Document:

Sublease Agreement dated May 14, 2004, between Registrant and Paragon Personnel

 Exhibit 10.38 
  
 SUBLEASE AGREEMENT 
  
 THIS SUBLEASE AGREEMENT (“SUBLEASE”) is made and entered into as of May 14, 2004, by and between SPACEHAB, Inc., a State of Washington corporation
(“Sublessor”) and PARAGON PERSONNEL, INC., located at 815 Connecticut Ave., NW, Suite 610 Washington, DC (“Sublessee”). 
  
 RECITALS 
  
 A. Sublessor and 601 THIRTEENTH STREET, N.W. ASSOCIATES LIMITED PARTNERSHIP (“Landlord” or “Lessor”) are parties
to a Lease Agreement dated as of October 7, 2002 (hereby known as the “Master Lease Agreement”). Pursuant to the Master Lease Agreement, Sublessor leases space from Landlord in the building located at 601 Thirteen Street, NW, Washington,
D.C. (as more fully described in the attached lease agreement, the “Leased Premises”). 
  
 B. Sublessee wishes to acquire from Sublessor and Sublessor wishes to grant to Sublessee the right to lease the Leased Premises, better known as Suite
900S, located on the ninth floor of the Leased Premises and being approximately 5,920 square feet of office space, such premises so subleased to Sublessee are referred to in this Agreement as the “Subleased Premises.” 
  
 AGREEMENTS 
  
 In consideration of the mutual promises of the parties and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. Sublease of Subleased Premises. Sublessor hereby subleases to Sublessee and Sublessee subleases from Sublessor the Subleased Premises, subject and
pursuant to the terms and conditions of this Sublease Agreement. 
  
 2. Term of Sublease. The term of the Sublease (“Sublease Term”) shall commence on June 01, 2004 (or such later date as Sublessor obtains the consent of the Landlord to this Sublease as contemplated in Section 13 hereof) and shall
terminate at midnight on May 30, 2006. 
  
 3. Rent. Sublessee
agrees to pay Sublessor at such place as Sublessor may designate without deduction, offset, prior notice or demand, and the Sublessor agrees to accept, as rent for the Leased Premises, the sum of Fifteen Thousand Seven Hundred Eighty Six dollars and
Sixty Six cents ($15,786.66.) monthly in lawful money of the United States (payable each month) during the term of this Lease, the first such monthly rental being due on June 1, 2004, and a like amount being due on the first day of each month
thereafter during the term of this Sub-Lease. 
  
 The amount of
$15,786.66 is paid herewith to Sublessor upon the execution of this SubLease, receipt of which is hereby acknowledged, which shall represent the first month’s rental and as consideration for entering into this Agreement with an additional
amount equal to one month’s rent ($15,786.66) to be held as a Security Deposit throughout the Sublease Term. 
  
 Commencing on June 01, 2005, Sublessee’s Base Rent will be escalated by an amount of our (4%) percent to a new monthly rental amount of Sixteen
Thousand Four Hundred Eighteen dollars and Thirteen cents ($16,418.13), this amount being due the first day of each month thereafter during the remaining term of this Sub-Lease. 
  
 If Sublessee fails to pay any installment of Rent on or before the fifth (5th) day of the calendar month when such installment becomes due and payable, Sublessor may require Sublessee pay a late charge of five percent (5%) of the amount
of such installment, and, in addition, such unpaid installment shall bear interest at the Default Rate from the date such installment became due and payable to the date of payment. 
  
 4 . Return of Subleased Premises. At the expiration or earlier termination of this Sublease, Sublessee shall return the
Subleased Premises to the Sublessor in the same condition as at the commencement of the Sublease Term (as documented pursuant to Section 8 hereof), except for normal wear and tear and damage by fire, the elements, or any other cause beyond
Sublessee’s control. At Sublessor’s option, Sublessor may require Sublessee to remove any fixtures or alterations installed by Sublessee and to repair any damage occasioned by such removal. If this Sublease ends later than one month prior
to the termination of the Lease Agreement (such one month period being referred to as the “Restoration Period”), Sublessee agrees that Sublessor shall have the right to access the Subleased Premises during the Restoration Period (including
any portion of the Restoration Period falling during the Sublease Term) to perform restoration that Sublessor is obligated to perform under the Lease Agreement to the extent that Sublessee is not required to perform under this Sublease Agreement.

 5. Additional Obligations of Sublessee. 
  
 (a) In addition to the obligation under Section 3 above, Sublessee agrees, for the benefit of the Sublessor
and the Lessor, that Sublessee shall perform the obligations of the “Lessee” under the provisions of the Master Lease Agreement to the extent applicable to Sublessee and Sublessee’s actions and the Subleased Premises during the term
of this Sublease as if Sublessee were originally the Lessee under the Lease Agreement. 
  
 Sublessee shall not attempt to exercise any of Sublessor’s options (if any exist) to extend the Master Lease Agreement. Sublessee has
read and understood the Master Lease Agreement attached as Exhibit A. Notwithstanding anything to the contrary in this Sublease or the Master Lease Agreement, Sublessee does not assume any pre-existing obligations or liabilities of Sublessor
under the Master Lease Agreement or any other agreement. 
  
 (b) This Sublease Agreement is subject and subordinate to the Master Lease Agreement. During the term of the Sublease, the Sublessee shall be provided with all of the services and utilities provided to Sublessor under
the terms of the Master Lease Agreement with respect to the Subleased Premises, and Sublessee shall enjoy all the rights and benefits of Sublessor under the terms of the Master Lease Agreement with respect to the Subleased Premises, except that it
shall not be entitled to exercise any of Sublessor’s options (if any). 
  
 (c) Notwithstanding anything herein contained to the contrary, the only services or rights to which Sublessee is entitled are those to which Sublessor is entitled with respect to the Subleased Premises under the
Master Lease Agreement and for all such services and rights Sublessee will look to the Sublessor under the Master Lease Agreement. 
  
 (d) Sublessee shall neither do nor permit anything to be done by Sublessee or its employees, agents, contractors or representatives which
would cause the Master Lease Agreement to be terminated or forfeited by reason of any right of termination or forfeiture or default reserved or vested in the Lessor under the Master Lease Agreement, and Sublessee shall indemnify and hold Sublessor
harmless from and against all claims to the extent that the negligence or willful misconduct of Sublessee or its employees, agents, contractors or representatives causes the Master Lease Agreement to be terminated or forfeited. 
  
 (e) Sublessee shall use the Subleased Premises for office
purposes in connection with its business and for no other purpose. Sublessee shall not use the Subleased Premises for any unlawful purpose. 
  
 (f) Sublessee agrees to forward to Sublessor, immediately upon receipt thereof, copies of any notices relating to Sublessee’s
occupancy or use of the Subleased Premises received by Sublessee from Landlord or from any governmental authority. 
  
 6 . Indemnity and Insurance. 
  
