Document:

Guaranty Agreement, between Astrotech Space Operations, Inc. and Southtrust Bank

 Exhibit 10.42 
  
 GUARANTY AGREEMENT 
  
 This Guaranty Agreement (the “Guaranty”) is made and given as of the 30th day of August, 2001, by ASTROTECH SPACE OPERATIONS, INC., a
Delaware corporation whose address is 300 D Street SW, Suite 814, Washington, DC 20024 (hereafter referred to as the “Guarantor”) to SOUTHTRUST BANK, an Alabama banking corporation (the “Bank”). 
  
 A. Astrotech Florida Holdings, Inc. (“Borrower”) and the Bank are
parties to a Credit Agreement (the “Credit Agreement”) of even date herewith relating to an Acquisition and Construction Loan (the “Construction Loan”) in the amount of up to $20,000,000.00 that is subject to renewal and
conversion as a Term Loan (the “Term Loan”) of up to $20,000,000.00 (collectively, the “Loan”) pursuant to the Credit Agreement. The Construction Loan is evidenced by Borrower’s Acquisition and Construction Loan Note of even
date herewith in the principal amount of up to $20,000,000.00 and the Term Loan shall be evidenced by Borrower’s Term Loan Note in the amount of up to $20,000,000.00 (collectively, the “Note”). Capitalized terms not expressly defined
herein shall have the meanings ascribed thereto in the Credit Agreement (the Credit Agreement, the Note and all documents executed in connection with the transactions contemplated thereby being referred to collectively as the “Loan
Documents”). 
  
 B. The Bank has required this Guaranty from
Guarantor as a condition of and as consideration for Bank’s entering into the Credit Agreement and Bank would not enter into the Credit Agreement or make the Loan to Borrower without being given this Guaranty. 
  
 In consideration of and as an inducement to Bank’s entering into the
Credit Agreement, the undersigned Guarantor hereby absolutely and unconditionally guarantees to the Bank payment and collection in full of all sums due to Bank under and pursuant to the Note and the Loan Documents including, without limitation, all
interest and expenses payable to Bank thereunder, whether at maturity or otherwise and the full performance of all obligations of the Borrower under the Notes and the Loan Documents all within the applicable grace or curative periods provided in the
Loan Documents (all of the foregoing guarantied obligations of the Borrower being referred to collectively as the “Obligations”). Guarantor’s obligations hereunder shall be unconditional irrespective of, among other things, the lack
of genuiness, validity, regularity or enforceability of the Loan Documents or of the obligations of the Borrower evidenced thereby, any and all suretyship defenses otherwise available to Guarantor which are hereby expressly waived and any other bar
to the enforceability of this Guaranty or of the Loan Documents against either the Guarantor or the Borrower, as the case may be. Guarantor shall, in an Event of Default under the Loan Documents, pay all amounts due to the Bank under the Loan
Documents on demand by the Bank without defense or set off, and Bank shall not be required, as a condition of such payment, to first proceed to preserve, utilize or exhaust any other right or remedy against the Borrower, any other guarantor or any
collateral or security. 
  
 The Guarantor expressly waives
acceptance of this Guaranty by the Bank, presentment and demand for payment, protest, notice of protest and notice of dishonor or non payment of any obligation of the Borrower other than as set forth above; any right to require suit against the
Borrower or any other party before enforcing this Guaranty; any right to have security applied before enforcing this Guaranty; and any right of subrogation to the Bank’s rights against the Borrower until Borrower’s obligations to the Bank
are paid in full. 

 The Guarantor hereby consents and agrees that renewals and extensions of time of payment, surrender,
release, exchange, substitution, dealing with or taking of additional collateral security, taking or release of other guaranties, abstaining from taking advantage of or realizing upon any collateral security or other guaranties and any and all other
forebearances or indulgences granted by the Bank to the Borrower or any other party may be made, granted and effected by the Bank without notice to the Guarantor and without in any manner affecting its liability hereunder. 
  
 Subject to any applicable curative period provided in the Credit Agreement,
in the event that a petition in bankruptcy or for an arrangement or reorganization of the Borrower under the bankruptcy laws or for the appointment of a receiver for the Borrower or any of its property is filed by or against the Borrower, or if the
Borrower shall make an assignment for the benefit of creditors or shall become insolvent, all indebtedness of the Borrower shall, for the purposes of this Guaranty, be deemed to have become immediately due and payable. 
  
 Any notice to Guarantor by the Bank at any time shall not imply that such
notice or any further or similar notice was required. 
  
 The
Guarantor further agrees to pay to the Bank any and all costs, expenses and reasonable attorneys’ fees paid or incurred by the Bank in collecting or endeavoring to collect the indebtedness of the Borrower or in enforcing or endeavoring to
enforce this Guaranty whether out of court, in trial, on appeal, in bankruptcy or otherwise. 
  
 The Guarantor further covenants and agrees with the Bank that during such time as this Guaranty is in effect, the Guarantor will make no material adverse change in its financial status as determined by the Bank in the
exercise of its reasonable discretion. In the event of any breach of said covenant and agreement, all obligations of the Borrower under the Notes and the Loan Documents, regardless of their terms shall, at the Bank’s discretion, be deemed for
the purposes of this Guaranty to have become matured, and at the Bank’s election, the Guarantor shall promptly pay and perform all of obligations of Borrower to the Bank, and the Bank may take any action deemed necessary or advisable to enforce
this Guaranty. 
  
 In the event of any breach of the covenants and
agreements of Guarantor under this Guaranty which (except for a payment default for which no curative period is applicable) are not cured within thirty (30) days after the earlier to occur of actual notice by Guarantor or receipt of written notice
by Guarantor of such breach from Bank, all obligations of the Borrower under the Notes and the Loan Documents, regardless of their terms shall, at the Bank’s discretion, be deemed for the purposes of this Guaranty to have become matured, and at
the Bank’s election, the Guarantor shall promptly pay and perform all of the obligations of Borrower to the Bank, and the Bank may take any action deemed necessary or advisable to enforce this Guaranty. 
  
