Document:

Seventh Supplemental Indenture, relating to the Company's 7 3/8% Notes due 2019

 Exhibit 4.3 
  

SEVENTH SUPPLEMENTAL INDENTURE 
  
 SEVENTH SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of July 19, 2005, among Saks Incorporated, a corporation
incorporated under the laws of the State of Tennessee (the “Company”), as issuer, the Subsidiary Guarantors listed on the signature pages hereto (the “Guarantors”), as guarantors, and J.P. Morgan Trust Company,
National Association, a national banking association organized under the laws of the United States of America and successor in interest to The First National Bank of Chicago (the “Trustee”), as trustee. 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company, the Guarantors and the Trustee have heretofore
entered into an Indenture, dated as of February 17, 1999, relating to the Company’s 7 3/8% Notes due 2019
(the “Notes”), as amended and supplemented prior to the date hereof (the “Original Indenture”); 
  
 WHEREAS, the Company has commenced (i) an offer to purchase for cash any and all Outstanding Notes and (ii) a concurrent solicitation of consents
from Holders of the Notes to, among other things, certain amendments (the “Amendments”) to the Original Indenture which are set forth in this Supplemental Indenture; 
  
 WHEREAS, the Company has received the written consent to the Amendments from Holders of a majority in aggregate
principal amount of the Outstanding Notes; and 
  
 WHEREAS,
pursuant to Section 9.02 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the
parties hereto mutually covenant and agree for the equal and ratable benefit of Holders of the Notes as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section
1.01. Definitions. 
  
 The Original Indenture together
with this Supplemental Indenture are hereinafter sometimes collectively referred to as the “Indenture.” For the avoidance of doubt, references to any “Section” of the “Indenture” refer to such Section of the
Original Indenture as supplemented and amended by this Supplemental Indenture. All capitalized terms which are used herein and not otherwise defined herein are defined in the Original Indenture and are used herein with the same meanings as in the
Original Indenture. If a capitalized term is defined in the Original Indenture and this Supplemental Indenture, the definition in this Supplemental Indenture shall apply to the Indenture and the Notes. 
  

 Section 1.01 of the Original Indenture shall be amended to insert alphabetically therein the following
defined terms: 
  
 “Compliance Certificate” has the
meaning set forth in Section 10.12. 
  
 “Covenant Reversion
Date” means, 5:30 p.m., New York City time, on the earlier of (i) the Business Day following the Company’s failure to pay the Purchase Price, if due, for the Notes in accordance with the Offer to Purchase and (ii) October 31, 2005.

  
 “Purchase Price” means the payment (including the
Consent Payment) defined as such with respect to the Notes in the Offer to Purchase. 
  
 “Offer to Purchase” means the Offers to Purchase and Consent Solicitations Statement dated as of June 20, 2005 and the related Letter of Transmittal and Consent, each as may be amended and supplemented from
time to time. 
  
 ARTICLE II 
  
 REMEDIES 
  
 Section 2.01. Events of Default. 
  
 Section 5.01 of the Original Indenture shall be deleted in its entirety and replaced with the following: 
  
 Section 5.01. Events of Default. 
  
 “Event of Default,” wherever used herein, means
any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body): 
  
 (a) default in the payment of any interest on the Notes when due and payable, continued for 30 days or more; or 
  
 (b) default in payment of all or any part of principal of or premium, if any, on the Notes at the Maturity Date; or 
  
 (c) except as otherwise provided in this Section 5.01,
default in the performance of or breach of any other covenant or warranty of the Company contained in the Notes, any Note Guarantee or this Indenture (other than a default specified in (a) or (b) above) that continues for a period of 60 days after
written notice of such failure requiring the Company to remedy the same and stating that such notice is a “Notice of Default” 
  

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 hereunder shall have been given (x) to the Company by the Trustee or (y) to the Company and the Trustee
by the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding; or 
  
 (d) acceleration of any Indebtedness, having an aggregate minimum principal amount of $50 million, for money borrowed by the Company or a
Subsidiary under the terms of the instrument under which such Indebtedness is issued or secured, if such acceleration is not discharged within 10 days after written notice of such acceleration; or 
  
 (e) any Note Guarantee ceases to be in full force and effect
or is declared null and void or any Guarantor denies that it has any further liability under any Note Guarantee, or gives notice to such effect (other than by reason of the termination of this Indenture or the release of any such Note Guarantee in
accordance with Section 12.04 hereof) and such condition shall have continued for a period of 30 days after written notice of such condition requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder
shall have been given (x) to the Company by the Trustee or (y) to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding; or 
  
 (f) the Company or any Subsidiary of the Company pursuant to
or under or within the meaning of any Bankruptcy Law: 
  
 (i) commences a voluntary case or proceeding; 
  
 (ii) consents to the making of a Bankruptcy Order in an involuntary case or proceeding or the commencement of any case against it; 
  
 (iii) consents to the appointment of a Custodian of it or for any substantial part of its property; 
  
 (iv) makes a general assignment for the benefit of its
creditors; 
  
 (v) files an answer or consent
seeking reorganization or relief; 
  
 (vi) shall
admit in writing its inability to pay its debts generally; or 
  
 (vii) consents to the filing of a petition in bankruptcy; or 
  
 (g) a court of competent jurisdiction in any involuntary case or proceeding enters a Bankruptcy Order against the Company or any
Subsidiary, and such Bankruptcy Order remains unstayed and in effect for 60 consecutive days; or 
  
 (h) a Custodian shall be appointed out of court with respect to the Company or any Subsidiary or with respect to all or any substantial
part of the assets or properties of the Company or any Subsidiary. 
  

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 Notwithstanding any of the foregoing, the failure of the Company to comply with Section
7.04, 10.10 or 10.12 of this Indenture, or §314 of the Trust Indenture Act, before the Covenant Reversion Date shall not constitute a Default under clause (c) above. 
  
 ARTICLE III 
  
 HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY 
  
 Section 3.01. Reports by Company and Each Guarantor. 
  
 Section 7.04 of the Original Indenture shall be deleted in its entirety and replaced with the following: 
  
 Section 7.04. Reports by Company and Each Guarantor. 
  
 The Company and each Guarantor shall, except as otherwise
provided in this Section 7.04: 
  
 (a) file with
the Commission, the copies of annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) required to be filed
with Commission pursuant to Section 13 or Section 15 of the Exchange Act, whether or not the Company or any Guarantor has a class of securities registered under the Exchange Act; 
  
 (b) file with the Trustee within 15 days after it files or would be required to file the information
specified in subsection (a) of this Section 7.04 reports and documents with the Commission copies of such information; 
  
 (c) file with the Trustee and the Commission in accordance with rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance by the Company and each Guarantor with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and 
  
 (d) transmit by mail to all Holders, as their names and
addresses appear in the Note Register, within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company and each Guarantor pursuant to subsections (a) and (c) of
this Section as may be required by rules and regulations prescribed from time to time by the Commission. 
  
 Notwithstanding any other provision of this Section 7.04 or this Indenture, the information, documents and reports referred to in this
Section 7.04 that the Company or the Guarantors would have been required to file with the Commission or the Trustee or transmit to the Holders on any date on or before the Covenant Reversion Date (but for this sentence) will not be required to be
filed or transmitted by the Company or the Guarantors until the Covenant Reversion Date. 
  

 4 

 ARTICLE IV 
  
 COVENANTS 
  
 Section 4.01. Provision of Financial Statements. 
  

Section 10.10 of the Original Indenture shall be deleted in its entirety and replaced with the following: 
  
 Section 10.10. Provision of Financial Statements. 
  
 The Company will, except as otherwise provided in this
Section 10.10, file with the Commission (so long as the Commission will accept any such filings) and the Trustee the annual reports, quarterly reports and other documents required to be filed with the Commission pursuant to Sections 13 and 15 of the
Exchange Act, whether or not the Company has a class of securities registered under the Exchange Act. The Company will also comply with the other provisions of Section 314(a) of the Trust Indenture Act. Notwithstanding any other provision of this
Section 10.10 or this Indenture, the reports and documents referred to in this Section 10.10 that the Company would have been required to file with the Commission or the Trustee on any date on or before the Covenant Reversion Date (but for this
sentence) will not be required to be filed by the Company until the Covenant Reversion Date. 
  