 (a) Sublessee shall indemnify and hold Sublessor and Lessor and their respective subsidiaries and affiliated corporation, and their
respective officers, directors, agents, employees, attorneys, and assigns (the “Indemnified Parties”) harmless from and against any and all claims or liability for bodily injury to or death of any person or loss of or damage to any third
party property to the extent arising out of Sublessee’s use of the Subleased Premises or property of which it is a part, or from the conduct of Sublessee’s business in the Subleased Premises, or from any activity, work, or thing done,
permitted, or suffered by Sublessee, its employees, agents, contractors, or invitees (other than the Indemnified Parties) in or about the Subleased Premises except: 
  
 (1) claims and liabilities to the extent caused by any negligence of or willful misconduct on the part of an
Indemnified Party, or 
  
 (2) claims and
liabilities for property damage addressed in paragraph 6(c). 
  
 In the absence of
any negligence or willful misconduct on the part of the Indemnified Parties, such indemnity shall include all reasonable costs, attorneys’ fees, and expenses incurred in the defense of any such claim or any action or proceeding brought thereon.
In the event any action or proceeding is brought against Sublessor by reason of any claim falling within the scope of the foregoing indemnity, and in the absence of any claim by the plaintiff in such action of any negligence on the part of the
Sublessor, Sublessee upon written notice from Sublessor to Sublessee within sixty days after Sublessor receives notice of the claim shall defend the same at Sublessee’s expense by counsel reasonably satisfactory to Sublessor. 
  
 The foregoing indemnity is conditioned upon Sublessor or Lessor providing
notice to Sublessee within sixty (60) days after Sublessor or Lessor, as appropriate, receives notice of any claim or occurrence that is likely to give rise to a Claim that will fall within the scope of the foregoing indemnity and cooperating with
Sublessee in any defense or settlement of such claim or liability. 
  
 (b) Sublessee at Sublessee’s own cost and expense, will provide and keep in full force and effect during the term of this Sublease Agreement, commercial general liability insurance with limits of not less than
One Million Dollars ($1,000,000.00) covering bodily injury 

 
to any person, including death, and loss of or damage to third party real and personal property. Such insurance may be provided under Sublessee’s
blanket comprehensive liability insurance policy. During the Sublease Term, Sublessor and each of the Indemnified Parties shall be named as an additional insured under such insurance to the extent of Sublessee’s undertaking set forth in
paragraph 6(a). Sublessee shall cause the insurer issuing such insurance policy to waive all rights of subrogation against the Indemnified Parties to the extent of Sublessee’s undertaking set forth in paragraph 6(a). Evidence of such insurance
coverage and the coverage required by this paragraph 6(b) shall be made available to Sublessor prior to the commencement date of the Sublease Term. Such evidence of insurance will provide for not less than fifteen days’ advance notice in the
event of cancellation or material alteration of such insurance. 
  
 (c) Each of Sublessor and Sublessee hereby releases and relieves (and Sublessor shall arrange that Lessor shall release and relieve) the others for loss of or damage to property arising out of or incident to fire,
lightning, or any other perils normally included in a standard “All Risk” physical damage insurance policy containing an extended coverage and special extended coverage endorsement, when such property constitutes the Subleased Premises or
the Leased Premises or is in on or about the Subleased Premises or the Leased Premises, whether or not such loss or damage is due to the negligence of Sublessor, Lessor, Sublessee, or their respective agents, employees, guests, licensees, invitees,
or contractors. 
  
 (d) Each of Sublessor and
Sublessee shall cause (and Sublessor shall arrange that Lessor shall cause) its insurance carriers to waive all rights of subrogation against the other parties hereto to the extent of such party’s undertakings set forth in paragraph 6(c).

  
 7. Obligations of the Sublessor. Sublessor covenants, so long
as Sublessee is not in default of its obligations under this Sublease Agreement, that Sublessee shall have the right to quietly enjoy the Subleased Premises without hindrance by any person claiming by or through Sublessor. Sublessor shall make all
payments required to be made to Lessor pursuant to the Master Lease Agreement. Sublessor warrants that the copy of the Master Lease Agreement set forth in Exhibit A is a true and correct copy of the Lease Agreement as amended, that the Master Lease
Agreement is in full force and effect in accordance with its terms, and that Sublessor is not aware of any event of default thereunder. 
  
 8. Walk Through and Inventory. Prior to the commencement of the Sublease Term, representatives of Sublessor and Sublessee shall conduct a walk-through of
the Subleased Premises and shall note, in writing, any damage or defects in the Subleased Premises. At the termination of the Sublease Term, representatives of Sublessor and Sublessee shall conduct a similar walk-through and shall note, in writing,
any damage to the Subleased Premises occurring during the Sublease Term. During the Sublease Term, Sublessor shall have the right to enter the Subleased Premises upon reasonable notice (except in case of emergency) and at reasonable time (except in
case of emergency) to inspect the Subleased Premises, to make necessary repairs, and to ensure itself that Sublessee is complying with Sublessee’s obligations under this Sublease Agreement. 
  
 9. Acceptance of Premises; Alterations. 
  
 (a) Sublessee hereby confirms that it has examined and
inspected the Subleased Premises, and accepts them in their “AS IS” condition. Sublessor makes no warranty of any kind concerning the Subleased Premises OR the building of which they are a part, including any warranty concerning latent
defects, any warranty of fitness for use, and any other express or implied warranty (including any warranty of MERCHANTABILITY). Notwithstanding the foregoing, Sublessor represents that it is not aware of any condition that would prevent Sublessee
from using the Subleased Premises for general office purposes. 
  
 (b) Sublessee shall be responsible for all alterations necessary to the Subleased Premises to render the Subleased Premises satisfactory to Sublessee. 
  
 (c) All alterations to be performed by Sublessee under this Agreement shall require the prior approval of
the Sublessor (which approval shall not be unreasonably withheld or delayed) and Landlord and shall otherwise comply with all requirements of applicable codes and of the Lease Agreement. 
  
 10. Holding Over. Sublessee acknowledges that the term of the Lease expires on May 31, 2006. Consequently, if Sublessee
remains in possession of the Subleased Premises after May 30, 2006, Sublessor may be treated by Landlord as being in breach of the Master Lease Agreement. Sublessor may be obligated to pay damages to the Lessor, including consequential damages which
are presently difficult or impossible to calculate. Sublessee agrees to indemnify, defend and hold harmless the Sublessor from any and all reasonable losses, costs, and damages to the extent they arise out of holding over by Sublessee following the
expiration of the term of the Master Lease Agreement. In such event the Sublessee shall be required to pay each month of such hold-over tenancy at the rate of three times the Rent, stated for that period in time of the Master Lease Agreement. Such
monthly tenancy shall commence with the first day next after the expiration of the Term of this Sublease. Except as otherwise provided above with respect to payment of Rent, Sublessee shall, as a monthly tenant, be subject to all the terms,
conditions, covenants and agreements of the Sublease. 