 The provisions of this Guaranty are for the benefit of Bank and its
respective successors and assigns, and nothing herein contained shall impair as between any obligor and Bank the obligations of any obligor under the Loan Documents. 

 This Guaranty contains the entire agreement of the parties with respect to the subject matter hereof and
supersedes all prior agreements relating to such subject matter and cannot be amended or supplemented, except by a written agreement signed by such Guarantor and Bank. 
  
 In the event that any one or more of the provisions contained in this Guaranty shall be determined to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision or provisions in every other respect and of the remaining provisions of this Guaranty shall not be in any way impaired. 
  
 The failure of Bank to enforce any right or remedy hereunder, or promptly to
enforce any such right or remedy, shall not constitute a waiver thereof, nor give rise to any estoppel against Bank, nor excuse Guarantor from Guarantor’s obligations hereunder. Any waiver of any such right or remedy must be in writing and
signed by Bank. 
  

	A.	REPRESENTATIONS AND WARRANTIES: 

  
 In order to induce the Bank to accept this Guaranty, the Guarantor represents, warrants covenants and agrees that: 
  
 1. Incorporation, Good Standing, and Due Qualification.
Guarantor is a corporation duly organized, validly existing, and having an active status under the laws of the State of Delaware; has the corporate power and authority to own its assets and to transact the business in which it is now engaged or
proposed to be engaged; and is duly qualified and in good standing under the laws of each jurisdiction in which such qualification is required, if any. 
  

2. Corporate Power and Authority. The execution, delivery, and performance by the Guarantor of this Guaranty has been duly authorized by
all necessary corporate action and do not and will not (1) require any consent or approval of the stockholders or of any other corporation or business entity; (2) contravene either Guarantor’s Certificate of Incorporation or By-Laws; (3)
violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award presently in effect having applicability to Guarantor; (4) result in a breach of or constitute a default under any indenture or
loan or credit agreement or any other agreement, lease, or instrument to which Guarantor is a party or by which it or its properties may be bound or affected; (5) result in or require the creation or imposition of any Lien upon or with respect to
any of the properties now owned or hereafter acquired by the Guarantor other than those created by the Loan Documents in favor of the Bank; or (6) cause the Guarantor to be in default under any law, rule, regulation, order, writ, judgment,
injunction, decree, determination, or award or any such indenture, agreement, lease, or instrument. 
  
 3. Legally Enforceable Agreement. This Guaranty and each of the other Loan Documents to which Guarantor is a party are legal, valid and binding
obligations of the Guarantor enforceable against the Guarantor in accordance with their respective terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, and other similar laws affecting
creditors’ rights generally, and principles of equity. Guarantor represents and warrants that it is not insolvent or contemplating filing a voluntary petition for bankruptcy nor is Guarantor aware of any possibility or threat of being subject
to any petition for involuntary bankruptcy. 

 4. Financial Statements. All financial statements of Guarantor which have been furnished to
the Bank by the Guarantor are complete and correct and fairly present, in all material respects, the financial condition of the Guarantor and the results of the operations of the Guarantor for the periods covered by such statements, all in
accordance with GAAP and there has been no material adverse change in the condition (financial or otherwise), business, or operations of the Guarantor. There are no liabilities of the Guarantor fixed or contingent, which are material but are not
reflected in financial statements provided to the Bank or in the notes thereto, other than liabilities arising in the ordinary course of business. No information, exhibit, or report relating to the Guarantor furnished by the Guarantor to the Bank in
connection with the negotiation of or pursuant to the Loan Documents or this Guaranty contained any material misstatement of fact or omitted to state a material fact or any fact necessary to make the statement contained therein not materially
misleading. Any financial projections in respect of Guarantor provided to the Bank have been prepared based upon present facts and using assumptions which Guarantor believes to be fair and reasonable. 
  
 5. Labor Disputes and Acts of God. Neither the business nor the
properties of the Guarantor or any Affiliate are now affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy, or other casualty, nor does the
Borrower have any reason to believe that either of them will be affected in the future, by any strike, lockout or other labor dispute or embargo (whether or not any of the foregoing are covered by insurance) materially and adversely affecting such
business or properties or the operation of the Guarantor or any Affiliate. 
  
 6. Other Agreements. Guarantor is not a party to any indenture, loan, or credit agreement or, to Guarantor’s knowledge, to any lease or other agreement or instrument, or subject to any charter or
corporate restriction which could have a material adverse effect on the business, properties, assets, operations, or conditions, financial or otherwise, of the Guarantor, or the ability of the Guarantor to carry out its obligations under this
Guaranty or under any Loan Documents to which Guarantor is a party. Guarantor is not in default in respect of payment or, to its knowledge, in any other respect in the performance, observance, or fulfillment of any of the obligations, covenants, or
conditions contained in any agreement or instrument material to its business to which it is a party except where such default does not have and will not have a material adverse effect on guarantor, its business, assets, properties or financial
condition. 
  
 7. Litigation. There is no pending
or, to Guarantor’s knowledge, threatened action or proceedings against or affecting either of the Guarantor before any court, governmental agency or arbitrator which may, in any one case or in the aggregate, materially adversely affect the
financial condition, operations, properties, or business of the Guarantor or the ability of the Guarantor to perform its obligation under this Guaranty or under the Loan Documents to which Guarantor is a party. 
  
 8. No Defaults on Outstanding Judgments or Orders. The
Guarantor is not in default with respect to any judgment, writ, injunction, decree, rule, or regulation of any court, arbitrator, or federal, state, municipal, or other governmental authority, commission, board, bureau, agency or instrumentality,
domestic or foreign. 