 Section 4.02. Statement by Officers as to Default. 
  
 Section 10.12 of the Original Indenture shall be deleted in its entirety and replaced with the following: 
  
 Section 10.12. Statement by Officers as to Default. 
  
 The Company and the Guarantors will, except as otherwise
provided in this Section 10.12, deliver to the Trustee, within 120 days after the end of each of their fiscal years ending after the date hereof, a written statement (such written statement, a “Compliance Certificate”) signed by the
chairman or a chief executive officer, the principal financial officer, principal accounting officer or Treasurer of the Company or such Guarantor (as applicable), stating (i) that a review of the activities of the Company or such Guarantor (as
applicable) during the preceding fiscal year has been made under the supervision of the signing officer with a view to determining whether the Company or such Guarantor (as applicable) has kept, observed, performed and fulfilled its obligations
under this Indenture and (ii) that, to the knowledge of each officer signing such certificate, the Company or such Guarantor (as applicable) has kept, observed, performed and fulfilled each and every covenant and condition contained in this
Indenture and is not in default in the performance or observance of any of the terms, provisions, conditions and covenants hereof (or, if a Default shall have occurred, describing all such Defaults of which such officers may have knowledge, their
status and what action the Company or such Guarantor (as applicable) is taking or proposes to take with respect thereto). When any Default has occurred and is continuing, or if the Trustee or any Holder or the trustee for or the holder of any other
evidence of Indebtedness of the Company or any Subsidiary 
  

 5 

 gives any notice or takes any other action with respect to a claimed default (other than with respect to
Indebtedness (other than Indebtedness evidenced by the Notes) in the principal amount of less than $50,000,000), the Company will, except as otherwise provided in this Section 10.12, promptly deliver to the Trustee by registered or certified mail or
by telegram, or facsimile transmission followed by hard copy by registered or certified mail an Officers’ Certificate specifying such event, notice or other action no later than five Business Days after the Company becomes aware of such
occurrence and what action the Company is taking or proposes to take with respect thereto. Notwithstanding any other provision of this Section 10.12 or this Indenture, (i) the Compliance Certificate referred to in this Section 10.12 that the Company
and the Guarantors would have been required to deliver to the Trustee on any date before the Covenant Reversion Date (but for this sentence) will not be required to be delivered until the Covenant Reversion Date, and (ii) the Company and the
Guarantors will have no obligation to deliver an Officers’ Certificate, as referred to in the preceding sentence, relating to the breach of a covenant contained in Section 7.04, 10.10 or 10.12 of this Indenture that occurred prior to the
Covenant Reversion Date. 
  
 ARTICLE V 
  
 MISCELLANEOUS 
  
 Section 5.01. Effect of Supplemental Indenture; Effectiveness and
Operation. 
  
 (a) This Supplemental Indenture shall be
effective upon execution hereof by the Company, the Guarantors and the Trustee. From and after such date, the Amendments set forth herein shall be deemed to have modified the applicable sections, or portions thereof, or clauses of the Original
Indenture. However, this Supplemental Indenture shall cease to have any effect if the Company shall fail to pay to Holders of the Notes the Purchase Price described in the Offer to Purchase (as defined in Section 1.1 of this Supplemental Indenture).

  
 (b) This Supplemental Indenture is a supplemental indenture
within the meaning of Section 9.02 of the Original Indenture, and the Original Indenture shall be read together with this Supplemental Indenture and shall have the same effect over the Notes in the same manner as if the provisions of the Original
Indenture and this Supplemental Indenture were contained in the same instrument. 
  
 (c) In all other respects, the Original Indenture is confirmed by the parties hereto as supplemented by the terms of this Supplemental Indenture. 
  
 (d) Subject to 5.02 of this Supplemental Indenture, in the event that there is a conflict or inconsistency between the
Original Indenture and this Supplemental Indenture, the provisions of this Supplemental Indenture shall control. 
  
 (e) The Company hereby covenants to notify the Trustee if the Covenant Reversion Date shall occur on any date prior to October 31, 2005 within 24 hours
after such occurrence. 
  

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 (f) Nothing contained in this Supplemental Indenture shall affect any statutory obligation of the Company
or the Guarantors under the Exchange Act or the TIA. 
  
 Section 5.02. Trust Indenture Act Controls. 
  
 If any provision of this Supplemental Indenture limits, qualifies or conflicts with another provision which is required to be included in this Supplemental Indenture by the TIA, the required provision shall control. If any provision of this
Supplemental Indenture modifies any TIA provision that may be so modified, such TIA provision shall be deemed to apply to this Supplemental Indenture as so modified. If any provision of this Supplemental Indenture excludes any TIA provision that may
be so excluded, such TIA provision shall be excluded from this Supplemental Indenture. 
  
 Section 5.03. GOVERNING LAW. 
  
 THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 
  
 Section 5.04. Counterparts. 
  
 The parties may sign any number of copies of this Supplemental Indenture.
Each signed copy shall be an original, but all of them together represent the same agreement. 
  
 Section 5.05. Successors. 
  
 All agreements of the Company and the Guarantors in this Supplemental Indenture shall bind their respective successors. All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

  
 Section 5.06. Severability. 
  
 In case any provision in this Supplemental Indenture shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 5.07. Effect of Headings. 
  
 The headings of the Articles and Sections of this Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 Section 5.08. Trustee. 
  
 The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by
the Company and the Guarantors. 
  
 *  *  *  *  * 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed
as of the date first above written. 
  

			
	SAKS INCORPORATED
		
	 By:
	 	 /s/ C. WES. BURTON, JR.

	 	 	C. Wes Burton, Jr.
	 	 	Senior Vice President and Treasurer
	
	GUARANTORS:
	
	CARSON PIRIE HOLDINGS, INC.
	HERBERGER’S DEPARTMENT STORES, LLC
	JACKSON LEASING LLC
	MCRAE’S OF ALABAMA, INC.
	MCRAE’S STORES SERVICES, INC.
	MCRAE’S, INC.
	MCRIL, LLC
	MERCHANDISE CREDIT, LLC
	NEW YORK CITY SAKS, LLC
	PARISIAN, INC.
	SAKS & COMPANY
	SAKS DIRECT, INC.
	SAKS DISTRIBUTION CENTERS, INC.
	SAKS FIFTH AVENUE DISTRIBUTION COMPANY
	SAKS FIFTH AVENUE OF TEXAS, INC.
	SAKS FIFTH AVENUE TEXAS, L.P.
	SAKS FIFTH AVENUE, INC.
	SAKS HOLDINGS, INC.
	SAKS WHOLESALERS, INC.
	SCCA, LLC
	SCCA STORE HOLDINGS, INC.
	SCIL, LLC
	SCIL STORE HOLDINGS, INC.
	SFAILA, LLC
	TEX SFA, INC.
		
