written disclosure of
      prior rejection(s);

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                Nonconforming
      Products may be repaired by APB or by a third party selected by APB and
      retained by APB at an equitable reduction in price, provided that the
      parties have first discussed and determined the liability as being LMI's.
      Should the parties agree that APB can proceed with the repair of the
      nonconforming Product(s), all terms and conditions of the Order shall
      remain in full force and effect as to the Products furnished by LMI;
      and.

              

      

      

      In the
event of a dispute as to liability, APB or third party will proceed diligently
with any reasonable repairs, having notified LMI of its intention to do so,
pending final settlement of the dispute.

      

      
        	
                 
      

              	
                (iii)

              	
                LMI
      will immediately notify APB if LMI or its subcontractors become aware of
      nonconforming Products after they have been
  shipped.

              

      

       

       

      
        
          11

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      8.5                      Certificate
of Conformity (C of C)

      

      LMI shall
supply and include with each shipment a Certificate of Conformity (C of C)
attesting to the release of the Products included in the shipment as
follows:

      

      
        	
                ·

              	
                Supplier
      Name and address

              
	
                ·

              	
                Date

              
	
                ·

              	
                Packing
      Sheet/list or C of C number

              
	
                ·

              	
                Order
      number

              
	
                ·

              	
                Identification
      of "Authorization to Ship" documents (in absence of
  Order)

              
	
                ·

              	
                Part
      Nomenclature

              
	
                ·

              	
                Part
      Number

              
	
                ·

              	
                Serial
      Numbers (if applicable)

              
	
                ·

              	
                Quantity
      of material, parts or kits to ship

              
	
                ·

              	
                Any
      applicable Discrepant Product document numbers, (i.e. APB or Customer
      rejection tag number)

              
	
                ·

              	
                Authorized
      LMI representation, name or stamp and signature

              
	
                ·

              	
                If
      applicable, an APB Source Inspection stamp and date of
      inspection.

              

      

      

      All
Products shall be marked with date of manufacture.

      

      8.6                      Airworthiness
Tag Requirement

      

      LMI shall
include with each shipment an FAA Airworthiness Tag 8130-3 executed by LMI as
the designee for all APB designed products.

      

      8.7                      Retention
of Records; Compliance with Standards

      

      LMI will
retain on file all C of C's and evidence of conformance documents for all
Product for seven years from delivery of Product. LMI affirms and represents
that the Products meet and/or exceed all applicable APB, government, and/or LMI
design control documents, inspection, validation, and functional test
requirements, unless otherwise noted in APB disposition forms accompanying the
Products. LMI confirms that any material supplied by APB for use in the
specified manufacturing operations will be the only material used to perform
such operations. For all raw materials being provided by LMI and incorporated
into the Products, LMI shall maintain relevant chemical, physical and mechanical
properties, test reports and evidence of conformance on file.

      

      Copies of
C of C's and other evidence of conformance documents shall be made available to
APB, APB's Customer, and government representatives upon request and shall be
retained for a period of seven years from delivery of Product. Such records
shall not be discarded without APB's prior approval.

      

      8.8                      Digital
Data Control System

      

      LMI shall
employ a Digital Data control system to assure that the integrity of engineering
and/or tooling configuration is maintained throughout LMI's Digital Data Control
system from receipt of the electronic data through creation of derivatives, to
product acceptance (Ref. Boeing D6-51991).

       

       

      
        
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      8.9                      First
Article Inspection

      

      Products
manufactured and supplied to APB under this Agreement require First Article
Inspection ("FMI"). All First Article Inspection Reports ("FAIR") must be in the
format as defined in Aerospace Standard SAE AS9102 current revision. If forms
other than those contained in the standard are used, they must contain all
"Required" and "Conditionally Required" information.

      

      FAIRs are
to be completed on new Products representative of the first production run.
Prototype parts are not to be used for the FAIR. Partial First Article
Inspections shall be performed when any of the events noted in section 5.3 of
AS9102 occur.

      

      All FAIRs
shall be signed by authorized personnel, stamped and dated and, if required by
Aerospace Standard SAE AS9102, shall be approved by APB.

      

      8.10               Tool Control
System

      

      LMI shall
maintain a formal, internal tool control system that allows for the proper
segregation, maintenance and accountability of APB-owned tooling. Annual
inventories of said tooling shall be performed with the results maintained in
accordance with contractual requirements. Upon request, the results of said
inventories shall be forwarded to APB for review.

      

      8.11                      Direct
Sales/Regulatory Approvals

      

      Neither
LMI nor any of its subcontractors or suppliers may sell any Product directly to
anyone except APB unless APB's prior written authorization is obtained. If APB
provides its authorization, it is LMI's responsibility and LMI agrees to obtain
the necessary regulatory approvals and to mark and/or otherwise identify any
Products so produced in accordance with all applicable regulations, provided
that, if it is impossible for LMI to obtain such approval, APB and LMI agree to
pursue another possible reasonable solution to minimize the impact.

      

      9.0        PRODUCTION
RATE

      

      LMI will
supply 767-300ER/F wing modification kits ordered by APB up to a rate of *                    
Shipsets per month. Shipset requirements above this rate will be mutually
negotiated between the parties.

      

      10.0               CHANGES

      

      10.1               Change
Orders

      

      The
Material Representative may at any time by written change order make changes
within the general scope of an Order in any one or more of the following:
drawings, designs, specifications, APB-furnished data, including but not limited
to Loft, Loads, Interface Control Drawing, shipping, packing, place of
inspection, place of delivery, place of acceptance, adjustments in quantities,
adjustments in delivery schedules, or the amount of APB furnished material. LMI
shall proceed immediately to perform the Order as changed. If any such change
causes an increase or decrease in the cost of and/or the time required for the
performance of any part of the work, whether changed or not changed by the
change order, an equitable adjustment calculated in accordance with Section 10.3
shall be made in the price of or the delivery schedule for those Products
affected, and the applicable

       

       

       

       

      
        * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

      

       

      
        
          13

        

        
          Master
Agreement No. APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      Order shall
be modified in writing accordingly. Any claim by LMI for adjustment under this
Article 10.0 must be received by APB in writing no later than 60 days from the
date of receipt by LMI of the written change order or within such further time
as the parties may agree in writing or such claim shall be deemed waived.
Nothing in this Section 10.1 shall excuse LMI from proceeding with an Order as
changed, including failure of the parties to agree on any adjustment to be made
under this Article 10.0.

      
10.2              Examination
of Records for Changes

      

      LMI shall
maintain complete and accurate records related to all change orders. Such
records shall itemize accurately and completely all services performed,
allowances claimed and costs incurred by LMI in the performance of each change
order, including but not limited to those factors which comprise or affect
direct labor hours, direct labor rates, material costs, burden rates and
subcontracts. Such records and other data shall be capable of verification
through audit and analysis by APB and be available to APB at LMI's facility for
APB's examination and audit at all reasonable times from the date of the
applicable change order until three years after final payment under such Order.
LMI shall provide assistance to interpret such data if requested by APB. Such
examination shall provide APB with complete information regarding LMI's
performance for use in price negotiations with LMI relating to existing or
future orders for Products, including but not limited to negotiation of
equitable adjustments for changes and termination/obsolescence claims pursuant
to Article 10.0. APB shall treat all information disclosed under this Section as
confidential.

      

      10.3               Computation
of Equitable Adjustment

      

      The Rates
and Factors set forth in Attachment B, which by this reference are incorporated
herein, shall be used to determine the equitable adjustment, if any, to be paid
by APB pursuant to Article 10.0 for each individual change.

      

      LMI shall
include in each claim sufficient detail to explain the amount claimed, including
detailed inventory schedules and a detailed break-down of all costs claimed
separated into categories (materials, purchased parts, finished components,
labor, burden, general and administrative), and to explain the basis for
allocation for all other costs.

      

      10.4                      Obsolescence

      

      Claims by
LMI to APB for obsolete or surplus material and work-in-process created by
change orders issued by APB to LMI pursuant to this Section shall be subject to
the procedures set forth in Section 10.3, except that LMI may not submit in any
calendar year a claim for obsolete or surplus material resulting from an
individual change order which when aggregated with the cost of other changes in
that calendar year, and not to that point paid by APB, has a total claim value
of Two Thousand Five Hundred Dollars ($2,500.00) or less.

      

      10.5                      Configuration

      

      Under the
Agreement, design of the Wing Modification Machined Parts will be provided by
APB or APB's design contractor. LMI will be expected to participate during the
design phase to assure the released engineering is compatible with LMI processes
and capabilities.