 9. Ownership and Liens. The Guarantor has title to, or valid leasehold interests in, all of its
properties and assets, real and personal, including the properties and assets and leasehold interest reflected in the financial statements referred to above and all properties and assets pledged as collateral to the Bank to secure Guarantor’s
obligations under the Stock Pledge and Security Agreement in support of this Guaranty (the “Guaranty Collateral”), and none of the Guaranty Collateral is subject to any Lien, except the Lien of the Bank. 
  
 10. ERISA. The Guarantor represents and warrants that it has no
Plans that are subject to ERISA. 
  
 11.
Operation of Business. To the best of Guarantor’s knowledge, the Guarantor possesses all licenses, permits, franchises, patents, copyrights, trademarks, and trade names, or rights thereto (except where the failure to obtain same does
not have and will not have a material adverse effect on the Guarantor, its business, assets, properties or financial condition), to conduct its business substantially as now conducted and as presently proposed to be conducted, and the Guarantor is
not in violation of any valid rights of others with respect to any of the foregoing. 
  
 12. Taxes. The Guarantor has filed (or has timely filed extensions for) all tax returns (federal, state and local) required to be filed and has paid all taxes, assessments, and governmental charges and levies
thereon which are due, including interest and penalties, except for such taxes as may be contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP. 
  

	B.	AFFIRMATIVE COVENANTS 

  
 So long as the Notes shall remain unpaid the Guarantor shall: 
  
 1. Maintenance of Existence. Preserve and maintain its corporate existence and good standing in the jurisdiction of its incorporation, and
qualify and remain qualified as a foreign corporation in each jurisdiction in which such qualification is required. 
  
 2. Maintenance of Records. Keep adequate records and books of account, in which complete entries will be made in accordance with GAAP,
reflecting all financial transactions of the Guarantor. 
  
 3. Maintenance of Properties. Maintain, keep, and preserve, all of its properties (corporeal or incorporeal) necessary or useful in the proper conduct of its business, in the aggregate, in reasonable working order and
condition, ordinary wear and tear excepted. 
  
 4.
Conduct of Business. Continue to engage in an efficient and economical manner in the business conducted by Guarantor on the date of Closing the Acquisition and Construction Loan. 
  
 5. Maintenance of Insurance. Maintain insurance with
financially sound and reputable insurance companies or associations in such amounts and covering such risks as are usually carried by companies engaged in the same or a similar business and similarly situated, which insurance may provide for
reasonable deductibility from coverage thereof, and shall include, without limitation, as applicable to Guarantor’s business activities (i) Builder’s Risk 

 
Insurance, (ii) fire, theft and casualty insurance in an amount of not less than full insurable value of the covered assets, and (iii) public liability
insurance including, without limitation automobile and appropriate liability coverage in not less than the amounts of present coverage in existence on the date of this Agreement, and (iv) business interruption insurance. Guarantor shall immediately
notify the Bank upon the occurrence of any business interruption or of any casualty, damage or loss to its assets or seizure of any assets in excess of $1,000,000 for any reason including, without limitation, action of any foreign government.

  
 6. Compliance with Laws. Guarantor shall comply in all
material respects with all applicable laws, rules, regulations, and orders, such compliance to include, without limitation, paying before the same become delinquent all taxes, assessments, and governmental charges imposed upon it or upon its
property provided, however, that Guarantor shall have the right in good faith to contest the imposition of any tax or the levy of any assessment or governmental charge so long as non-payment during such contest does not result in the imposition of a
Lien upon the Guaranty Collateral. 
  
 7. Right of
Inspection. Guarantor shall, at any reasonable time and from time to time and upon reasonable notice to Guarantor, permit the Bank or any agent or representative thereof to examine and make copies of and abstracts from the records and books of
account of, and visit the properties of, the Guarantor, and to discuss the affairs, finances, and accounts of the Guarantor with any of their respective officers and directors and the Guarantor’s independent accountants. Such inspection shall
be conducted during normal business hours and, to the extent practicable, shall not unreasonably interfere with Guarantor’s normal business affairs. 
  
 8. Reporting Requirements. Furnish to the Bank: 
  
 (1) Interim financial statements. As soon as available and in any event within forty five (45) days after the end of each of the first three (3)
quarters of each fiscal year of the Guarantor, combining and combined balance sheets of the Guarantor as of the end of such quarter, statements of income and retained earnings of the Guarantor for the period commencing at the end of the previous
fiscal year, if any, and ending with the end of such quarter, and a balance sheet and statement of change in financial position of the Guarantor for the portion of the fiscal year ended with the last day of such quarter, all in reasonable detail and
stating in comparative form the respective figures for the corresponding date and period in the previous fiscal year, if any, and all prepared in accordance with GAAP consistently applied and certified by their respective chief financial officers
(subject to year-end adjustments); 
  
 (2) Annual financial
statements. (a) As soon as available and in any event within one hundred twenty (120) days after the end of each fiscal year of Guarantor, financial statements of Guarantor on a consolidated and consolidating basis including, without limitation,
a balance sheet as of the end of such fiscal year and a statement of income and retained earnings for such fiscal year, and a statement of change in financial position, all in reasonable detail and . stating in comparative form the respective
figures for the corresponding date and period in the prior fiscal year, if any, and all prepared in accordance with GAAP consistently applied by an independent accounting firm selected by Guarantor and reasonably acceptable to the Bank; and

 (b) (a) As soon as available and in any event within one hundred twenty (120) days after the end of each
fiscal year of Guarantor, combining and combined balance sheets of the Guarantor as of the end of such fiscal year, statements of income and retained earnings of the Guarantor for the period commencing at the end of the previous fiscal year, and a
balance sheet and statement of change in financial position of the Guarantor for the fiscal year just ended, all in reasonable detail and stating in comparative form the respective figures for the corresponding date and period in the previous fiscal
year, if any, and all prepared in accordance with GAAP consistently applied and certified by their respective chief financial officers (subject to year-end adjustments); 
  
 (3) Environmental Reports. Within thirty (30) days after Guarantor or any Subsidiary sending same to any federal,
state or local environmental regulatory agency, copies of any reports or assessments relating to the environmental condition of the Real Property Collateral including, without limitation, reports or assessments relating to the presence, suspected
presence, release or discharge or suspected release or discharge of any Hazardous Material or Hazardous Substance in or into the air, soil, surface water, groundwater or soil vapor at, on, about, under, or within any of the Real Property Collateral
or any portion thereof. For the purposes hereof, the terms “Hazardous Material” and “Hazardous Substance” shall have the meanings ascribed thereto in the Mortgage and in the Environmental Indemnification Agreement between the
Bank and the Guarantor relating to the Real Property Collateral. 
  