	 By:
	 	 /s/ CHARLES J. HANSEN

	 	 	Charles J. Hansen
	 	 	Executive Vice President

			
	 MCRAE’S STORES PARTNERSHIP

		
	 By:
	 	McRae’s, Inc., its Managing General Partner
		
	 By:
	 	 /s/ CHARLES J. HANSEN

	 	 	Charles J. Hansen
	 	 	Executive Vice President
	
	 PMIN GENERAL PARTNERSHIP

		
	 By:
	 	Parisian, Inc., its Managing Partner
		
	 By:
	 	 /s/ CHARLES J. HANSEN

	 	 	Charles J. Hansen
	 	 	Executive Vice President
	
	 J.P. MORGAN TRUST COMPANY,
 NATIONAL ASSOCIATION, as Trustee

		
	 By:
	 	 /s/ BENITA A. POINTER

	 	 	Benita A. Pointer, CCTS
	 	 	Assistant Vice PresidentAmended and Restated Articles of Incorporation

 Exhibit 4.1 
  

ARTICLES OF AMENDMENT 
  
 of 
  
 SPACEHAB, INCORPORATED 
  

  
 pursuant to Chapter 10 of the 
  
 Washington Business Corporation Act 
  

  
 SPACEHAB, Incorporated, (the “Corporation”), a corporation organized and existing under and by virtue of the Washington Business Corporation
Act, as amended, (the “WBCA”), hereby certifies that: 
  
 1. The name of the corporation is SPACEHAB, Incorporated. 
  
 2. ARTICLE FOURTH of the Articles of Incorporation of the Corporation are amended to read as follows: 
  
 FOURTH: The total number of shares of capital stock which the Corporation shall have authority to issue is 32,500,000 shares, consisting of
30,000,000 shares of common stock, no par value per share (the “Common Stock”) and 2,500,000 shares of preferred stock, no par value per share (the “Preferred Stock”). 
  
 3. These Articles of Amendment were duly approved by the shareholders of the Corporation on October 14, 1999 in accordance
with the provisions of WBCA 23B.10.030 and 23B.10.040. 
  
 4. The
manner in which the amendment to ARTICLE FOURTH effects a change in authorized capital stock is to increase the number of shares of authorized Preferred Stock. 
  

These Articles of Amendment are executed by the Corporation by its duly authorized officer. 
  
 DATED: October 14, 1999 
  

			
	SPACEHAB, INCORPORATED
		
	By:	 	/s/    SHELLEY A.
HARRISON        
	 	 	Shelley A. Harrison
	 	 	Chairman of the Board and Chief Executive Officer

  

 DESIGNATION OF RIGHTS, TERMS AND PREFERENCES 
 OF 
 ADDITIONAL SHARES OF 
 SERIES B SENIOR CONVERTIBLE PREFERRED STOCK 
 OF 
 SPACEHAB, INCORPORATED 
  
 (Pursuant to Chapter 6 of the 
 Washington Business Corporation Act) 
  
 Spacehab, Incorporated, a corporation organized and existing under the
Business Corporation Act of the State of Washington (hereinafter called the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by Chapter 6 of the Business
Corporation Act at a meeting duly called and held on August 26, 1999: 
  
 RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance with the
provisions of the Articles of Incorporation, the Board of Directors hereby designates additional shares of Series B Preferred Stock of the Corporation, no par value per share (the “Preferred Stock”), as follows: 
  
 Series B Senior Convertible Preferred Stock: 
  
 Section 1. Designation and Amount. The shares of such series shall be
designated as “Series B Senior Convertible Preferred Stock” (the “Series B Preferred Stock”). The number of existing and outstanding shares of Series B Preferred Stock is Nine Hundred Seventy-Five Thousand (975,000) and the
number of additional shares of Series B Preferred Stock shall be Three Hundred Fifty-Eight Thousand Three Hundred Thirty-Four (358,334). As a result, the total number of shares of Series B Preferred Stock shall be One Million Three Hundred
Thirty-Three Thousand Three Hundred Thirty-Four (1,333,334). Such number of shares may be decreased by resolution of the Board of Directors; provided that no decrease shall reduce the number of shares of Series B Preferred Stock to a number less
than the number of shares then outstanding. 
  
 Section 2.
Dividends. The holders of the Series B Preferred Stock shall be entitled to receive, out of funds legally available therefor, such dividends with respect to the shares of Series B Preferred-Stock as may be declared by the Board of Directors.
In addition, when and if the Board of Directors shall declare a dividend payable with respect to the then outstanding shares of Common Stock, no par value per share (“Common Stock”) of the Corporation, each holder of Series B Preferred
Stock shall be entitled to the amount of dividends as would be payable on the largest number of whole shares of 

  

 
Common Stock into which shares of Series B Preferred Stock held by such holder could then be converted pursuant to Section 5 hereof (such number to be
determined as of the record date for the determination of holders of Common Stock entitled to receive such dividend). Dividends shall not be declared or paid to holders of Common Stock unless and until the Corporation shall simultaneously declare
and pay to holders of Series B Preferred Stock the dividend referred to in the preceding sentence. 
  
 Section 3. Liquidation, Dissolution or Winding Up; Certain Mergers. Consolidations and Asset Sales. 
  
 a. In the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Corporation, the holders of shares of Series B Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders, before any payment
shall be made to the holders of Common Stock or any other class or series of stock ranking on liquidation junior to the Series B Preferred Stock (the Common Stock and any other class or series of stock ranking on liquidation junior to the Series B
Preferred Stock, including without limitation, the Series A Junior Participating Preferred Stock of the Corporation, being collectively referred to as “Junior Stock”) by reason of their ownership thereof, an amount equal to Nine Dollars
($9.00) for each outstanding share of Series B Preferred Stock (the “Series B Original Issue Price”) (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization
affecting such shares) plus (ii) any dividends declared or accrued but unpaid thereon. If upon any such liquidation, dissolution or winding up of the Corporation, the remaining assets of the Corporation available for distribution to its stockholders
shall be insufficient to pay the holders of shares of Series B Preferred Stock the full amount to which they shall be entitled, the holders of shares of Series B Preferred Stock and any class or series of stock ranking on liquidation on a parity
with the Series B Preferred Stock shall share ratably (based upon the sum of each series respective Original Issue Price plus accrued but unpaid dividends) in any distribution of the remaining assets and funds of the Corporation in proportion to the
respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full. 
  
 b. After the payment of all preferential amounts required to
be paid to the holders of Series B Preferred Stock and any other class or series of stock of the Corporation ranking on liquidation on a parity with the Series B Preferred Stock upon the dissolution, liquidation or winding up of the Corporation, the
holders of shares of Junior Stock then outstanding shall be entitled to receive the remaining assets and funds of the Corporation available for distribution to its stockholders. 
  
 c. The consolidation or merger of the Corporation into or with any other entity or entities which results in
the exchange of outstanding shares of the Corporation for securities or other consideration issued or paid or caused to be issued or paid by any such entity or affiliate thereof, and the sale or transfer by the Corporation of all or substantially
all its assets, shall be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of the provisions of this Section 3, but 

  

 
only for the purposes of the redemption of such Series B Preferred Stock, and only if so elected by the holders of a majority of the outstanding shares of
Series B Preferred Stock, in their sole discretion. 
  
 Section 4.
Voting. 
  
 a. Each holder of outstanding
shares of Series B Preferred Stock shall be entitled to the number of votes equal to the number of whole shares of Common Stock into which the shares of Series B Preferred Stock held by such holder are then convertible (as adjusted from time to time
pursuant to Section 5 hereof), at each meeting of stockholders of the Corporation (and written actions of stockholders in lieu of meetings) with respect to any and all matters presented to the stockholders of the Corporation for their action or
consideration. Except as provided by law, or by the provisions of Subsections 4(b), 4(c) and 4(d) below, holders of Series B Preferred Stock shall vote together with the holders of Common Stock, as a single class. 
  
 b. For so long as (i) any shares of Series B Preferred Stock
remain outstanding and (ii) any holder thereof is a Qualified Holder (as defined in the Preferred Stock Purchase Agreement (the “Purchase Agreement”) dated as of August 2, 1999 between the Corporation and Daimler Chrysler Aerospace AG
(“DASA”)), the Series B Preferred Stock (voting as a class) will elect one of the Directors (the “Preferred Director”) and the Common Stock (voting as a class) will elect the remaining Directors. The Preferred Director shall be
included as a member of the Executive Committee of the Board. If at any time Series B Preferred Stock issued remains outstanding but there is no Qualified Holder, all of the Directors will be elected by the Series B Preferred Stock and Common Stock
voting together as one class. This Section 4(b) shall not affect or limit provisions of Section 8.1 of the Purchase Agreement as to the right of a Qualified Holder to designate a nominee for election to the Board (and for such designee, if elected
by the shareholders, to serve on the Executive Committee of the Board), which provisions may remain applicable notwithstanding there not being any shares of Series B Preferred Stock outstanding. 
  