       

       

      
        
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APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      10.5.1                  Configuration
Changes

       

      LMI and
its subcontractors shall ensure that all applicable requirements including
drawings, specifications, qualifications, etc. under the contract with APB are
flowed down to all suppliers and subcontractors performing work on APB Products.
LMI shall not make any configuration changes to any Products, which could affect
form, fit, function, performance or price without APB's prior written consent.
Notification and approval of configuration changes include those parts which are
superseded by another part. All LMI configuration change requests shall be
submitted to APB's Material Representative in writing for approval prior to
configuration change processing.

      

      10.6                      Pre-STC
Expedite Costs/Issues

      

      Both
parties recognize that design changes may be required, both before and after
flight test, that may require LMI to conduct expedite activities to meet flight
test or initial production deadlines. LMI agrees that to the extent a design
change released by APB requires a part change that is within LMI's published
parts manufacturing lead time (as documented in file: "Copy of WingIet Parts
7-27-07Revb.xls"), LMI will not be entitled to reimbursement for expedite costs.
To the extent a requested design change requires parts changes that are not
within LMI's published part's lead time, LMI will notify APB in writing of the
estimated cost to implement and expedite the design change, and submit a claim
to APB for direct expedite costs according to Article 10.0,
Changes.

      

      10.7               Planning
Schedule

      

      Any
planning schedule or quantity estimate provided or otherwise accepted by APB
shall be used solely for production planning. APB may purchase Products in
different quantities and specify different delivery dates as necessary to meet
APB's requirements. Such planning schedule and quantity estimate shall be
subject to adjustment from time to time. Any such adjustment is not a change
under Article 10.0, but subject to Article 11.0 of this Agreement.

      

      11.0               ACCELERATION/DECELERATION
AT NO COST

      

      Notwithstanding
Article 10.0, APB may make changes in the delivery schedule without additional
cost or change to the price stated in the applicable Order if (a) the delivery
date of the Product under such Order is on or before the last date of the
calendar year covered by the Order; and (b) APB provides LMI with written notice
of such changes. Upon receipt of written notice of the schedule change, LMI
shall make its best effort to implement the change as soon as possible. The
schedule change shall be implemented no later than four months after
notification of schedule acceleration or three months after notification of
schedule deceleration. If notification is made to LMI less than the limits
above, LMI may assert for costs in accordance with Article 10.0,
Changes.

      

      If APB
requires production rates beyond LMI's reasonable ability to achieve, APB will,
at its option, exercise its right to secure a second source for
production.

      

      12.0               PRODUCT SUPPORT AND
ASSURANCE

      

      12.1               Warranty

      

      LMI
expressly represents and warrants that each Product will:

       

       

      
        
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APB-LMI-001

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (a)

              	
                be
      manufactured, repaired, tested, certified, weighed, inspected, shipped,
      sold, and delivered by LMI in accordance with the terms of this Agreement
      and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                be
      manufactured, repaired, tested, certified, weighed, inspected, shipped,
      sold, delivered and subjected to any process or procedure by LMI, in
      strict compliance with applicable laws, including Federal Aviation
      Regulations; and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                conform
      to its specification, be suitable for its intended purpose, be free from
      defects in workmanship, material and material selection, process of
      manufacture, free from liens and encumbrances, and shall conform to the
      applicable drawings and requirements of the Agreement and the applicable
      Order. Exceptions are for conditions caused by improper installation by
      APB or Customer, normal wear and tear, and failure to properly maintain
      and service the Product.

              

      

      

      The
Warranty will remain in effect for four years from the date the Product goes
into service with the Customer, or five years from the date the Product is
delivered to APB at the point of delivery (shipped in place), whichever occurs
first.

      

      LMI shall
be obligated to promptly replace or repair such defective Products or correct
any defective work on the Products, or provide authorization for third parties
to effect such repairs at LMI's expense, at APB's sole discretion. LMI shall pay
for any transportation charges incurred by APB and Product de-installation and
installation charges resulting directly from the replacement or repair activity
of such defective Products. APB shall notify LMI within a reasonable period
after the detection of a defect.

      

      In the
event of a dispute as to whether a breach of Warranty has occurred, LMI agrees
to proceed diligently with any reasonable repairs, replacement or correction
directed by APB pending final settlement of the dispute. If it is determined
that no such breach has occurred, APB shall pay LMI upon demand the reasonable
price of the repairs, corrections or replacements made by LMI including
reasonable profit.

      

      APB's
sole and exclusive warranty remedy against LMI is the repair or replacement of
defective parts, refund of the purchase price as provided herein, or
reimbursement for third party repairs, and no other remedy in respect of
warranties shall be available to APB including direct, indirect, incidental or
consequential damages for lost profits, lost sales, or any other incidental or
consequential loss.

      

      12.2        Insurance

      

      12.2.1                    Products
and Completed Operations Liability

      

      LMI
warrants and represents to APB at all times during the performance of any Order,
and during the term of the Agreement, LMI will carry and maintain products and
completed operations liability insurance in an amount not less that $*                   
with respect to legal liability to a person or third party arising out of
an accident.

      

      Prior to
the performance of any obligation set forth in this Agreement, LMI will provide
APB with certificates of insurance reflecting full compliance with the insurance
requirements stated in 

       

       

       

      
        * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

      

       

      
        
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this
Section. Annual renewal certificates will be submitted to APB before the
expiration of the policy period. 

       

      The
amount of insurance obtained by a party will in no way limit the indemnification
obligations of the party under this Agreement.

      

      12.2.2                    Property
Insurance

      

      LMI shall
obtain and maintain continuously in effect a property insurance policy covering
loss or destruction of or damage to all property in which APB does or could have
an insurable interest pursuant to this Agreement, including but not limited to
Tooling, APB-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 LMI, in the amount of full replacement value thereof
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). Any such policy shall be with insurers reasonably acceptable to APB and
shall (i) provide for payment of loss thereunder to APB, as loss payee, as its
interests may appear and (ii) contain a waiver of any rights of subrogation
against APB, its subsidiaries, and their respective directors, officers,
employees and agents.

      

      12.2.2.1                 Certificate
of Insurance

      

      LMI shall
provide to APB certificates of insurance reflecting full compliance with the
requirements set forth in Section 12.2.1 and 12.2.2. Such certificates shall be
kept current and in compliance throughout the period of this Agreement and shall
provide for 30 days advanced written notice to APB in the event of cancellation,
non-renewal or material change adversely affecting the interests of
APB.

      

      12.2.2.2                 Notice
of Damage or Loss

      

      LMI shall
give prompt written notice to APB 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 LMI may, upon
written notice to APB, settle, adjust, or compromise any and all such loss or
damage not in excess of $5,000 Dollars in any one occurrence, and $10,000
Dollars in the aggregate. LMI may settle, adjust or compromise any other claim
by LMI only after APB has given written approval, which approval shall not be
unreasonably withheld.

       

      12.3               Indemnity

      

      LMI will
defend, indemnify and hold harmless APB from and against any and all claims,
costs (including attorney fees), demands, proceedings and liabilities howsoever
arising and of whatever nature, of any person or loss of or damage to any
property, arising out or in respect of any Products provided or any work
performed by LMI under this Agreement.

      

      APB will
defend, indemnify and hold harmless LMI from and against any and all claims,
costs (including attorney fees), demands, proceedings and liabilities howsoever
arising and of whatever

       

       

      
        
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        nature,
of any person or loss of or damage to any property, arising out of or in respect
of any design defect of any Product.

      

      
12.4               Notice of
Claim

      

      If at any
time a party becomes aware that a breach of this Agreement has occurred or that
there is or may be a claim made against the party, the party will immediately
notify the other party of such breach or claim. Notice under this Section shall
be provided to the parties at the respective addresses identified in Section
27.1 of this Agreement unless otherwise specified.

      

      13.0              TERMINATION FOR
CONVENIENCE

      

      13.1                      Basis
for Termination; Notice

      

      APB may,
from time to time and at APB's sole discretion, terminate all or part of any
Order issued hereunder, and/or written authorization to proceed as specified in
Section 2.6 of this Agreement, by written notice to LMI. Any such written notice
of termination shall specify the effective date and the scope of any such
termination.

      

      13.2                      Termination
Instructions

      

      On
receipt of a written notice of termination pursuant to Section 13.1, unless
otherwise directed by APB, LMI shall:

       

      
        
          	
                   
      

                	
                  A.

                	
                  Immediately
      stop work as specified in the
notice;

                

        

         

        
          
            	
                     
      

                  	
                    B.

                  	
                    Immediately
      terminate its subcontracts and purchase orders relating to work
      terminated;

                  

          

           

        

        
          	
                   
      

                	
                  C.

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

                

        

         

        
          
            	
                     
      

                  	
                    D.