 (4) Notice of litigation. Promptly after the commencement thereof, notice of all actions, suits, and proceedings before any court or governmental department, commission, board, bureau, agency, or instrumentality, domestic or foreign,
against or, to Guarantor’s knowledge, materially affecting the Guarantor or any Subsidiary, which, if determined adversely to the Guarantor or such Subsidiary, would have a material adverse effect on the financial condition, properties, or
operations of the Guarantor or such Subsidiary; 
  
 (5) Notice
of Defaults and Events of Default. Immediately after the occurrence of each Default or Event of Default, a written notice setting forth the details of such Default or Event of Default and the action which is proposed to be taken by the Guarantor
with respect thereto; 
  
 (6) Reports to other creditors.
Upon reasonable request by the Bank made not more frequently than quarterly, promptly after the furnishing thereof by Guarantor or any Affiliate, copies of any statement or report furnished to any other party pursuant to the terms of any
indenture, loan, or credit or similar agreement and not otherwise required to be furnished to the Bank; 
  
 (7) Notice of acquisition, bulk sale, merger or change in control. Prior to any (i) proposed acquisition of control of or purchase of all or any
substantial part of the assets of any corporation or business entity by Guarantor; (ii) sale of all or any substantial part of the assets of the Guarantor; (iii) any merger by the Guarantor with any other entity whether or not Guarantor is to
survive the merger; or (iv) change in ownership or voting control of 5% or more of the common stock of Guarantor entitled to vote; Guarantor shall provide the Bank with not less than thirty (30) days advance written notice. 

 (8) Notice of Business Interruption, etc. After the Completion Date Guarantor shall, within ten
(10) Business Days of Guarantor becoming aware of the occurrence thereof, notify the Bank of the occurrence of any business interruption (other than a planned seasonal shutdown), casualty or damage or loss of property which could have a material
adverse effect on the business of the Guarantor for any reason including, but not limited to, any action of any foreign government. 
  
 (9) General information. Such other information respecting the condition or operations, financial or otherwise, of the Guarantor or any Subsidiary
as the Bank may from time to time reasonably request. 
  

	C.	NEGATIVE COVENANTS: 

  
 So long the Notes remain unpaid the Guarantor will not, without the prior written consent of the Bank: 
  
 1. Liens. Create, incur, assume, or suffer to exist, or permit any
Subsidiary to create, incur, assume, or suffer to exist, any Lien upon or with respect to any Guaranty Collateral now owned or hereafter acquired, except: 
  
 (a) Liens for taxes or assessments or other government charges or levies if not yet due and payable or, if due and payable, if they are being contested in
good faith by appropriate proceedings and for which appropriate reserves are maintained; 
  
 (b) Liens imposed by law, such as mechanics’, materialmen’s, landlords’, warehousemen’s, and carriers’ Liens, and other similar Liens, securing obligations incurred in the ordinary course of
business which are not past due or which are being contested in good faith by appropriate proceedings and which have been transferred to appropriate bond; and 
  

(c) The Liens given to the Bank pursuant to the Loan Documents. 
  
 2. Mergers, Etc. Merge or consolidate with, or sell, assign, lease, or otherwise dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to any Person. 
  
 3. Sale and Leaseback. Sell, transfer, or otherwise dispose of, or permit any Subsidiary to sell, transfer, or otherwise dispose of, any real or
personal property to any person and thereafter directly or indirectly lease back the same or similar property other than for fair market value. 
  
 4. Sale of Assets. The Guarantor shall not sell, lease, assign, transfer, or otherwise dispose of any of its now owned or hereafter acquired assets
other than for fair market value. 
  
 5. Investments. Make,
or permit any Subsidiary to make, any loan or advance to any Person, or purchase or otherwise acquire, or permit any Subsidiary to purchase or otherwise acquire, any capital stock in any Person other than Guarantor or any Subsidiary, or investment
other than in the ordinary course of business or other securities of, make any capital contribution 

 
to, or otherwise invest in or acquire any interest in any Person, except: (1) direct obligations of the United States or any agency thereof with maturities
of one year or less from the date of acquisition; (2) commercial paper of a domestic issuer rated at least “A-1” by Standard & Poor’s Corporation or “P-1” by Moody’s Investors Service, Inc.; (3) other securities
rated as investment grade quality by Standard & Poor’s Corporation, Moody’s Investors Service, Inc. or Fitch Investors Service, Inc.; (4) certificates of deposit with maturities of one year or less from the date of acquisition issued
by any commercial bank having capital and surplus in excess of Twenty Million Dollars ($20,000,000.00); and (5) stock, obligations, or securities received in settlement of debts (created in the ordinary course of business) owing to the Guarantor or
any Subsidiary. 
  
 6. Debt. Guarantor shall not incur any
Debt that would result in impairment of Guarantor’s ability to perform its obligations under this Guaranty. 
  

	D.	FINANCIAL COVENANTS 

  
 1. Minimum Tangible Net Worth. The Guarantor shall, as of March 31, 2002 and thereafter, maintain a combined minimum Tangible Net Worth of
$19,500,000.00. Thereafter, the minimum Tangible Net Worth shall increase by a minimum of 90% of pre-tax income annually on a cumulative basis, provided that a minimum combined Tangible Net Worth requirement determined by such formula shall not
thereafter decrease as a result of any subsequent decrease in pre-tax income. 
  