 c. Any Preferred Director may be removed at any time, by the
vote of the holders of more than fifty percent (50%) of all of the then outstanding shares of Series B Preferred Stock, voting as a separate class in person or by proxy at a special meeting of stockholders called for such purpose (or at any
adjournment thereof) by holders of at least twenty percent (20%) of the outstanding shares of Series B Preferred Stock or at any annual meeting of stockholders, or by written consent delivered to the Secretary of the Corporation, and no Preferred
Director may be removed at any time without the affirmative vote or consent of the holders of more than fifty percent (50%) of all of the outstanding shares of Series B Preferred Stock. Any vacancy created by the removal, death or resignation of a
Preferred Director may be filled by the holders of more than fifty percent (50%) of all of the outstanding shares of Series B Preferred Stock by vote in person or by proxy at a special meeting of stockholders of the Corporation called for such
purpose by holders of at least twenty percent (20%) of the outstanding shares of Series B Preferred Stock, or at any annual meeting, or by written consent delivered to the Secretary of the Corporation. 
  

 d. So long as any shares of the Series B Preferred Stock remain outstanding, unless the
vote or consent of the holders of a greater number of shares shall then be required by law, the affirmative vote or consent of the holders of more than fifty percent (50%) of all of the shares of Series B Preferred Stock at the time outstanding,
voting separately as a class, given in person or by proxy either in writing (as may be permitted by law and the Articles of Incorporation and By-laws of the Corporation) or at any special or annual meeting, shall be necessary to permit, effect or
validate the taking of any of the following actions by the Corporation: 
  
 (i) create, authorize, issue or sell (i) any class or series of capital stock ranking prior to or on parity with the Series B Preferred Stock as to dividends or upon liquidation, dissolution or winding up; provided,
however, that holders of Common Stock may receive dividends to the extent provided by Section 2 above and, provided further, that the consent to issuance of any class or series of capital stock ranking on parity with the Series B Preferred Stock
shall not be unreasonably withheld; or (ii) any rights, options or other securities convertible, exercisable or exchangeable for or into, or having rights to purchase, any shares of capital stock described in clause (i) hereof; or 
  
 (ii) amend the Articles of Incorporation or By-laws of the
Corporation, or in any other manner alter or change the powers, rights, privileges or preferences of the Series B Preferred Stock, if such amendment or action would alter, change or affect adversely the powers, rights, privileges or preferences of
the holders of the Series B Preferred Stock; or 
  
 (iii) increase the number of shares of Series B Preferred Stock authorized for issuance above 1,333,334 shares; or 
  
 (iv) at any time after the initial issuance date of the Series B Preferred Stock, issue any shares of Series B Preferred Stock,
except (i) issuances pursuant to the Purchase Agreement, or (ii) issuances of share certificates upon transfers or exchanges of shares by holders (other than the Corporation) or in replacement of lost, stolen, damaged or mutilated share
certificates; 
  
 Section 5. Optional Conversion. The
holders of the Series B Preferred Stock shall each have conversion rights as follows (the “Conversion Rights”): 
  
 a. Right to Convert. Shares of Series B Preferred Stock shall be convertible, at the option of the holder thereof, at any time and
from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and nonassessable shares of Common Stock as is determined by dividing the aggregate Series B Original Issue Price of the
Shares of Series B Preferred Stock being converted by the Series B Conversion Price in effect at the time of conversion or such share. The initial “Series B Conversion Price” shall be Nine Dollars ($9.00), subject to adjustment as provided
below. For purposes of this Section 5, “Original Issue Date” shall mean, for the Series B Preferred Stock, the date on which the first share of Series B Preferred Stock was issued. 
  

 In the event of a liquidation of the Corporation, the Conversion Rights shall terminate
at the close of business on the first full day preceding the date fixed for the payment of any amounts distributable on liquidation to the holders of Series B Preferred Stock. 
  
 b. Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of the
Series B Preferred Stock, and the number of shares of Common Stock to be issued shall be rounded to the nearest whole share. The shares issuable upon such conversion shall be determined on the basis of the total number of shares of Series B
Preferred Stock which the holder is at the time converting into Common Stock and the number of shares of Common Stock issuable upon such aggregate conversion. 
  

c. Mechanics of Conversion. 
  
 (i) In order for a holder of Series B Preferred Stock to convert shares of Series B Preferred Stock into shares of Common Stock, such
holder shall surrender the certificate or certificates for such shares of Series B Preferred Stock, at the office of the transfer agent for the Corporation (or at the principal office of the Corporation if the Corporation serves as its own transfer
agent), together with written notice that such holder elects to convert all or any number of the shares of the Series B Preferred Stock represented by such certificate or certificates. Such notice shall state such holder’s name or the names of
the nominees in which such holder wishes the certificate or certificates for shares of Common Stock to be issued. If required by the Corporation, certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or
instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The date of receipt of such certificates and notice by the transfer agent (or by the
Corporation if the Corporation serves as its own transfer agent) shall be the conversion date (“Conversion Date”). The Corporation shall, as soon as practicable after the Conversion Date, issue and deliver at such office to such holder of
Series B Preferred Stock, or to his, her or its nominees, a certificate or certificates for the number of shares of Common Stock to which such holder shall be entitled, together with cash in lieu of any fraction of a share. In case less than all the
shares of Series B Preferred Stock represented by any certificate are being converted, a new certificate representing the unconverted shares of Series B Preferred Stock shall be issued to the holder thereof without cost to such holder. 

 
 (ii) The Corporation shall at all times when the Series B
Preferred Stock shall be outstanding, reserve and keep available out of its authorized but unissued stock, for the purpose of effecting the conversion of the Series B Preferred Stock, such number of its duly authorized shares of Common Stock as
shall from time to time be sufficient to effect the conversion of all outstanding Series B Preferred Stock. 
  
 (iii) Upon any such conversion, no adjustment to the Series B Conversion Price shall be made for any declared or accrued but unpaid
dividends on the Series B Preferred Stock surrendered for conversion or on the Common Stock delivered 

  

 
upon conversion, but, as provided in clause (iv) below, such dividends shall remain payable to the holder thereof. 
  
 (iv) All shares of Series B Preferred Stock which shall have
been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares, including the rights, if any, to receive notices and to vote, shall immediately cease and terminate on the
Conversion Date, except only the right of the holders thereof to receive shares of Common Stock in exchange therefor and payment of any dividends declared or accrued but unpaid thereon. Any shares of Series B Preferred Stock so converted shall be
retired and cancelled and shall not be reissued, and the Corporation (without the need for stockholder action) may from time to time take such appropriate action as may be necessary to reduce the authorized Series B Preferred Stock accordingly.