 11. Environmental Matters. 
  
 (a) Compliance with Laws and Requirements. Except as otherwise agreed by Sublessor in writing, Sublessee
shall be solely responsible at its expense for obtaining any permits, licenses or approvals, and for preparing, maintaining and submitting any records or reports, as required under applicable Environmental Laws and Requirements for its operations
hereunder. Sublessee shall comply with any and all Environmental Laws and Requirements and shall not cause, permit or allow the presence of and shall not generate, release, store, or deposit any Hazardous Substances on or about the Leased Premises
in violation of any Environmental Laws and Requirements, or in a manner which may give rise to liability for environmental cleanup, damage to property, or personal injury to Landlord, Sublessor, or any other person. Sublessee shall not release any
Hazardous Substances into the soil, water (including groundwater) or air of the Leased Premises or onto any other adjoining property in violation of Environmental Laws and Requirements, or in a manner which may give rise to liability for
environmental cleanup, damage to property, or personal injury to Landlord, Sublessor, or any other person. In the event of a spill or other release of Hazardous Substances caused by Sublessee, its agents, employees or invitees at or from the Leased
Premises, Sublessee shall undertake immediate response as required by law, including but not limited to reporting to appropriate agencies, and shall notify Sublessor of same as soon as possible. 
  
 (b) Definitions: 
  
 1) As used herein, the term “Hazardous Substance”
means any hazardous, toxic, chemical, or dangerous substance, pollutant, contaminant, waste or material, including petroleum, which is regulated under any and all federal, state, or local statute, ordinance, rule, regulation, or common law relating
to chemical management, environmental protection, contamination, or cleanup including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 as amended (42 U.S.C. § 9601 et seq.), the Resource
Conservation and Recovery Act as amended (42 U.S.C. § 6901 et seq.) or any other Federal, state, county, or city law, or any other ordinance or regulation existing or which may exist. 
  
 2) As used herein the term “Environmental Laws and
Requirements” means any and all federal, state, local laws, statutes (including without limitation the statutes referred to in paragraph 8(b)(1), above), ordinances, rules, regulations and/or common law relating to environmental protection,
contamination, the release, generation, production, transport, treatment, processing, use, disposal, or storage of Hazardous Substances, and the regulations promulgated by regulatory agencies pursuant to these laws, and any applicable federal,
state, and/or local regulatory agency-initiated orders, requirements, obligations, directives, notices, approvals, licenses, or permits, including but not limited to those for the reporting, investigation, cleaning, or remediation of any Hazardous
Substances on the Leased Premises. 
  
 (c)
Remediation. Should Sublessee fail to perform any of its obligations pursuant to this agreement or to any and all Environmental Laws and Requirements, Sublessee shall at its own expense promptly remedy such noncompliance. Sublessee shall at its own
expense remove or remediate any unsafe condition that Sublessee has caused to occur and clean up or remediate any Hazardous Substance which Sublessee has caused to be released at or from the Leased Premises. Should Sublessee fail so to do, Sublessor
shall have the right, but not the duty, to enter the Leased Premises personally or through its agents, consultants, or contractors to perform the same. Further, Sublessee shall hold Sublessor harmless from any losses, including claims of third
parties, resulting from any noncompliance with Environmental Laws and Requirements, or from any unsafe condition or release of Hazardous Substances caused by Sublessee. 
  
 (d) Documentation and Right to Inspect. Sublessee shall provide copies to Sublessor of any reports regarding
its operations at the Subleased Premises which are submitted to governmental agencies pursuant to any Environmental Laws and Requirements. Sublessee shall also make available to Sublessor upon request all permits and approvals with respect to the
Subleased Premises, and all records maintained by Sublessee with respect to the Subleased Premises pursuant to any Environmental Laws and Requirements. During the Sublease Term, Sublessor and/or its agents or employees shall have the right to
periodically inspect the Subleased Premises at reasonable times to confirm that Sublessee is in compliance with the terms of this Agreement, including compliance with any and all Environmental Laws and Requirements. Further, if Sublessor at any time
should have any cause to believe that any Hazardous Substances are or at any time during the term of this Sublease have been released at or from the Subleased Premises without strict compliance with all Environmental Laws and Requirements or in a
manner which may give rise to liability for environmental cleanup, damage to property, or personal injury to Landlord, Sublessor, or any other person, Sublessor shall have the right at its discretion, but not the duty, to enter, at any reasonable
time, and conduct an inspection of the Subleased Premises including invasive tests to determine whether, and the extent to which, Hazardous Substances have been released. Sublessee hereby grants to Sublessor, and its employees, agents, employees,
consultants, and contractors the right to enter the property upon reasonable notice to Sublessee and to perform such tests on the property as are reasonably necessary in the opinion of Sublessor to conduct such investigations. Sublessor may retain
any independent qualified professional consultant to enter the property to conduct such inspections. Such consultant’s reasonable fee shall be payable by Sublessee if such consultant determines that Sublessee’s activities constitute a
material violation of Environmental 

 
Laws and Requirements or have resulted in the release of Hazardous Substances into the environment which may give rise to liability for environmental
cleanup, damage to property, or personal injury to Landlord, Sublessor, or any other person; otherwise, such fee shall be payable by Sublessor. 
  
 (e) Indemnification. Sublessee shall indemnify, hold harmless, and defend Sublessor, and its directors, officers, employees, agents,
assigns, and attorneys from any and all claims, losses, damages, response costs, and expenses arising out of or in any way relating to the violation of any Environmental Laws and Requirements, or to the generation, release, storage, deposit or
disposal of Hazardous Substances, to the extent caused by Sublessee, its agents, employees and invitees at any time during the term of this Sublease, including but not limited to: (1) claims of third parties, including governmental agencies, for
damages (including personal injury and/or property damage), response costs, fines, penalties, injunctive or other relief; (2) the cost, expense, or loss to Sublessor of any injunctive relief, including preliminary or temporary injunctive relief,
applicable to the Sublessor or the Leased Premises; and (3) the expense of reporting the existence of Hazardous Substances to any agency of any state government or the United States as required by applicable laws or regulations, before and after any
trial or appeal there from whether or not taxable as costs; all of which shall be paid by Sublessee when accrued. 
  
 (f) Sublessor represents to Sublessee that to the best of its knowledge and belief there is currently no Hazardous Substance or other
environmental hazard in or around the Subleased Premises released by Sublessor and that, to the best of its knowledge and belief, there are not, and have not been, any violations of the Environmental Laws and Requirements during the term of the
Master Lease Agreement by Sublessor. 
  
