Document:

Lease Agreement between the Registrant and R & H Investments

 Exhibit 10.19 
  
 

 AIR COMMERCIAL REAL ESTATE ASSOCIATION 
 STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE –
NET 
 (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS) 
  
 1. Basic Provisions (“Basic Provisions”). 
  
 1.1 Parties: This Lease (“Lease”), dated for reference purposes only February 18, 2005, is made by
and between R & H Investments, a California Partnership (“Lessor”) and Spacehab, Inc., a Washington Corporation (“Lessee”) (collectively the “Parties,” or individually a
“Party”). 
  
 1.2 Premises: That certain
real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and commonly known as 12130 Highway 3, Building 1, Webster, located in the County of Harris, State of Texas, and generally described as
(describe briefly the nature of the property and, if applicable, the “Project”, if the property is located within a Project) an industrial building approximately 90,987 square feet in size. (“Premises”). (See also
Paragraph 2) 
  
 1.3 Term: ten (10) years and zero (0)
months (“Original Term”) commencing (date) (“Commencement Date”) and ending (date) (“Expiration Date”). (See also Paragraph 3) 
  
 1.4 Early Possession: N/A (“Early Possession Date”). (See also Paragraphs 3.2 and 3.3) 

 
 1.5 Base Rent: $26,537.83 per month (“Base Rent”),
payable on the First day of each month commencing                                 
                                        
                                        
                                        
                                        . (See
also Paragraph 4) 
 þ If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted.

  
 1.6 Base Rent and Other Monies Paid Upon Execution:

  
 (a) Base Rent: $26,537.83 for the
period
                                        
                                        
                                        
        
                                        
                                        
                                        
                                        
                                        
    . 
  
 (b) Security
Deposit: $53,075.66 (“Security Deposit”). (See also Paragraph 5) 
  
 (c) Association Fees: $-0- for the period
                                        
                                        
                                        
         
  
 (d) Other: $-0- for
                                       
                                        
                                        
                                        
     
                                        
                                        
                                        
                                        
                                        
    . 
  
 (e) Total Due
Upon Execution of this Lease: $79,613.49. 
  
 1.7 Agreed
Use: Corporate Headquarters and Product Development. (See also Paragraph 6) 
  
 1.8 Insuring Party: Lessor is the “Insuring Party” unless otherwise stated herein. (See also Paragraph 8) 
  
 1.9 Real Estate Brokers: (See also Paragraph 15) 
  
 (a) Representation: The following real estate brokers (the “Brokers”) and brokerage
relationships exist in this transaction (check applicable boxes): 
  
  ̈ N/A represents Lessor exclusively (“Lessor’s Broker”); 
  
  ̈ N/A represents Lessee exclusively
(“Lessee’s Broker”); or 
  
  ̈          represents both Lessor and Lessee (“Dual Agency”). 
  
 (b) Payment to Brokers: Upon execution and delivery
of this Lease by both Parties, Lessor shall pay to the Broker the fee agreed to in their separate written agreement (or if there is no such agreement, the sum of N/A or N/A% of the total Base Rent) for the brokerage services rendered by the Brokers.

  
 1.10 Guarantor. The obligations of the Lessee under
this Lease are to be guaranteed by N/A (“Guarantor”). (See also Paragraph 37) 
  
 1.11 Attachments. Attached hereto are the following, all of which constitute a part of this Lease: 
  
  ̈ an Addendum consisting of Paragraphs
                             through
                            ; 
  
  ̈ a plot plan depicting the
Premises; 
  
  ̈ a current set of the Rules and Regulations; 
  
  ̈ a Work Letter; 
  
  ̈ other (specify):
                                        
                                        
                                        
                                        
                         
                                       
                                        
                                        
                                        
                                        
                      
                                        
                                        
                                        
                                        
                                        
                    . 
  
 2. Premises. 
  
 2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, 
  

					
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 or that may have been used in calculating Rent, is an approximation which the Parties agree is reasonable and any
payments based thereon are not subject to revision whether or not the actual size is more or less. Note: Lessee is advised to verify the actual size prior to executing this Lease. 
  
 2.2 Lessee is currently occupying the Premises and acknowledges that the condition of the Premises is satisfactory and that
they comply with all laws appropriate for the uses that Lessee intends to put them. 
  
  

 
 2.3 Compliance. The building codes, applicable laws,
regulations and ordinances applicable to the Premises are hereinafter referred to as the “Applicable Requirements”. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an
addition to or an alteration of the Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building (“Capital
Expenditure”),                     Lessee shall be responsible.            
                              
  
 2.4 Acknowledgements. Lessee acknowledges that: (a) it has been advised by Lessor and/or Brokers to satisfy
itself with respect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities
Act), and their suitability for Lessee’s intended use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and
(c) neither Lessor, Lessor’s agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no
representations, promises or warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor’s sole responsibility to investigate the financial capability and/or suitability of all
proposed tenants. 
  
 2.5 Lessee as Prior
Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any
necessary corrective work. 
  

									
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 3. Term. 
  
 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3. 
  
 3.2 Early Possession. If Lessee totally or partially occupies
the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and
insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date. 
  
  
  
  
  
 4. Rent. 
  
 4.1 Rent Defined. All monetary obligations of Lessee to Lessor
under the terms of this Lease (except for the Security Deposit) are deemed to be rent (“Rent”). 
  
 4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States on or before the day on which
it is due, without offset or deduction (except as specifically permitted in this Lease). Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month.
Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of
Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason. Lessee
agrees to pay to Lessor the sum of $25 in addition to any Late Charge        
                            
                                     
                                         
                             
                                      . Payments will be applied
first to accrued late charges and attorney’s fees, second to accrued interest, then to Base Rent and Operating Expense Increase, and any remaining amount to any other outstanding charges or costs. 
  
 4.3 Association Fees. In addition to the Base Rent, Lessee
shall pay to Lessor each month an amount equal to any owner’s association or condominium fees levied or assessed against the Premises. Said monies shall be paid at the same time and in the same manner as the Base Rent. 
  
 5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the
Security Deposit as security for Lessee’s faithful performance of its obligations under this Lease. If Lessee is in Breach of
                                        
                                         this
Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason
thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this
Lease. 
  
  
 Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within 14 days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and
otherwise within 30 days after the Premises have been vacated pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held
in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. 
  
 6. Use. 
  
 6.1
Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is
unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed
Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein, and/or is not significantly more burdensome to the Premises. If Lessor elects to withhold consent,
Lessor shall within 7 days after such request give written notification of same, which notice shall include an explanation of Lessor’s objections to the change in the Agreed Use. 
  
 6.2 Hazardous Substances. 
  

(a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean any
product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials 

  

									
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expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated
or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior
written consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation,
possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and/or
(iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing,
Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use
is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. Notwithstanding any
provision contained herein to the contrary, Lessee will not be responsible for any Hazardous Substances placed, disposed of, generated or otherwise caused by Lessor. 
  
  
  
 (b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be
located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation
which it has concerning the presence of such Hazardous Substance. 
  
 (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer system)
and shall promptly, at Lessee’s expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and
for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of
this Lease, by or for Lessee, or any third party. 
  
 (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, judgments,
claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability
under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee). Lessee’s obligations shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No
termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such
agreement. 
  
  
  
  
 (f) Investigations and
Remediations. Lessee shall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior
to Lessee’s occupancy, unless such remediation measure is required as a result of Lessee’s use (including “Alterations”, as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such
payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s investigative
and remedial responsibilities. 
  
 (g) Lessor
Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof
required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate
such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times
the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease
as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount by which the cost
of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days
following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such
notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor’s notice of termination. 
  
 6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee
shall, at Lessee’s sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of
Lessor’s engineers and/or consultants which relate in any manner to the such Requirements, without regard to whether such Requirements are now in effect or become effective after the Commencement Date. Lessee 

  

									
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shall, within 10 days after receipt of Lessor’s written request, provide Lessor with copies of all permits and other documents, and other information
evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation,
warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. 
  
 6.4 Inspection; Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph 30) and consultants shall have the
right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The
cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1) is found to exist or be imminent, or the inspection is requested or ordered by a governmental
authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant
material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefor. 
  
 6.5 It is understood that Lessee is responsible for existing conditions and any future remediation that may be required. 
  
 7. Maintenance; Repairs, Utility Installations; Trade Fixtures and
Alterations. 
  
 7.1 Lessee’s Obligations.

  
 (a) In General. Subject to the
provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee’s Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense,
keep the Premises, Utility Installations (intended for Lessee’s exclusive use, no matter where located), and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of
repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, but not
limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, roof drainage
systems, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order,
condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations,
replacements of renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a
first-class condition (including, e.g. graffiti removal) consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building. 

 
 (b) Service Contracts. Lessee shall, at
Lessee’s sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and
when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, (vi)
clarifiers (vii) basic utility feed to the perimeter of the Building, and (viii) any other equipment, if reasonably required by Lessor. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service
contracts, and if Lessor so elects, Lessee shall reimburse Lessor, upon demand, for the cost thereof. 
  
 (c) Failure to Perform. If Lessee fails to perform Lessee’s obligations under this Paragraph 7.1, Lessor may enter upon the
Premises after 10 days’ prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee’s behalf, and put the Premises in good order, condition and repair,
and Lessee shall promptly pay to Lessor                  the cost thereof. 
  
 (d) Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving
Lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such
item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due,
an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (ie. 1/144th of the cost per month). Lessee shall pay interest on the unamortized balance at
a rate that is commercially reasonable in the judgment of Lessor’s accountants. Lessee may, however, prepay its obligation at any time. 
  
 7.2 Lessor’s Obligations. Subject to the provisions of
                                     9 (Damage or Destruction) and 14
(Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the
intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is
inconsistent with the terms of this Lease. 
  
 7.3 Utility
Installations; Trade Fixtures; Alterations. 
  
 (a) Definitions. The term “Utility Installations” refers to all floor and window coverings, air and/or vacuum lines, power panels, electrical distribution, security and fire protection systems,
communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term “Trade Fixtures” shall mean Lessee’s machinery and equipment that can be removed without doing
material damage to the Premises. The term “Alterations” shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion “Lessee Owned Alterations and/or
Utility Installations” are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). 
  
 (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises
without Lessor’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Lessee may, however, make non-structural Utility Installations to
the                    
Premises                     without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve
puncturing, relocating or removing the roof or any existing walls, will not materially adversely affect the electrical, plumbing, HVAC and/or life safety systems, and the cumulative cost thereof during this Lease as extended does not exceed a sum
equal to 3 month’s Base Rent 

  

									
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in the aggregate or a sum equal to one month’s Base Rent in any one year.             
                                          
                                             
                                  
                                 
                 Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in
written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to
commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and
sufficient materials.                                      
                                         
               
  
  
 (c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been
furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or materialmen’s lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior
to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense
defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement
thereof.                                         
                                     
                            
                                 
                         If Lessor elects to participate in any such action, Lessee shall pay Lessor’s attorneys’ fees
and costs. 
  
 7.4 Ownership; Removal; Surrender; and
Restoration. 
  
 (a) Ownership.
Subject to Lessor’s right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time,
elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the
expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises. 
  
 (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of
the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease unless Lessee obtains Lessor’s written consent that Lessor shall not require
the removal of such Lessee Owned Alterations and/or Utility Installations. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent. 
  
 (c) Surrender; Restoration. Lessee shall surrender
the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear
excepted. “Ordinary wear and tear” shall not include any damage or deterioration that would have been prevented by good maintenance practice.             
                                         
                                          
                                  
                                     
                              Lessee shall repair any damage occasioned by the installation, maintenance or
removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall completely remove from the Premises any and all
Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises, or if applicable, the Project) even if such removal
would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or
any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the
express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 
  
 8. Insurance; Indemnity. 
  
 8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per
occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within 10 days following receipt of an invoice. 

 
 8.2 Liability Insurance. 
  
 (a) Carried by Lessee. Lessee shall obtain and keep
in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or
maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000,
an “Additional Insured-Managers or Lessors of Premises Endorsement” and contain the “Amendment of the Pollution Exclusion Endorsement” for damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain
any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity obligations under this
Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder.
                                        
                                        
                                        
                                        
                     
  
  
 8.3 Property Insurance - Building, Improvements and Rental
Value. 
  
 (a) Building and
Improvements.                                    Lessee shall
obtain and keep in force a policy or policies
                                        
                                 insuring loss or damage to the Premises and naming Lessor
as an additional insured. The amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist from time to 

  

									
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time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof.
                                        
                                        
                                        
                                        
                             If the coverage is available and commercially appropriate, such policy or
policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring
the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause; and waiver of
subrogation.                                     
                        
                                
                        
                            
                                         
                                  
  
 (b) Rental Value. The Insuring Party shall
obtain and keep in force a policy or policies                          
                                       insuring the loss of the full
Rent for one year
                                        
                         (“Rental Value insurance”). Said insurance shall contain an agreed valuation provision in lieu
of any coinsurance clause,                                  
                             
                                        
                                 Lessee shall be liable for any deductible amount in the
event of such loss. 
  
 (c) Adjacent
Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or
buildings if said increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises. 
  
 8.4 Lessee’s Property; Business Interruption Insurance. 
  
 (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of
Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage.
                     The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee
Owned Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force. 
  
 (b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will
reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils. 

 
 (c) No Representation of Adequate Coverage.
Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee’s property, business operations or obligations under this Lease. 
  