  
 (v) The Corporation shall pay any and all
issue and other taxes that may be payable in respect of any issuance or delivery of shares of Common Stock upon conversion of shares of Series B Preferred Stock pursuant to this Section 5. The Corporation shall not, however, be required to pay any
tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in a name other than that in which the shares of Series B Preferred Stock so converted were registered, and no such issuance or
delivery shall be made unless and until the person or entity requesting such issuance has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid. 

 
 d. Adjustment for Stock Splits and Combinations.
If the Corporation shall at any time or from time to time after the Original Issue Date of the Series B Preferred Stock effect a subdivision of the outstanding Common Stock, the Series B Conversion Price then in effect with respect to the Series B
Preferred Stock immediately before that subdivision shall be proportionately decreased. If the Corporation shall at any time or from time to time after the Original Issue Date of the Series B Preferred Stock combine the outstanding shares of Common
Stock, the Series B Conversion Price then in effect immediately before the combination with respect to the Series B Preferred Stock shall be proportionately increased. Any adjustment under this paragraph shall become effective at the close of
business on the date the subdivision or combination becomes effective. 
  
 e. Adjustment for Certain Dividends and Distributions. In the event the Corporation at any time, or from time to time after the Original Issue Date of the Series B Preferred Stock shall make or issue, or fix a
record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Series B Conversion Price with respect to the Series B
Preferred Stock then in effect shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Series B Conversion Price for the Series
B Preferred Stock then in effect by a fraction: 
  
 (1) the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and 
  

 (2) the denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; 
  
 provided, however, that if such record date shall have been fixed and such
dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Series B Conversion Price for the Series B Preferred Stock shall be recomputed accordingly as of the close of business on such record date and
thereafter the Series B Conversion Price for the Series B Preferred Stock shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions. 
  
 f. Adjustments for Other Dividends and Distributions.
In the event the Corporation at any time or from time to time after the Original Issue Date of the Series B Preferred Stock shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in securities of the Corporation other than shares of Common Stock, then and in each such event provision shall be made so that the holders of Series B Preferred Stock shall receive upon conversion thereof in addition to
the number of shares of Common Stock receivable thereupon, the amount of securities of the Corporation that they would have received had the Series B Preferred Stock been converted into Common Stock on the date of such event and had thereafter,
during the period from the date of such event to and including the conversion date, retained such securities receivable by them as aforesaid during such period, giving application to all adjustments called for during such period under this paragraph
with respect to the rights of the holders of the Series B Preferred Stock. 
  
 g. Adjustment for Reclassification Exchange or Substitution. If the Common Stock issuable upon the conversion of the Series B Preferred Stock shall be changed into the same or a different number of shares of
any class or classes of stock, whether by capital reorganization, reclassification, or otherwise (other than a subdivision or combination of shares or stock dividend provided for above, or a reorganization, merger, consolidation, or sale of assets
provided for below), then and in each such event the holders of the Series B Preferred Stock shall have the right thereafter to convert such share into the kind and amount of shares of stock and other securities and property receivable upon such
reorganization, reclassification, or other change, by holders of the number of shares of Common Stock into which such shares of Series B Preferred Stock might have been converted immediately prior to such reorganization, reclassification, or change,
all subject to further adjustment as provided herein. 
  
 h. Adjustment for Merger or Reorganization, etc. In case of any consolidation or merger of the Corporation with or into another corporation or the sale of all or substantially all of the assets of the Corporation to another
corporation (other than a consolidation, merger or sale which is covered by Subsection 3(c)), each share of Series B 

  

 
Preferred Stock shall thereafter be convertible (or shall be converted into a security which shall be convertible) into the kind and amount of shares of
stock or other securities or property to which a holder of the number of shares of Common Stock of the Corporation deliverable upon conversion of such Series B Preferred Stock would have been entitled upon such consolidation, merger or sale; and, in
such case, appropriate adjustment (as determined in good faith by the Board of Directors) shall be made in the application of the provisions in this Section 5 set forth with respect to the rights and interest thereafter of the holders of the Series
B Preferred Stock, to the end that the provisions set forth in this Section 5 (including provisions with respect to changes in and other adjustments of the Series B Conversion Price) shall thereafter be applicable, as nearly as reasonably may be, in
relation to any shares of stock or other property thereafter deliverable upon the conversion of the Series B Preferred Stock. 
  
 i. No Impairment. The Corporation will not, by amendment of its Articles of Incorporation, or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Corporation, but will at
all times in good faith assist in the carrying out of all the provisions of this Section 5 and in the taking of all such action as may be necessary or appropriate in order to protect the respective Conversion Rights of the holders of the Series B
Preferred Stock against impairment. 
  
 j.
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Series B Conversion Price pursuant to this Section 5, the Corporation at its expense shall promptly compute such adjustment or readjustment in
accordance with the terms hereof and furnish to each holder of Series B Preferred Stock a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Corporation
shall, upon the written request at any time of any holder of Series B Preferred Stock, furnish or cause to be furnished to such holder a similar certificate setting forth (i) such adjustments and readjustments, (ii) the Series C Conversion Price
then in effect, and (iii) the number of shares of Common Stock and the amount, if any, of other property which then would be received upon the conversion of such Series B Preferred Stock. 
  
 k. Notice of Record Date. In the event: 

 

	 	(a)	that the Corporation declares a dividend (or any other distribution) on its Common Stock payable in Common Stock or other securities of the corporation; 

  

	 	(b)	that the Corporation subdivides or combines its outstanding shares of Common Stock; 

  

	 	(c)	 of any reclassification of the Common Stock of the Corporation (other than a subdivision or combination of its outstanding shares of Common Stock or a stock
dividend or stock distribution thereon), or of any consolidation or 

  

	 	 
merger of the Corporation into or with another corporation, or of the sale of all or substantially all of the assets of the Corporation; or

  

	 	(d)	of the involuntary or voluntary dissolution, liquidation or winding up of the Corporation; 

  
 then the Corporation shall cause to be filed at its principal office, and shall cause to be mailed to the holders of the Series B Preferred
Stock at their last addresses as shown on the records of the Corporation or its transfer agent, at least ten (10) days prior to the date specified in (i) below or twenty (20) days before the date specified in (ii) below, a notice stating 

 

	 	(i)	the record date of such dividend, distribution, subdivision or combination, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distribution, subdivision or combination are to be determined, or 

  

	 	(ii)	the date on which such reclassification, consolidation, merger, sale, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected
that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, dissolution or winding up.

  
 [the remainder of this page intentionally left
blank] 
  

 IN WITNESS WHEREOF, this Designation of Rights, Terms and Preferences is executed on behalf of the
Corporation by its President and attested by its Assistant Secretary this 14th day of October, 1999. 
  

			
	 SPACEHAB, INCORPORATED

		
	 By:
	 	/s/    SHELLEY A.
HARRISON        
	 Name:
	 	Shelley A. Harrison
	 Title:
	 	Chairman and CEO

  

			
		
	 Attest:
	 	/s/    MARK A. KISSMAN        
	 Name:
	 	Mark A. Kissman
	 Title:
	 	Secretary

  

 DESIGNATION OF RIGHTS, TERMS AND PREFERENCES 
 of 
 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK 
 of 
 SPACEHAB, INCORPORATED 
  
 (Pursuant to Chapter 6 of the 
 Washington Business Corporation Act) 
  

  
 SPACEHAB, Incorporated, a corporation organized
and existing under the Business Corporation Act of the State of Washington (hereinafter called the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by
Chapter 6 of the Business Corporation Act at a meeting duly called and held on March 26, 1999: 
  
 RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance with the
provisions of the Articles of Incorporation, the Board of Directors hereby creates a series of Preferred Stock of the Corporation, par value $.01 per share (the “Preferred Stock”), and hereby states the designation and number of shares,
and fixes the relative rights, preferences, and limitations thereof as follows: 
  
 Series A Junior Participating Preferred Stock: 
  
 Section 1. Designation and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock”) and the number of shares
constituting the Series A Preferred Stock shall be 25,000. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided that no decrease shall reduce the number of shares of Series A Preferred Stock to a
number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation
convertible into Series A Preferred Stock. 
  
 Section 2.
Dividends and Distributions. 
  
 (A) Subject to the rights
of the holders of any shares of any series of Preferred Stock (or any similar stock) ranking prior and superior to the Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock, in preference to the
holders of Common Stock, no par value per share (the “Common Stock”), of the Corporation, and of any other junior stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for
the purpose, quarterly dividends payable in cash on the first day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend 

  

 
Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $10 or (b) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the
aggregate per share amount (payable in kind) of all non- cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise),
declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock. In
the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to such event. 
  
 (B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $10 per share on the Series A Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 
  
 (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue
from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly
dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends
paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, 

  

 2 

 
which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 
  
 Section 3. Voting Rights. The holders of shares of Series A Preferred
Stock shall have the following voting rights: 
  
 (A) Subject to
the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 1000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall
at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a
dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event
shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. 
  