 12. Transfers. Sublessee
shall not, without the prior consent of Sublessor and Prime Landlord: (i) assign, mortgage, pledge, hypothecate, encumber or otherwise transfer, any interest of Sublessee in this Sublease; (ii) permit any matter described in item (i) by operation of
Law or otherwise; or (iii) sublet the Sublease Premises or any part thereof, or permit the use of the Sublease Premises by any person other than Sublessee, or (iv) dissolve (all of the foregoing are hereinafter sometimes referred to collectively as
“Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Sublessee shall desire to make a Transfer, Sublessee shall deliver notice (the
“Transfer Notice”) to Sublessor and Prime Landlord which shall include: (a) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more than one hundred eighty (180) days after the date of delivery
of the Transfer Notice; (b) a description of the portion of the Sublease Premises to be transferred (the “Subject Space”); (c) all of the terms of the Transfer and the consideration therefor; (d) the name and address of the Transferee; (e)
a copy of all existing and/or proposed documentation pertaining to the Transfer; (f) current financial statements of the Transferee; (g) any other information reasonably required by Sublessor, which will enable Sublessor to determine the financial
responsibility, character and reputation of the Transferee, the nature of such Transferee’s business and the proposed use of the Subject Space; and (h) such other information as Sublessor may reasonably require. Sublessor’s right to
approve a Transfer shall include the right to approve, which approval shall not be unreasonably withheld, conditioned or delayed, all documents (including, but not limited to, the sublease or assignment instrument) and other information required to
be delivered to Sublessor with respect to the same. Any Transfer made without Sublessor’s or Prime Landlord’s prior consent shall, at Sublessor’s option, be void and of no effect, and shall constitute an Event of Default. 

 
 Each sublease, license or other agreement for use or occupancy of all or any portion of
the Sublease Premises shall expressly provide, and Sublessor and Sublessee agree, that: (i) the same shall not be valid, and the Transferee shall not take possession of the Subject Space until, the same and all other documents relating to the same
are in form reasonably satisfactory to Sublessor and fully executed copies of all such documents have been delivered to Sublessor; (ii) the Transferee shall agree to perform and observe the terms of this Sublease on Sublessee’s part to be
performed and observed relative to the Subject Space from and after the effective date of the subject Transfer; (iii) except with respect to an assignment of Sublessee’s interest in this Sublease, the term of the same (including all options to
extend the same) shall expire no later than one (1) day prior to the last day of the Sublease Term; (iv) the same and all rights of the Transferee under the same are and shall be subject and subordinate to this Sublease and to all matters to which
this Sublease is or shall be subject and subordinate; and (v) in the event this Sublease is terminated by reason of an Event of Default or any other reason or in the event Sublessor re-enters the Sublease Premises pursuant to the terms of this
Sublease in connection with an Event of Default, then, at Sublessor’s election, the Transferee shall (A) attorn to Sublessor, except that Sublessor shall not be (1) liable for any previous act or omission of Sublessee, (2) subject to any
defense, offset or deduction previously accrued in favor of the Transferee against Sublessee, (3) bound by any prior amendment or modification of such sublease, license or other agreement made without Sublessor’s prior consent, (4) obligated to
recognize any payment made by the Transferee more than one (1) month in advance, or (5) liable for any security deposit or other deposit delivered by the Transferee in connection with the transfer unless the same was delivered to Sublessor, or (B)
enter into a direct lease with Sublessor on the same terms contained in the subject sublease, license or other agreement. With respect to each Transfer, Sublessee shall deliver to Sublessor, promptly after execution and prior to the date the same
shall become effective, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Sublessor. All terms of this Sublease to be observed or performed by Sublessee relative to the Subject Space shall be
deemed to extend to each Transferee, and Sublessee shall cause each Transferee to comply with the same. Notwithstanding any Transfer, whether with or without Sublessor’s consent, Sublessee shall remain fully liable for the performance and
observance of all terms of this Sublease to be observed or performed by Sublessee and for all acts and omissions of any Transferee or anyone 

 
claiming under or through any Transferee. Any violation of a term of this Sublease by any Transferee shall be deemed a violation of such term by Sublessee,
it being the intention of the parties that Sublessee shall be liable to Sublessor for any and all acts and omissions of all Transferees. Sublessor’s acceptance or collection of rent from any Transferee shall not be construed as Sublessor’s
consent to or acceptance of the subject Transferee or Transfer. Sublessor’s consent to any Transfer shall not be construed as relieving Sublessee or any Transferee from the obligation of obtaining Sublessor’s prior consent to any
subsequent Transfer. In the event Sublessee is in default under this Sublease beyond the expiration of any applicable cure period set forth herein, Sublessee authorizes each Transferee to pay such rent directly to Sublessor if it receives notice
from Sublessor specifying that such rent shall be paid directly to Sublessor. 
  
 13. Condition Precedent. Sublessee acknowledges that the Sublessor’s right to sublease the Subleased Premises is subject to obtaining the prior written consent of the Lessor. If such consent is not obtained
within thirty days of the execution date of this Sublease Agreement, either party may, at its option, terminate this Sublease Agreement. 
  
 14. Notices. Any notice or demand which either party may or must give pursuant to or in connection with this Sublease Agreement shall be in writing,
delivered personally, sent by prepaid courier, by first class mail, postage prepaid, or by facsimile transmission as follows: 
  

			
	 To Sublessor:
	  	 Via U.S. Mail
  
 SPACEHAB, Inc.
 12130 Hwy 3
 Webster, TX 77598
  
 Attn: Chief Financial Officer

		
	 To Sublessee:
	  	Prior to sublease commencement:
		
	 	  	 LEGALSOURCE
 815 Connecticut Ave., NW, Suite
610
 Washington, DC 20006

		
	 	  	Upon commencement of the sublease:
		
	 	  	 LEGALSOURCE
 601 Thirteenth Street, NW, Suite 900
South
 Washington, DC 20005

  
 Either party may, by notice in
writing, direct that future notices or demands be sent to a different address. Notices will be deemed delivered when received. 
  
 15. Entire Agreement. This Sublease Agreement represents the entire agreement of the Sublessor and Sublessee with respect to this subject matter and
supersedes all prior oral and written understandings and agreements of the parties, all of which are merged within this Sublease Agreement. The Exhibits attached hereto and the Application to Sublease Real Property (if any) executed by Sublessee
(whether or not attached to this Sublease Agreement) are part of this Sublease Agreement. This Sublease Agreement may not be amended, modified, or supplemented in any manner other than by the written agreement of the parties signed by the authorized
representatives of the parties. 
  
 16. No Recording. Neither
party shall record this Sublease Agreement. At the request of either party, the parties shall execute a memorandum of this Sublease Agreement in recordable form identifying the Subleased Premises and the term of this Sublease Agreement. 

 
 17. Successors and Assigns; Survival of Obligations. The covenants and
agreements in this Sublease Agreement shall bind and inure to the benefit of Sublessor, Sublessee and their respective successors and permitted assigns. The obligations of Sublessee under paragraph 6 (Indemnity and Insurance) and paragraph 11
(Environmental Matters) shall survive the end of the Sublease Term with respect to events occurring during the Sublease Term or while Sublessee is in possession of the Subleased Premises. 
  
 18. Confidentiality. Sublessee agrees that neither it nor its employees will disclose to any third party or to anyone not
directly involved in the negotiation of this transaction any of the terms and conditions of this Sublease Agreement, including without limitation the rental payable by Sublessee hereunder. 
  
 19. Access/Inspection. Sublessee will allow and does hereby grant to Landlord
and to Sublessor or their respective agents the right of free access at all reasonable times to the Subleased Premises for the purpose of inspecting or of making repairs, additions or alterations to the Subleased Premises, the Leased Premises, or
any property owned by or under the control of Landlord subject to the provisions of the Lease. Reasonable prior notification of Landlord’s or Sublessor’s need to access the Subleased Premises shall be provided to Sublessee. 