 8.5 Insurance Policies. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least B+, V, as set forth in the most current issue of
“Best’s Insurance Guide”, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to
Lessor
                                        
                     certificates evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to
modification except after 30 days prior written notice to Lessor. Lessee shall, at least 30 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or
Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease,
whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same. 
  
 8.6 Waiver of Subrogation. Without affecting any other rights
or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured
against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any
right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby. 
  
 8.7 Indemnity. Except for Lessor’s gross negligence or willful misconduct or breach of this Lease, Lessee shall indemnify, protect,
defend and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and
consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing
matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or
indemnified. 
  
 8.8 Exemption of Lessor from
Liability. Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises,
whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures,
or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places. Lessor shall not be liable for any
damages arising from any act or neglect of any other tenant of Lessor nor from the failure of Lessor to enforce the provisions of any other lease in the Project. Notwithstanding Lessor’s negligence or breach of this Lease, Lessor shall under no
circumstances be liable for injury to Lessee’s business or for any loss of income or profit therefrom. 
  
 8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will
expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease,                          
                     if Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certificates
evidencing the existence of the required insurance, then Lessor shall be entitled to purchase insurance on behalf of Lessee and Lessee shall pay Lessor the reasonable cost thereof within ten (10) days following receipt of an
invoice.                
                            
                                
                                     
                             
                                      
                Such remedy by 

  

									
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Landlord
                             shall in no event
                                        
                                        
                         prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its
obligation to maintain the insurance specified in this Lease. 
  
 9.
Damage or Destruction. 
  
 9.1
Definitions. 
  
 (a) “Premises
Partial Damage” shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 6 months or less from the date of the damage or
destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. 
  
 (b) “Premises Total Destruction” shall mean damage or destruction to the Premises, other
than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the
damage or destruction as to whether or not the damage is Partial or Total. 
  
 (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event
required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. 
  
 (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the
occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation. 
  
 (e) “Hazardous Substance Condition” shall
mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which requires repair, remediation, or restoration. 
  
 9.2 Partial Damage - Insured Loss. If a Premises Partial Damage
that is an Insured Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue
in full force and effect; provided, however, that Lessee shall, at Lessor’s election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable
insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall
promptly contribute the shortage in proceeds (except as to the deductible which is Lessee’s responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique
nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises
unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within
said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received. Lessor may nevertheless elect by
written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this
Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3,
notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 
  
 9.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless
caused by a              willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either: (i) repair such damage as soon as reasonably
possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such
damage. Such termination shall be effective as of the date of the damage.
                                        
             In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of
Lessee’s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease
shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date
of the damage.                                
  
 9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs,
this Lease shall terminate 60 days following such Destruction.                              
                                     
                                         
                                  
                          
  
 9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one
month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective as of the date of
                                        
     such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or
to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i)
the date which is 10 days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and
provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds. Lessor shall, at Lessor’s commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue
in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee’s option shall be extinguished.

  
 9.6 Abatement of Rent; Lessee’s Remedies.

  
 (a) Abatement. In the event of
Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such

  

									
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damage shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the
Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. 
  
 (b) Remedies. If Lessor shall be obligated to
repair or restore the Premises and does not commence, in a substantial and meaningful way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration,
give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee’s election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or
restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect.
Notwithstanding the foregoing, if the restoration is not completed within two hundred and seventy (270) days after the date of the damage, Lessee shall have the right to terminate this Lease upon written notice to Lessor at any time before the
completion of such restoration. “Commence” shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs. 
  
 9.7 Termination; Advance Payments. Upon termination of this
Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s
Security Deposit as has not been, or is not then required to be, used by Lessor. 
  
 9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Premises with respect to the termination of this Lease and hereby
waive the provisions of any present or future statute to the extent inconsistent herewith. 
  
 10. Real Property Taxes. 
  
 10.1 Definition. As used herein, the term “Real Property Taxes” shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance,
personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises or the Project, Lessor’s right to other income therefrom, and/or Lessor’s
business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Building address and where the proceeds so generated are to be applied by the city, county or other local taxing
authority of a jurisdiction within which the Premises are located. Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring during the term of this Lease,
including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to this Lease. 
  
 10.2 Payment of Taxes. In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real
Property Tax installment due at least 20 days prior to the applicable delinquency date. If any such installment shall cover any period of time prior to or after the expiration or termination of this Lease, Lessee’s share of such installment
shall be prorated. In the event Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that such taxes be paid in advance to Lessor by Lessee monthly in advance with the payment of the Base
Rent. Such monthly payments shall be an amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month in which said installment becomes delinquent. When the actual amount of the
applicable tax bill is known, the amount of such equal monthly advance payments shall be adjusted as required to provide the funds needed to pay the applicable taxes. If the amount collected by Lessor is insufficient to pay such Real Property Taxes
when due, Lessee shall pay Lessor, upon demand, such additional sum as is necessary Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its
obligations under this Lease, then any such advance payments may be treated by Lessor as an additional Security Deposit. 
  
 10.3 Joint Assessment. If the Premises are not separately assessed, Lessee’s liability shall be an equitable proportion of the Real
Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessor’s work sheets or such other information
as may be reasonably available. 
  
 10.4 Personal Property
Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee
shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee’s said property
shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s property.

  
 11. Utilities and Services. Lessee shall pay for all water, gas,
heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered or billed to Lessee, Lessee shall pay a reasonable proportion,
to be determined by Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service
due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor’s reasonable control or in cooperation with governmental request or directions. 
  
 12. Assignment and Subletting. 
  
 12.1 Lessor’s Consent Required. 
  
 (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, “assign or
assignment”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s prior written consent. 
  

(b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee
shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of      50% or more of the voting control of Lessee shall constitute a change in control for this purpose. 
  
  
  

									
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 (d) An
assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per Paragraph 13.1 (b) 
  
  
  
 (e) Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief. 
  
 12.2 Terms and Conditions Applicable to Assignment and Subletting. 
  
 (a) Regardless of Lessor’s consent, no assignment or
subletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee
for the payment of Rent or for the performance of any other obligations to be performed by Lessee. 
  
 (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than Lessee pending approval or disapproval
of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s
                 Breach. 
  
 (c) Lessor’s consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.

  
 (d) In the event of
any            Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under this Lease,
including any assignee or sublessee, without first exhausting Lessor’s remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor. 
  
 (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information
relevant to Lessor’s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any,
together with a fee of $500 as consideration for Lessor’s considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also
Paragraph 36) 
  
 (f) Any assignee of, or
sublessee under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed
or performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. 

 
 (g) Lessor’s consent to any assignment or subletting
shall not transfer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 
  
 12.3 Additional Terms and Conditions Applicable to Subletting.
The following terms and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 
  
 (a) Lessee hereby assigns and transfers to Lessor all of
Lessee’s interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s
obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee’s obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such
sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such
sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any
such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. 
  
 (b) In the event of a Breach by Lessee, Lessor may, at its
option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor
shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any
prior                        Breaches of such sublessor. 
  
 (c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of
Lessor. 
  
 (d) No sublessee shall further assign
or sublet all or any part of the Premises without Lessor’s prior written consent. 
  
 (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the
Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 
  
 Lessee shall have the right without the consent of Lessor and without otherwise being subject
to or complying with the provisions of this Section 12 to: (a) permit occupancy of the Premises by, assignment of this Lease to or sublet the Premises or any portion thereof to, any entity that controls, is controlled by, or is under common control
with Lessee, or (b) assignment of this Lease to the surviving entity in any merger, consolidation or reorganization including Lessee, or to the purchaser of all or substantially all of the assets of Lessee at the Premises; provided that Lessee
promptly provides Lessor with a fully executed copy of such assignment or sublease and that Lessee is not released from liability under the Lease. The transfers described in this Section 12 are referred to herein as “Permitted Transfers”.

  
 13. Default; Breach; Remedies. 
  
 13.1 Default; Breach. A “Default” is defined
as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A “Breach” is defined as the occurrence of one or more of the following Defaults, and the
failure of Lessee to cure such Default within any applicable grace period: 
  
  

									
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     (a) The failure of Lessee to make any payment of Rent or any
Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when
due,                                        
                                        
        where such failure continues for a period of     five (5) business days following written notice to Lessee. 
  
      (b) The failure by Lessee to provide (i) reasonable written evidence of compliance
with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii)
any document requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a
period of thirty (30) days following written notice to Lessee,                 
                            
                                
                        
                                         
                                      
                                   provided, however, that if the nature of Lessee’s
Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. 

 
      (c) The occurrence of any of the
following events: (i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition
filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where
possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure is
not discharged within 30 days; provided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.

  
 (f) The discovery that any financial
statement of Lessee or of any Guarantor given to Lessor was materially false. 
  
 (g) If the performance of Lessee’s obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other than in
accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a Guarantor’s breach of its guaranty obligation on an
anticipatory basis, and Lessee’s failure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the
combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease. 
  
 13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations,
             and such failure Continues for 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on
Lessee’s behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to
                     the reasonable costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of
and during the Continued existence of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach: 
  
 (a) Terminate Lessee’s right to possession of the
Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time
of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the fair market value of the Premises for the same period
                                        
                                        
                                        
                         ; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term
after the time of award exceeds the fair market value of the Premises for the same period
                                        
                 ; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform its
obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of
                                        
             repairing the Premises to the condition otherwise required by this Lease, reasonable attorneys’ fees, and that portion of any leasing commission paid by Lessor in
connection with this Lease applicable to the unexpired term of this Lease provided, that in no event will Lessee’s liability exceed the amount of Rent Lessee would have otherwise been required to pay pursuant to this Lease. The worth at the
time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of eight percent (8%).
                                        
                                        
                                 Efforts by Lessor to mitigate damages caused by
Lessee’s Breach of this Lease shall not waive Lessor’s right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in
such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a
notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful
detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided
for in this Lease and/or by said statute. 
  
 (b)
Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a
receiver to protect the Lessor’s interests, shall not constitute a termination of the Lessee’s right to possession. 
  
 (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located.
The expiration or termination of this Lease and/or the termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof
or by reason of Lessee’s occupancy of the Premises. 
  
 13.3
Inducement Recapture. Any agreement for free or abated rent or other charges, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee’s entering into this Lease, all of
which concessions are hereinafter referred to as “Inducement Provisions,” shall be deemed conditioned upon Lessee’s full and faithful performance of all of the terms, covenants and conditions 

  

									
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of this Lease Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further
force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent
cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in
writing by Lessor at the time of such acceptance. 
  
 13.4 Late
Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited
to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due and such failure shall continue for five
(5) days after written notice by Lessor, provided however, that Lessor shall only be obligated to provide written notice of any late payment by Lessee during the initial Six (6) months of the Lease, then, without any requirement for notice to
Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to five percent (5%) of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of
the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the
other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent
shall, at Lessor’s option, become due and payable quarterly in advance. 
  
 13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days following the date on which it
was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled payments, or the 31st day after it was due as to non-scheduled payments. The interest (“Interest”) charged shall be
computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4. 
  
 13.6 Breach by Lessor. 
  
 (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a
reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been
furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor’s obligation is such that more than 30 days are reasonably
required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion. 
  
 (b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said
breach within 30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee’s expense and offset from Rent the actual and reasonable
cost to perform such cure, provided however, that such offset shall not exceed an amount equal to the greater of one month’s Base Rent or the Security Deposit, reserving Lessee’s right to seek reimbursement from Lessor. Lessee shall
document the cost of said cure and supply said documentation to Lessor. 
  
 14.
Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively “Condemnation”), this Lease shall terminate
as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, is taken by
Condemnation, Lessee may, at Lessee’s option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall
have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion
of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award
shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessee’s relocation expenses, loss of
business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation
only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to
the Premises caused by such Condemnation. 
  
  
  
  

									
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 16. Estoppel Certificates.

  
 (a) Each Party (as “Responding
Party”) shall within twenty (20) days after written notice from the other Party (the “Requesting Party”) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar
to the then most current “Estoppel Certificate” form published by the AIR Commercial Real Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

  
 (b) If the Responding Party shall fail to
execute or deliver the Estoppel Certificate within such twenty (20) day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the
Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and (iii) if Lessor is the Requesting Party, not more than one month’s rent has been paid in advance. Prospective purchasers and encumbrancers may
rely upon the Requesting Party’s Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. 
  
 (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof. Lessee and all
Guarantors shall deliver to any potential lender or purchaser designated by Lessor such unaudited financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee’s financial statements for the
past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 
  
 17. Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at
the time in question of the fee title to the Premises. or, if this is a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to
the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved
of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only
upon the Lessor as hereinabove defined. 
  
 18. Severability. The
invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 
  
 19. Days. Unless otherwise specifically indicated to the contrary, the word “days” as used in this Lease shall mean
and refer to calendar days. 
  
 20. Limitation on Liability. The
obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction
of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor’s partners, members, directors, officers or shareholders, or any of their personal assets for such satisfaction. 
  
 21. Time of Essence. Time is of the essence with respect to the performance of
all obligations to be performed or observed by the Parties under this Lease. 
  
 22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to
the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys’ fees), of any
Broker with respect to negotiation, execution, delivery or performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease;
provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 
  
 23. Notices. 
  
 23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in
person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified in
this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be that Party’s address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice
                        
                                           
                               . A copy of all notices to Lessor shall be concurrently transmitted to such
party or parties at such addresses as Lessor may from time to time hereafter designate in writing. 
  