 2. Ratio of Total Liabilities to Tangible Net Worth. The Guarantor shall maintain at all times a combined ratio of Total Liabilities divided by combined Tangible Net Worth of less than 1.75 to
1.0. 
  
 3. Fixed Charge Coverage Ratio. The
Guarantor shall maintain at all times a minimum combined Fixed Charge Coverage Ratio of greater than 1.15 to 1.0. Compliance with this covenant shall be determined quarterly on a rolling quarter basis for the fiscal quarter just ended and the prior
three fiscal quarters of the Guarantor. 
  
 This Guaranty
shall not expire until all of the Obligations to Bank have been satisfied. This Guaranty shall be binding upon the Guarantor and its respective heirs, executors, administrators and assigns jointly and severally, and shall inure to the benefit of the
Banks, its successors and assigns. The terms “Guarantor” and any pronouns referring thereto and used herein shall be construed in the masculine, feminine, neuter, singular or plural as the context may require. 
  
 IN WITNESS WHEREOF, this Guaranty has been executed and delivered to
the Banks by the undersigned Guarantor as of the day and year first written above. 
  

			
	 ASTROTECH SPACE OPERATIONS, INC.

		
	By:	 	/s/    JULIA PULZONE        
	 Name:
	 	Julia Pulzone
	 Its:
	 	Chief Financial Officer

 EXHIBIT “A” 
  
 QUARTERLY REPORT FORM 
  
 Quarterly Compliance Certificate 
  
 This information is provided as of the          day of
                    ,              from Astrotech Space Operations, Inc.

  

												
	 	  	 	  	Required

	  	Calculated

	  	Compliance

	 	  	 	  	 	  	 	  	(Y/N)
	 1. Tangible Net Worth
	  	 	 	  	$	            	  	$	            	  	__________
					
	 2. a. Total Liabilities
	  	$	            	  	 	 	  	 	 	  	 
	     b. Tangible Net Worth
	  	$	            	  	 	 	  	 	 	  	 
					
	     Debt / Tangible Net Worth Ratio (a/b)
	  	 	 	  	 	1.    :1.0	  	 	        :1.0	  	__________
					
	 3. Pre-Tax Income
	  	$	            	  	 	 	  	 	 	  	 
	     - Taxes & dividends
	  	$	            	  	 	 	  	 	 	  	 
	     +Lease Expense
	  	$	            	  	 	 	  	 	 	  	 
	     +Interest Expense
	  	$	            	  	 	 	  	 	 	  	 
	     +Depreciation
	  	$	            	  	 	 	  	 	 	  	 
	     a. sum
	  	$	            	  	 	 	  	 	 	  	 
					
	     Interest Expense
	  	$	            	  	 	 	  	 	 	  	 
	     +Lease Expense
	  	 	 	  	 	 	  	 	 	  	 
	     +CM of Long Term Debt
	  	 	 	  	 	 	  	 	 	  	 
	     b. sum
	  	 	 	  	 	 	  	 	 	  	 
					
	     Fixed Charge Coverage Ratio (a/b)
	  	 	 	  	 	1.    :1.0	  	 	        :1.0	  	__________

  
 The undersigned hereby certify that to
the best of their knowledge the above information is true and correct as of the date written. 
  

													
	 ASTROTECH SPACE OPERATIONS, INC.
	 	 	 	 ASTROTECH FLORIDA HOLDINGS, INC.

					
	By:	 	 	 	 	 	By:	 	 
	 	 	 Name:
	 	 	 	 	 	 	 	 Name:
	 	 
	 	 	 As Its:
	 	 	 	 	 	 	 	 As Its:Stock Pledge and Security Agreement, between the Registrant and Southtrust Bank

 Exhibit 10.43 
  
 STOCK PLEDGE AND SECURITY AGREEMENT 
  
 THIS STOCK PLEDGE AND SECURITY AGREEMENT (this “Agreement”) is made and entered into as of the 30th day of
August, 2001, by SPACEHAB, INCORPORATED (“Pledgor”) in favor of SOUTHTRUST BANK, an Alabama Banking corporation (“Bank”). 
  
 WHEREAS, Pledgor is, on the date hereof, the owner and holder of 100 shares of common stock (the “ASO
Stock”) which constitutes 100% of the authorized voting stock of Astrotech Space Operations, Inc. (“ASO”) (the ASO Stock being referred to herein as the “Stock Collateral”); and 
  
 WHEREAS, Bank and Astrotech Florida Holdings, Inc. (referred to herein
as the “Borrower”) have entered into a Credit Agreement (the “Credit Agreement”) of even date herewith relating to an Acquisition and Construction Loan in the amount of up to $20,000,000, renewable and convertible as a Term Loan
in like amount (collectively, the “Loan”); and 
  
 WHEREAS, Pledgor has guaranteed payment and performance of certain obligations of the Borrower in connection with the Loan pursuant to Pledgor’s Guaranty Agreement (the “Guaranty”) of even date herewith in favor of
Lender; and 
  
 WHEREAS, Lender has required, as a
condition precedent to Lender’s entering into the Credit Agreement and making Advances to Borrower thereunder, that the Pledgor grant to Lender, as Collateral for the performance of Pledgor’s obligations under the Guaranty, a security
interest in the Stock Collateral (capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement); and 
  
 WHEREAS, Pledgor has determined that the transactions contemplated by the Credit Agreement are beneficial to Pledgor, and it is thus in the best
interest of Pledgor to enter into this Agreement; 
  
 NOW,
THEREFORE, in consideration of the premises, and of the mutual covenants and agreements herein set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows: 
  
 1. Representations of Pledgor. Pledgor
represents and warrants as follows: 
  
 (a) The Stock Collateral
constitutes 100% of the authorized voting stock of ASO and has been duly and validly issued, is fully paid and non-assessable, and is without restrictions (other than SEC Reg. 144 restrictions on the transfer of shares or on Pledgor’s right to
pledge the shares as Stock Collateral); 
  