 20. Attorneys’ Fees. In the event suit is brought for the recovery of rent due under the provisions
of this Sublease Agreement, or for Sublessee’s breach of any other conditions or covenants contained in this Sublease Agreement, Sublessee shall pay the reasonable fees and disbursements of Sublessor’s attorneys provided, however, to the
extent Sublessee is the prevailing party in any action or suit brought to enforce any of the provisions of this Sublease Agreement, then, in that event only, Sublessor shall pay the fees and disbursements of its attorneys and shall reimburse the
reasonable fees and disbursements of Sublessee’s attorneys. 
  
 21. Sublessee’s Default. If Sublessee fails to perform any material obligation of Sublessee under this Sublease Agreement or makes a material misrepresentation in this Agreement or in the Application to Sublease Real Property
(“Default”), and if after written notice from Sublessor specifying such Default and permitting Sublessee five business (5) days to cure a monetary default or thirty (30) days to remedy a nonmonetary Default, Sublessee shall have failed to
remedy such Default, then Sublessor may cancel this Sublease Agreement, upon giving any notice required by law, and re-enter the Subleased Premises; provided however, is such Default requires more than thirty (30) days to cure Sublessor may not so
cancel this Sublease agreement if Sublessee has commenced such remedy within such thirty (30) days and is diligently pursuing such remedy. Notwithstanding such re-entry by Sublessor, the liability of Sublessee for the rent provided in this Sublease
Agreement shall not be extinguished but shall continue for the balance of the Sublease Term. Sublessee covenants and agrees to make good to Sublessor (a) any reasonable costs incurred by Sublessor in re-entering the Subleased Premises and in
reletting the Subleased Premises; (b) during each month throughout the Sublease Term the amount by which the rent payable by the Sublessee hereunder during each month following Sublessor’s re-entry exceeds the amount of rent received by the
Sublessor during such month; (c) the reasonable costs of any necessary repairs incurred by Sublessor; and (d) the reasonable fees and disbursements of Sublessor’s attorneys as provided in paragraph 20. The amounts payable by Sublessee pursuant
to clause (b) shall be paid on the first day of each month throughout the Sublease Term; the amounts payable by Sublessee pursuant to clauses (a), (c), and (d) shall be payable within thirty days of written demand as they are incurred. 

 
 22. Liens. Sublessee shall not cause the Subleased Premises to become
subject to any liens, claims, charges, or encumbrances (each a “Lien”) or allow any such Lien as a result of actions of Sublessee or any of its employees, agents or contractors. If the Subleased Premises become subject to one or more Liens
as the result of Sublessee’s acts or omissions or sufferance as described above, Sublessee shall promptly, and in any event within five (5) days, remove such Liens or obtain a release of such Lien from the lienor. If the Sublessee fails to take
timely action in this regard, Sublessor shall have the right, but not the obligation, to take any action reasonably necessary to remove and/or release such Liens. Such action shall be taken at Sublessee’s sole risk and expense. 
  
 23. Brokerage. Sublessor and Sublessee acknowledge and agree Sublessor is
represented by Equis Corporation in connection with the transaction contemplated by this Sublease (“Equis”), and Sublessee is represented by The John Akridge Management Company (“Akridge”; and Equis and Akridge may sometimes
hereinafter be collectively referred to as the “Brokers”), in each case, in connection with the transaction contemplated by this Sublease. Other than performance of certain activities by the Brokers, each Party represents no real estate
broker or agent is involved in this Sublease, and each shall indemnify and hold the other harmless from any breach by it of this representation. Sublessor shall be responsible for the payment of any commission due to the Brokers pursuant to the
provisions of separate agreements between the Brokers and Sublessor, in each case, negotiated independently of the transaction contemplated by this Sublease. 
  
 24. Estoppel Certificates. If reasonably requested by Sublessor or Landlord, Sublessee shall have the same obligation to execute an estoppel certificate
with respect to the Subleased Premises and this Sublease Agreement as Sublessor has to execute an estoppel certificate with respect to the Master Lease Agreement. 
  
 25. Signs. No sign, advertisement or notice shall be inscribed, painted, affixed or otherwise displayed on any part of the
exterior or interior of the building except as stated in the Master Lease Agreement. 
  
 26. Access to Property. Sublessee shall have 24 hour/7 days per week access to Subleased Premises. 
  
 27. Sublessor waives Option to Extend. Sublessor shall waive any option to extend as stated in paragraph 21 (n) of the Master Lease Agreement. 

 
 28. Parking. Sublessee shall have the right to contract for parking spaces
as specified in paragraph 21 (t) Master Lease Agreement 
  
 29.
Furniture, Fixtures, and Equipment. Upon dual execution of this Sublease and receipt of Landlord’s Consent, ownership of all furniture, fixtures and equipment located in the Subleased Premises as of Sublessee’s April 14, 2004 walk-through
(as specified on Exhibit C), including but not limited to Sublessor’s complete telephone system including all hand sets (collectively the “FF&E”) shall convey to Sublessee. Sublessee agrees to pay Sublessor Fifteen Thousand and
00/100 Dollars ($15,000.00) for the FF&E. Said payment shall be remitted to Sublessor upon dual execution of this Sublease and receipt of Landlord’s Consent. Sublessor agrees to assist Sublessee in the transfer of Sublessor’s phone
numbers to Sublessee. 

 EXECUTED IN TRIPLICATE as of the date first written above.  
  

			
	SPACEHAB, INC.
		
	 By:
	 	/s/    Illegible        
		
	 Its:
	 	Sr. Vice President

			
		
	 Witness:
	 	Illegible
	
	PARAGON PERSONNEL, INC.
		
	 By:
	 	/s/    Illegible        
		
	 Its:
	 	Director

			
		
	 Witness:
	 	Illegible

 EXHIBIT A 
  

TRUE COPY OF MASTER LEASE AGREEMENT 

 EXHIBIT B 
  

LANDLORD’S CONSENT 
  
 LESSOR’S CONSENT 
  
 The undersigned Landlord under the Master Lease Agreement dated October 15, 2002, as amended, hereby consents, as contemplated in Lease Agreement, to the foregoing Sublease Agreement (all of the defined terms of which
are used herein with the same meaning as they are given there) and all of the terms and conditions contained therein on the express condition that Spacehab, Inc. remains fully liable under the Master Lease Agreement to perform all of the obligations
of the Lessee (provided that performance of such obligations by the Sublessee identified in the foregoing Sublease Agreement shall be accepted by the Landlord as performance of the Tenant pro tanto). Landlord expressly acknowledges that the Master
Lease Agreement is in full force and effect and that Landlord is not aware of any default by the Tenant or the Landlord thereunder. This Consent shall apply only to this Sublease Agreement and shall not be deemed to be either (a) a consent to any
other sublease or assignment or (b) a release from or waiver of the obligation to obtain Landlord’s consent in the event of any future sublease or assignment. 
  