 23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of
delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 48 hours after the same is addressed as required herein and mailed with postage prepaid. Notices
delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means
shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be
deemed received on the next business day. 
  

									
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 24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee,
shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be
deemed to render unnecessary the obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent.
The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by
Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 
  
  
  
  
  
  
  
  
  
 26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the
event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Lessor to any holding over by
Lessee. 
  
 27. Cumulative Remedies. No remedy or election hereunder shall
be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 
  
 28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles
are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the
Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. 
  
 29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are
located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. 
  
 30. Subordination; Attornment; Non-Disturbance. 
  
 30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or
other hypothecation or security device (collectively, “Security Device”), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof.
Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as “Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to
have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the
relative dates of the documentation or recordation thereof. 
  

									
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 30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are
acquired by another upon the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a
new lease, containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of such new owner, this Lease shall automatically become a new Lease between Lessee and such new
owner, upon all of the terms and conditions hereof, for the remainder of the term hereof, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor’s obligations hereunder,
except that such new owner shall not: (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any
prior lessor, (c) be bound by prepayment of more than one month’s rent, or (d) be liable for the return of any security deposit paid to any prior lessor. 
  

30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of
this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a “Non-Disturbance Agreement”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and
this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall use
its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said
60 days, then Lessee may, at Lessee’s option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement. 
  
 30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any
further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to
separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein. 
  
 31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as
hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is
pursued to decision or judgment. The term, “Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement,
judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys’ fees
reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is
subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). 
  
 32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or additions to the Premises as Lessor
may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect to Lessee’s use of the Premises. All
such activities shall be without abatement of rent or liability to Lessee. 
  
 33.
Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to
permit an auction. 
  
 34. Signs. Lessor may place on the Premises ordinary
“For Sale” signs at any time and ordinary “For Lease” signs during the last 6 months of the term hereof. Except for ordinary “for sublease” signs, Lessee shall not place any sign upon the Premises without Lessor’s
prior written consent. All signs must comply with all Applicable Requirements. 
  
 35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessor’s failure within 10 days following any such event to elect
to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s election to have such event constitute the termination of such interest. 
  
 36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the
other Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses (including but not limited to architects’, attorneys’, engineers’ and other consultants’ fees) incurred
in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an
invoice and supporting documentation therefor. Lessor’s consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of
any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor’s consent shall not preclude the imposition
by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other
hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days following such request. 
  

									
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 37. Guarantor. 
  
 37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the AIR Commercial Real Estate
Association, and each such Guarantor shall have the same obligations as Lessee under this Lease. 
  
 37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution
of the guaranty, including the authority of the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such
guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. 
  
 38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee’s part to be
observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 
  
 39. Options. If Lessee is granted an Option, as defined below, then the following provisions shall apply: 
  
 39.1 Definition. “Option” shall mean: (a) the right to
extend the term of or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor. 
  
 39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee and Permitted Transferees, and cannot be assigned or exercised by anyone other than said
original Lessee and only while the original Lessee is in full possession of the Premises
                                        
                                        
                                        
             . 
  
 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 
  
 39.4 Effect of Default on Options. 
  
 (a) Lessee shall have no right to exercise an Option: (i)
during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time
Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option. 

 
 (b) The period of time within which an Option may be
exercised shall not be extended or enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of Paragraph 39.4(a). 
  
 (c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee’s due and timely exercise of the Option,
if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or
(ii) if Lessee commits a Breach of this Lease. 
  
 39.5 Lessor
hereby grants to Lessee the Option to extend the term of this Lease on the same terms, conditions and provisions as contained in this Lease, except as otherwise provided herein, for two (2) five (5) year periods (the “Option Periods”).
Lessee’s option to extend shall be exercisable by written notice from Lessee to Lessor delivered no later than nine (9) months prior to the expiration of the initial term of this Lease or the first Option Period, as applicable, time being of
the essence. Upon the valid exercise by Lessee of an Option, Lessor and Lessee shall enter into a written amendment to the Lease confirming the terms, conditions and provisions applicable to the Option Period as determined in accordance with the
provisions of this Section 39.5, with applicable revision to the Base Rent as set forth herein. 
  
 For purposes hereof, “Market Rental Rate” during an Option Period means the base rental rate which a willing renewal tenant
would pay to a willing landlord for a comparable building in the Webster, Texas market at the time in question for comparable space. Lessor shall give written notice to Lessee of Lessor’s proposed market Rental Rate within thirty (30) days
following Lessor’s receipt of Lessee’s renewal notice. Upon receipt of such written notice by Lessor, Lessor and Lessee shall endeavor in good faith to agree upon the Market Rental Rate within fifteen (15) days after Lessee’s receipt
of such written notice. If Lessor and Lessee fail to agree upon the Market Rental Rate by the expiration of such fifteen (15) day period, Lessee shall be entitled to rescind Lessee’s exercise of the Option, or at Lessee’s option, Market
Rental Rate shall be determined as follows: within ten (10) days after the expiration of such fifteen (15) day period, Lessor and Lessee shall endeavor in good faith to agree upon a single qualified local real estate appraiser
(“Appraiser”) to determine the Market Rental Rate. If Lessor and Lessee are unable to agree upon a single qualified Appraiser within ten (10) days after the expiration of such fifteen (15) day period, each shall then, by written notice to
the other, given within five (5) days after said ten (10) day period, appoint one qualified Appraiser. Within ten (10) days after the two Appraisers are appointed, they shall appoint a third qualified Appraiser. If either Lessor or Lessee fails to
appoint its Appraiser within the prescribed time period, the single Appraiser appointed shall determine the Market Rental Rate. Otherwise, the three Appraisers shall determine the Market Rental Rate; provided, that if any appraisal differs from both
of the others by more than twenty percent (20%), that appraisal shall be disregarded and the average of the other two (2) appraisals shall be averaged and used for purposes of determining the Market Rental Rate. Each party shall bear the cost of the
Appraiser appointed by it and the parties shall share equally the cost of the third Appraiser. For purposes hereof, a “qualified” appraiser shall mean a person with both MAI and CCIM certifications. If Landlord and Tenant agree upon such
Market Rental Rate or if Market Rental Rate is otherwise determined as provided above, this Lease shall be automatically extended for the applicable renewal term in question with the same force and effect as if such renewal term had been originally
included in the lease term, upon the same terms and conditions as in this Lease, except that ninety-five percent (95%) of the Market Rental Rate shall be substituted for the Base Rent, provided however, that under no circumstances will the Option
Period(s) Rent be less than the immediately preceding Base Rent payable during the prior Term. 
  

									
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 40. Multiple Buildings. If the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees
that it will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management, safety, and care of said properties, including the care and cleanliness of the grounds and including the parking,
loading and unloading of vehicles, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessee also agrees to pay its fair share of common expenses incurred in connection with such rules and
regulations. 
  
 41. Security Measures. Lessee hereby acknowledges that the
Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises,
Lessee, its agents and invitees and their property from the acts of third parties. 
  
 42. Reservations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel
maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any
such easement rights, dedication, map or restrictions. 
  
 43. Performance
Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to
make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no
legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. 
  
 44. Authority; Multiple Parties; Execution. 
  

(a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity,
                                       such entity represents and
warrants that the individual executing this Lease                          duly authorized to execute and deliver this Lease on
its behalf. Each party shall, within 30 days after request, deliver to the other party satisfactory evidence of such authority. 
  
 (b) If this Lease is executed by more than one person or entity as “Lessee”, each such person or entity shall be jointly and
severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of
the named Lessees had executed such document. 
  
 (c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 
  
 45. Conflict. Any conflict between the printed provisions of this Lease and typewritten or handwritten provisions shall be controlled
by the typewritten or handwritten provisions. 
  
 46. Offer. Preparation of
this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 
  
 47. Amendments. This Lease may be modified only in writing, signed by the Parties in
interest at the time of the modification. As long as they do not materially change Lessee’s obligations hereunder. Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in
connection with the obtaining of normal financing or refinancing of the Premises. 
  
 48. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. 
  
 49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or
the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease  ̈ is þ is not
attached to this Lease. 
  
 50. Americans with Disabilities Act. Since
compliance with the Americans with Disabilities Act (ADA) is dependent upon Lessee’s specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the
event that Lessee’s use of the Premises requires modifications or additions to the Premises in order to be in ADA compliance. Lessee agrees to make any such necessary modifications and/or additions at Lessee’s expense. 
  
 51. Each year of the term of this Lease, the then current monthly rent shall be increased by
two and one-half percent (2.5%) on the anniversary date of the lease for the following twelve (12) months. 
  
 52. The Insuring Party is the Lessee. 
  
 53.
Right of First Refusal. If Lessor receives a bona fide written offer (“Purchase Offer”) acceptable to Lessor to purchase the Premises, Lessor shall comply with the terms and provisions of this Section 53. 
  
 (a) Lessor shall send written notice (“Lessor’s
Purchase Notice”) to Lessee notifying Lessee of its receipt of the Purchase Offer including a copy of the Purchase Offer. 
  

									
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 (b) Lessee shall have the right to exercise a right of first refusal with respect to the
Purchase Offer by giving written notice to Lessor within ten (10) business days after receipt of Lessor’s Purchase Notice. In the event Lessee elects to exercise its right of first refusal, Lessee shall be required to purchase the Premises upon
the same terms as contained in the Purchase Offer, and shall execute an earnest money contract containing the business terms contained in the Purchase Offer within twenty (20) business days after Lessee’s receipt of Lessor’s Purchase
Notice. If Lessee fails to execute an earnest money contract within the time period set forth above, or if Lessee executes the earnest money contract but defaults under the terms of the earnest money contract, the right of first refusal contained
herein shall be void and of no further force and effect and Lessor may thereafter sell the Premises without providing Lessee any further right of first refusal. In addition, Lessee shall forfeit any earnest money deposited under the earnest money
contract. 
  
 (c) If Lessee fails to give
Lessee’s Purchase Notice within the ten (10) business days described in paragraph (b) above, such failure shall be conclusively deemed a rejection of the Purchase Offer, and upon rejection, Lessor shall be free to sell the Premises to the
offering party upon substantially the same terms contained in the Purchase Offer, provided that such sale occurs within a nine (9) month period. In the event the sale does not occur within nine (9) months of Lessee’s receipt of Lessor’s
Purchase Notice upon substantially the same terms as contained in the Purchase Offer, the Premises shall again become subject to the first right of refusal contained herein. 
  
 (d) The right of first refusal contained herein shall be extinguished by the sale of the Premises pursuant
to the provisions of paragraph (c) above. 
  
 54. The shared easement as noted in
the Declaration of Easement dated January 15, 1998 filed of record under Harris County Clerk’s file number W196792 shall be the responsibility of the Tenant to maintain and administer. The costs of maintaining and administering the easement
shall be allocated as provided for in the Declaration of Easement, Article 2, and all responsibilities and costs associated will be paid for as if Tenant is the “Owner” as provided therein. The Landlord shall have no responsibility for any
costs relating to the maintenance of this easement during Tenant’s occupancy of the premises. 
  
 55. Henceforth from the activation of this Lease, should the Tenant execute a third party Security Device for the acquisition of personal property and should the Tenant’s lender require the Landlord to execute a
Landlord Waiver in favor of Tenant’s lender, Landlord agrees to do so within twenty (20) days of request thereof, providing that Landlord is not prohibited from doing so by the terms of Landlord’s loan agreements. 
  
 56. Tenant and Landlord are executing this Lease in advance of the close of escrow on
Landlord’s purchase of the Premises with the understanding that all provisions, responsibilities and representations contained herein, including the requirement for the payment of a security deposit or advance rent, shall only become effective
upon said closing of escrow and this Lease is expressly contingent upon Landlord’s actual purchase of the Premises, otherwise, this agreement shall have no force or effect of any kind. 
  
 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION
CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT
AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. 
  
 ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
RELATES. THE PARTIES ARE URGED TO: 
  
 1. SEEK ADVICE OF COUNSEL AS TO THE
LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 
  
 2. RETAIN APPROPRIATE
CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE
ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE. 
  
 WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED.

  
 The parties hereto have executed this Lease at the place and on the dates
specified above their respective signatures. 
  

			
	Executed at: Los Angeles, CA	  	Executed at: Webster, Texas
	On: 3/2_/05	  	On: 3/24/05

  

									
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	©2001 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	 	  	FORM STN-7-4/01E

									
	 By LESSOR:
	 	 	 	 By LESSEE:

			
	 R & H Investments
	 	 	 	 Spacehab, Inc.

					
	By:	 	/s/    STANLEY ROGERS        	 	 	 	By:	 	/s/ Illegible
	 Name Printed:
	 	Stanley Rogers	 	 	 	 Name Printed:
	 	Illegible
	 Title:
	 	Partner	 	 	 	 Title:
	 	Vice President
					
	By:	 	/s/    MICHAEL HARRIS        	 	 	 	By:	 	 
	 Name Printed:
	 	Michael Harris	 	 	 	 Name Printed:
	 	 
	 Title:
	 	Partner	 	 	 	 Title:
	 	 
	 Address:
	 	 9200 Sunset Blvd., #404 Los Angles, CA 90069
	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 
	 Telephone:
	 	 (310) 278-3142
	 	 	 	 Telephone:
	 	 (713) 558-5172

	 Facsimile:
	 	 (____) _________________________________
	 	 	 	 Facsimile:
	 	 (713) 558-5954

	 Federal ID No.
	 	 	 	 	 	 Federal ID No.
	 	 91-1273737

			
	BROKER:	 	 	 	BROKER:
	 	 	 	 	 
	 	 	 	 	 
					
	Attn:	 	 	 	 	 	Attn:	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 
	 Address:
	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 
	 Telephone:
	 	 (____) _________________________________
	 	 	 	 Telephone:
	 	 (____) ________________________________

	 Facsimile:
	 	 (____) _________________________________
	 	 	 	 Facsimile:
	 	 (____) ________________________________

	 Federal ID No.
	 	 	 	 	 	 Federal ID No.
	 	 