                  	
                    Preserve
      and protect all terminated inventory and
  Products;

                  

          

           

        

      

      
        	
                 
      

              	
                E.

              	
                At
      APB's request, transfer title (to the extent not previously transferred)
      and deliver to APB or APB's designee all supplies and materials,
      work-in-process, Tooling and manufacturing drawings and data produced or
      acquired by LMI for the performance of this Agreement and any Order, all
      in accordance with the terms of such
request;

              

      

      
         

        
          
            	
                     
      

                  	
                    F.

                  	
                    Be
      compensated for such items to the extent provided in Section 13.3
      below;

                  

          

           

        

      

      
        	
                 
      

              	
                G.

              	
                Return,
      or at APB's option and with prior written approval, destroy, all APB
      Proprietary Information and Materials in the possession, custody or
      control of LMI;

              

      

       

      
        	
                 
      

              	
                H.

              	
                Take
      such other action as, in APB's reasonable opinion, may be necessary, and
      as APB shall direct in writing, to facilitate termination of this Order;
      and

              

      

       

      
        
          
            	
                     
      

                  	
                    I.

                  	
                    Complete
      performance of the work not
terminated.

                  

          

           

        

      

       

       

      
        
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      13.3               LMI's
Claim

      

      If APB
terminates an Order in whole or in part pursuant to Section 13.1 above, LMI may
submit a written termination claim to APB in accordance with the terms of this
Section 13.3. In addition to the portion of the Base Price incurred by the LMI
with respect to such terminated Order, LMI may include in each termination claim
any unpaid portion of the amortized and incurred Nonrecurring Price to the
extent provided by Attachment A. In no event shall the total of previously paid
Nonrecurring Price and such claimed Nonrecurring Price exceed the Total
Nonrecurring Price identified in Attachment A. Each termination claim shall be
submitted to APB not later than six (6) months after LMI's receipt of the
termination notice and shall be in the form prescribed by APB. LMI shall include
in each claim 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. Any costs incurred by LMI for inventory and
work-in-process in accordance with the Orders prior to the termination, except
those previously paid for, shall be reasonably compensated by APB at
cost.

      

      13.4               Failure to
Submit a Claim

      

      Notwithstanding
any other provision of this Article 13.0, if LMI fails to submit a termination
claim within the time period set forth above, LMI shall be barred from
submitting a claim and APB shall have no obligation to pay LMI under this
Article 13.0 or otherwise except for those Products previously delivered and
accepted by APB and those claims submitted to APB within the provided time
period in accordance with this Article 13.0.

      

      13.5                      
Partial Termination

      

      Any
partial termination of an Order shall not alter or affect the terms and
conditions (including without limitation unit prices) of the Order or any Order
with respect to Products not terminated. Termination of one Order shall not
affect any other Order(s).

      

      13.6                      Exclusions
or Deductions

       

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

      

      
        	
                 
      

              	
                A.

              	
                All
      un-liquidated advances or other payments made by APB to LMI pursuant to a
      terminated Order;

              

      

       

      
        
          	
                   
      

                	
                  B.

                	
                  Any
      claim which APB has against LMI;

                

        

         

      

      
        
          	
                   
      

                	
                  C.

                	
                  The
      agreed price for scrap allowance;

                

        

         

      

      
        	
                 
      

              	
                D.

              	
                Except
      for normal spoilage and any risk of loss assumed by APB, the agreed fair
      value of property that is lost, destroyed, stolen or
    damaged.

              

      

       

       

      
        
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      13.7               Partial
Payment/Payment

      

      Payment,
if any, to be made under this Article 13.0 shall be made by APB to LMI 30 days
after settlement between the parties or as otherwise agreed to between the
parties.

      

      13.8               LMI's
Accounting Practices

      

      LMI shall
apply the "normal accounting practices" it has used in developing the price of
the Product(s) in determining the allocable costs at termination. For purposes
of this Section 13.8, LMI's "normal accounting practices" refers to LMI's method
of charging costs as a direct charge, overhead expense, or general
administrative expense.

      

      13.9               Records

      

      Unless
otherwise provided in this Agreement or by law, LMI shall maintain all records
and documents relating to the terminated portion of the Order for three (3)
years after final settlement of LMI's termination claim.

      

      14.0               EVENTS OF DEFAULT AND
REMEDIES

      

      14.1                      Events
of Default

      

      The
occurrence of any one or more of the following events shall constitute an "Event
of Default":

      

      
        	
                 
      

              	
                A.

              	
                Any
      failure by LMI to deliver, when and as required by this Agreement or any
      Order, any Product, except as provided in Article 15.0 (Excusable Delay)
      and such failure shall continue unremedied for a period of 30 days or more
      following receipt by LMI of notice from APB specifying such
      failure;

              

      

      

      
        	
                 
      

              	
                B.

              	
                Any
      failure by LMI to provide an acceptable Assurance of Performance within
      the time specified in Article 18.0, or otherwise in accordance with
      applicable law;

              

      

      

      
        	
                 
      

              	
                C.

              	
                Any
      failure by LMI to perform or comply with any obligation set forth in
      Article 23.0 (Proprietary Information and Materials) and such failure
      shall continue un-remedied for a period of five days or more following
      receipt by LMI of notice from APB specifying such
  failure;

              

      

      

      
        	
                 
      

              	
                D.

              	
                Any
      participation by LMI in the sale, purchase or manufacture of airplane
      parts under the scope of this Agreement without the required approval of
      the FAA and such failure shall continue un-remedied for a period of 30
      days or more following receipt by LMI of notice from APB specifying such
      failure;

              

      

      

      
        	
                 
      

              	
                E.

              	
                APB
      determines that LMI's Quality Management System or Quality Supply Plan
      inadequate, and LMI fails to address such inadequacy with 30 days of being
      notified of the same by APB;

              

      

       

       

      
        
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                F.

              	
                Any
      failure by LMI to perform or comply with any obligation set forth in this
      Agreement and such failure shall continue un-remedied for a period of 45
      days or more following receipt by LMI of notice from APB specifying such
      failure; or

              

      

      

      
        	
                 
      

              	
                G.

              	
                (a)
      the suspension, dissolution or winding-up of LMI's business, (b) LMI's
      insolvency, or its inability to pay debts, or its nonpayment of debts, as
      they become due, (c) the institution of reorganization, liquidation or
      other such proceedings by or against LMI or the appointment of a
      custodian, trustee, receiver or similar person for LMI's properties or
      business, (d) an assignment by LMI for the benefit of its creditors, or
      (e) any action of LMI for the purpose of effecting or facilitating any of
      the foregoing.

              

      

      

      14.2                      
Remedies

      

      If any
Event of Default shall occur:

      

      A.    Cancellation

      
        	
                 
      

              	
                APB
      may, by giving written notice to LMI, immediately cancel this Agreement
      and/or any Order, in whole or in part, and APB shall not be required after
      such notice to accept the tender by LMI of any Products with respect to
      which APB has elected to cancel this Agreement, provided APB shall pay LMI
      for all Products ordered by APB and delivered by LMI to
    APB.

              

      

      

      B.     Cover

      
        	
                 
      

              	
                APB
      may manufacture, produce or provide, or may engage any other persons to
      manufacture, produce or provide, any Products in substitution for the
      Products to be delivered or provided by LMI hereunder with respect to this
      Agreement or any Order and, in addition to any other remedies or damages
      available to APB hereunder or at law or in equity, APB may recover from
      LMI the difference between the price for each such Product and the
      aggregate expense, including, without limitation, administrative and other
      indirect costs, paid or incurred by APB to manufacture, produce or
      provide, or engage other persons to manufacture, produce or provide, each
      such Product.

              

      

       

      
        C.     Rework or Repair

      

      
        
        

      

      
        	
                 
      

              	
                Where
      allowed by the applicable regulatory authority, APB or its designee may
      rework or repair any Product in accordance with Article
    12.0.

              

      

      

      D.    Setoff

      
        	
                 
      

              	
                APB
      may set off against and apply to the payment or performance of any
      obligation, sum or amount owing at any time to APB hereunder or under any
      Order, all deposits, amounts or balances held by APB for the account of
      LMI and any amounts owed by APB to
LMI.