 (B) Except as
otherwise provided herein, in any other Designation of Rights, Terms and Preferences creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock
and any other capital stock of the Corporation having general voting rights shall vote together as one class on all-matters submitted to a vote of stockholders of the Corporation. 
  
 (C) Except as set forth herein, or as otherwise provided by law, holders of Series A Preferred Stock shall have no special
voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 
  
 Section 4. Certain Restrictions. 
  
 (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 
  
 (i) declare or pay dividends, or make any other distributions, on any shares
of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock; 
  
 (ii) declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or 

  

 3 

 
winding up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are
payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 
  
 (iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior
(either as to dividends or upon dissolution, liquidation or winding up) to the Series A Preferred Stock; or 
  
 (iv) redeem or purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity with the
Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the
respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes. 
  
 (B) The Corporation shall not permit any subsidiary of the Corporation to
purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 
  
 Section 5. Reacquired Shares. Any shares of Series A Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock
and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Articles of Incorporation, or in any other Designation of Rights, Terms and Preferences creating a series
of Preferred Stock or any similar stock or as otherwise required by law. 
  
 Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made (1) to the holders of shares of stock ranking junior (either
as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have received $1000 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for
adjustment hereinafter set forth, equal to 1000 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (2) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation,
dissolution 

  

 4 

 
or winding up) with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock and all such parity stock in proportion
to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common
Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the proviso in clause (1) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

  
 Section 7. Consolidation, Merger, etc. In case the
Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each
share of Series A Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1000 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in
shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of
shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
  
 Section 8. No Redemption. The shares of Series A Preferred Stock shall
not be redeemable. 
  
 Section 9. Rank. The Series A
Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets, junior to all series of any other class of the Corporation’s Preferred Stock. 
  
 Section 10. Amendment. The Articles of Incorporation of the Corporation shall not be amended in any manner which
would materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series A
Preferred Stock, voting together as a single class. 
  

 5 

 IN WITNESS WHEREOF, this Designation of Rights, Terms and Preferences is executed on behalf of the
Corporation by its President and attested by its Secretary this the 26th day of March, 1999. 
  

					
	SPACEHAB, INCORPORATED
		
	By: 	 	/s/ Shelley A. Harrison
	 	 	 Name: 
	 	 Shelley A. Harrison

	 	 	 Title: 
	 	 Chairman and Chief Executive Officer

  

					
	Attest:
		
	By: 	 	/s/ William S. Dawson III
	 	 	 Name: 
	 	 William S. Dawson III

	 	 	 Title: 
	 	 Secretary

  

 6 

 RESTATED ARTICLES OF INCORPORATION 
 OF 
 SPACEHAB, INCORPORATED 
  
 (current as of January 8, 1998) 
  
 Pursuant to RCW 23B.10.070, the following Restated Articles of Incorporation
are hereby submitted for filing. 
  
 FIRST: The name of the
Corporation is SPACEHAB, Incorporated. 
  
 SECOND: The
address of the Corporation’s registered office in the state of Washington is 520 Pike Street, Seattle, Washington 98101. The name of the registered agent at such address is C T Corporation System. 
  
 THIRD: The nature of the business or purpose to be conducted or
promoted by the Corporation is to engage in any lawful business, trade or activity which Corporations may be conducted by Corporations organized under the Washington Business Corporation Act (“WBCA”) and to engage in any and all such
activities as are incidental or conducive to the attainment of the foregoing purpose or purposes. 
  
 FOURTH: The total number of shares of capital stock which the Corporation shall have authority to issue is 31,000,000 shares, consisting of
30,000,000 shares of common stock, no par value per share (the “Common Stock”) and 1,000,000 shares of preferred stock, no par value per share (the “Preferred Stock”). 
  
 4.1 Common Stock. A statement of the designations, powers, preferences, rights, qualifications, limitations and
restriction in respect to the shares of Common Stock is as follows: 
  
 (a) Dividends. The Board of Directors of the Corporation may cause dividends to be paid to the holders of shares of Common Stock out of funds legally available for the payment of dividends by declaring an
amount per share as a dividend. When and as dividends are declared, whether payable in cash, in property or in shares of stock or other securities of the Corporation, the holders of Common Stock shall be entitled to share ratably according to the
number of shares of Common Stock held by them, in such dividends. 
  
 (b) Liquidation Rights. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, the holders of Common Stock shall be entitled to share ratably,
according to the number of shares of Common Stock held by them, in all remaining assets of the Corporation available for distribution to its shareholders. 
  
 (c) Voting Rights. Except as otherwise provided in these Articles or by applicable law, the holders of Common Stock shall be
entitled to vote on each matter on which 

  

 
the shareholders of the Corporation shall be entitled to vote, and each holder of Common Stock shall be entitled to one vote for each share of such stock
held by him. 
  
 4.2 Preferred Stock. The Board of
Directors is authorized, subject to limitation prescribed by law and the provisions of this ARTICLE FOURTH, to provide for the issuance of the shares of Preferred Stock in series, and by filing an article of amendment pursuant to Section 23B.06.020
of the WCBA, to establish from time to time the number of shares to be included in each such class or series within a class, and to fix the designation, powers, preferences and rights of the shares of each such class or series within a class and the
qualifications, limitations or restrictions thereof. 
  
 The
authority of the Board of Directors with respect to each series shall include, but not be limited to, determination of the following: 
  
 (a) The number of shares constituting the series and the distinctive designation of the series; 
  
 (b) The dividend rate (or the method of calculation of
dividends) on the shares of the series, whether dividends will be cumulative, and if so, from which date or dates, and the relative rights of priority, if any, of payment of dividends on shares of the series; 
  
 (c) Whether the series shall Have voting rights, in addition
to the voting rights provided by law, and if so, the terms of such voting rights; 
  
 (d) Whether the series shall have conversion privileges, and, if so, the terms and conditions of such conversion, including provision for
adjustment of the conversion rate in such events as the Board of Directors shall determine; 
  
 (e) Whether or not the shares of that series shall be redeemable or exchangeable, and, if so, the terms and conditions of such redemption
or exchange, as the case may be, including the date or dates upon or after which they shall be redeemable or exchangeable, as the case may be, and the amount per share payable in case of redemption, which amount may vary under different conditions
and at different redemption dates; 
  
 (f)
Whether the series shall have a sinking fund for the redemption or purchase of shares of that series, and if so, the terms and amount of such sinking fund; 
  
 (g) The rights of the shares of the series in the event of voluntary or involuntary liquidation, dissolution or winding up of the
Corporation and the relative rights or priority, if any, of payment of shares of the series; and 
  
 (h) Any other relative rights, preferences and limitations of that series. 
  

 -2- 

 Except for any difference so provided by the Board of Directors, the shares of Preferred Stock will rank
on parity with respect to the payment of dividends and to the distribution of assets upon liquidation. 
  
 Shares of any series of Preferred Stock which have been redeemed (whether through the operation of a sinking find or otherwise) or which, if convertible
or exchangeable, have been converted into or exchanged for shares of stock of any other class or classes shall have the status of authorized and unissued shares of Preferred Stock and may be reissued as shares of the same or any other series of
Preferred Stock. 
  
 FIFTH: At all meetings of
shareholders, each shareholder shall be entitled to vote, in person or by proxy, each share of voting stock owned by such shareholder of record on the record date for the meeting. At each meeting of the shareholders, except where otherwise provided
by these Articles, the By-laws of the Corporation, or required by law, the holders of at least one-third of the issued and outstanding shares of stock of the Corporation entitled to vote at such meeting, present in person or represented by proxy,
shall constitute a quorum for the transaction of business. When a quorum is present or represented at any meeting, the affirmative vote of the holders of a majority of the stock having voting power present in person or represented by proxy shall
decide any question, matter or proposal brought before such meeting unless the question is one upon which, by express provision of law, these Articles, the By-laws or, with respect to a class or series of Preferred Stock, the terms of the resolution
or resolutions adopted by the Board of Directors pursuant to ARTICLE FOURTH applicable thereto, a different vote is required, in which case such express provision shall govern and control the decision of such question. Any shareholder who is in
attendance at a meeting of shareholders either in person or represented by proxy, but who abstains from the vote on any matter, shall not be deemed present or represented at such meeting for purposes of the preceding sentence with respect to such
vote, but shall be deemed present or represented at such meeting for all other purposes. 
  