 1 

 (b) This Agreement has been duly authorized, executed and delivered by Pledgor and constitutes a legal,
valid and binding obligation of Pledgor, enforceable in accordance with its terms; 
  
 (c) The making and performance of this Agreement by Pledgor (i) is not and will not be in violation of any law or any regulation promulgated pursuant to law, by any governmental agency or body; (ii) does not require
the approval or consent of any governmental agency or body; (iii) will not conflict with, or result in a breach of, any term, condition or provision of, or constitute a default under, any instrument to which either Pledgor is a party or may be bound
or affected, or constitute (with or without the giving of notice or the passage of time or both) a default under any such instrument, or result in the acceleration of any indebtedness, or result in the breach of any regulation, order, writ,
injunction or decree of any court or any commission, board or other administrative agency entered in any proceeding to which either Pledgor is a party or by which it may be bound or affected; and (iv) does not require the approval of any other
secured or unsecured creditor. 
  
 (d) Upon consummation of the
pledge and assignment of the Stock Collateral to Lender pursuant to this Agreement, and delivery to the Lender or its agent of the share certificates representing the Stock Collateral or the execution by a transfer agent or securities depository to
which the Stock Collateral has been delivered or which holds the Stock Collateral in uncertificated form for the account of Pledgor of an agreement in form and substance sufficient to perfect the Lender’s security interest, such pledge and
assignment will create a valid lien on and a perfected, first priority security interest in the Stock Collateral. The form of agreement and acknowledgment of the Lender’s security interest attached hereto as Exhibit “A” shall be
acceptable for such purposes. 
  
 (e) No Stock Collateral has been
heretofore pledged to any person or entity and all Stock Collateral is free of all liens of any kind whatsoever. 
  
 2. Pledge and Assignment of Stock Collateral and of Right to Receive Stock Collateral as Pledged. Pledgor hereby assigns, hypothecates, transfers
and pledges to Lender all of the Pledgor’s right, title and interest in and to all of the Stock Collateral whether now owned or hereafter acquired including, without limitation, the right to receive dividends, and hereby grants to Lender a
first lien on and a security interest in such Stock Collateral, all as collateral security for (a) the prompt and complete performance and payment when due of the obligations of the Guarantor under the Guaranty; (b) the prompt and complete
performance of the obligations of Pledgor under, or pursuant to the terms of this Agreement; and (c) all costs and expenses incurred by Lender in connection with the enforcement, maintenance and preservations of its rights under any of the Loan
Documents including, without limitation, the Guaranty and this Agreement, including all attorneys’ fees and including all of such costs herein. Anything to the contrary in this Agreement notwithstanding, so long as there is no default in
existence under the Loan Documents or under the Guaranty, the Pledgor shall be entitled to receive or to direct payment and distribution of dividends paid or interest earned on the 

  

 2 

 
Stock Collateral and to exercise voting rights associated with the Stock Collateral all of which right shall terminate upon the occurrence of a default under
any of such Loan Documents. 
  
 If ownership of the Stock
Collateral is transferred, then each such transfer shall be subject to the Bank’s security interest which shall continue in full force and effect undiminished and without interruption by reason of such transfer. 
  
 3. Redelivery of Stock Collateral. Upon performance and satisfaction
in full of the Borrower’s obligations under the Loan Documents and Pledgor’s obligations under the Guaranty, this Pledge and Security Agreement shall immediately cease and terminate as herein provided, and any Stock Collateral then held by
Lender shall be deemed immediately transferred to the owner thereof, and this Agreement shall thereupon have no further force or effect. Upon the happening of the events specified in the immediately preceding sentence, the Lender shall be deemed to
be holding such Stock Collateral in trust for Pledgor until such Stock Collateral, together with appropriate instruments of reassignment and release as requested by Pledgor, are delivered to Pledgor or to Pledgor’s designee. Upon such delivery
of Stock Collateral or any part thereof to Pledgor or to Pledgor’s designee hereunder or otherwise, the receipt thereof by Pledgor shall be a complete and full acquittance for the Stock Collateral so delivered, and Lender shall thereafter be
discharged from any liability or responsibility therefor. 
  
 4.
Default. Upon default under the Loan Documents including, without limitation, the Guaranty, the Lender without demand of performance or other demand, advertisement, or notice of any kind (except the notice specified below of time and place of
public or private sale) to or upon Pledgor or any other person (all and each of which demands, advertisements and/or notices are hereby expressly waived to the extent permitted by law), may collect, receive, appropriate and realize upon the Stock
Collateral, or any portion thereof, and/or may forthwith sell, assign, grant options to purchase, contract to sell or otherwise dispose of and deliver the Stock Collateral, or any part thereof, in one or more units, at public or private sale or
sales, at any exchange, broker’s board or at any of Lender’s offices or elsewhere, upon such terms and conditions as the Lender may deem advisable and at such prices as Lender may deem reasonable, for cash or on credit or for future
delivery without assumption of any credit risk, with the right to Lender upon any such sale or sales, public or private, to purchase the whole or any portion of the Stock Collateral so sold, free of any right or equity of redemption in Pledgor,
which right or equity is hereby expressly waived and released to the extent permitted by law. Unless Stock Collateral threatens to decline speedily in value or is of a type customarily sold on a recognized market (in which event no notification is
required), the Lender shall give at least five days’ notice of the time and place of any public sale or of the time after which a private sale or other intended disposition is to take place and that such notice is reasonable notification of
such matters. Such notice shall be given in the manner prescribed in the Florida Uniform Commercial Code for giving notice of notice by secured parties to debtors. Such reasonable notification shall be given to Pledgor unless it has signed after
default a statement renouncing or modifying any right to notification of 

  

 3 

 
sale or other intended disposition. In addition to the rights and remedies granted to it in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Loan, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code of the State of Florida. 
  