              

      

      

      E.     Tooling and other
Materials

      
        	
                 
      

              	
                LMI
      shall upon the request of APB, immediately transfer and deliver to APB or
      APB's designee title and possession to any or all (i) Tooling, (ii)
      APB-furnished material, (iii) raw materials, parts, work-in-process,
      incomplete or completed assemblies, and all other Products or parts
      thereof in the possession or under the effective control of LMI or any of
      its subcontractors (iv) Proprietary Information and Materials of APB
      including without limitation planning data, drawings and other Proprietary
      Information and Materials relating

              

      

       

       

      
        
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                    to
      the design, production, maintenance, repair and use of Tooling, in the
      possession or under the effective control of LMI or any of its
      subcontractors, in each case free and clear of all liens, claims or other
      rights of any person. In consideration of APB's acquisition of title to
      the Tools, data and material, the termination settlement shall take into
      account any damage payable by LMI to APB as a result of any event of
      default and such amount shall be accounted to a set off against the
      unrecovered Nonrecurring Price.

                     

                    LMI shall be entitled to receive from APB
      reasonable compensation for any item accepted by APB which has been
      transferred to APB pursuant to this Section 14.E (except for any item the
      price of which shall have been paid to LMI prior to such transfer, and
      except for items covered by 14.E (ii) and (iv); provided, however, that
      such compensation shall not be paid directly to LMI, but shall be
      accounted for as a setoff against any damages payable by LMI to APB as a
      result of any Event of Default.

                  

          

           

           

        

      

      F.     Remedies
Generally

      
        
          
            	
                     
      

                  	
                    No
      failure on the part of APB 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 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 LMI's obligations
      hereunder shall constitute a waiver of any Event of Default or a waiver or
      release of payment or performance in full by LMI of any such obligation.
      All rights and remedies of APB 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.

                  

          

           

        

      

      G.    
Contractual
Liability

      
        
          
            
              	
                       
      

                    	
                      LMI
      shall be liable to APB for the timely and proper performance of its
      obligations under this Agreement and, except to the extent of the
      indemnities and specific remedies as set out in the Agreement, shall be
      liable for all direct costs, direct losses, damages and liabilities,
      including without limitation costs and expenses incidental thereto such as
      but not limited to legal fees which may be incurred by APB as a
      consequence of the failure by LMI to comply with its obligations under the
      Agreement or as a consequence of the termination of the Agreement. APB
      agrees to provide LMI with the breakdown of the said costs, losses,
      damages and liabilities referenced above in this Section
    14.2.

                    

            

             

          

        

      

      15.0               EXCUSABLE
DELAY

      

      If
delivery of any Product is delayed by unforeseeable circumstances beyond the
control and without the fault or negligence of LMI 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 a period to be
determined by APB after an assessment by APB of alternate work methods.
Excusable Delays may include, but are not limited to, acts of God, war, riots,
acts of government, fires, floods, epidemics, quarantine restrictions, freight
embargoes, strikes or unusually severe weather, but shall exclude among other
things, LMI's noncompliance with any rule, regulation or order promulgated by
any governmental agency, or nonperformance of LMI suppliers. However, the above
notwithstanding, APB expects LMI to continue production, recover lost time and
support all schedules as established

       

       

      
        
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        under
this Agreement or any Order. If delay in delivery of any Product is caused by
the default of any of LMI's subcontractors or suppliers, such delay shall not be
considered an Excusable Delay unless such delay is caused for reasons the same
as those considered to be Excusable Delay for LMI. If delivery of any Product is
delayed by any Excusable Delay for more than three (3) months, APB may, without
any additional extension, cancel this Agreement or all or part of any Order with
respect to the delayed Products, and exercise any of its remedies in accordance
with Section 14.2, except for 14.2.B, "Cover", provided however, that APB shall
not be entitled to monetary damages or specific performance to the extent LMI's
breach is the result of an Excusable Delay.

         

      

      16.0         SUSPENSION OF
WORK

      

      APB may
at any time, by written order to LMI, issued pursuant to this Article 16.0,
require LMI to stop all or any part of the work called for by this Agreement for
up to one hundred twenty (120) days hereafter referred to as a "Stop Work
Order". On receipt of a Stop Work Order, LMI shall promptly comply with its
terms and take all 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) APB 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 Articles 13.0 or 14.0. In the event the Stop Work Order is canceled by APB or
the period of the Stop Work Order (including any extension thereof) expires, LMI
shall promptly resume work in accordance with the terms of this Agreement or any
applicable Order.

      

      If the
Stop Work Order has resulted in a change in the schedule or cost of performance,
an equitable adjustment shall be made in the price and/or delivery schedule,
according to Section 10.3, and the Order or this Agreement, as appropriate, will
be modified in writing accordingly. LMI must assert any claim for adjustment
within sixty (60) days from the date of receipt of the Stop Work
Order.

      

      
        	
                17.0

              	
                TERMINATION OR CANCELLATION AND
      INDEMNITY AGAINST SUBCONTRACTOR
      CLAIMS

              

      

      

      APB shall
not be liable for any loss or damage resulting from any termination pursuant to
Section 13.0 except as expressly provided in Section 13.3, or any cancellation
under Section 14.0, except to the extent that such cancellation shall have been
determined to have been wrongful, in which case such wrongful cancellation shall
be deemed a termination pursuant to Section 13.0 and therefore shall be limited
to the payment to LMI of the amount or amounts identified in Section 13.3. As
subcontractor claims are included in LMI's termination claim pursuant to Section
13.3, LMI shall indemnify APB and hold APB harmless from and against (i) any and
all claims, suits and proceedings against APB by any subcontractor or supplier
of LMI in respect of any such termination pursuant to Section 13.0 and (ii) and
any and all costs, expenses, losses and damages incurred by APB in connection
with any such claim, suit or proceeding.

      

      18.0               ASSURANCE OF
PERFORMANCE

      

      18.1               LMI to
Provide Assurance

      

      If APB
determines, at any time or from time to time, that it is not sufficiently
assured of LMI's full, timely and continuing performance hereunder, or if for
any other reason APB has reasonable grounds for insecurity, APB may request, by
notice to LMI, written assurance (hereafter an 

       

       

      
        
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      "Assurance of
Performance") with respect to any specific matters affecting LMI's performance
hereunder, that LMI is able to perform all of its respective obligations under
this Agreement when and as specified herein. Each Assurance of Performance shall
be delivered by LMI to APB as promptly as possible, but in any event no later
than 30 calendar days following APB's request therefore and each Assurance of
Performance shall be accompanied by any information, reports or other materials,
prepared by LMI, as APB may reasonably request. APB may suspend all or any part
of APB's performance hereunder until APB receives an Assurance of Performance
from LMI satisfactory in form and substance to APB.

      
18.2               Meetings and
Information

      

      APB may
request one or more meetings with senior management or other employees of LMI
for the purpose of discussing any request by APB for Assurance of Performance or
any Assurance of Performance provided by LMI. LMI shall make such persons
available to meet with representatives of APB as soon as may be practicable
following a request for any such meeting by APB and LMI shall make available to
APB any additional information, reports or other materials in connection
therewith as APB may reasonably request.

      

      19.0                      
LEAD TIMES

      

      APB shall
issue an initial Order for the first two Shipsets of Products. Thereafter,
Products for APB requirements, assuming no break in the Production Phase, will
be ordered at least 26 weeks prior to the scheduled date of delivery from LMI to
APB. Provided, however, LMI shall request of APB as required written
authorization to proceed as defined in Section 2.6 for the purchase of long
lead-time materials, in sufficient time to support the scheduled
deliveries.

      

      20.0               PERFORMANCE
VISIBILITY AND REVIEWS

      

      When
requested by APB, LMI shall provide all necessary program performance data, and
when so requested, LMI shall prepare and conduct a program performance review
specific to the scope of this program, pursuant to any Order or
program.

      

      21.0               RESPONSIBILITY FOR
APB PROPERTY

      

      On
delivery to LMI of any materials, parts, Tooling or other property, title to any
of which is held by APB, LMI shall assume the risk of and shall be responsible
for any loss thereof or damage thereto, as long as they are in the custody and
control of LMI, and/or its supplier(s). APB shall retain ownership of such
materials, parts, Tooling or other property, and shall extend full permission to
LMI for the proper and intended use of such property in the exclusive execution
of this Agreement. In accordance with the provisions of an Order, but in any
event on completion thereof, LMI shall return such property to APB in the
condition in which it was received except for reasonable wear and tear, and
except to the extent that such property has been incorporated in Products
delivered under such Order or has been consumed in the normal performance of
work under such Order.

      

      22.0               LIMITATION OF
LMI'S RIGHT TO ENCUMBER ASSETS

      

      LMI
warrants to APB that LMI has good title to all inventory, work-in-process,
tools,-equipment and materials to be supplied by LMI in the performance of its
obligations under any Order ("Inventory"),

       

       

      
        
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        and that
pursuant to the provisions of such Order, it will transfer to APB title to such
Inventory, whether transferred separately or as part of any Product delivered
under the Order, free of any liens, charges, encumbrances or rights of others,
provided that LMI reserves the right to physically possess and use all inventory
during the terms of this Agreement.