  
 NOTE: These forms are often
modified to meet the changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600, Los Angeles, California 90017.
(213) 687-8777. Fax No. (213) 687-8616 
  
 © Copyright 2001 - By AIR Commercial Real Estate
Association. All rights reserved. 
  
 No part of these works
may be reproduced in any form without permission in writing. 
  
 New Forms/Chuck Gardner/12130 Hwy 3/12130 Hwy 3, Bldg. l_SICSTLN_R&H_2 18 05 
  

									
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	©2001 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	 	  	FORM STN-7-4/01EFixed Price Subcontract 889208 for Wideband Gapfiller Satellite Program

 Exhibit 10.20 
  
 Subcontract No. 889208 
 Revision 0 
 18 January 2005 
  
 FIXED PRICE SUBCONTRACT 
  
 889208 
  
 Between 
  
 BOEING SATELLITE SYSTEMS, INC. 
 El Segundo, California 
  
 And 
  
 ASTROTECH SPACE OPERATIONS, INC. 
 Titusville, Florida 
  
 For 
  
 WIDEBAND GAPFILLER SATELLITE (WGS) PROGRAM 
 LAUNCH SITE 
 PAYLOAD PROCESSING
FACILITIES AND SERVICES 

 Subcontract No. 889208 
 Revision 0 
 18 January 2005 
  

 AGREEMENT 
  
 This Firm Fixed Price (FFP) Subcontract by mutual agreement of the parties hereto, is entered into between Astrotech Space Operations, Inc.
(hereinafter referred to as “Astrotech,” “ASO,” Subcontractor,” “Supplier,” or “Seller”) by Boeing Satellite Systems, Inc., located at 2260 E Imperial Hwy, El Segundo, California 90245 (hereinafter
referred to as “BSS” or “Buyer”) (each a “Party” and together the “Parties”) for the goods and services described herein, and is subject to the terms and conditions set forth thereto. 
  
 This Subcontract and the attachments and documents incorporated herein constitutes the entire
understanding and agreement between the parties with respect to the subject matter hereof and supersedes all prior representations Subcontract, communications and agreements. The invalidity, in whole or in part, of any provisions of this Subcontract
shall not affect the validity of other provisions. The failure by either party to insist, in any one or more instances, upon the performance of any terms or requirements of this Subcontract shall not be construed as a waiver or relinquishment of
such party’s right to such performance of such terms or future performance of such terms or requirements, and the other party’s obligation in respect thereto shall continue in full force and effect. 
  
 Sections A through I are an integral part of this Subcontract and are incorporated herein by
this reference. Furthermore, all documents cited and referred to in this Subcontract are incorporated herein by this reference and made an integral part hereof. 
  

IN WITNESS WHEREOF, the Parties hereto have executed this Subcontract effective as of the date executed by BSS below: 
  

									
	 ASTROTECH SPACE OPERATIONS, INC.
	 	 	 	 BOEING SATELLITE SYSTEMS, INC.

					
	 By:
	 	/s/    JOHN B. SATROM        	 	 	 	 By:
	 	/s/    JON CONNOR        
	 Typed Name:
	 	John B. Satrom	 	 	 	 Typed Name:
	 	Jon Connor
	 Title:
	 	Senior VP & General Manager	 	 	 	 Title:
	 	Subcontract Manager
			
	 Date: 20 January, 2005
	 	 	 	 Date: January 19, 2005

  

 Page 1 of 11 

 Subcontract No. 889208 
 Revision 0 
 18 January 2005 
  

 CONTENTS OF SUBCONTRACT 
  
 COVER/SIGNATURE PAGE 
  
 CONTENTS OF SUBCONTRACT 
  

					
	 SECTION A
	  	SPECIAL AGREEMENTS AND OTHER IMPORTANT PROVISIONS AND NOTIFICATIONS
	 	  	A.1	  	 ORDER OF PRECEDENCE

	 	  	A.2	  	 SUBCONTRACT MODIFICATIONS

		
	 SECTION B
	  	GOODS/SERVICES AND PRICES
	 	  	B.1	  	 TYPE OF SUBCONTRACT

	 	  	B.2	  	 STATEMENT OF REQUIREMENTS

	 	  	B.3	  	 SERVICES, PRICES AND LINE ITEM NUMBERS (SCLINs)

	 	  	B.4	  	 PAYMENT AND BILLING (Receipt of Goods/Services)

		
	 SECTION C
	  	SUPPLIER WORK STATEMENT /SPECIFICATIONS
	 	  	C.1	  	 SUPPLIER WORK STATEMENT

		
	 SECTION D
	  	INSPECTION AND ACCEPTANCE/QUALITY ASSURANCE
	 	  	D.1	  	 INSPECTION AND ACCEPTANCE

		
	 SECTION E
	  	DELIVERY/PERFORMANCE
	 	  	E.1	  	 DELIVERY/PAYLOAD PROCESSING SERVICES - FLORIDA

		
	 SECTION F
	  	SUBCONTRACT ADMINISTRATION DATA
	 	  	F.1	  	 TECHNICAL AND ADMINISTRATIVE REPRESENTATIVES

	 	  	F.2	  	 COMMUNICATIONS

	 	  	F.3	  	 SUBMISSION OF INVOICES

	 	  	F.4	  	 PAYMENT TERMS

		
	 SECTION G
	  	SPECIAL PROVISIONS
	 	  	G.1	  	 PLACE OF PERFORMANCE

	 	  	G.2	  	 BUYER/GOVERNMENT FURNISHED SPECIAL TOOLING, SPECIAL TEST EQUIPMENT, MATERIAL, AND/OR FACILITIES

	 	  	G.3	  	 IDENTIFICATION OF RESTRICTIONS ON GOVERNMENT RIGHTS IN TECHNICAL DATA AND COMPUTER SOFTWARE

	 	  	G.4	  	 FACILITY ACCESS AND MANIFEST COORDINATION

	 	  	G.5	  	 DAMAGE TO PERSONS OR PROPERTY INVOLVED IN PAYLOAD PROCESSING ACTIVITY

	 	  	G.6	  	 SCHEDULE AND FACILITY ASSIGNMENTS

	 	  	G.7	  	 TERMINATION

		
	 SECTION H
	  	GENERAL PROVISIONS
	 	  	H.1	  	 TERMS AND CONDITIONS GUIDE

	 	  	H.2	  	 TERMS AND CONDITIONS TAILORING

	 	  	H.3	  	 SUBCONTRACT ASSIGNMENT

		
	 SECTION I
	  	LIST OF DOCUMENTS, EXHIBITS AND ATTACHMENTS APPLICABLE TO THIS SUBCONTRACT

  

 Page 2 of 11 

 Subcontract No. 889208 
 Revision 0 
 18 January 2005 
  

 SECTION A - SPECIAL AGREEMENTS AND OTHER IMPORTANT PROVISIONS AND NOTIFICATIONS

  

	A.1	ORDER OF PRECEDENCE 

  
 In the event of an inconsistency between any of the provisions of this Subcontract, the inconsistency shall be resolved by giving precedence to the
provisions of the Subcontract in the following order: 
  

	 	1.	Subcontract Terms and Conditions, Sections A, B, D, E, F, and G 

  

	 	2.	WGS Contract Security Classification Specification, DD Form 254 (Section I, Exhibit D) 

  

	 	3.	Supplier Work Statement, Section C 

  

	 	4.	Payload Processing Requirements Documents (Section I, Exhibits A and B) 

  

	 	5.	Proprietary Information Agreement (Section I, Exhibit C) 

  

	 	6.	All Other Attachments, Exhibits and Documents listed in Section H 

  

	A.2	SUBCONTRACT MODIFICATIONS 

  
 Modifications to this subcontract shall be made through the issuance of subcontract change notices and in accordance with the Changes clause of GP2 (see
Section H, General Provisions). 
  
 SECTION B -
GOODS/SERVICES AND PRICES 
  

	B.1	TYPE OF SUBCONTRACT 

  
 This subcontract is a firm fixed price (FFP), type contract. Under FFP contracting, the Seller shall provide goods/services, including access to the
Astrotech Florida facilities, weekend and overtime support as required, at a price that is not subject to any adjustment on the basis of the Seller’s cost experience. In FFP contracting, the Seller bears the entire risk of cost and performance.

  

	B.2	STATEMENT OF REQUIREMENTS 

  
 In accordance with the Subcontract, Seller shall provide all materials, labor, services, equipment and facilities, as well as Buyer’s access to the
Astrotech Florida Facilities, except as specified herein to be furnished by the Buyer and/or Government, and shall do all that is necessary or incident to the satisfactory and timely performance of the SCLINs listed below in accordance with the
requirements of this Subcontract. 
  

	B.3	SERVICES, PRICES AND LINE ITEM NUMBERS (SCLINs) 

  

	(a)	Buyer will purchase the Basic Services described hereunder from Astrotech for each of the first three Wideband Gapfiller Satellites (hereinafter called “WGS Spacecraft” or
“Payload”), identified as WGS-1, WGS-2, and WGS-3. The total price of the Mission Services due to Seller by Buyer for the Payloads shall be $2,507,500.00. 

  

 Page 3 of 11 

 Subcontract No. 889208 
 Revision 0 
 18 January 2005 
  

	(b)	Price. BSS shall pay Astrotech a firm fixed price (hereinafter called “Mission Services Fee”) for all materials, labor, services, equipment and facilities provided
at the Astrotech Florida Facilities under this Subcontract for each WGS Spacecraft. 

  
 Payload Mission Pricing 
  

								
	SCLIN

	  	Payload

	  	 Mission
 Services Fee

	  	Valid Through

	1	  	WGS-1	  	$	835,834.00	  	12/31/2006
	2	  	WGS-2	  	$	835,833.00	  	12/31/2006
	3	  	WGS-3	  	$	835,833.00	  	12/31/2007
	      Total Missions:	  	$	2,507,500.00	  	 

  

	(c)	Price Escalation for Mission Launch Delays. If the Occupancy Periods for any of the Guaranteed Payloads defined above are postponed by BSS beyond the validity dates
indicated, price escalation shall apply at a rate of 4% per calendar year increment. Seller recognizes this is the sole remedy for any schedule delay, so long as the materials, labor, services, equipment, and facilities provided for each WGS
Spacecraft remain within the scope of work described in the Supplier Work Statement. 

  

	B.4	PAYMENT AND BILLING (Receipt of Goods/Services) 

  

	(a)	The Parties agree that the basis for payment under this Subcontract is the performance of acceptable services in support of BSS Payload processing activities at the Astrotech
Florida facilities. 

  

	(b)	Seller shall bill Buyer for the services provided for under this Subcontract. Buyer shall pay Seller upon receipt of the following: a properly prepared Seller’s invoice and
acceptable contract performance as defined in Section B.4, Part (a). Seller shall prepare and submit the aforementioned invoice in accordance with Subcontract Section F.3. 

  

	(c)	Payments. All payments shall be (i) in United States Dollars, (ii) payable to Astrotech Space Operations, Inc., and (iii) delivered, at BSS expense, to the office of
Astrotech Space Operations, Inc. at 1515 Chaffee Drive, Titusville, FL 32780 (or other address specified by Astrotech in writing) within thirty (30) days of receipt of the invoice by BSS. All payments shall reference the Astrotech invoice number.

  

	(d)	Billing Schedule. 

  
 Each Mission Exhibit executed by the Parties under this Subcontract shall set forth the billing schedule for payment of the Mission Services Fee
applicable to that particular Payload. The amount and billing dates of the scheduled Mission Services Fee partial payments are per the table below. All invoices shall be submitted in accordance with Sections F.2 and F.3. Payment terms shall be in
accordance with Section F.4. 
  

								
	 Milestone

	  	Payload

	  	Milestone Value

	    	 Payment Billing Schedule

	 1
	  	WGS-1	  	$	835,834.00	    	Effective date of contract
	 2
	  	WGS-2	  	$	416,667.00	    	30 days prior to start of occupancy
	 3
	  	WGS-2	  	$	419,166.00	    	30 days after end of occupancy
	 4
	  	WGS-3	  	$	416,667.00	    	30 days prior to start of occupancy
	 5
	  	WGS-3	  	$	419,166.00	    	30 days after end of occupancy
	 Total:
	  	 	  	$	2,507,500.00	    	 

  

 Page 4 of 11 

 Subcontract No. 889208 
 Revision 0 
 18 January 2005 
  

	 	(1)	Final Billing. As soon as practicable, but not later than sixty (60) days after the customer vacates the facility for each particular WGS Spacecraft, BSS will be invoiced for
any additional charges agreed to for each particular Payload. 

  
 SECTION C - STATEMENT OF WORK/SPECIFICATIONS 
  

	C.1	SUPPLIER WORK STATEMENT 

  
 Supplier Work Statement No. 889208, Payload Processing Services for the WGS Program, is incorporated into Section C by reference. 
  