5. Rights of Lender. Upon (a) the failure by Guarantor to pay when due the obligations evidenced by the Guaranty and secured by this Pledge and
Security Agreement, in accordance with the respective terms thereof, and (b) Lender’s consummation of a sale of or other realization upon Stock Collateral in accordance with this Pledge and Security Agreement, the Stock Collateral so sold or
realized upon may be registered in the name of the purchaser or Lender, as the case may be, and thereafter, Pledgor and any individual having rights that arise through Pledgor shall not be entitled to exercise any voting and corporate rights with
respect to such Stock Collateral or exercise any rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to any of such Stock Collateral. 
  
 6. Distribution of Proceeds. The proceeds of any sale of all of any part of the Stock Collateral may be applied by
Lender, at its option, to any of the following: 
  
 (a) First, to the payment of all of the costs and expenses of sale of Stock Collateral, including, without limitation, reasonable fees and expenses of the Lender and its agents, attorneys and counsel; and, all other expenses, liabilities
and advances made or incurred by Lender in connection herewith or with respect to the Loan Documents or this Agreement; 
  
 (b) Second, to the payment of all of the costs, fees and expenses to which the Lender is entitled under the Loan Documents including,
without limitation, Lender’s attorneys’ fees and costs of collection, whether or not suit for enforcement of Lender’s rights has been commenced or consummated; 
  
 (c) Third, to the payment in full of the interest on and principal due under the Loan Documents (whether or
not the same shall have been declared forthwith due and payable) and all other indebtedness secured by the pledge hereunder, or, if not sufficient to pay all such amounts in full, then to payment of accrued but unpaid interest, and then unpaid
principal due under the Agreement until the Borrower’s obligations under the Agreement are paid in full, and next, if any amounts remain, to any other indebtedness or obligation secured by the pledge hereunder in such order as Lender may elect;
and 
  
 (d) Fourth, after all payments described
in Subparagraphs (a) through (c) of this section shall have been made in full, any surplus remaining from such proceeds shall be paid to Pledgor or whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may
direct. 
  
 7. Presentments. Lender shall be under no duty
or obligation whatsoever, other than as set forth in this Pledge and Security Agreement and the Loan Documents 

  

 4 

 
including, without limitation the Guaranty, to make or give any presentments, demands for performances, notices of nonperformance, protests, notice of
protest or notice of dishonor in connection with the obligations evidenced by the Loan Documents or the whole or any part of the obligations secured hereunder. 
  

8. No Waiver. No delay on the part of Lender in exercising any right, power or privilege under this Pledge and Security Agreement or failure to
exercise the same shall operate as a waiver of or otherwise affect any such right, power or privilege, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. No notice to or demand on the Pledgor shall be deemed to be a waiver of any of the obligations of the Pledgor or of the right of Lender to take further action or to exercise any rights hereunder without notice or demand or prejudice the
rights of Lender in any respect; nor in any event shall any alternative, amendment, modification or waiver of the provisions of this Pledge Agreement be effective unless in writing by the party to be charged thereby, nor shall any such waiver be
applicable except in the specific instance for which given. 
  
 9.
No Disposition. Without the prior written consent of Lender, Pledgor agrees that it will not sell, assign, transfer, exchange or otherwise dispose of, or grant any option with respect to the Stock Collateral, nor will it create, incur or
permit to exist any Lien on any of the Stock Collateral, or any interest thereon, or any proceeds thereof, except for the Liens thereon in favor of Lender. Without the prior written consent of Lender, Pledgor agrees that it will not take any action
that would compromise Lender’s rights under the Agreement. 
  
 10. Other Rights. The rights, powers and remedies given to Lender by this Agreement shall be in addition to all rights, powers and remedies given to Lender by virtue of any statute or rule of law. Every right, power and remedy of
Lender shall continue in full force and effect until either (a) termination of this Agreement or (b) such right, power or remedy is specifically waived by an instrument in writing executed by Lender. 
  
 11. Further Assurances. Pledgor hereby agrees to execute and deliver,
from time to time, any and all further, or other, instruments, and to perform such acts, as Lender may reasonably request to effect the purposes of this Agreement and to secure to Lender and to all persons who may from time to time be holders of any
of the Stock Collateral hereunder the benefits of all rights, authorities and remedies conferred upon Lender by the terms of this Pledge Agreement. 
  
 12. Binding Effect. This Agreement shall be binding upon the parties hereto and their respective heirs, legal representatives, successors and
assigns. 
  

 5 

 13. Notices. All notices, demands and communications given or made hereunder or pursuant hereto
shall be in writing and shall be given by certified mail return receipt requested, or by telefacsimile, addressed as follows: 
  

			
	To Pledgors:	  	 SPACEHAB, INCORPORATED
 300 D Street SW
 Suite 814
 Washington, DC 20024
 Fax: (202) 488-8241

		
	To Lender:	  	 SouthTrust Bank
 420 North 20th Street
 Birmingham, AL 35203
 Attn: Florida Corporate Banking (St.
Petersburg)
 Fax: (727) 898-5319

		
	 	  	With copy to:
		
	 	  	 SouthTrust Bank
 150 Second Avenue North
 Suite 400
 St. Petersburg, FL 33701
 Fax: (727) 898-5319

  
 or to such other address or to such
other person as any party shall designate to the others for such purpose in the manner hereinabove set forth. 
  
 14. Specific Performance. The parties hereto agree that the remedies at law for damages under this Pledge and Security Agreement in the event of
any actual or threatened breach or default hereunder are not and will not be adequate, and that the obligations may therefore be specifically enforced. 
  
 15. Gender; Defined Terms. Whenever in this Pledge and Security Agreement the context so requires, the singular shall include the plural and the
plural the singular. It is also understood that designations of parties hereto in a particular gender shall be read to include other genders as applicable. All capitalized terms not otherwise defined in this Pledge and Security Agreement shall have
the meanings given them in the Agreement or in the Guaranty as the context may require. 
  