      

      
23.0               PROPRIETARY INFORMATION AND
MATERIALS

      

      23.1               Protection of
Proprietary Information

      

      As used
in this Agreement:

      

      "Materials"
means any materials containing Proprietary Information.

      

      “Proprietary
Information" means all proprietary, confidential or trade secret information
disclosed by either party to the other or entrusted to either party by a third
party. This information includes, but is not limited to, information relating to
inventions, computer technology and programming, computer software, research,
development, engineering, manufacturing, purchasing, accounting, marketing or
selling. This information may be contained in materials such as engineering and
tool drawings and design, tools and tooling models, samples, electronic and
non-electronic data, specifications, reports, calculation, compilations,
manuals, patent applications or computer programs, whether or not such materials
bear proprietary markings, or tangible items conveying or embodying such
information, or may be in the nature of unwritten knowledge or
know-how;

      

      "Background
Proprietary Information" means any Proprietary Information belonging to a party
which is or was developed prior to or outside of, and not in the course of work
under this Agreement and which is disclosed by either party to the other in the
course of work under this Agreement and includes Background
Inventions;

      

      "Background
Invention(s)" means any invention(s) owned by either party prior to or outside
or not for the purposes of work under this Agreement which becomes or is the
subject of a patent application or issued patent and which is disclosed by
either party to the other in the course of work under this
Agreement;

      

      "Project
Proprietary Information" means any Proprietary Information developed in the
course of work under this Agreement and includes Project
Inventions;

      

      "Project
Invention(s)" means any invention(s) conceived in the course of work under this
Agreement and which becomes the subject of one or more patent
applications.

      

      Each of
APB and LMI shall keep confidential and protect from disclosure to third parties
all Background Propriety Information and Project Proprietary Information of the
other. Except as otherwise provided in this Agreement, neither APB nor LMI shall
disclose to any person, firm or corporation such information of the other party
unless the other party provides its prior written consent.

      

      APB and
LMI shall each use the other party's Background Proprietary Information and
Project Proprietary Information only in the performance of and for the purpose
of this Agreement and/or any

       

       

      
        
          25

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      
        Order
(consistent with the foregoing, LMI shall not manufacture Products or Spare
Parts for, or sell Products or Spare Parts to, any party other than APB).
Notwithstanding the foregoing and the prior paragraph, APB shall have the right
to use and disclose such information of LMI for the purposes of testing,
certification, use, sale, or support of any Product delivered under this
Agreement, or any airplane including a Product; and provided that APB shall
obtain an appropriate non-disclosure covenant from such receiving
party.

      

      
Upon (i)
either party's request or (ii) in the event of completion, termination or
cancellation of this Agreement, each party shall return, subject to the
provisions of Section 23.1 herein, all Background Proprietary Information and
all Project Proprietary Information of the other party, and all materials
comprising or derived from such information to the other party, unless
specifically directed otherwise in writing by the other party.

      

      Each
party shall not, without the prior written authorization of the other party,
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 Background Proprietary Information and Project Proprietary
Information of the other party, provided that this provision is not intended to
prevent APB from selling Products to Customers. Prior to disposing of such parts
or materials as scrap, each party shall render them unusable. Each party shall
have the right to audit the other party's compliance with this Article
23.0.

      

      LMI may
disclose Background Proprietary Information and Project Proprietary Information
of APB to its subcontractors as required for the performance of an Order,
provided that each such subcontractor first assumes, by written agreement to the
benefit of both LMI and APB, the same obligations imposed upon LMI under this
Article 23.0. LMI shall be liable to APB for any breach of such obligation by
such subcontractor.

      

      The
provisions of this Article 23.0 and Section 23.1 are effective in lieu of, and
will apply notwithstanding the absence of, any restrictive legends or notices
applied to the relevant information and shall survive the performance,
completion, termination or cancellation of this Agreement or any
Order.

      

      This
Article 23.0 supersedes and replaces any and all other prior agreements or
understandings between the parties to the extent that such agreements or
understandings relate to obligations of APB or LMI to the other relative to
Background Proprietary Information or Project Proprietary Information,
regardless of whether disclosed to the receiving party before or after the
effective date of this Agreement.

      

      Each
party shall retain exclusive ownership rights in its own Background Proprietary
Information and its own Project Proprietary Information, solely and
independently developed by the party, subject to usage rights, licenses provided
by this Article 23.0.

       

      All
Project Proprietary Information jointly developed by APB and LMI during work
under this Agreement shall be owned as follows:

       

      
        	 
      	
                (i)

              	
                All
      Project Proprietary Information consisting of design and engineering
      documents (including Engineering Drawings and Reports) related to the
      Product, shall belong to APB. LMI hereby assigns all rights it may have in
      such Project Proprietary Information to APB, and LMI shall not use, or
      disclose to any party any such Project Proprietary
      Information;

              

      

       

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

       

      
        
          	 
      	 
      	
                  Information
      to APB, and LMI shall not use, or disclose to any party any such Project
      Proprietary Information;

                

        

        

        
          	 
      	
                  (ii)

                	
                  All
      other Project Proprietary Information shall be owned by APB. APB agrees to
      assign to LMI a worldwide, non-exclusive, royalty free license to use such
      information.

                

        

        

        
          	 
      	
                  (iii)

                	
                  Notwithstanding
      item (ii) above, any development and/or improvements made to each party's
      Background Proprietary Information will be the retained solely by the
      originating party, will be treated as such party's Background Proprietary
      Information, and is not to be considered Project Proprietary
      Information.

                

        

         

      

      The
restrictions on the receipt and use by each party of the other party's
Background Proprietary Information and the other party's Project Proprietary
Information shall not apply to Proprietary Information which goes into the
public domain through no fault of the receiving party.

      

      23.2               License of
LMI's Background Proprietary Information and Inventions

      

      
        	
                (a)   
      

              	
                LMI
      hereby grants to APB a non-exclusive, royalty-free, worldwide right and
      license, without right of sub-license, (i) to use LMI's Background
      Proprietary Information and Inventions and LMI's Project Proprietary
      Information and Inventions (collectively, "LMI Materials") in connection
      with the development and support of the Product, (ii) to sell, lease,
      transfer, or otherwise convey to third parties the right to use the
      Product acquired from LMI and incorporating LMI's
    Materials.

              

      

      

      
        	
                (b)   
      

              	
                Anything
      to the contrary in this Agreement notwithstanding, if this Agreement is
      terminated by APB pursuant to Article 13.0 or Article 14.0 hereof, APB
      shall have a non-exclusive, royalty-free, worldwide right and license, to
      use LMI Materials to produce the Products by
  itself.

              

      

      

      
        	
                (c)   
      

              	
                If
      APB requires production rates beyond LMI's reasonable ability to achieve
      (i.e.: capacity or labor constraints) APB has the right to secure a second
      source for production and for that purposes shall have the rights under
      (b) and the right sub-license the LMI Materials to a third party to
      produce the Products.

              

      

      

      
        	
                (d)   
      

              	
                Except
      as provided for in this Article 23.0, APB shall have no right to use, nor
      shall APB disclose to any third party, LMI's Background Materials in any
      manner.

              

      

      

      
        	
                (e)   
      

              	
                LMI
      shall execute and deliver, promptly after receiving a request from APB, a
      license agreement in a form and substance satisfactory to APB, acting
      reasonably.

              

      

      

      23.3               Limitation of
License

      

      Background
Proprietary Information and Project Proprietary Information conveyed to a party
under this Agreement are licensed to the receiving party only for the limited
purposes set forth in this Article 23.0. No disclosure of Background Proprietary
Information and Project Proprietary Information will be construed as granting
(i) a license under any patent, patent application, or copyright, or (ii) any
right of ownership in such materials or information.

       

       

      
        
          27

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      24.0               COMPLIANCE WITH
LAWS

       

      24.1               LMI's
Obligation

      

      LMI shall
comply with all laws, including, but not limited to, any statute, rule,
regulation, judgment, decree, order, or permit applicable to its performance
under this Agreement. LMI shall (1) notify APB of any obligation under this
Agreement which is prohibited under applicable law, at the earliest opportunity
but in all events sufficiently in advance of LMI's performance of such
obligation so as to enable the identification of alternative methods of
performance, and (2) notify APB at the earliest possible opportunity of any
aspect of its performance which becomes subject to additional regulation or
which LMI reasonably believes will become subject to additional regulation
during the performance of this Agreement.

