Attachment_16b_-_Subordination_Agreement_DCMA_Form_1619.pdf

Subordination Agreement DCMA Form 1619 02-04 Page 1 of 2

SUBORDINATION AGREEMENT

(Applicable to One or More Contracts) a corporation (Insert Debtor’s Name) organized under the laws of the State of having its principal place of business at (Street Address) in the City of in the State of , hereinafter called the Debtor, has entered into existing contracts (list the existing contract numbers), , and/or proposes to enter into contract(s)

(Insert Department Name), (Insert proposed contract solicitation number), , with the United States of America (e.g., Department of Defense, its Agencies or NASA) herein after called the Government, for the furnishing of supplies and/or services and expects to enter into future contracts for the furnishing of supplies and/or services. The contract or contracts include provisions for interim financing. Pursuant thereto, the Debtor has requested interim financing, which the Government is willing to grant in accordance with the terms of the contract clauses and upon condition that

(Insert Creditor’s Name)

(Insert Creditor’s Description, Address, etc.)

herein after referred to as the Creditor, agrees to subordinate all of its rights with respect to payments due or to become due from the Debtor to the undersigned Creditor to the rights of the Government under or arising out of existing and future contracts. The rights of the Creditor on any and all, present and future, recorded or perfected liens under the Uniform Commercial Code are fully subordinated to the Government with respect to any property to which the Government has title under, or arising out of, the aforementioned contracts and future contracts. The property to which the Government has title pursuant to the contract clauses includes, but is not limited to, parts, material, inventory, and work in process.

If any person, firm, corporation or entity other than the Debtor becomes obligated to perform said contracts or any part thereof, whether by operation of law or otherwise, any and all present and future rights of the Creditor shall remain fully subordinated to the rights of the Government.

This Subordination Agreement shall not be affected by any action extending the time of performance of the contract (or contracts) or by the making of any amendment or modification authorized by the terms of said contracts.

The Creditor hereby certifies that it has not given or executed any prior Subordination Agreement with respect to its claims against the Debtor except as follows;

(Insert to Whom, or if None, so state)

Subordination Agreement DCMA Form 1619 02-04 Page 2 of 2

The Creditor hereby agrees to direct the Debtor (a) to mark its records in accordance with this Subordination Agreement and (b) to confirm receipt of notice by signing in the place indicated below.

This Agreement shall inure to the benefit of and may be enforced by the United States.

Executed the day of year of .

(Creditor)

By (Title)

(Business Address)

Witness

Witness

I, , certify that I am the duly elected Secretary of the Corporation or Business Entity named as Creditor herein; that who signed this agreement on behalf of the Creditor, was then of said Corporation, that said Agreement was duly signed for and in behalf of said Corporation by authority of its governing body, and is within the scope of its corporate powers.

Corporate Seal:

(Secretary)

Receipt of a copy of the above Subordination Agreement is acknowledged.

THE UNITED STATES OF AMERICA

By

(Contracting Officer) (Contracting Officer Address)