			
	 LANDLORD:

	
	 601 THIRTEENTH STREET, N.W. ASSOCIATES
 LIMITED PARTNERSHIP

		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 

 EXHIBIT C 
  

THE FF&ELease between Secty of the Airforce and Astrotech

 Exhibit 10.39 
  
 DEPARTMENT OF THE AIR FORCE 
 Headquarters Air
Force Space Command 
 Vandenberg Air Force Base 
  
 LEASE NO. SPCVAN-2-94-0001 
  
 THIS LEASE, made between the Secretary of the Air Force, of the first part, and Astrotech Space Operations, L.P. of the second part, WITNESSETH: 
  
 The Secretary of the Air Force under the authority of Title 10, United States Code, Section 2667 (10 U.S.C. 2667) has determined that the
land and facilities hereby leased is not excess property, as defined by 40 U.S.C. 472; is not for the time needed for public use; and leasing it will, be advantageous to the United States and in the public interest. This lease is also entered into
in furtherance of the purposes of the Commercial Space Launch Act of 1984 (PL 98-575) and the Commercial Space Launch Act Amendments of 1988 (PL 100-657). Therefore, for the consideration set out below and by means of this Lease Agreement, the Air
Force leases the land and facilities or property, described in Attachment A, attached hereto and made a part hereof, to the party of the second part, called the “lessee”. 
  
 THIS LEASE is granted subject to the following conditions: 
  
 1. Term. This lease shall be for a term of 20 years, beginning on 1 October 1993 and ending on 30 September 2013. 
  
 2. Use of Leased Premises. The lease shall be for the use of land and facilities
located at Vandenberg Air Force Base (VAFB), CA, upon which lessee shall build facilities or refurbish existing government facilities, in support of government and commercial launches. 
  
 3. Commercialization Agreement. The Department of the Air Force/Astrotech Space Operations Commercialization Agreement, including
Annex B for Astrotech Space Operations, L.P. Programs between the 30th Space Wing and Astrotech Space Operations, L.P. (hereafter “Commercialization Agreement”) is hereby incorporated into this Lease Agreement as Attachment B. Each time
the Commercialization Agreement is revised, it shall supersede its predecessor and be incorporated into this Lease Agreement. In the event of any inconsistency between the provisions of the Lease Agreement and the Commercialization Agreement, the
terms of the Lease Agreement shall take precedence. Other supporting documents such as Joint Operating Procedures (JOPs), if entered into, will be subordinate to both of the above documents. 
  
 4. Consideration. 
  
 (a) In consideration for the lease of these premises, the lessee shall perform all maintenance, protection, repair, or
restoration of the premises, and any improvements now or to be 

 
constructed on them; and pay an annual rental of $35,000, payable in the amount of $8,750 quarterly in advance on 1 October, 1 January, 1 April and 1 July of
each year. Payments shall be made payable to the Treasurer of the United States and forwarded by the lessee direct to Accounting and Finance, Commercial Services, DAO-DE Vandenberg/FS, 1031 California Suite A 216, Vandenberg Air Force Base,
California 93437-6011, DSN 276-4964. 
  
 (b) Lessee shall pay to
the United States on demand any sum which may have to be expended after the expiration, revocation, or termination of this lease in restoring the premises to the condition required by Condition 19. 
  
 5. Government Representatives and Their Successors. Except as otherwise
specifically provided, any reference herein to “Commander, 30SPW” or “said officer” shall mean the Commander, 30th Space Wing, or his duly appointed successors and his authorized representatives. 
  
 6. Extension of Lease. Subject lease may be extended with agreement of both
parties. So long as Lessee satisfactorily complies with the terms and conditions of this Lease Agreement, Lessee shall be given the opportunity for such extension(s). Agreements to renew subject lease will not exceed a term of five years per renewal
agreement. In order to support Lessee’s commercial requirement to contractually commit up to three (3) years in advance to provide services to its customers utilizing the property that is the subject of this lease, extension of subject lease
shall permitted up to three (3) years prior to expiration date of subject lease or subsequent extension. 
  
 7. Revocation or Termination by the Government. 
  
 (a) This lease may be revoked by the Deputy Assistant Secretary of the Air Force (Installations) or higher authority at any time upon the failure of the lessee to comply with the terms of this lease. Prior to the
revocation, the lessee must be informed, in writing, by the said officer of the terms with which the lessee is not complying and afforded a sixty (60) day period to return to compliance with the provisions of the lease. If the lessee does not return
to compliance within the time allotted, the lessee shall vacate the premises within 90 days thereafter. Lessee shall be liable for additional rental costs for this 90-day period and for any costs incurred by the United States in removing lessee from
said premises and restoring the premises to the condition that existed on the date this lease was executed. 
  
 (b) The lease may be terminated by the Deputy Assistant Secretary of the Air Force (Installations) or higher authority in the event of a national
emergency declared by Congress or the President, declared or undeclared war involving the United States, or if the Deputy Assistant Secretary determines that the paramount interest of national defense requires it. If the lease is terminated by the
Government without fault of the lessee, the 

  

 2 

 
lessee may request the Government pay the unamortized depreciation of any improvements which have been made to the premises by the lessee. The Government
will act in good faith to seek appropriated funds for such purpose, and if authorized by appropriate Government officials, negotiate fair and reasonable compensation for any such unamortized depreciation. 
  
 8. Termination by Lessee. This lease may be terminated by the lessee at any time by
giving the said officer at least sixty (60) days notice in writing. No money or other consideration paid or due to the Government up to the date of termination shall be refunded.  
  
 9. Assignment. The lessee shall not: 
  
 (a) transfer or assign this lease or any property on the leased premises,
except to a corporate affiliate or to a successor entity which is involved in space exploration and development activities substantially similar to those of Astrotech at Vandenberg APB, without permission in writing from said officer;

  
 (b) sublet any part of the premises or property on it without
permission in writing from, said officer; or 
  
 (c) grant
any other form of interest, privilege, or license in connection with this lease without permission in writing from the said officer. 
  
 10. Condition of Premises. The lessee has inspected and knows the condition of the leased property. It is understood that it is leased without any representation
or warranty by the Government concerning its condition, and without obligation on the part of the Government to make any alterations, repairs, or additions. 
  
 11. Maintenance of Property. Subject to the limitations of Condition 19 hereof with respect to the restoration of the property, all
portions of the leased property, including any existing improvements contained in the area described in Attachment A or improvements built by lessee, shall be maintained, protected, repaired, or restored to good order and condition by and at the
expense of the lessee. 
  
 12. Repair of Damage. Any property of the
United States on the leased premises or elsewhere which is damaged or destroyed by occurrences arising out of the use of the leased premises shall be promptly repaired or replaced by the lessee to the satisfaction of the said officer. In lieu of
such repair or replacement the lessee shall, if so required by the said officer, pay to the United States money in an amount sufficient to compensate for the loss. 
  