      

      24.2               Export
Controls

      

      LMI
acknowledges that all information, drawings, tooling, data, specifications, and
other items provided by APB to LMI, and all products , items, data, drawings,
information, and services made or derived from the same, are subject to U.S. and
other export control laws. In addition to the other limitations and restrictions
contained in this Agreement, LMI agrees that it shall not export, re-export, or
provide access to any such information, drawings, tooling data, specifications,
items, Products or services referred to in the prior sentence to non-U.S.
persons or individuals in violation of U.S. export control laws.

      

      25.0               INTEGRITY IN
PROCUREMENT

      

      APB's
policy is to maintain high standards of integrity in procurement. APB's
employees must ensure that no favorable treatment compromises their impartiality
in the procurement process. Accordingly, APB's employees must strictly refrain
from soliciting or accepting any payment, gift, favor or thing of value, which
improperly influences their judgment with respect to either issuing an Order or
administering this Agreement. Consistent with this policy, LMI agrees not to
provide or offer to provide any employees of APB any payment, gift, favor or
thing of value for the purpose of improperly obtaining or rewarding favorable
treatment in connection with any Order or this Agreement. LMI shall conduct its
own procurement practices and shall ensure that its suppliers conduct their
procurement practices consistent with these standards. If LMI has reasonable
grounds to believe that this policy may have been violated, LMI shall
immediately report such possible violation to the Material
Representative.

      

      26.0               INFRINGEMENT

      

      LMI
represents and warrants that each and every Product, in the form to be delivered
to APB, is and will be free from any known claim for U.S. patent infringement
and that any affixed labels or trademarks are free from any known claim for
copyright or trademark infringement. LMI shall indemnify APB and save it
harmless against such infringement liability based upon APB's possession or
resale, provided that: (i) LMI is promptly notified by APB of any such claim for
such infringement; (ii) such infringement is claimed specifically against the
Product "as delivered" by LMI to APB and unchanged by any acts of APB from such
"as delivered" state; and (iii) such infringement was not a result of use or
sale of the Product in combination with other items and would not have occurred
from the Product by itself. In the event of suit, LMI shall, at LMI's

       

      
        
          28

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      election,
have sole charge and direction thereof, in which event APB shall provide LMI
reasonable assistance in the defense thereof as LMI may require. APB shall have
the right to be represented in such suit by advisory counsel at APB's
expense.

       

      
        	
                27.0

              	
                NOTICES

              

      

      

      
        	
                27.1  

              	
                 

              	
                Addresses

                 

              

      

      
        	
                To
      APB:

              	
                Attention:

              	
                Procurement
      Specialist

              
	 
      	 
      	
                Aviation
      Partners Boeing

                3415
      South 116th
      Street

                Seattle,
      Washington 98168

                Phone:  206-762-1171
      extension xxx

                Fax:       206-242-9347

              
	
                To
      LMI:

              	
                Attention:

              	
                ___________________________

                LMI
      Savannah

                Phone:______________

                Fax:________________

              

      

       

      27.2                      Effective
Date

      

      The date
on which any such communication is received by the addressee is the effective
date of such communication.

      

      27.3               Approval or
Consent

      

      With
respect to all matters subject to the approval or consent of either party, such
approval or consent shall be requested in writing and is not effective until
given in writing. With respect to APB, authority to grant approval or consent is
limited to the Material Representative.

      

      28.0               PUBLICITY

      

      LMI will
not, and will require that its subcontractors and suppliers of any tier will
not, (i) cause or permit to be released any publicity, advertisement, news
release, public announcement, or denial or confirmation of the same, in whatever
form, regarding any Agreement or Order or Products, or the program or Customer
to which they may pertain, or (ii) use, or cause or permit to be used, the APB
name or any APB trademark (or the name or trademark of any affiliate of APB) in
any form of promotion or publicity without APB's prior written
approval.

      

      29.0               RESPONSIBILITY FOR
PERFORMANCE

      

      29.1               Flowdown of
Requirements

      

      LMI shall
be responsible for the requirements of this Agreement and any Order referencing
this Agreement. LMI shall bear all risks of providing adequate facilities and
equipment to perform each Order in accordance with the terms thereof. LMI shall
include as part of its subcontracts those elements of the Agreement which
protect APB's rights including but not limited to right of entry

       

      
        
          29

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      provisions,
proprietary information and rights provisions, quality control provisions, and
management and control of APB assets. In addition, LMI shall provide to its
subcontractors sufficient information to clearly document that the work being
performed by LMI's subcontractor is to facilitate performance under this
Agreement or any Order. Sufficient information may include but is not limited to
Order number, ATP description, or the name of the Material
Representative.

       

      29.2               Performance
During Disputes

      

      If a
dispute between LMI and APB arises under this Agreement or any Order, each party
agrees to continue with the performance of the Agreement and any Order under
dispute, including the delivery of Products and payment for Products at the
Order price, pending resolution of the dispute.

      

      29.3               Disputes

      

      In the
event of any dispute over the terms of this Agreement or any Order issued under
this Agreement, LMI and APB shall use its best efforts to resolve the matter
without commencing legal proceedings. Disputes will be settled by individuals
who have been designated by their respective parties. As a prerequisite to legal
proceedings, except in any case in which a party must seek injunctive relief in
order to avoid irreparable harm, any dispute which cannot be settled promptly by
such individuals shall be referred for resolution by an officer or other senior
representative of each of the parties, each of whom shall have the authority to
settle the matter in controversy.

      

      If the
officers or other senior management representatives of the parties to whom any
dispute has been referred for resolution are unable to resolve such dispute
within 30 days of reference of the dispute, or such longer period as the parties
may agree, the dispute shall be resolved through binding arbitration conducted
in accordance with the American Arbitration Association ("AAA"). The AAA shall
administer the arbitration under its procedures and the provisions of this
Article shall govern. Any award rendered by the arbitrator shall be in writing,
set forth the reasons for the award based upon the law, and shall be final and
binding upon the parties. Any judgment upon such award may be entered and
enforced in any court of competent jurisdiction.

      

      29.4               Subcontracting

      

      LMI shall
maintain complete and accurate records regarding all subcontracted items and/or
processes. LMI's use of subcontractors shall comply with LMI's quality assurance
system approval for said subcontractors. No subcontracting by LMI shall relieve
LMI of its obligation under this Agreement or the applicable Order.

       

      Where
required by the requirements of the Order, no raw material and/or material
process may be incorporated in a Product unless: (a) LMI uses a source approved
by APB or (b) APB has surveyed and qualified LMI's receiving inspection
personnel and laboratories to test the specified raw materials an/or material
process. No waiver of survey and qualification requirements will be effective
unless granted by APB's Engineering and Quality Control Departments. Utilization
of an APB-approved raw material source does not constitute a waiver of LMI's
responsibility to meet all specification requirements.

       

      
        
          30

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

      
29.5                      Reliance

      

      APB's
entering into this Agreement is in part based upon APB's reliance on LMI's
ability, expertise and awareness of the intended use of the Products. LMI agrees
that APB and APB's Customers may rely on LMI as an expert, and LMI will not deny
any responsibility or obligation hereunder to APB or APB's Customers on the
grounds that APB or APB's Customers provided recommendations or assistance in
any phase of the work involved in producing or supporting the Products,
including but not limited to APB's acceptance of specifications, test data or
the Products.

      

      29.6               Assignment

      

      In
addition to assignment of any of LMI's rights or obligations under this
Agreement, the following shall be included as "assignments": (i) a consolidation
or merger of LMI; (ii) a change directly or indirectly in the ownership or
voting rights of more than 50% of the issued and outstanding stock of or equity
interest in LMI; (iii) any assignment or transfer of this Agreement by LMI which
would otherwise occur by operation of law, merger, consolidation,
reorganization, assignment, transfer, or other significant change in corporate
or proprietary structure; and (iv) the sale, assignment or transfer of all or
substantially all of the assets of LMI.

      

      LMI shall
notify APB reasonably in advance of any event of assignment.

      

      This
Agreement and each Order shall inure to the benefit of and be binding on each of
the parties hereto and their respective successors and assigns. In the event
that the assignment identified herein reasonably appears to APB to materially
affect the ability of LMI to discharge its obligations under this Agreement, APB
shall be entitled to disapprove of the assignment and in such cases terminate
this Agreement in accordance with Article 14.0.

      

      LMI may
assign claims for monies due or to become due under any Order provided that APB
may recoup or setoff any amounts covered by any such assignment against any
indebtedness of LMI to APB or any claim by APB against LMI, whether arising
before or after the date of the assignment or the date of this Agreement, and
whether arising out of any such Order or any other agreement between the
parties. APB may settle all claims arising out of any Order, including
termination claims, directly with LMI and will not be obligated to deal directly
in any way with LMI's assignee.