 SECTION D - INSPECTION AND ACCEPTANCE/QUALITY ASSURANCE

  

	D.1	INSPECTION AND ACCEPTANCE 

  

	(a)	All goods and services shall be subject to in-process inspection/test by the Buyer at the Seller’s facility at all times during the period of performance and, in any event,
prior to shipment. If the Buyer performs inspection or evaluation on the premises of the Seller or its subcontractor(s), the Seller shall furnish and require its subcontractor(s) to furnish, without additional charge, all reasonable facilities and
assistance for the safe performance of these duties. 

  

	(b)	The provisions of Section D are in addition to any other inspection and acceptance provisions of this Subcontract. In the event of a conflict between Section D and any other
inspection and acceptance provisions of this Subcontract, including the inspection and acceptance provisions set forth by the Statement of Work and the General Provisions, the full text provisions of Section D shall prevail.

  
 SECTION E - DELIVERY/PERFORMANCE

  

	E.1	DELIVERY/PAYLOAD PROCESSING SERVICES - FLORIDA 

  
 Payload processing services period of performance shall begin with the execution of this Subcontract by BSS and shall continue through the end of the
Occupancy Period of the last Payload processed under the terms of this Subcontract at the Astrotech Florida facilities. 
  
 SECTION F - SUBCONTRACT ADMINISTRATION DATA 
  

	F.1	TECHNICAL AND ADMINISTRATIVE REPRESENTATIVES 

  

	(a)	The following technical and administrative representatives of the Buyer and Seller are hereby designated for this Subcontract: 

  

			
	 Seller’s Representatives are:
	  	Buyer’s Representatives are:
		
	 Dwayne Light
 Technical Manager
	  	 Larry Glass or Greg Reynolds
 Technical
Manager

		
	 John B. Satrom
 Contract Representative
	  	 Jon Connor
 Subcontract Manager

  

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	(b)	The Buyer’s Technical Manager is responsible for day-to-day clarifications, guidance and technical direction as may be required within the scope of the technical work
requirements. 

  

	(c)	Contact with the Buyer regarding prices, terms, quantities, deliveries, and financial adjustments shall be made only between the Buyer’s Subcontract Representative and the
Seller’s Contract Representative. Actions taken by the Seller, which by their nature effect a change to this Subcontract, shall only be binding upon the Buyer when such action is specifically authorized in writing by the Buyer’s
Subcontract Representative. Unless specified otherwise in this Subcontract, all written communications between Seller and Buyer shall be addressed and directed to the Buyer’s Subcontract Representative and Seller’s Contract Representative.

  

	(d)	The Buyer shall be responsible for all liaison and communications with the Buyer’s customer (US Air Force and their consultants) as well as the Buyer’s other
subcontractors (e.g., Saab Ericsson) for the term of this Subcontract. The Seller shall not communicate with the Buyer’s customer nor the Buyer’s other subcontractors regarding this Subcontract except with the prior consent of the Buyer.
The Seller shall communicate directly with the Launch Vehicle Technical Manager regarding execution of launch vehicle processing tasks covered within the scope of this Subcontract and associated documents. 

  

	(e)	No verbal or written request, notice, authorization, direction or order received by the Seller shall be binding upon the Buyer, or serve as the basis for a change in the
Subcontract, unless issued (or confirmed) in writing by the Buyer’s Subcontract Representative. 

  

	(f)	The Seller shall immediately notify the Buyer’s Subcontract Representative whenever a verbal or written change notification has been received from an employee of the Buyer
(other than the Subcontract Representative), which would affect any of the terms, conditions, cost, schedules, etc., of this Subcontract, and the Seller is to perform no work or make any changes in response to any such notification or make any claim
on Buyer unless the Buyer’s Subcontract Representative directs the Seller, in writing, to implement such change notification. 

  

	F.2	COMMUNICATIONS 

  

	(a)	All notices and other binding communications shall be in writing and sent by cable, telex, U.S. mail, telefax, or other customary means, addressed as follows:

  

			
	 Seller:
	  	 Buyer:

		
	 Astrotech Space Operations, Inc.
	  	 Boeing Satellite Systems, Inc.

	 1515 Chaffee Drive
	  	 P.O. Box 92919, MC W-S05-P200

	 Titusville, Florida 32780
	  	 Los Angeles, CA 90009-2919

	 Attn: Mr. John B. Satrom
	  	 Attn: Mr. Jon Connor

  
 or to such other
address as the Seller’s Contract Representative or Buyer’s Subcontract Representative shall designate by written notice. All correspondence, data and reports submitted by the Seller shall reference Subcontract number 889208. 
  

	F.3	SUBMISSION OF INVOICES  

  

	(a)	Seller shall submit invoices addressed as follows: 

  
 Original and one (1) copy to: 
  
 Boeing Satellite Systems, Inc. 
 P.O. Box
92919 
 MC W-S05-P200 
 Los
Angeles, CA 90009-2919 
 Attn: Mr. Jon Connor 
  

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	(b)	Seller’s invoices and attachments thereto shall contain the following information, as applicable: Seller’s name and business address, date of invoice, the Subcontract
number, name of Buyer’s designated Contract Representative, description of services, and Seller’s signature. 

  

	(c)	Invoices submitted without the above information may be returned to the Seller for correction. 

  

	F.4	PAYMENT TERMS 

  
 Payments are due no later than 30 days after receipt of invoice. 
  

SECTION G - SPECIAL PROVISIONS 
  

	G.1	PLACE OF PERFORMANCE 

  
 The work under this Subcontract shall be performed at the Seller’s Facility located at Titusville, Florida, Cape Canaveral Force Air Station, Kennedy
Space Center, and points in between. 
  

	G.2	BUYER/GOVERNMENT FURNISHED SPECIAL TOOLING (ST), SPECIAL TEST EQUIPMENT (STE), PLANT EQUIPMENT (PE), MATERIAL, AND/OR FACILITIES 

  

	(a)	Pursuant to the Property Clause of this Subcontract, the Buyer shall furnish for use in the performance of this Subcontract, the following Buyer and/or Government-furnished ST, STE,
PE, material, and/or facilities identified in paragraphs (b) and (c) below on or before the date(s) specified. 

  

	(b)	Buyer Furnished ST, STE, PE, material, and/or facilities: None 

  

	(c)	Government Furnished ST, STE, PE, material, and/or facilities: None 

  

	G.3	IDENTIFICATION OF RESTRICTIONS ON GOVERNMENT RIGHTS IN TECHNICAL DATA AND COMPUTER SOFTWARE 

  

	(a)	In accordance with the Section H General Provisions pertaining to data rights, the Seller has identified the technical data and/or computer software listed in paragraph (b) below,
that may be delivered by Seller with other than unlimited rights: None 

  

	G.4	FACILITY ACCESS AND MANIFEST COORDINATION 

  
 During the period of performance specified in Section E.1, Astrotech will coordinate with BSS on a regular basis, but no less than once per quarter, the
facility manifest for the Astrotech facilities in order to ensure the availability to BSS of the facilities required to support the WGS Spacecraft processing. 
  

	G.5	DAMAGE TO PERSONS OR PROPERTY INVOLVED IN PAYLOAD PROCESSING ACTIVITY 

  

This section is reserved for an inter-party waiver of liability for property damage and/or personal injury that might occur during Payload processing
activities. A mutually acceptable inter-party waiver of liability will be incorporated within 3 months after Subcontract award. In the event that the Parties are unable to reach agreement on the provision related to the inter-party waiver of
liability and the associated indemnification terms, either Party may cancel this Subcontract without prejudice. 
  

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	G.6	SCHEDULE AND FACILITY ASSIGNMENT 

  

	(a)	Occupancy Period. The period of time agreed to by BSS and Astrotech during which BSS will have the right to occupy the Astrotech Facility or otherwise receive Services for
each WGS Spacecraft to be processed under this Subcontract (hereinafter called “Occupancy Period”) and the launch date upon which the Occupancy Period is based shall be determined and set forth in the Mission Exhibit of this Subcontract
applicable to the particular WGS Spacecraft. Such Mission Exhibit shall also contain the schedules and assignments for the use of the facilities within Astrotech Florida, by BSS. 

  

	(b)	Key Dates. Key milestone dates relating to all critical events that could affect the Occupancy Period or Services to be performed for each WGS Spacecraft under this
Subcontract shall be exchanged between the BSS Technical Manager and the Astrotech Technical Manager. Each party shall advise the other, in a timely manner, of any event which occurs that would significantly alter the agreed to Occupancy Period or
Services. 

  

	(c)	Schedule Changes. BSS and Astrotech recognize that the nature of spaceflight activity is such that schedules must sometimes be changed, often for reasons beyond the control
or reasonable predictive ability of BSS or Astrotech. In the event that a change in the Occupancy Period or in the schedules for the use of the respective Astrotech facilities for a particular WGS Spacecraft becomes necessary by BSS or Astrotech,
the Parties agree to work together to accommodate the particular rescheduling request (including, if necessary, changes in the assignments for the use of the respective Astrotech facilities, and overtime and weekend work by Astrotech and BSS, and
their respective contractors and subcontractors), in a manner that will be mutually acceptable, satisfy the established launch schedules, and be compatible with the established or changed schedules of the other customers of Astrotech. Once the need
for such a change has been recognized by either Party, that Party shall promptly notify the other party of the particular rescheduling or reassignment request, and the related circumstances. Any officially announced change (by letter, press release,
or other formal means) in the launch date for a particular WGS Spacecraft that is more than two weeks from the launch date upon which the current Occupancy Period is based shall be deemed to be notification to Astrotech of a request to change the
Occupancy Period, unless BSS otherwise notifies Astrotech in writing. 

  

	(d)	Schedule Changes Requested or Caused by BSS. In the event that BSS requests or causes a change (including that resulting from an officially announced change in launch date)
in the Occupancy Period or the schedule for the use of the respective Astrotech Florida facilities for a particular WGS Spacecraft, as long as the resulting change does not result in a total mission Occupancy Period in excess of 14 calendar weeks,
such change shall not affect the Mission Services Fee other than those provisions previously described in Section B.3, Parts (b) and (c). 

  

	(e)	Schedule Changes Requested by Astrotech. In the event that Astrotech requests and BSS agrees to a change in the Occupancy Period for a particular WGS Spacecraft, such change
shall not affect the Mission Services Fee. 

  

	(f)	Program Priority Rating. This is a DO-A2 rated order certified for national defense use. Astrotech shall follow the requirements of the Defense Priorities and Allocations
System regulation (15 CFR Part 700). 

  

	G.7	TERMINATION 

  

	(a)	Termination by BSS. 

  

	 	(1)	 Termination for Convenience. BSS shall only have the right to terminate for convenience its obligation to obtain Astrotech Services under this Subcontract
for one or all of the Guaranteed Payloads in the event that the manufacture and/or launch of one or all of the 

  

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Guaranteed Payloads is not completed under the terms of its contract with the U.S. Government. BSS shall provide such notice to Astrotech in writing.

  

	 	(2)	Termination for Cause. Buyer may, by written notice to Seller, cancel all or part of this Subcontract (i) if Seller fails to deliver the Services within the time specified by
this or any written extension; (ii) if Seller fails to perform any other provision of this Subcontract or fails to make progress, so as to endanger performance of this Subcontract, and, in either of these two circumstances, does not implement a
mutually-acceptable corrective action within 15 days after receipt of notice from Buyer specifying the failure; or (iii) in the event of Seller’s actual or anticipated bankruptcy, suspension of business, or financial insolvency. Seller shall
continue work not canceled. 

  

	 	(3)	Termination Charge. In the event of termination by BSS pursuant to Section G.7, Parts (a)(1), (a)(2) or (a)(3), BSS shall pay Astrotech a Termination Charge as determined
below. In the event of an overpayment, Astrotech shall refund the amount of such overpayment to BSS. All payments shall be due within 30 days of notification by either party. 

  

	 	a)	Termination for Convenience. Should BSS terminate this Subcontract for one or more WGS Spacecraft, BSS shall pay Astrotech as liquidated damages a pro-rated share of the
Mission Services Fee applicable for that particular WGS Spacecraft based on the portion of the contracted Occupancy Period elapsed as of the date BSS vacates the Astrotech Facility, computed on a daily basis, but not less than ten percent (10%) of
the Mission Services Fee for that WGS Spacecraft, plus any additional charges agreed to or otherwise due and payable under this Subcontract as of the date BSS vacates the Astrotech Facility. The minimum 10% termination fee also applies if
termination by BSS occurs prior to the start of facility Occupancy Period for the Payload or Payloads. 

  

	 	b)	Termination for Cause. Should BSS exercise its rights to terminate this Subcontract under the provisions of Section G.7, Part (a)(2) above, BSS shall not be required to pay
Astrotech any termination charges associated with that particular WGS Spacecraft. 

  

	(b)	Termination by Astrotech. 

  

	 	(1)	Inability to Perform. Astrotech shall have the right to terminate, in whole or in part, its commitment to furnish the services under this Subcontract, only to the extent that
Astrotech is prevented from performing said Services, (i) in the event of riot, civil strife, war, damage to or destruction of the Astrotech facility, natural disaster or other Act of God beyond the control of Astrotech, or (ii) in the event the
United States Government terminates or fails to provide support it has committed to Astrotech which is necessary for Astrotech to perform certain Services to be provided hereunder, and Astrotech cannot reasonably provide other means whereby to
perform such Services. Prior to considering termination pursuant to this Section G.7, Part (b)(1), Astrotech shall consult with BSS in order to seek alternative means of providing Services acceptable to BSS. 