 3 

 13. Entry by Government. The United States, its officers, agents, employees, and contractors may enter upon the
leased premises at any time, upon reasonable notice, for the purpose of inspection and inventory of property of the United States and when otherwise deemed necessary for the protection of the interests of the Government. The lessee shall have no
claim on account of such entries against the Government or any officer, agent, employee, or contractor thereof provided, however, that nothing in this lease shall affect the Government’s liability arising under the Federal Tort Claims Act, 28
U.S.C. 2671 et seq. 
  
 14. Liability and Indemnification.

  
 (a) Lessee agrees to assume all risks of loss or damage to
property and injury or death to persons by reason of the activities conducted under this lease, except for such loss or damage and injury or death which results from the reckless disregard or willful misconduct of the Government or its agents or as
provided in Condition 13 hereof. Lessee expressly waives all claims against the Government for any such loss, damage, personal injury or death occurring as a consequence of the conduct of activities or the performance of lessee’s
responsibilities under this lease. Lessee further agrees to indemnify, save, hold harmless, and defend the Government against all suits, claims or actions of any sort resulting from, related to, or arising out of lessee’s activities conducted
or services furnished in connection with this lease. 
  
 (b)
Lessee shall carry adequate liability and indemnity insurance acceptable to Commander, 30th Space Wing, to protect the Government against claims for bodily injury or death and for damage to property resulting from the operations of the lessee under
the terms of this lease. The Government shall be a named insured under the policy, and the insurer shall have no right of subrogation against the Government. 
  
 (c) The lessee shall procure and maintain, at its cost, a standard fire and extended coverage insurance policy or policies on the leased property to the
full insurable value thereof. Such policy shall provide, as a minimum, for prompt restoration of the property to its condition at the date this lease is signed without cost to the Government. Coverage providing for repairing or rebuilding
lessee’s improvements is optional with the lessee. 
  
 (d)
All terms and conditions regarding liability and indemnification set out in the current Commercialization Agreement, as set forth in Attachment B, or as modified by the parties, which are not in conflict with above provisions, shall apply.

  
 15. Compliance with Applicable Laws. 
  
 (a) Lessee will comply with the provisions of all applicable federal, state,
and local laws, regulations, and 

  

 4 

 
standards, and including those provisions concerning the protection and enhancement of environmental quality and pollution control and abatement. 

 
 (b) Lessee shall comply with all applicable laws, ordinances, and
regulations of the State of California and Santa Barbara County with regard to construction, sanitation, licenses or permits to do business, and all other matters. 
  
 (c) This clause does not constitute a waiver of Federal Supremacy or sovereign immunity. Only laws and regulations
applicable to the premises under the Constitution and statutes of the United States are covered by this clause. 
  
 (d) The said officer and the Air Force do not, by reason of this lease, assume the responsibility for enforcement of the foregoing statutes, ordinances or
regulations. Enforcement remains the sole responsibility of the authorities duly constituted for the purpose of such enforcement. 
  
 16. Review and Approval of Construction Plans. 
  
 (a) All plans for construction, modification, or additions by lessee must be approved in writing by the said officer or his delegate before the
commencement of any construction project. In addition, the designs for all lessee connections to VAFB utilities will comply with DOD/USAF construction standards and be subject to 30SPW review and approval. DOD/USAF construction standards are
available through the office of the VAFB Base Civil Engineer. 
  
 (b) The Air Force review process for either a construction project or a utility connection will be completed within 30 days of receipt of plans and specifications. Approval will not be unreasonably withheld. 
  
 (c) All construction shall be in accordance with the approved designs and
plans and without cost to the Government. The lessee shall not proceed with excavation or construction until it receives written authorization from the said officer. 
  
 (d) All matters of ingress, egress, contractor haul routes, construction activity and disposition of excavated material, in
connection with the lease herein granted, shall be coordinated with the said officer. All excavation and construction activity shall be accomplished during periods (including hours of the day) acceptable to the said officer. 
  
 17. Utilities. 
  
 (a) If the Government agrees to provide them, specific arrangements for utilities will be included in a separate Operating
Agreement.  
  

 5 

 (b) The lessee shall pay direct costs incurred by the United States in producing and/or supplying any
utilities. 
  
 18. Taxes. 
  
 (a) The lessee shall pay to the proper authority on a timely basis all
applicable taxes, assessments, and similar charges relating to the leased premises or facilities or operations thereon which, at any time during the term of this lease or any extensions, may be imposed on the lessee’s interest in the leased
premises pursuant to 10 U.S.C. 2667(e). 
  
 (b) Should Congress
enact a law making the Government’s interest in the leased premises taxable by state or local governments (i.e., waive sovereign immunity to taxation), the lease shall be re negotiated to allocate the cost of the tax. 
  
 19. Vacation of Premises. 
  
 (a) On or before the date of expiration of this lease, or its final
extension, or of its termination by the lessee, the lessee shall vacate the premises, remove its property (including improvements and personal property) and restore the premises to the condition that existed on the date this lease was executed,
except as the Government may exercise its rights under Paragraph (c) below. 
  
 (b) If the lease is revoked under Paragraph 7(a) hereof, the lessee shall vacate the premises, remove its property (including any improvements and personal property), and restore the premises to the condition
described in Paragraph 19(a) above within 90 days or such longer time as the said officer may direct, except as the Government may exercise its rights under Paragraph (c) below. 
  
 (c) The Government may, at its option, accept title to some or all of the lessee’s property or improvements in lieu of
restoration. The Government shall have a reasonable time, extending at least until the end of the next annual session of Congress, to obtain any authorization by law that may be needed to exercise the right to acquire such property or improvements.

  
 (d) If the lessee fails to remove its property and restore the
premises by the required date, and the said officer declines to take title to the property, the said officer may cause the property to be removed and the premises restored at the expense of the lessee. No claim for damages against the United States
or its officers, agents, or contractors shall be created by or made on account of such removal and restoration work. 
  
 20. Disputes. 
  
 (a) Except as otherwise provided in this lease, any dispute concerning a question of fact arising under this lease which is 

  

 6 

 
not disposed of by agreement shall be decided by the said officer. Said officer shall reduce the decision to writing and mail or otherwise furnish a copy to
the lessee. The decision of the said officer shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the lessee mails or otherwise furnishes to the said officer a written appeal addressed to the Secretary of the
Air Force. The decision of the Secretary or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or
arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this condition, the lessee shall be afforded an opportunity to be heard and to offer
evidence in support of its appeal. Pending final decision of a dispute hereunder, the lessee shall proceed diligently with the performance of the lease in accordance with the said officer’s decision. 
  
 (b) This clause does not preclude consideration of legal questions in
connection with decisions provided for in Paragraph (a) above, provided that nothing in this clause shall be construed as making final the decision of any administrative official, representative, or board on a question of law. 
  
 21. Rules and Regulations. The use and occupation of the leased premises shall be
subject to the general supervision and approval of the said officer and to such reasonable rules and regulations as may be prescribed by him or her from time to time. 
  