      

      30.0               PRODUCT
SUPPORT

      

      30.1                      Policy

       

      APB
provides its Customers with worldwide product support. LMI acknowledges that its
fulfillment of its obligations under this Agreement, including but not limited
to this Article 31.0, is crucial to enable APB to support its
Customers.

      

      30.2               Scope

      

      The
requirements set forth in this Article apply to Products provided by LMI for
installation on Aircraft or for use in the maintenance and operations support of
Aircraft.

       

      
        
          31

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      30.3               AOG
Response

      

      LMI will
employ its best efforts to provide the earliest possible delivery of any Spare
Part designated AOG by APB. Such effort includes but is not limited to working
24 hours a day, seven days a week and use of premium transportation. LMI shall
respond, and when possible, specify the delivery date and time of any such AOG
Spare Part, within four hours of receipt of an AOG Spare Part
request.

      

      30.4               Routine /
Class II Response

      

      LMI shall
expend reasonable business efforts (i.e., excluding overtime, expedite, or
premium efforts) to provide delivery within standard lead-time of any Spare Part
designated Routine (or Class II) by APB. LMI shall respond, and when possible,
specify the delivery date and time of any such Routine Spare Part, within one
business day of receipt of a Routine Spare Part request.

      

      30.5               Designation
by APB

      

      APB will
endeavor to order Spares as Routine or Class II classification; however, in
cases where APB Customers require parts classified as "AOG", APB will so
indicate to LMI and LMI shall perform all duties as required under Section
30.3.

      

      30.6                      Reclassification
or Re-exercises

      

      APB may
from time to time as it considers appropriate instruct LMI to re-prioritize or
reclassify an existing Spare Part Order in order to improve or otherwise change
the established shipping schedule. LMI shall expend the effort required as set
forth above in the definitions of the Spare Part Order to meet the revised
requirement. LMI'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 24 hours from notification by APB.

      

      30.7               Spare Parts
Pricing

      

      The price
for all in production spares and details shall be per the latest Bill of
Material kit price for each part. The cost of packaging associated with the
spare is considered part of the Spares price. LMI may charge an appropriate
handling fee for each Spares request, regardless of the number of individual
parts associated with each request. LMI Spares handling fees may be assessed as
follows:

       

      Spares
Requests During Normal Business
Hours                                                                                                    $*                   

      

      Spares
Requests Evenings and
Weekends                                                                                                               $*                   

      

      Out of
production Spares will be priced as mutually negotiated between APB and LMI at
the time of the order.

      

      30.8               Packaging of
Spare Parts

      

      LMI shall
package Spare Parts in accordance with ATA 300. Repairable components shall be
packaged one each in reusable containers. Expendable components shall be
packaged and identified as specified in ATA 300. Styrofoam dunnage such as
pellets, peanuts, popcorn, etc., shall not be utilized.

       

       

       

      
        * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

      

       

      
        
          32

        

        
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APB-LMI-001

          
            

          

        

        
          
          

        

      

      
30.9               Special
Handling

      

      The price
for all effort associated with the handling and shipment preparation of Spare
Parts is deemed to be included in the price of the Spare Part. Spare Parts shall
be shipped FOB EXW (INCOTERMS 2000) LMI, Savannah. Shipping instructions will be
provided to LMI at time of the Spare Parts order, or as appropriate. If APB
directs delivery of Spare Parts to a delivery point other than EXW LMI, APB
shall reimburse LMI for shipping charges, including insurance, paid by LMI from
the plant to the designated delivery point. Such charges shall be shown
separately on all invoices.

      

      30.10                      
LMI's Spares Point of Contact

      

      LMI shall
provide a point of contact for Spare Part Orders to facilitate prompt order
processing. This point of contact is as follows:

      

      
        	
                Supplier

              	
                Commercial
      Account Manager

              
	
                Phone:

              	
                912-748-8973

              
	
                FAX:

              	
                912/748-9821

              
	
                EMAIL:

              	
                ________________________

              

      

      

      30.11                      Communications
Response Times

      

      LMI shall
respond to communication from APB within the following time
periods:

      

      

      
        	
                Telephone

              	
                Within
      8 hours

              
	
                Wire
      (Telex, etc.)

              	
                Within
      24 hours

              
	
                Letter

              	
                Within
      10 calendar days

              
	
                Request
      for Quotation

              	
                Within
      10 calendar days

              
	
                AOG
      or Routine/Class II

              	
                As
      specified above in Article 13.0

              

      

      

      30.12                      General Product Support
Requirements

      

      30.12.1                   Resolution
of Product Warranty Claims

      

      LMI, on
receipt of a written request for assistance to resolve a product warranty claim,
shall provide a written response to each written notice of a defect submitted
under this Section 31.12 within ten working days from the date of receipt. In
the event LMI disallows any such claim, LMI shall provide a reasonable
explanation of such disallowance to APB and/or Customer.

      

      LMI shall
perform warranty Correction in accordance with Section 12.1 of this Agreement.
LMI shall furnish APB and/or Customer with all the data and information in its
possession relevant to the warranty claim. LMI shall provide to APB and/or
Customer LMI's findings as to the cause of the problem, and upon determination
of an interim or final solution, shall provide to APB and/or Customer a plan and
schedule for Correction.

       

       

      
        
          33

        

        
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APB-LMI-001

          
            

          

        

        
          
          

        

      

      
30.12.2                   Technical
Assistance Requests - Product Manufacture

      

      APB may
request LMI's assistance regarding the Product manufacture, which falls outside
the warranty claim process. Upon request by APB's Program Manager, LMI shall
provide to APB technical assistance pertaining to the manufacture of the
Product. This assistance may be in the form as is reasonably determined by LMI
at the time of the request. LMI shall make best commercially reasonable effort
to support in a timely manner. Any costs or expense incurred by LMI's employees
in providing assistance will be borne by APB.

      

      30.12.3                   Agreement to Manufacture and
Sell

      

      LMI shall
manufacture and sell Spare Parts and Products to APB only, per the terms of this
Agreement.

      

      31.0               TOOLING

      

      A current
Certified Tool List, Attachment C, will be submitted to APB by LMI and updated
each time tools are added or deleted by LMI. The Certified Tool List will
include all program Tooling created to support this contract, including all Tool
Designs, Tool Drawings, NC tapes, Tooling Masters, Soft and Hard Production
Tooling, Assembly Fixtures, Inspection Fixtures and program-specific Shop Aides.
Title to Tooling passes to APB at First Article Delivery for each
program.

      

      The
Tooling identified in the Certified Tool List, Attachment C, shall be capable of
supporting the maximum rate identified.

      

      LMI shall
adhere to the documents listed below, which are incorporated herein and made a
part hereof by this reference, to design, fabricate, validate, control and
maintain all program Tooling:

       

      
        	
                ·

              	
                D33200,
      Supplier Tooling Document

              
	
                ·

              	
                D33011,
      Tool Design Manual

              
	
                ·

              	
                D33181,
      Tool Procedure Manuals

              
	
                ·

              	
                D33041,
      Tool Identification Codes

              
	
                ·

              	
                D32082,
      Trim Tool Document

              
	
                ·

              	
                D32101,
      Plastics Tooling Document

              

      

      

      Notwithstanding
anything contained in this Agreement, if APB declares that an event of default
has occurred, APB may direct LMI to deliver, and LMI will deliver, at no charge
to APB, all Tooling to the location directed by APB and in accordance with the
schedule provided by APB.

      

      32.0               APB-OWNED
TOOLING

      

      In the
event APB furnishes Tooling to LMI, LMI shall comply with the Terms and
Conditions applicable to any Blanket Tooling Purchase Control Order in effect at
the time.

      

      No
replacement or rework of any APB-owned Tooling shall be performed without APB's
prior written consent. APB shall notify LMI of any action required for
discrepant Tooling. LMI will be responsible for routine tool maintenance and
repairs, and replacement of APB-owned Tools shall be for the account of
APB.

       

      
        
          34

        

        
          Master Agreement No.
APB-LMI-001

          
            

          

        

        
          
          

        

      

       

      33.0               STATUS
REPORTS/REVIEWS

      

      When
requested by APB, LMI shall update and submit, as a minimum, monthly status
reports on data requested by APB using a method mutually agreed upon by APB and
LMI.

      

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

      

      34.0               APB-FURNISHED
MATERIAL AND DATA

      

      A Bonded
Stores Agreement shall be entered into by APB and LMI for any APB furnished
equipment or materials. APB may elect to supply components to LMI for inclusion
into the end item kit BOM, at APB's discretion. Any such components will be
identified and coordinated with LMI prior to delivery of first article machined
parts kits.

      

      APB shall
furnish LMI with all the technical information which is necessary for LMI to
fulfill its responsibility and as set forth in drawings and applicable Technical
Statements of Work in a timely manner.