  

	 	(2)	Termination Charge. In the event of a termination of Services for a Payload by Astrotech pursuant to Section G.7, Part (b)(1), BSS shall not be required to pay Astrotech any
termination charge. In the event of overpayment, Astrotech shall refund the amount of such overpayment to BSS within 30 days of termination notice. 

  

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 SECTION H - GENERAL PROVISIONS 
  
 The below-noted terms and conditions, full text clauses, provisions and modifications thereto
are the General Provisions of the Subcontract. 
  

	H.1	TERMS AND CONDITIONS GUIDE 

  
 This Subcontract incorporates by reference the below-listed clauses with the same force and effect as if they were set forth in full text. Unless
indicated elsewhere in this Subcontract, the version of each incorporated clause will be the version identified in the following table. 
  

			
	NUMBER

	  	 TITLE

	GP2	  	 Fixed Price Services - General Provisions (07/09/2004)

	3000	  	 Dangerous Goods and Hazardous Materials (10/15/2002)

	3002	  	 Hazardous Material – Material Safety Data Sheet (10/15/2002)

	3003	  	 Seller Compliance with Occupational Safety & Health Act of 1970 (10/15/2002)

	3029	  	 Safety and Accident Prevention (10/15/2002)

	3062	  	 Rights in Patents and Inventions (Other than Government Contracts) (10/15/2002)

	3063	  	 Right in Software Documentation, and Other Forms of Authorship Generated in Effort Not Supporting Government Contracts
(10/15/2002)

	4007	  	 Additional General Provisions (11/12/2004)

	40-0135B	  	 Rights in Technical Data/Cost or Pricing Information (07/01/2003)

  
 Applicable FAR
Clauses: 52.222.26, 52.222.35, and 52.222.36 
  

	H.2	TERMS AND CONDITIONS TAILORING 

  
 The following tailoring shall apply to the Boeing standard Terms and Conditions delineated in Section H.1. 
  
 GP2, Paragraph 6, is not applicable. 
  
 GP2, Paragraph 5, is superseded by the following: 
  
 5. WARRANTY: Seller warrants that all Services performed hereunder
shall be performed by employees or agents of Seller who are experienced and skilled in their profession and in accordance with industry standards. Seller further warrants that all Services performed under this contract, at the time of acceptance,
shall be free from defects in workmanship and conform to the requirements of this contract. Buyer shall give written notice of any defect or nonconformance to Seller within one year from the date of acceptance by Buyer. Buyer may, at its option,
either (a) require correction or reperformance of any defective or nonconforming services, or (b) make an equitable adjustment in the price of this contract. If Seller is required to correct or reperform the Services, such correction or
reperformance shall be at Seller’s expense. Any Services corrected or reperformed shall be subject to this article to the same extent as Services initially performed. If Seller fails or refuses to correct or reperform, Buyer may correct or
replace with similar services and charge Seller for any cost to Buyer or make an equitable adjustment in the price of this contract. In no case shall the total value of damages due to Buyer by Seller under this Warranty exceed the total value of the
Services performed by Seller to date under the terms of this subcontract agreement. 
  

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 GP2, Paragraph 34, is superseded by the following: 
  
 34. REJECTION 
  
 a. If Seller delivers nonconforming Services, Buyer may require Seller to
promptly correct or replace the nonconforming Services. Redelivery to Buyer of any corrected or replaced Services shall be at Seller’s expense. 
  
 b. In addition Buyer may (i) correct the nonconforming Services or (ii) obtain replacement Services from another source at Seller’s expense. In no
case shall the cost to Seller of Buyer’s expenses related to the rework/replacement of nonconforming Services using alternate sources/suppliers exceed the total value of Services performed to date by Seller for Buyer under the terms of this
subcontract agreement. 
  
 c. Seller shall not redeliver
corrected or rejected Services without disclosing the former rejection or requirement for correction. Seller shall disclose any corrective action taken. All repair, replacement and other correction and redelivery shall be completed within the
original delivery schedule or such later time as Buyer may reasonably direct. 
  
 GP2, Paragraph 38, is superseded by the following: 
  
 38. RECORDS AND AUDIT. Seller shall retain all records and documents pertaining to the Services for a period of no less than three years after final payment. Such records and documents shall date back to the
time this contract was issued and shall include, without limitation, catalogs, price lists, invoices and inventory records for purposes of verification of prices or rates charged by Seller for Services procured by Buyer. Buyer shall have the right
to examine, reproduce and audit all such records related to pricing and performance to evaluate the accuracy, completeness and currency of cost data related to “Changes” or “Cancellation for Default” articles of this contract.

  
 4007, Paragraph 10, is not applicable. 
  

	H.3	SUBCONTRACT ASSIGNMENT 

  
 Neither Party shall assign any of its rights or interest in this Subcontract all or substantially all of its performance of this Subcontract, without the
other Party’s prior written consent. Such consent shall not unreasonably be withheld. Neither Party shall delegate any of its duties or obligations under this Subcontract. No assignment, delegation or subcontracting by either Party, with or
without the other Party’s consent, shall relieve either Party of any of its obligations under this Subcontract. This article does not limit either Party’s ability to purchase standard commercial supplies or raw materials. Either Party may
assign its right to monies due or to become due. 
  
 SECTION
I- LIST OF DOCUMENTS, EXHIBITS AND ATTACHMENTS 
 APPLICABLE TO THIS SUBCONTRACT 
  

	1.	Exhibit A, Payload Processing Requirements Document/WGS/Atlas EELV (see SWS paragraph 2.2). 

  

	2.	Exhibit B, Payload Processing Requirements Document/WGS/Delta EELV, (see SWS paragraph 2.2). 

  

	3.	Exhibit C, Proprietary Information Agreement No. 2004-4246 dated 1 December 2004, between Astrotech Space Operations, Inc. and Boeing Satellite Systems, Inc.

  

	4.	Exhibit D, WGS Contract Security Classification Specification, DD Form 254. 

  

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 SUPPLIER WORK STATEMENT 
  
 PAYLOAD PROCESSING SERVICES 
 FOR THE WGS PROGRAM 
  
 APPROVALS 
  

									
	 BOEING SATELLITE SYSTEMS
	 	 	 	 ASTROTECH SPACE OPERATIONS, INC.

					
	By:	 	/s/    JON CONNOR        	 	 	 	By:	 	/s/    JOHN B. SATROM        
	 	 	Jon Connor	 	 	 	 	 	John B. Satrom
	 	 	Subcontract Manager	 	 	 	 	 	Senior VP & General Mgr
					
	 Date:
	 	 January 19, 2005
	 	 	 	 Date:
	 	 20 January 2005

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 CHANGE TABLE 
  

									
	 NO.

	  	DATE

	  	AUTHORITY

	  	APPENDIX

	  	DESCRIPTION

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 CONTENTS 
  

					
	 Section 1.0
	  	PAYLOAD PROCESSING SERVICES	  	1
	 	  	1.1 General	  	1
	 	  	1.2 Description of Services	  	1
	 	  	1.3 Basic Services	  	1
			
	 Section 2.0
	  	DOCUMENTATION REQUIREMENTS	  	2
	 	  	2.1 General	  	2
	 	  	2.2 Payload Processing Requirements Document	  	2
	 	  	2.3 Hazardous Procedures	  	2
	 	  	2.4 Liquid Propellant Operations Crew Certification	  	3
	 	  	2.5 Heavy Equipment Training Certification	  	3
			
	 Section 3.0
	  	COORDINATION	  	3
	 	  	3.1 Agreement Coordinators and Technical Managers	  	3
	 	  	3.2 Launch Vehicle Technical Managers	  	3
	 	  	3 3 Coordination With U. S. Government	  	4
	 	  	3.4 Additional Coordination	  	4

  

					
			
	Appendix A	  	MISSION EXHIBITS	  	A-1
			
	Appendix B	  	WGS SPACECRAFT PROCESSING SERVICES	  	B-1
			
	Appendix C	  	ATLAS V LAUNCH VEHICLE PROCESSING SERVICES	  	C-1
			
	Appendix D	  	DELTA IV LAUNCH VEHICLE PROCESSING SERVICES	  	D-1

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 1. Payload Processing Services. 
  
 1.1 General. The description and specifications of the Astrotech facilities, as they pertain to this
Agreement, are those contained in the document titled “Astrotech Space Operations Florida (ASOFL) Facility Accommodations Manual” dated April 2001, as amended by the April 2002 update to Chapter 13 that reflects the as-built configuration
of Building 9. Subsequent revisions to this document are incorporated upon release to the extent that they expand the Astrotech capabilities. 
  
 1.2 Description of Services. Services shall consist of Basic Services as defined below. It is recognized by BSS and Astrotech (i)
that certain of the Services to be provided to BSS shall be obtained by Astrotech from the United States Air Force (hereinafter called “USAF”) and the National Aeronautics and Space Administration (hereinafter called “NASA”)
under the terms of Astrotech’s commercialization agreements with the USAF and NASA respectively, and (ii) that BSS, or their respective contractors or subcontractors other than Astrotech, shall perform all activity involving assembly, servicing
and checkout of the Payload and use of its associated ground support equipment, unless otherwise expressly provided for in this Agreement. 
  
 1.3 Basic Services. Under this Agreement, BSS shall utilize the applicable Astrotech Florida facilities as provided for herein, for
payload processing support of the first three WGS Spacecraft. In addition to operating and maintaining the Astrotech Facility, Astrotech shall provide to BSS for each WGS Spacecraft to be processed under this Agreement (i) the package of Spacecraft
Processing Services set forth in Appendix B of this SWS, (ii) for each ATLAS V mission the package of ATLAS V Launch Vehicle Processing Services set forth in Appendix C of this SWS, and (iii) for each DELTA IV mission the package of DELTA IV Launch
Vehicle Processing Services set forth in Appendix D of this SWS. 
  

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 2. Documentation Requirements. 
  
 2.1 General. BSS shall provide Astrotech the documentation described in Sections 2.2, 2.3 and 2.4
below applicable to the activities planned to occur at the Astrotech Florida facilities. While it is essential that the required content of this documentation be complete as defined below, Astrotech shall accept the documentation in any format
convenient to BSS. In particular, to the extent the required documentation has been prepared for and approved by NASA or USAF for activity in Government facilities, such documentation shall be fully accepted by Astrotech, except to the extent
additional information may be required to adequately define a planned activity at the Astrotech Florida facilities. Astrotech shall evaluate such BSS provided documentation only from the standpoint of facility compatibility and safety, and shall not
attempt to evaluate, in any way, the probability of Payload success. All such documentation shall be written in the English language. 
  
 2.2 Payload Processing Requirements Document. A Payload Processing Requirements Document for each Payload shall be submitted to
Astrotech nominally six months prior to the beginning of the Occupancy Period set forth in Annex A below for each respective Payload, unless otherwise requested by Boeing and agreed to in writing by Astrotech. This document shall provide a
description of the Payload (including a description of each hazardous system), outline all Payload activities planned to occur at the Astrotech Florida facilities, and detail ail services and support requested by BSS to be provided by Astrotech. The
hazardous systems description shall include drawings, schematics, summary test data, and any other available information which shall aid in appraising the respective systems. Hazardous systems shall be those defined in the heritage USAF Range Safety
Requirements Document, EWR 127-1, including ordnance devices, propellants, pressurized systems, toxic material, and radio frequency (RF) radiation, and any other system which is a source of danger either to personnel or equipment. Astrotech shall
review the Payload Processing Requirements Document, which, when mutually agreed to by Astrotech and BSS, shall constitute the detailed definition of the Services to be provided by Astrotech for the particular Payload and associated payload fairing
encapsulation. For repeat payload processing operations, to the extent that identical spacecraft processing operations or identical payload fairing encapsulation operations are to be performed, a one-time submittal shall suffice for all such
operations. 
  
 2.3 Hazardous Procedures.
Detailed procedures must be prepared for all operations at the Astrotech Florida facilities involving hazardous systems, as defined in Section 2.2 above. All such procedures shall be clearly labeled as “Hazardous” and shall be submitted to
Astrotech for review no 

  

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later than sixty (60) days prior to the first planned use at the Astrotech Florida facilities. Once mutually agreed to by Astrotech and BSS, hazardous
procedures shall be followed without exception. Any changes to a mutually agreed to hazardous procedure must be mutually agreed to by the Astrotech and BSS Technical Managers prior to use. 
  
 2.4 Liquid Propellant Operations Crew Certification.
BSS shall submit to Astrotech written notification designating the liquid propellant operations crew for the Payload no later than one week prior to the beginning of liquid propellant operations for each WGS Payload. This Liquid Propellant
Operations Crew Designation shall identify all personnel who shall be directly involved in handling liquid propellants at the Astrotech Florida facilities and shall indicate that each individual is properly trained and physically qualified to
perform such activity. 
  
 2.5 Heavy Equipment
Training Certification. BSS shall submit to Astrotech written notification designating the BSS personnel who shall be operating the Astrotech Florida facilities bridge cranes and/or forklifts in support of the planned payload processing
operations for each Payload. Such notification shall be submitted no later than one week prior to the start of the Occupancy Period for the Payload, and shall certify that the named individuals have met all BSS training requirements to operate
overhead bridge cranes, forklifts, or both as appropriate. Astrotech personnel shall provide equipment familiarization training regarding the use of the Astrotech cranes and forklifts to those individuals named by BSS as certified in these
functions. 
  