 22. Notices. All notices to be given pursuant to this lease shall be addressed, if to the lessee, to: 
  
 President 
 Astrotech Space Operations, L.P. 
 12510
Prosperity Drive, Suite 100 
 Silver Spring, MD 20904-1663 
  
 if to the Government, to: 
  
 Commander 
 30th Space Wing 
 747 Nebraska Ave., Suite 1 
 Vandenberg AFB,
CA 93437-6261 
  
 or as may from time to time be directed by the parties. Notice
shall be deemed to have been duly given if and when enclosed in a properly sealed envelope or wrapper, addressed as aforesaid, and personally delivered or sent certified mail, return receipt requested. 
  

 7 

 23. General Provisions. 
  

(a) The lessee warrants that no person or selling agency has been employed or retained to solicit or secure this lease upon an agreement or
understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the lessee for the purpose of securing business. For breach or violation of
this warranty, the Government shall have the right to annul this lease without liability or in its discretion to require the lessee to pay, in addition to the lease rental or consideration, the full amount of such commission, percentage, brokerage,
or contingent fee. 
  
 (b) No Member of or Delegate to Congress or
Resident Commissioner shall be admitted to any share or part of this lease or to any benefit to arise therefrom. Nothing, however, herein contained shall be construed to extend to any incorporated company, if the lease be for the general benefit of
such corporation or company. 
  
 (c) Facilities Nondiscrimination.

  
 (1) As used in this paragraph, the term
“facility” means lodgings, stores, shops, restaurants, cafeterias, restrooms, and any other facility of a public nature in any building covered by, or built on land covered by, this lease. 
  
 (2) The lessee agrees not to discriminate by segregation or
otherwise against any person because of race, color, religion, sex, or national origin in furnishing, or refusing to furnish, to such person the ;use of any facility, including all services, privileges, accommodations, and activities provided on the
premises. This does not require the furnishing to the general public the use of any facility customarily furnished by the lessee solely to tenants or to Air Force military and civilian personnel, and the guests and invitees of any of them.

  
 24. Environmental Compliance and Cleanup. 
  
 (a) The lessee agrees that from the effective date of this lease and during
the lessee’s use and/or possession of leased premises, including during any extension period, the lessee shall be the operator of the leased premises and shall operate in compliance with all applicable federal, state, and local environmental
laws, statutes, ordinances, and regulations in effect at any time during the period of this lease. The lessee further agrees that during the lessee’s use and/or possession of the leased premises, including any extension period, the lessee shall
not treat, store, dispose of, discharge, or release emissions, waste, effluent, hazardous substances, or contaminates in such a manner that such actions will unlawfully pollute or contaminate air, ground (including subsurface strata), water 

  

 8 

 
(including ground water), or become a public nuisance. The total responsibility for ensuring compliance with the aforementioned laws, statutes, ordinances,
and regulations shall be the lessee’s alone. The lessee shall obtain and maintain, pursuant to the aforementioned laws, statutes, ordinances and regulations, such permits, licenses, or other authorizing documents as may be required for the
lessee’s use and/or possession. The lessee shall sign such permits, licenses, or other authorizing documents as operator of the leased premises. 
  
 (b) During the initial lease period, and any extension period, the total responsibility shall be the lessee’s alone for the treatment, storage,
disposal of emissions, waste, effluent, hazardous substances, or contaminants and for cleaning up or correcting any environmental pollution, contamination, and/or damage to the leased premises occurring on or after the effective date of this lease
and resulting from the lessee’s use and/or possession on or after the effective date of this lease. This responsibility shall exist even if said emissions, waste, effluent, hazardous substances, pollution, damage, or contamination are not
discovered until after the date this lease expires or is terminated. Furthermore, the lessee’s responsibility shall continue even if said treatment, storage, .disposal, cleanup, or correction operations continue or are required to begin after
the date this lease expires or is terminated. 
  
 (c) The
lessee agrees that it shall reimburse, indemnify, hold harmless, and defend the Government against any and all claims (including equitable claims and tort claims), lawsuits, or enforcement actions concerning, or resulting from, any actual or alleged
noncompliance or violation of any laws, statutes, ordinances, or regulations, or any actual or alleged environmental pollution resulting from, but not limited to, the treatment, storage, disposal, discharge or release by the lessee of emissions,
waste, effluent, hazardous substances or contaminants on the leased premises. The lessee’s indemnification of the Government herein shall include all claims, lawsuits, or enforcement actions brought by either private citizens (including, but
not limited to, individuals, corporations, businesses, etc.) or any governmental agency. The lessee’s responsibility under this provision shall continue even if such pollution is not discovered, or said claims, lawsuits, or enforcement actions
are not brought, until after this lease expires or is terminated. 
  
 (d) This lease does not change the parties’ respective rights, liabilities, and responsibilities regarding environmental cleanup or compliance with environmental laws, statutes, ordinances, and regulations with respect to actions that
occurred prior to the effective date of this lease. 
  
 25. Reporting to
Congress. This lease is not subject to 10 U.S.C. 2662(a). 
  

 9 

 IN WITNESS WHEREOF, I have hereunto set my hand by authority of the Secretary of the Air Force this 10th day of December 1993. 
  

			
		
	By:	 	 /s/ Lance W. Lord

	 	 	 LANCE W. LORD, Brig Gen, USAF

	 Title:
	 	 Commander, 30 SPW

  
 THIS LEASE is also executed by the
lessee this 6 day of October 1993. 
  

			
		
	By:	 	 /s/ Richard G. Wolf

	 	 	 RICHARD G. WOLF

	 Title:
	 	President, Astrotech Space Operations, L.P.

  
 Signed and sealed in the
presence of: 
  

	(1)	Illegible 

  

	(2)	Kimberly J. Lloyd 

  

 10 

 ATTACHMENT A TO LEASE NO. SPCVAN-2-94-0001 
  
 DESCRIPTION OF LAND AND FACILITIES  
 LEASED 
 BY 
 DEPARTMENT OF THE AIR FORCE 
 TO 
 ASTROTECH SPACE OPERATIONS, L.P. 
  
 The land and facilities leased by the Department of the Air Force to Astrotech Space Operations, L.P. under this Lease Agreement, as shown in Figure 1-1, are comprised of: 
  
 (1) The approximately 59 acre deactivated magazine storage bunker site, which is located along the southwest side of Tangair
Road and accessed via Red Road. VAFB is currently demolishing and removing, at Government expense, all existing bunkers and buildings within the fenced area of this site. Approximately one-half of this demolition and removal project has been
completed. The remainder of the project will be accomplished subsequent to execution of this Lease Agreement without any expense to lessee. Subject to the review and approval process set forth in Condition 16 of this Lease Agreement, a first phase
of construction by lessee is planned for a portion of the area which has already been cleared. 
  
 (2) Building 1028, which is located on the southeast side of Red Road immediately outside the fenced area described in Paragraph (1) above. Since Building 1028 was scheduled to be demolished and removed as part of the
VAFB funded project described in Paragraph (1) above, upon the expiration or termination of this Lease Agreement, lessee hereby agrees to demolish and remove Building 1028 as part of restoration of the leased premises pursuant to Condition 19 of
this Lease Agreement.

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