      

      35.0               INVENTORY AT
CONTRACT COMPLETION

      

      Subsequent
to LMI's last delivery of Product(s), Products which contain, convey, embody or
were manufactured in accordance with or by reference to APB's proprietary
materials including but not limited to finished goods, work-in-process and
detail components (hereafter "Inventory") which are in excess of Order quantity
shall be made available to APB for purchase. In the event APB, in its sole
discretion, elects not to purchase the Inventory, LMI may scrap the Inventory.
Prior to scrapping the Inventory, LMI shall mutilate and/or render it unusable.
LMI shall maintain, pursuant to their quality assurance system, records
certifying destruction of the applicable Inventory. Said certification shall
state the method and date of mutilation and destruction of the subject
Inventory. APB or applicable regulatory agencies shall have the right to review
and inspect these records at any time it deems necessary. In the event LMI
elects to maintain the Inventory, LMI shall maintain accountability for the
inventory and LMI shall not sell or provide the Inventory to any third party
without prior specific written authorization from APB. Failure to comply with
these requirements shall be a material breach and grounds for default pursuant
to Article 14.0.

      

      36.0               CONFIGURATION
CONTROL OF PRODUCTS

       

      After the
issuance of the STC, LMI agrees not to make any change in materials or design
details which would affect the Product or any component part thereof including
without limitation (a) part number identification, (b) physical or functional
interchangeability, or (c) repair and overhaul procedures and processes and
material changes which affect these procedures, without prior written approval
of APB. LMI will place this Article 36.0 clause in all its subcontracts for LMI
identified purchased equipment whether such equipment is supplied to LMI as an
end item or as a component part of an end item.

       

       

      
        
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37.0               NON-WAIVER

      

      APB's
failure at any time to enforce any provision of an Order or this Agreement does
not constitute a waiver of such provision or prejudice APB's right to enforce
such provision at any subsequent time.

      

      38.0               HEADINGS

      

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

      

      39.0               PARTIAL
INVALIDITY

      

      If any
provision of any Order or this Agreement is or becomes void or unenforceable by
force or operation of law, the other provisions shall remain valid and
enforceable.

      

      40.0               APPLICABLE
LAW; JURISDICTION

      

      This
Agreement and each Order, including all matters of construction, validity and
performance, shall in all respects be governed by, and construed and enforced in
accordance only with the law of the State of Washington, without reference to
any rules governing conflicts of law. LMI hereby irrevocably consents to and
submits itself exclusively to the jurisdiction of the applicable courts of the
State and federal courts in Washington 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. LMI 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) LMI 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. The U.N. Convention for the International Sale of Goods shall not
apply to this Agreement.

      

      41.0               AMENDMENT

      

      Subject
to the exceptions expressly set forth in this Agreement, oral statements and
understandings are not valid or binding. Except as otherwise provided in
Sections 10.0 and 11.0, no Order may be changed or modified except in writing,
signed by LMI and the Material Representative.

      

      42.0               LIMITATION

       

      LMI may
not (except to provide an inventory of Products to support delivery acceleration
and to satisfy reasonable replacement and Spares requirements) manufacture or
fabricate Products or procure any goods in advance of the reasonable flow time
required to comply with the delivery schedule in the applicable Order except as
otherwise expressly authorized in writing by APB. Notwithstanding any other
provision of an Order, LMI is not entitled to any equitable adjustment or other
modification of such Order for any manufacture, fabrication, or procurement of
Products not in conformity with the requirements of the Order, unless APB's
written consent has first been obtained. Nothing in this Article 43.0 shall be
construed as relieving LMI of any of its obligations under the
Order.

       

      
        
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43.0               LITIGATION

      

      In the
event that any taxing authority has claimed or does claim payment for taxes or
duties, LMI shall promptly notify APB, and LMI shall take such action as APB 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 APB or reimbursed to LMI. If LMI or APB is successful
in defending such claim, the amount of such taxes recovered by LMI, which had
previously been paid by LMI and reimbursed by APB or paid directly by APB, shall
be immediately refunded to APB.

      

      43.1                      Rebates

      

      If any
taxes paid by APB are subject to rebate or reimbursement, LMI shall take the
necessary actions to secure such rebates or reimbursement and shall promptly
refund to APB any amount recovered.

      

      44.0               ENTIRE AGREEMENT / ORDER OF
PRECEDENCE / SURVIVAL

      

      44.1               Entire
Agreement

      

      This
Agreement (including all Orders), sets forth the entire understanding between
APB and LMI with respect to, and supersedes, any and all other prior agreements,
understandings and communications between APB and LMI related to its subject
matter. The rights and remedies afforded to APB pursuant to this Agreement are
in addition to any other rights and remedies afforded by law or
otherwise.

      

      44.2               Incorporated
by Reference

      

      In
addition to the documents previously incorporated herein by reference, the
documents listed below are by this reference made a part of this
Agreement:

      

      Engineering
Drawing by Part Number and, if applicable, related Outside Production
Specification Plan (OPSP).

      

      Any other
exhibits or documents agreed to by the parties to be a part of this
Agreement.

      

      44.3               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:

      

      1.                Order
(excluding Agreement)

       

      
        2.                Engineering
Drawing by Part Number and, if applicable, related drawing deviations as
requested by Buyer

      

       

      3.                This
Agreement

      

      4.                Any
other exhibits or documents the parties agree shall be part of the
Agreement.

       

       

      
        
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44.4               SURVIVAL

      

      The
provisions of Sections 12.1 (through the terms of the warranty), 12.3, 29.3, and
Articles 17.0, 23.0, 26.0, 27.0, 28.0, 39.0, 40.0, 41.0, 43.0, 44.0, and other
provisions that by their terms survive termination or expiration of this
Agreement, and obligations that have accrued prior to expiration or termination
of this Agreement, shall survive termination or expiration of this
Agreement.

      

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

      

      
        	
                APB
      WINGLETS COMPANY, LLC

              	
                LMI
      AEROSPACE, INC.

              
	 
      	 
      
	 
      	 
      
	
                Name:

              	
                Name:

              
	
                Title:

              	
                Title:

              
	
                Date:

              	
                Date:

              

      

       

       

      
        
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          Master Agreement No.
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    ATTACHMENT
A

    Pricing

     

    (Estimated.
To be updated and finalized pursuant to Section 6.1)

     

    Base
Price

     

    For first
100
Shipsets                                                                                         
    $*                   

     

    Base
Price is the price per Shipset. Prices are estimates until all detail drawings
have been released. Firm pricing based on released engineering will be finalized
pursuant to Section 6.1 of this Agreement.

     

    Pricing
identified above is the kit price per Shipset, exclusive of nonrecurring costs.
APB's Order to LMI shall indicate part number(s) required for each Shipset of
Products.

     

    Nonrecurring
Price

     

    Total
Nonrecurring
Costs                                                                                     $*                   

     

    Nonrecurring
Price (amortized over 100
Shipsets)                                            $*                   

     

    Prices
are estimates until all detail drawings have been released. Firm pricing based
on released engineering will be finalized pursuant to Section 6.1 of this
Agreement.

     

    Spares
Pricing

     

    Spare
parts will be priced according to Article 31.0, Product Support.

     

     

     

    
      * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

    

    

      
        
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    ATTACHMENT
B

     

    Rates
& Factors

     

    The
following rates and factors will be used on all price change negotiations during
the period of performance of this Agreement.

     

    
      	
              Production
      Labor:

            	
              $
      *                   
      /hour

            
	
              (includes
      direct labor rate of $ *                   
      /hour, Labor burden of *                   
      %, G&A, and profit

            
	
              Direct
      Engineering Labor Rate

            	
              N/A

            
	
              Material
      Burden:

            	
              *                   
      %

            
	
              G&A

            	
              *                   
      %

            
	
              Profit

            	
              *                   
      %

            

    

    

     

     

    
      * 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 pursuant to Rule
24b-2.  A copy of this Agreement including the redacted information has
been submitted to the Securities and Exchange Commission as part of such
request.

    

     

    

      
        
          40 

        

        
          Master Agreement No.
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    ATTACHMENT
C

    Certified
Tooling List

     

    (to be
provided by LMI once APB-owned tooling is complete and accepted by APB
QA)

     

    
      	
                 Tool
    Number

            	
                 Nomenclature

            	
                 Tool Code

            	
                 Unit No.

            	
                 Location

            
	
              XYZ

            	
              Holding
      Fixture

            	
              HF

            	
              1

            	
                 Savannah

            

    

    

     

     

    

      
        
          41

        

        
          Master Agreement No.
APB-LMI-001

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