 16. Severability. If any provision of this Pledge and Security Agreement is determined by a court to be invalid or unenforceable, such determination shall not affect any other provision, each of which shall be
construed and enforced as if such invalid or unenforceable portion were not contained herein. Such invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision shall be deemed to be
effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. 
  

 6 

 17. Amendments; Governing Law. This Pledge and Security Agreement may not be amended or
supplemented except by an instrument in writing executed by Lender and the Pledgor. The validity and interpretation of this Pledge and Security Agreement and performance of the parties hereto of their respective duties and obligations hereunder
shall be governed by the laws of the State of Florida. 
  
 18.
Jurisdiction and Venue. The Pledgor agrees that by executing and delivering this Pledge and Security Agreement to the Lender the Pledgor submits to personal jurisdiction in any court of competent jurisdiction in Hillsborough County, Florida,
agrees that service of process may be had on the Pledgor by service upon the Secretary of State of the State of Florida with a copy sent by certified mail to Pledgor at its address for notices set forth in this Agreement, and that venue of any
action arising under or relating to this Agreement shall lie exclusively in Hillsborough County, Florida. 
  
 19. Waiver of Right to Jury Trial. The Pledgor, for itself, its successors and assigns, hereby waives its right to trial by jury in any action,
whether in contract or tort, arising under or in any way related to this Pledge and Security Agreement or to the Loan Documents. 
  
 20. Assignment. Pledgor acknowledges and agrees that Lender shall have the right to assign this Pledge and Security Agreement and all of
Lender’s rights hereunder. 
  
 IN WITNESS WHEREOF, the
parties have duly executed this Agreement on the day and year first written above. 
  

			
	SPACEHAB, INCORPORATED
		
	By:	 	/s/    JULIA PULZONE        
	 Name:
	 	Julia Pulzone
	 Its:
	 	Chief Financial Officer

  

 7 

 EXHIBIT “A” 
  
 [Date] 
  
 SouthTrust Bank 
 420 North 20th Street 
 Birmingham, AL 35203 
  
 Gentlemen: 
  
 As of this date,
SPACEHAB, INCORPORATED, (the “Pledgor”) is the registered owner by book entry of                          shares
of common stock of Astrotech Space Operations, Inc. (collectively, the “Pledged Stock”). Upon execution and delivery of this letter, SouthTrust Bank (the “Pledgee”), as Pledgee of the Pledgor, has been established by book entry
by                                      (the
“Intermediary”) as the registered owner of the Pledged Stock. 
  
 Neither the Pledgor nor any third party shall have the right to withdraw the Pledged Stock from control of the Pledgee or the Intermediary without the written consent of the Pledgee nor shall the Intermediary take directions from any party
other than the Pledgee regarding transfer or other disposition of the Pledged Stock. The Pledgor shall, however, be entitled to receive or to direct payment and distribution of dividends paid or interest earned on the Pledged Stock which right shall
terminate upon notification by the Pledgee to the Intermediary of the occurrence of an event of default under the obligations secured by the Stock Pledge and Security Agreement between Pledgor and Pledgee dated as of August
    , 2001 (an “Event of Default”). Upon receipt by the Intermediary of a notice from the Pledgee of the occurrence of an Event of Default, the Intermediary shall take and act exclusively in accordance with
directions from the Pledgee regarding the transfer or other disposition of the Pledged Stock and any dividends accruing thereunder. 
  
 The Intermediary shall maintain the Pledged Stock in the Pledgee’s name as registered owner by book entry until instructed by the Pledgee in writing
(i) upon occurrence of an Event of Default, to transfer ownership of the Pledged Stock to a third party or to otherwise dispose of the Pledged Stock as directed by the Pledgee, or (ii) to transfer the Pledged Stock to another intermediary or to
cause certificated securities representing the Pledged Stock endorsed in blank to be delivered to the Pledgee or to another intermediary or securities depository, or (iii) upon payment in full of the obligations secured by the Pledged Stock, to
release the Pledged Stock to the Pledgor or Pledgor’s designee. 
  
 In the event that the Intermediary shall have a lien on any of the Pledged Stock, the Intermediary agrees that such lien shall be subordinated to the security interest of the Pledgee. 
  

 8 

 The Intermediary shall be under an absolute duty of safekeeping to the Pledgee with respect to the
registration of ownership, custody, protection and preservation of the Pledged Stock. The Intermediary shall maintain the Pledged Stock in book entry form in trust for the benefit of the Pledgee. With respect to any Pledged Stock that it holds or
controls, the Intermediary shall be a fiduciary of the Pledgee. 
  
 This Agreement shall be governed and construed in accordance with the laws of the State of Florida regardless of which state this Agreement is executed in. 
  
 This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors
and assigns. 
  
 The Intermediary agrees that by executing and
delivering this Agreement to the Pledgee it submits to personal jurisdiction in any court of competent jurisdiction in Florida, agrees that service of process may be had on it by service upon the Secretary of State of the State of Florida with a
copy sent by certified mail to the Intermediary, and that venue of any action arising under or relating to this Agreement shall lie exclusively in Florida. 
  
 The Intermediary, for itself, its successors and assigns, hereby waives its right to trial by jury in any action, whether in contract or tort, arising
under or in any way related to this Agreement. 
  
 The Pledgor, by
its execution of this letter below, hereby consents and agrees to the matters set forth hereinabove, and to the granting of control of the Pledged Stock to the Pledgee by the Intermediary. 
  

					
	 [INTERMEDIARY]

		
	By:	 	 
	 	 	 Print Name:
	 	 
	 	 	 Its:
	 	 

  
 Consented and
agreed to by SPACEHAB, INC. 
  

					
	 SPACEHAB, INCORPORATED

		
	By:	 	 
	 	 	 Print Name:
	 	 
	 	 	 Its:
	 	 

  

 9

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