 3. Coordination. 
  
 3.1 Contract Representatives and Technical Managers.
BSS and Astrotech shall each designate a Contract Representative who shall be responsible for coordinating with the Contract Representative of the other party all financial, general scheduling, and other contractual matters related to this
Subcontract. In addition, BSS and Astrotech shall each designate a Technical Manager who together shall be responsible for coordinating all technical activities, including the day-to-day activity schedules, to be performed under this Subcontract.
Either party may replace their Agreement Coordinator or Technical Manager by informing the other party in writing of such action and the effective date of such redesignation, in accordance with Section F.2 of the contract Terms and Conditions.

  
 3.2 Launch Vehicle Technical Manager.
A Launch Vehicle Point of Contact shall be identified by BSS no later than 90 days prior to the start of each Occupancy Period. Astrotech shall 

  

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coordinate all launch vehicle processing matters, for either Atlas V and Delta IV, directly with the Launch Vehicle Technical Manager. 
  
 3.3 Coordination With U.S. Government. The Astrotech
Technical Manager shall provide all coordination with USAF or NASA for any U.S. Government support provided to BSS at the Astrotech Facility under this Subcontract and for delivery of the Payload to the designated launch site facility following
completion of processing at the Astrotech Florida facilities. 
  
 3.4 Additional Coordination. The Astrotech Technical Manager and the BSS Technical Manager shall, through consultation, coordinate the activities of Astrotech and BSS related to the furnishing of Services
provided under this Subcontract, and, at each parties own expense, shall call upon individuals from their respective organizations, including contractors and consultants, to participate as necessary and appropriate in such consultations. 

 

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 APPENDIX A-1 
  

MISSION EXHIBIT 
  
 FOR THE WGS-1 PAYLOAD 
  
 This Mission Exhibit sets forth the Payload-specific details and requirements for the services to be provided by Astrotech to BSS under this subcontract in support of the launch of WGS-1. 
  
 Launch Planning Window. For planning purposes, the WGS-1 Payload
launch is projected to occur between December 31, 2005 and June 30, 2006. 
  
 Occupancy Period, Launch Date and Launch Vehicle. The Occupancy Period, Launch Date and Launch Vehicle assignment shall be specified by BSS to Astrotech no later than 6 months prior to the anticipated launch
date. Once established, modifications to these dates shall be communicated and coordinated as per Section G.6 of the subcontract General Terms and Conditions. 
  

							
	 OCCUPANCY
START

	  	OCCUPANCY
END

	  	TARGET LAUNCH
DATE

	  	LAUNCH VEHICLE
(ATLAS OR DELTA)

	 25 NOV 2005
	  	3 MAR 2006	  	 	  	 

  
 Facility
Assignments. Facility assignments for this mission shall be mutually established no later than 3 months prior to the start of the Occupancy Period. Modifications to these dates and assignments shall be communicated and coordinated as per Section
G.6 of the subcontract General Terms and Conditions. 
  

					
	 BUILDING/ROOM

	  	 ENTRY DATE

	  	 DEPARTURE DATE

	 Building 1/High Bay Complex (“A”, “B”, “C” or “D”)
	  	 	  	 
	 Building 5/Customer Office Space (Receptionist Area & 4 Offices)
	  	 	  	 
	 Building 9/(“East” or “West”) High Bay Complex
	  	 	  	 
	 Building 9/Conditioned Storage Area (Atlas missions)
	  	 	  	 
	 Building 9/Fairing Processing Bay (Delta missions)
	  	 	  	 
	 Building 9/Payload Encapsulation Bay
	  	 	  	 
	 Buildings 3, 4 and 6/ Warehouse Storage
	  	Shared space, as required and available.

  

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 APPENDIX A-2 
  

MISSION EXHIBIT 
  
 FOR THE WGS-2 PAYLOAD 
  
 This Mission Exhibit sets forth the Payload-specific details and requirements for the services to be provided by Astrotech to BSS under this subcontract in support of the launch of WGS-2. 
  
 Launch Planning Window. For planning purposes, the WGS-2 Payload
launch is projected to occur between July 1, 2006 through December 31, 2006. 
  
 Occupancy Period, Launch Date and Launch Vehicle. The Occupancy Period, Launch Date and Launch Vehicle assignment shall be specificed by BSS to Astrotech no later than 6 months prior to the anticipated launch
date. Once established, modifications to these dates shall be communicated and coordinated as per Section G.6 of the subcontract General Terms and Conditions. 
  

							
	 OCCUPANCY
START

	  	OCCUPANCY
END

	  	TARGET LAUNCH
DATE

	  	LAUNCH VEHICLE
(ATLAS OR DELTA)

	 	  	 	  	 	  	 

  
 Facility
Assignments. Facility assignments for this mission shall be mutually established no later than 3 months prior to the start of the Occupancy Period. Modifications to these dates and assignments shall be communicated and coordinated as per Section
G.6 of the subcontract General Terms and Conditions. 
  

					
	 BUILDING/ROOM

	  	 ENTRY DATE

	  	 DEPARTURE DATE

	 Building 1/High Bay Complex (“A”, “B”, “C” or “D”)
	  	 	  	 
	 Building 5/Customer Office Space (Receptionist Area & 4 Offices)
	  	 	  	 
	 Building 9/(“East” or “West”) High Bay Complex
	  	 	  	 
	 Building 9/Conditioned Storage Area (Atlas missions)
	  	 	  	 
	 Building 9/Fairing Processing Bay (Delta missions)
	  	 	  	 
	 Building 9/Payload Encapsulation Bay
	  	 	  	 
	 Buildings 3, 4 and 6/Warehouse Storage
	  	Shared space, as required and available.

  

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 APPENDIX A-3 
  

MISSION EXHIBIT 
  
 FOR THE WGS-3 PAYLOAD 
  
 This Mission Exhibit sets forth the Payload-specific details and requirements for the services to be provided by Astrotech to BSS under this subcontract in support of the launch of WGS-3. 
  
 Launch Planning Window. For planning purposes, the WGS-3 Payload
launch is projected to occur between November 1, 2006 through April 30, 2007. 
  
 Occupancy Period, Launch Date and Launch Vehicle. The Occupancy Period, Launch Date and Launch Vehicle assignment shall be specified by BSS to Astrotech no later than 6 months prior to the anticipated launch
date. Once established, modifications to these dates shall be communicated and coordinated as per Section G.6 of the subcontract General Terms and Conditions. 
  

							
	 OCCUPANCY
START

	  	OCCUPANCY
END

	  	TARGET LAUNCH
DATE

	  	LAUNCH VEHICLE
(ATLAS OR DELTA)

	 	  	 	  	 	  	 

  
 Facility
Assignments. Facility assignments for this mission shall be mutually established no later than 3 months prior to the start of the Occupancy Period. Modifications to these dates and assignments shall be communicated and coordinated as per Section
G.6 of the subcontract General Terms and Conditions. 
  

					
	 BUILDING/ROOM

	  	 ENTRY DATE

	  	 DEPARTURE DATE

	 Building 1/High Bay Complex (“A”, “B”, “C” or “D”)
	  	 	  	 
	 Building 5/Customer Office Space (Receptionist Area & 4 Offices)
	  	 	  	 
	 Building 9/(“East” or “West”) High Bay Complex
	  	 	  	 
	 Building 9/Conditioned Storage Area (Atlas missions)
	  	 	  	 
	 Building 9/Fairing Processing Bay (Delta missions)
	  	 	  	 
	 Building 9/Payload Encapsulation Bay
	  	 	  	 
	 Buildings 3, 4 and 6/ Warehouse Storage
	  	Shared space, as required and available.

  

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 APPENDIX B 
  
 WGS SPACECRAFT PROCESSING SERVICES 
  
 This Appendix B describes the scope of Basic Services available from Astrotech in conjunction with the processing of each WGS Spacecraft for the Service Fee under this
Subcontract at the Astrotech Florida facilities. The specific Basic Services to be provided by Astrotech shall be as detailed in the Payload Processing Requirements Document pursuant to Section 2.2 of this Supplier Work Statement. 
  

	 	1.	Arrival and Departure Transportation. Astrotech shall provide equipment and manpower support needed to unload and transport crated flight hardware and associated ground
support equipment by commercially available ground transportation vehicles from and to terminals within a 50 mile radius of the Astrotech Facility. This service shall accommodate shipment by air to and from commercial or Government airports in the
vicinity of the Astrotech Florida facilities. Astrotech shall arrange for and obtain the necessary permits and licenses (Wide Load, HazMat, etc.) as required by the State of Florida Department of Transportation in support of the Payload arrival and
departure operations. 

  

	 	2.	Local Transportation. By means of commercially available ground transportation vehicles, Astrotech shall provide transportation and delivery of the crated Payload or Payload
elements, spacecraft propellants, and ground support equipment, within the Astrotech Facility and to and from the Astrotech Florida facilities and designated facilities at the Kennedy Space Center (KSC) or Cape Canaveral Air Force Station (CCAFS).

  

	 	3.	Use of Astrotech Facilities. Astrotech shall provide use of the following portions of the applicable Astrotech Facility for the duration stated: 

  

	 	(a)	In Building 1: up to 14 weeks use of one High Bay Complex, consisting of the High Bay, adjacent Control Room, and one contiguous Office Area, and Conference Room;

  

	 	(b)	In Buildings 3, 4 and 6: storage, on a shared space basis, of flight hardware elements, shipping containers, ground support equipment, etc.; 

  

	 	(c)	In Building 5: use of up to 4 offices and shared use of conference rooms and reception area; and 

  

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	 	(d)	In Building 9: up to six weeks use of one Satellite Processing Cell, its associated Garment Change Room, and adjacent Control Room for handling and loading of liquid propellants,
spacecraft final testing and closeout operations. 

  

	 	4.	Propellant and Ordnance Handling and Storage. Astrotech shall provide receiving, inspection, and storage of propellants, ordnance items; and bridge-wire checks.

  

	 	5.	Communications. Astrotech shall provide a fiber-optic communications systems for spacecraft command/ telemetry communications, associated data circuits, and voice
communications between the Astrotech Florida facilities and KSC/CCAFS, and between Building 1 and Building 9, in accordance with the defined Astrotech capabilities; closed-circuit television, with video recording capability, in and between Buildings
1, 5 and 9; and local and long distance telephone service. Astrotech shall accommodate data drops that can be connected to a BSS-furnished offsite communications circuit for data transmission back to El Segundo and an Internet access point in the
Building 1 control room. 

  

	 	6.	Electrical Power. Astrotech shall provide 60Hz electrical power, as defined in the Facility Accommodation Handbook, for electrical ground support equipment.

  

	 	7.	USAF/NASA Coordination. Astrotech shall provide coordination with USAF and NASA/Kennedy Space Center for any Services requiring U.S. Government support.

  

	 	8.	Security. Astrotech shall provide 24 hour-a-day perimeter security at the Astrotech Florida Facilities. Periodic security patrols shall be conducted throughout the Astrotech
Florida facilities during non-work hours; digital cypher locks are on all internal and external doors leading into the Payload processing areas; and all buildings are electronically monitored 24 hours-a-day for smoke/fire detection. Doors to all BSS
work areas shall have hasps to accommodate BSS-furnished security seals. 

  

	 	9.	Solvents and Gases. Astrotech shall provide gaseous nitrogen, liquid nitrogen, gaseous helium, isopropyl alcohol, deionized water, and other general purpose cleaning agents
and solvents in support of the planned spacecraft processing operations. 

  

	 	10.	Hazardous Waste Disposal. Astrotech shall provide disposal of hazardous materials, such as propellants and solvents, resulting from the payload processing activity.

  

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	 	11.	Sampling and Analysis. Astrotech shall provide sampling and analysis of up to 25 samples of gases, propellants, and cleaning materials. 

  

	 	12.	Emergency Medical and Fire Protection. Emergency medical assistance and fire protection at the Astrotech Florida facilities are provided on a 24-hour per day basis by Brevard
County and the City of Titusville, Florida. 

  

	 	13.	Test Equipment. Astrotech shall provide test equipment and tools, as available and on a non-interference basis. 

  

	 	14.	Calibration. Astrotech shall provide standard equipment calibration services for up to ten (10) items of scientific equipment. Astrotech shall provide calibrated (Class F)
weights for use during spacecraft fueling operations. 

  

	 	15.	Personnel Protective Suits. Astrotech shall provide air hose-type personnel protective suits, splash suits, and related training and support for up to five personnel for
Payload propellant handling, transfer, and fueling operations. 

  

	 	16.	Technical Shop Support. Astrotech shall provide unplanned shop support, as available and on a non-interference basis. 

  

	 	17.	Telephone and Facsimile Service. Astrotech shall provide commercial local and long distance telephone service in all areas used, and shall provide facsimile machines in the
Building 1 Office Area and Control Room, and the Building 5 Office Area. 

  

	 	18.	Cellphones and Pagers. Astrotech shall provide 10 local cellphones and 10 local area pagers for BSS use throughout the Occupancy Period. 

  

	 	19.	Photocopiers. Astrotech shall provide copy machines and paper supplies in the Building 1 Office Area and Control Room, and the Building 5 Office Area (shared asset).

  

	 	20.	Document Destruction. Astrotech shall provide a means of destruction or safe disposal of sensitive and classified paper documentation (e.g., industrial shredding services for
company proprietary information and a compliant shredder in the BSS office area for classified destruction). 

  

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	 	21.	Weather Reports. Astrotech shall provide weather warning information, as appropriate, to the BSS Technical Manager, at all times during the Occupancy Period.