 SIXTH: 
  
 6.1 Location
for Shareholder Meetings; Keeping of Books and Records. Meetings of shareholders may be held within or outside the state of Washington as the By-laws may provide. The books of the Corporation may be kept (subject to any provision contained in
the WBCA) outside the state of Washington at such place or places as may be designated from time to time by the Board of Directors or in the By-laws of the Corporation. 
  
 6.2 Shareholder Action. Any action required or permitted to be taken by the shareholders must be effected at a duly
called annual or special meeting of such shareholders, and may not be effected by a consent in writing by any such shareholders. 
  
 6.3 Special Shareholders Meetings. Except as otherwise required by law, special meetings of the Corporation’s shareholders may be called only
by (i) the Board of Directors pursuant to a resolution approved by the affirmative vote of a majority of the directors then in office; (ii) the Chairman of the Board, if one is elected, or (iii) the President. Only those matters 

  

 -3- 

 
set forth in the notice of the special meeting may be considered or acted upon at such special meeting, unless otherwise provided by law. Notwithstanding the
foregoing, whenever holders of one or more classes or series of Preferred Stock shall have the right, voting separately as a class or series, to elect directors, such holders may call, pursuant to the terms of the resolution or resolutions adopted
by the Board of Directors pursuant to ARTICLE FOURTH hereto, special meetings of holders of such Preferred Stock. 
  
 SEVENTH: 
  
 7.1 Number of Directors. The number of directors of the Corporation shall be fixed from time to time by the vote of a majority of the entire Board
of Directors, except as may be provided by the resolution or resolutions adopted by the directors of the Corporation in respect of Preferred Stock adopted pursuant to ARTICLE FOURTH hereto, but such number shall in no case be less than one (1) nor
more than fifteen (15). Any such determination made by the Board of Directors shall continue in effect unless and until changed by the Board of Directors, but no such changes shall affect the term of any directors then in office. 
  
 7.2 Term of Office; Quorum; Vacancies. A director shall hold office
until the annual meeting for the year in which his or her term expires and until his or her successor shall be elected and shall qualify, subject, however, to prior death, resignation, retirement, disqualification or removal from office. Subject to
the By-laws, a majority of the entire Board of Directors shall constitute a quorum for the transaction of business. Any vacancies and newly created directorships resulting from an increase in the number of directors shall be filled by a majority of
the Board of Directors then in office, even if less than a quorum, and shall hold office until the next shareholder’s meeting at which directors are elected and his successor is elected and qualified or until his earlier death, resignation,
retirement, disqualification or removal from office. 
  
 7.3
Removal. Any director may be removed only for cause upon the affirmative vote of the holders of a majority of the votes which could be cast by the holders of all outstanding shares of capital stock entitled to vote for the election of
directors, voting together as a class, given at a duly called annual or special meeting of shareholders for which notice, stating the purpose, or purposes, of the meeting is the removal of the director, is given. 
  
 7.4 No Written Ballot. Election of directors need not be by written
ballot, unless the By-laws of the Corporation provide otherwise. 
  
 7.5 Preferred Stock Directors. Notwithstanding the foregoing, whenever the holders of one or more classes or series of Preferred Stock shall have the right, voting separately as a class or series, to elect directors, the election,
term of office, filling of vacancies, removal and other features of such directorships shall be governed by the terms of the resolution or resolutions adopted by the Board of Directors pursuant to ARTICLE FOURTH applicable thereto, and each director
so elected shall not be subject to the provisions of this ARTICLE SEVENTH unless otherwise provided therein. 
  

 -4- 

 EIGHTH: For the management of the business and for the conduct of the affairs of the Corporation,
and in further definition, limitation and regulation of the powers of the Corporation and of its directors and of its shareholders or any class thereof, as the case may be, it is further provided: 
  
 (1) The business and affairs of the Corporation shall be managed by or under
the direction of the Board of Directors. 
  
 (2) The directors
shall have the power to make, alter, amend, change, add to or repeal the By-laws of the Corporation. 
  
 (3) In addition to the powers and authority hereinbefore or by statute expressly conferred upon them, the directors are hereby empowered to exercise all
such powers and do all such acts and things as may be exercised or done by the Corporation, subject, nevertheless, to the provisions of the WBCA, these Articles, and the By-laws. 
  
 NINTH: 
  
 9.1 Limits on Director Liability. Directors of the Corporation shall have no personal liability to the Corporation or its shareholders for monetary
damages for breach of conduct as a director; provided that nothing contained in this ARTICLE NINTH shall eliminate or limit the liability of a director for acts or omissions that involve intentional misconduct by a director or a knowing
violation of law by a director, for voting or assenting to an unlawful distribution, or for any transaction from which the director will personally receive a benefit in money, property, or services to which the director is not legally entitled. This
does not affect the availability of equitable remedies such as an injunction or rescission based upon a director’s breach of his duty of care. If the WBCA is amended to authorize corporate action further eliminating or limiting the personal
liability of directors, then by virtue of this ARTICLE NINTH the liability of a Director of the Corporation shall be eliminated or limited to the fullest extent permitted by the WBCA, as so amended. 
  
 9.2 Indemnification. 
  
 (a) Third Party Actions. The Corporation shall indemnify any person
who was or is a party or is threatened to be made a party (including, without limitation as a witness) to any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and whether formal
or informal, including all appeals (other than an action, suit or proceeding by or in the right of the Corporation) by reason of the fact that he is or was a director or officer of the Corporation (and the Corporation, in the discretion of the
Board, may so indemnify a person by reason of the fact that he is or was an employee or agent of the Corporation or is or was serving at the request of the Corporation in any other capacity for or on behalf of the Corporation), against reasonable
expenses (including counsel fees), judgments, decrees, fines, penalties and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if, in the case of conduct in his official capacity

  

 -5- 

 
with the Corporation, he acted in good faith and in the Corporation’s best interests, and in all other cases, he acted in good faith and was at least
not opposed to the Company’s best interests, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful, except that no indemnification shall be made in respect to any claim, issue or
matter as to which Indemnitee shall have been finally adjudged to be liable for (i) negligence or misconduct in the performance of his duty to the Corporation unless and only to the extent that the court in which such action or suit was brought, or
any other court of competent jurisdiction, shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as
such court shall deem proper, or (ii) violating any of the terms or provisions of Section 16 of the Securities Exchange Act of 1934, as amended, or any of the rules or regulations promulgated thereunder. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith or in a manner which he reasonably believed to be in or
not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful. Notwithstanding the foregoing, the Corporation shall be required to
indemnify an officer or director in connection with an action, suit or proceeding initiated by such person only if such action, suit or proceeding was authorized by the Board or a committee thereof. No indemnity shall be provided by the Corporation
for expenses that have been paid directly by an insurance carrier under a policy of directors’ and officers’ liability insurance maintained by the Company. 
  
 (b) Actions By or in the Right of the Company. The Corporation shall indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending, or completed action or suit, including all appeals, by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that he is or was a director or officer of
the Corporation (and the Corporation, in the discretion of the Board, may so indemnify a person by reason of the fact that he is or was an employee or agent of the Corporation or is or was serving at the request of the Corporation in any other
capacity for or on behalf of the Corporation), against expenses (including attorneys’ fees) actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if, in the case of conduct in his official
capacity with the Corporation, he acted in good faith and in the Corporation’s best interests, and in all other cases, he acted in good faith and was at least not opposed to the Company’s best interests, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was unlawful, except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been finally adjudged to be liable for (i)
negligence or misconduct in the performance of his duty to the Corporation unless and only to the extent that the court in which such action or suit was brought, or any other court of competent jurisdiction, shall determine upon application that,
despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as such court shall deem proper or (ii) violating any of the terms or provisions of
Section 16 of the Securities Exchange Act of 1934, as amended, or any of the rules or regulations promulgated thereunder. Notwithstanding the foregoing, the Corporation shall be required to indemnify an officer or director in connection with an
action, suit or proceeding initiated by such 

  

 -6- 

 
person only if such action, suit or proceeding was authorized by the Board or a committee thereof. No indemnity shall be provided by the Corporation for
expenses that have been paid directly by an insurance carrier under a policy of directors’ and officers’ liability insurance maintained by the Company. 
  
 (c) Indemnify if Successful. To the extent that a director, officer, employee or agent of the Corporation has been
successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections (a) and (b) of this Section 2, or in defense of any claim, issue or matter therein, he shall be indemnified against expenses (including
attorneys’ fees) actually and reasonably incurred by him in connection therewith. 
  
 (d) Standard of Conduct. Except in a situation governed by subsection (c) of this Section 2, any indemnification under subsections (a) and (b) of this Section 2 (unless ordered by a court) shall be made by the
Corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in subsections
(a) and (b) of this Section 2. Such determination shall be made (1) by the Board by a majority vote of a quorum consisting of directors who were not parties to such action, suit or proceeding, or (2) if such a quorum is not obtainable, or, even if
obtainable a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, or (3) by the shareholders, but shares owned by or voted under the control of directors who are parties to the proceeding may not be voted
on determination. The determination required by clauses (1) and (2) of this subsection (d) may in either event be made by the written consent of the majority required by each clause. 
  
 (e) Advancement of Expenses. Expenses (including attorneys’ fees) of each officer and director hereunder
indemnified actually and reasonably incurred in defending any civil, criminal, administrative or investigative action, suit or proceeding or threat thereof shall be paid by the Corporation in advance of the final disposition of such action, suit or
proceeding upon receipt of (i) an undertaking by or on behalf of such person to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by the Corporation as authorized in the Article and (ii) a written
affirmation of director’s good faith belief that he has performed his duty to the company, upon request by the Corporation and if required under applicable law. Such expenses (including counsel fees) incurred by employees and agents may be so
paid upon the receipt of the aforesaid undertaking and such terms and conditions, if any, as the Board deems appropriate. 
  
 (f) Nonexclusivity. The indemnification and advancement of expenses provided by, or granted pursuant to, this ARTICLE NINTH shall not be deemed
exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any law, by-law, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office. 
  
 (g) Procedures Exclusive. Pursuant to Section 23B.08.560(l) or any successor provision of the WBCA, the procedures for indemnification and advancement of expenses set 

  

 -7- 

 
forth in this Article are in lieu of the procedures required by Sections 23B.08.510 through 23B.08.550 or any successor provisions of the WBCA. 

 
 (h) Insurance. The Corporation may purchase and maintain insurance
on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another Corporation, partnership, joint venture,
trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under
the provisions of the WBCA. 
  
 (i) Definitions.

  
 (1) For purposes of this ARTICLE NINTH, references to
“the Corporation” shall include, in addition to the resulting Corporation, any constituent Corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent Corporation, or is or was serving at the request of such
constituent Corporation as a director, officer, employee or agent of another Corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this ARTICLE NINTH with respect to the
resulting or surviving Corporation as he would have with respect to such constituent Corporation if its separate existence had continued. 
  
 (2) References to “other capacities” shall include serving as a trustee or agent for any employee benefit plan; references to “other
enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to “serving at the request of the
Corporation” shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its
participants, or beneficiaries, and a person who acted in good faith and in a manner he reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not
opposed to the best interests of the Corporation” as referred to in this ARTICLE NINTH. 
  
 (3) The indemnification and advancement of expenses provided by, or granted pursuant to, this ARTICLE NINTH shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a
director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. 
  
 (4) The right to indemnification conferred by this ARTICLE NINTH shall be deemed to be a contract between the Corporation and each person referred to
herein until amended or repealed, but no amendment to or repeal of these provisions shall apply to or have any effect on the right to indemnification of any person with respect to any liability or alleged liability of such 

  

 -8- 

 
person for or with respect to any act or omission of such person occurring prior to such amendment or repeal. 
  
 (5) A person shall be deemed to have acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Corporation, or, with respect to any criminal action or proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on the records
or books of account of the Corporation or another enterprise, or on information supplied to him by the officers of the Corporation or another enterprise in the course of their duties, or on the advice of legal counsel for the Corporation or another
enterprise or on information or records given or reports made to the Corporation or another enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Corporation or another
enterprise. The term “another enterprise” as used herein shall mean any other Corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which such person is or was serving at the request of the
Corporation as a director or executive officer. The provisions of this subsection shall not be deemed to be exclusive or to limit in any way the circumstances in which a person may be deemed to have met the applicable standard of conduct set forth
in Section 2(a) or Section 2(b) of this ARTICLE NINTH, as the case may be. 
  
 (j) Additional Indemnification. The Corporation may, by action of its Board of Directors, provide indemnification to such of the directors, officers, employees and agents of the Corporation to such extent and
to such effect as the Board of Directors shall determine to be appropriate and authorized by Washington law. 
  
 (k) Effect of Amendments. Neither the amendment, change, alteration nor repeal of this ARTICLE NINTH, nor the adoption of any provision of these
Articles, the By-laws of the Corporation, nor, to the fullest extent permitted by Washington Law, any modification of law, shall eliminate or reduce the effect of this ARTICLE NINTH or the rights or any protections afforded under this ARTICLE NINTH
in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification. 
  
 TENTH: The Corporation reserves the right to repeal, alter or amend these Articles in the manner now or hereafter prescribed by statute. No repeal,
alteration or amendment of these Articles shall be made unless the same is first approved by the Board of Directors of the Corporation pursuant to a resolution adopted by the directors then in office in accordance with the By-laws and applicable law
and thereafter approved by the shareholders. 
  
 ELEVENTH:
No preemptive rights shall exist with respect to shares of stock or securities convertible into shares of stock of this Corporation. 
  
 TWELFTH: The right to cumulate votes in the election of directors shall not exist with respect to shares of stock of this Corporation. 

 

 -9- 

 THIRTEENTH: These Articles shall constitute a restatement of, and shall supersede the Articles of
Incorporation and its corresponding Articles of Amendment of the Corporation, effective prior to the date hereof. 
  
 IN WITNESS WHEREOF, the Corporation has caused these Restated Articles of Incorporation to be signed by its Chairman and Chief Executive Officer and
attested to by its Secretary. 
  

									
	 	 	 	 	 SPACEHAB, INCORPORATED

	Dated: January 8, 1998	 	 	 	 
					
	 	 	 	 	 	 	By	 	/s/ Dr. Shelley A. Harrison
	 	 	 	 	 	 	 	 	Name: Dr. Shelley A. Harrison
	 	 	 	 	 	 	 	 	Title:   Chairman and Chief Executive Officer

  

			
	ATTEST:
		
	By	 	/s/ William S. Dawson III
	 	 	Name: William S. Dawson III
	 	 	Title:   Secretary

  

 -10- 

 OFFICER’S CERTIFICATE 
  
 The undersigned, as the duly elected and acting secretary of SPACEHAB, Incorporated hereby certifies that the Restated
Articles of Incorporation of SPACEHAB, Incorporated filed herewith restate the articles to incorporate the prior effects of the conversion of Convertible Preferred Stock into Common Stock as provided for in the Articles in connection with the
Company’s initial public offering of its shares, and do not include an amendment to the Articles of Incorporation. 
  
 Dated: January 8, 1998. 
  

	
	SPACEHAB, Incorporated
	
	/s/ William S. Dawson III
	William S. Dawson III, Secretary

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