  

	 	22.	Facility Access. Personnel supporting the WGS program shall be granted access to all authorized work areas on a 24-hour basis throughout the Occupancy Period. BSS and the
launch service providers shall provide Astrotech with access lists as appropriate. 

  

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 APPENDIX C 
  
 ATLAS V LAUNCH VEHICLE PROCESSING SERVICES 
  
 This Appendix C describes the scope of Basic Services to be provided by Astrotech to the Atlas V launch services provider in conjunction with the processing of each Atlas
V payload fairing and Payload encapsulation activity associated with the WGS Spacecraft for the Service Fee under this Subcontract at the Astrotech Florida facilities. The specific Basic Services to be provided by Astrotech shall be as detailed in
the Payload Processing Requirements Document pursuant to Section 2.2 of this Supplier Work Statement. 
  

	 	1.	Arrival and Departure Assistance. Astrotech shall assist with loading and off-loading of Atlas V payload fairing components and the associated support equipment at the
Astrotech Florida facilities. 

  

	 	2.	Transportation of Base Module and Encapsulated Payload. Astrotech shall arrange for and obtain the necessary permits and licenses (Wide Load, HazMat, etc.) as required by the
State of Florida Department of Transportation for transport of the encapsulated Payload from the Astrotech Florida facilities to Space Launch Complex – 41 at CCAFS. Astrotech shall not be responsible for providing the transport vehicle(s) and
for conduct of the transportation operation. 

  

	 	3.	Use of Astrotech Facilities. Astrotech shall provide use of the following portions of the applicable Astrotech Florida facilities for the duration stated:

  

	 	(a)	In Buildings 3, 4 and 6: storage, on a shared space basis, of flight hardware elements, shipping containers, ground support equipment, etc.; 

  

	 	(b)	In Building 7: use of Atlas Technical Support/Break Area for the duration of the mission Occupancy Period for the WGS Spacecraft; and 

  

	 	(d)	In Building 9: for fairing processing, use for up to four weeks of the Conditioned Storage Area, Encapsulation Bay, and outside paved storage for PLF shipping containers. Astrotech
will provide the facility data necessary to certify the specified work areas for 

  

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use, to include: temperature, relative humidity, particle counts (from airborne particle counters), non-volatile residue (NVR) and crane proofload/inspection
data. 

  

	 	(e)	In Building 1: for office accommodations, the D4 Office Area (or equivalent) from PLF arrival through launch plus one week. 

  

	 	4.	Communications. Astrotech shall provide local and long distance telephone service. 

  

	 	5.	Electrical Power. Astrotech shall provide 60Hz electrical power, as defined in the Facility Accommodation Handbook, in Building 9 for electrical ground support equipment.

  

	 	6.	USAF/NASA Coordination. Astrotech shall provide coordination with USAF and NASA/Kennedy Space Center for any Services requiring U.S. Government support.

  

	 	7.	Security. Astrotech shall provide 24 hour-a-day perimeter security at the Astrotech Florida facilities. Periodic security patrols shall be conducted throughout the Astrotech
Florida facilities during non-work hours; digital cypher locks are on all internal and external doors leading into the Payload processing areas; and all buildings are electronically monitored 24 hours-a-day for smoke/fire detection.

  

	 	8.	Solvents and Gases. Astrotech shall provide gaseous nitrogen, isopropyl alcohol, deionized water, and other general purpose cleaning agents and solvents in support of the
planned payload fairing/payload adapter processing and spacecraft encapsulation operations. Astrotech will provide the certification data on the gaseous nitrogen (GN2) supply used to purge the payload fairing. 

  

	 	9.	Hazardous Waste Disposal. Astrotech shall provide disposal of hazardous materials, such as propellants and solvents, resulting from the payload fairing preparation and
encapsulation activities. 

  

	 	10.	Emergency Medical and Fire Protection. Emergency medical assistance and fire protection at Astrotech Florida facilities are provided by Brevard County and the City of
Titusville, Florida. 

  

	 	11.	Technical Shop Support. Astrotech shall provide unplanned shop support, as available and on a non-interference basis. 

  

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	 	12.	Facility Orientation. Astrotech shall provide the necessary facility orientation and heavy equipment familiarization training to the Atlas V launch services provider
personnel required for unescorted access to the Astrotech facilities and for unsupervised use of Astrotech heavy equipment (i.e., bridge cranes and forklifts). 

  

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 APPENDIX D 
  
 DELTA IV LAUNCH VEHICLE PROCESSING SERVICES 
  
 This Appendix D describes the scope of Basic Services to be provided by Astrotech to the Delta IV launch services provider in conjunction with the processing of each
Delta IV payload fairing and Payload encapsulation activity associated with the WGS Spacecraft for the Service Fee under this Subcontract at the Astrotech Florida facilities. The specific Basic Services to be provided by Astrotech shall be as
detailed in the Payload Processing Requirements Document pursuant to Section 2.2 of this Supplier Work Statement. 
  

	 	1.	Arrival and Departure Assistance. Astrotech shall assist with loading and off-loading of Delta IV payload fairing components and the associated support equipment at the
Astrotech Florida facilities. 

  

	 	2.	Transportation of Encapsulated Payload. Astrotech shall arrange for and obtain the necessary permits and licenses (Wide Load, HazMat, etc.) as required by the State of
Florida Department of Transportation for transport of the encapsulated Payload from the Astrotech Florida facilities to Space Launch Complex – 37 at CCAFS. Astrotech shall not be responsible for providing the transport vehicle(s) and for
conduct of the transportation operation. 

  

	 	3.	Use of Astrotech Facilities. Astrotech shall provide use of the following portions of the applicable Astrotech Florida facilities for the duration stated:

  

	 	(a)	In Buildings 3, 4 and 6: storage, on a shared space basis, of flight hardware elements, shipping containers, ground support equipment, etc.; 

  

	 	(b)	In Building 7: use of Delta Technical Support/Break Area for the duration of the mission Occupancy Period for the WGS Spacecraft; and 

  

	 	(c)	In Building 9: for fairing processing, use for up to four weeks of the Fairing Processing Bay and Encapsulation Bay. 

  

	 	4.	Communications. Astrotech shall provide local and long distance telephone service. 

  

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	 	5.	Electrical Power. 60Hz electrical power, as defined in the Facility Accommodation Handbook, in Building 9 for electrical ground support equipment. 

 

	 	6.	USAF/NASA Coordination. Astrotech shall provide coordination with USAF and NASA/Kennedy Space Center for any Services requiring U.S. Government support.

  

	 	7.	Security. Astrotech shall provide 24 hour-a-day perimeter security at the Astrotech Florida facilities. Periodic security patrols shall be conducted throughout the Astrotech
Florida facilities during non-work hours; digital cypher locks are on all internal and external doors leading into the Payload processing areas; and all buildings are electronically monitored 24 hours-a-day for smoke/fire detection.

  

	 	8.	Solvents and Gases. Astrotech shall provide gaseous nitrogen, isopropyl alcohol, deionized water, and other general purpose cleaning agents and solvents in support of the
planned payload fairing/payload adapter processing and spacecraft encapsulation operations. 

  

	 	9.	Hazardous Waste Disposal. Astrotech shall provide disposal of hazardous materials, such as propellants and solvents, resulting from the payload fairing preparation and
encapsulation activities. 

  

	 	10.	Emergency Medical and Fire Protection. Emergency medical assistance and fire protection at Astrotech Florida facilities are provided by Brevard County and the City of
Titusville, Florida. 

  

	 	11.	Technical Shop Support. Astrotech shall provide unplanned shop support, as available and on a non-interference basis. 

  

 Page D-2 

  
 

 
  
 International Launch Services

  
 CLSB-0501-0013 
 07 January 2005 
  
 Mr. John Satrom 
 Senior Vice President and General Manager 
 Astrotech Space Operations, Inc. 
 1515 Chaffee Drive 
 Titusville, FL 32780 
  

			
	 Voice
	  	(321) 268-3830
	 Fax
	  	(321) 360-1908
		
	 Subject:
	  	ASO Direct Contracting for Atlas Missions
		
	 Reference:
	  	Agreement No. 48801

  
 Dear Mr. Satrom: 
  
 The purpose of this letter is to set forth our agreement on the subject, whereby Astrotech
Space Operations, Inc. (ASO) will be able to contract directly with an entity other than Lockheed Martin Commercial Launch Services (LMCLS) for payload processing services and credit LMCLS for the associated Atlas missions. 
  
 Wideband Gap-filler Satellite (WGS) Program (for Atlas
WGS missions only) 
  
 LMCLS hereby grants to ASO the right, subject to the
terms set forth herein, to enter into an agreement(s) with Boeing Launch Services (BLS) or Boeing Satellite Systems (BSS) for the payload processing of WGS missions that utilize Atlas launch services (Atlas WGS missions.) Each Atlas WGS mission
processed by ASO will count as one of the four (4) missions that LMCLS guarantees per year to ASO under the terms of the referenced Agreement, provided no more than four (4) Atlas missions utilizing ASO services have been processed in that calendar
year including the Atlas WGS mission(s). The terms of this letter shall only apply to the three (3) WGS missions currently under contract by the U.S. Air Force with BSS, designated WGS1, WGS2 and WGS3. 
  
 For each Atlas WGS mission, the following shall apply: 
  

	1)	Credit Amount: The credit amount for each mission shall be calculated by adding one quarterly Facilities Services Fee (FSF) plus one Mission Services Fee (MSF) for the contract
calendar year in which the mission is launched: 

  

	 	a.	For CY2005, $563K + $290K = $853K 

  

	 	b.	For CY2006, $567K + $304K = $871K 

  
 1660 International Drive Suite 800 - McLean Virginia 22102 USA Ÿ Tel 571 633 7400
Ÿ Fax 571 633 7500 

 CLSB-0501-0013 
 Page 2 of 2 
  

	2)	Timing of Payments and Credits: 

  
 LMCLS shall continue paying SouthTrust Bank the quarterly Facilities Services Fee(s) per the terms of the referenced Agreement. ASO shall apply any
credits owed to LMCLS as a result of the WGS Atlas mission(s) against any guaranteed Mission Services Fee(s) due and payable by LMCLS to ASO in the fourth quarter of CY2005 and/or CY2006. Credits associated with the ASO processing of WGS Atlas
missions scheduled for launch after 31 December 2006 shall be applied against the CY2006 guarantees. Payment for any remaining credit balance owed LMCLS by ASO, if any, will be made as follows: 
  

	 	a.	Fifty percent (50%) of cash credit payable to LMCLS on or before 01 August 2006 (tollable by LMCLS on 01 July 2006 with terms of Net 30 days) 

  

	 	b.	Fifty-percent (50%) of cash credit payable to LMCLS on or before 01 November 2006 (tollable by LMCLS on 01 October 2006 with terms of Net 30 days) 

  
 For example, should the WGS2 and WGS3 utilize Atlas launch services, ILS
will not be responsible for paying ASO the $1,216K ($304K x 4 MSF) in the fourth quarter 2006 that would otherwise be due. The remaining $526K (please refer to attached spreadsheet) would be paid by ASO to LMCLS in two installments of $263K as set
forth above. 
  
 Other CY 2005 & CY2006
Atlas Missions 
  
 In the event one or two non-WGS missions are contracted
for by LMCLS and processed at ASO and launch before 30 June 2007, then those non-WGS missions shall be processed by ASO at no additional cost to LMCLS. 
  
 Subject to LMCLS approval, other non-WGS Atlas missions contracted for by ASO and processed at the Astrotech Florida facilities for launch on or before 30 June 2007,
shall be subject to the same credit terms as specified for the WGS Atlas missions above. 
  
 Enclosed please find a spreadsheet attachment that illustrates the credit calculations for the WGS and unassigned 2006 missions as described above based upon the projected Atlas launch manifest and the current launch
vehicle assignments for the WGS program. 
  
 If the approach set forth in this
letter is acceptable to ASO, please provide your signature concurrence and return this letter to my attention at fax 571-633-7536. 
  

					
	 Sincerely,
	 	 	 	 Concurrence:

			
	/s/    PAULO KLÜBER        	 	 	 	/s/    JOHN SATROM        
	Paulo Klüber	 	 	 	John Satrom
	Contracts Specialist	 	 	 	Senior Vice-President and General Manager
			
	 	 	 	 	 Date 19 January 2005

 Attachment to CLSB-0501-0013 
  
 ASO/LMCLS Payments and Credits 
  

									
	 2006

	  	 	  	Facilities Fees

	  	Mission Fees

	  	Total /Mission

	 WGS-2
	  	 	  	567,063	  	303,938	  	871,001
	 WGS-3
	  	 	  	567,063	  	303,938	  	871,001
	 Mission # 3
	  	 	  	567,063	  	303,938	  	871,001
	 Mission # 4
	  	 	  	567,063	  	303,938	  	871,001
				
	 ILS Payments to Bank on behalf of ASO
	  	2,268,252	  	 	  	 
	 Amount that ILS owes to ASO (waived)
	  	 	  	1,215,752	  	 
	 Amount that ASO owes to ILS ($871K x 2 WGS Missions)
	  	 	  	 	  	1,742,002
				
	 Payment due from ASO to ILS
	  	 	  	 	  	526,250
	 (calculated as $1,742,002 due less $1,215,752 waived)
	  	 	  	 	  	 
	 50% paid on or before 01 August 2006
	  	 	  	 	  	 
	 50% paid on or before 01 November 2006
	  	 	  	 	  	 

  

					
	 	 	ILS Proprietary and Confidential	 	07 January 2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]