Document:

Exhibit 10.1 - 2012 Employee Stock Purchase Plan

EXHIBIT 10.1
INFOBLOX INC.
2012 EMPLOYEE STOCK PURCHASE PLAN
(as amended February 25, 2014)
1.    PURPOSE.  Infoblox Inc. adopted the Plan effective as of the date of the IPO. The purpose of this Plan is to provide eligible employees of the Company and the Participating Corporations with a means of acquiring an equity interest in the Company through payroll deductions, to enhance such employees’ sense of participation in the affairs of the Company and the Participating Corporations, and to provide an incentive for continued employment. Capitalized terms not defined elsewhere in the text are defined in Section 30.
2.    ESTABLISHMENT OF PLAN.  The Company proposes to grant rights to purchase shares of Common Stock to eligible employees of the Company and its Participating Corporations pursuant to this Employee Stock Purchase Plan. This Plan includes two components: a Code Section 423 Component (the “423 Component”) and a non-Code Section 423 Component (the “Non-423 Component”). The Company intends the 423 Component of the Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code (including any amendments to or replacements of such Section), and the 423 Component shall be so construed. Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same definition herein.  In addition, this Plan authorizes the grant of options under the Non-423 Component, which does not qualify as an “employee stock purchase plan” under Section 423 of the Code; such options granted under the Non-423 Component shall be granted pursuant to rules, procedures or sub-plans adopted by the Board to achieve tax, securities laws or other objectives for the Company and/or eligible employees. Except as otherwise provided herein, the Non-423 Component will operate and be administered in the same manner as the 423 Component.  Offerings intended to be made under the Non-423 Component will be designated as such by the Board at or prior to the time of such offering.  Subject to Section 15, a total of one million five hundred thousand (1,500,000) shares of Common Stock is reserved for issuance under this Plan. In addition, on each January 1 for the first eight calendar years after the first Offering Date, the aggregate number of shares of Common Stock reserved for issuance under the Plan shall be increased automatically by the number of shares equal to one (1%) of the total number of outstanding shares of the Common Stock on the immediately preceding December 31 (rounded down to the nearest whole share), but not to exceed one million (1,000,000) shares; provided, that the Board or the Committee may in its sole discretion reduce the amount of the increase in any particular year. The number of shares reserved for issuance under this Plan and the maximum number of shares that may be issued under this Plan shall be subject to adjustments effected in accordance with Section 15.
3.    ADMINISTRATION.  The Plan will be administered by the Committee. Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any successor provision in the Code, all questions of interpretation or application of this Plan shall be determined by the Committee and its decisions shall be final and binding upon all Participants. The Committee will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and decide upon any and all claims filed under the Plan. Every finding, decision and determination made by the Committee will, to the full extent permitted by law, be final and binding upon all parties. Notwithstanding any provision to the contrary in this Plan, the Committee may adopt rules, procedures and/or sub-plans relating to the operation and administration of the Plan to accommodate requirements of local law and procedures outside of the United States; to the extent inconsistent with the requirements of Section 423 of the Code, such rules, procedures and/or sub-plans shall be considered part of the Non-423 Component of the Plan. The Committee will have the authority to determine the Fair Market Value of the Common Stock (which determination shall be final, binding and conclusive for all purposes) in accordance with Section 8 below and to interpret Section 8 of the Plan in connection with circumstances that impact the Fair Market Value. Members of the Committee shall receive no compensation for their services in connection with the administration of this Plan, other than standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees.  All expenses incurred in connection with the administration of this Plan shall be paid by the Company. Unless otherwise specified by the Committee, each offering under the Plan to the eligible employees of the Company or a Participating Corporation shall be deemed a separate offering (the terms of which need not be identical to those of any other separate offering), even if the dates of the applicable Offering Periods of each such offering are identical.

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4.    ELIGIBILITY.
(a)    Any employee of the Company or the Participating Corporations is eligible to participate in an Offering Period under this Plan, except that one or more of the following categories of employees may be excluded from coverage under the Plan by the Committee (other than where prohibited by applicable law);
(i)    employees who are customarily employed for twenty (20) hours or less per week;
(ii)    employees who are customarily employed for five (5) months or less in a calendar year;
(iii)    employees who do not meet any other eligibility requirements that the Committee may choose to impose (within the limits permitted by the Code).
The foregoing notwithstanding, an individual shall not be eligible if his or her participation in the Plan is prohibited by the law of any country that has jurisdiction over him or her, or if complying with the laws of any such country would cause the Plan to violate Section 423 of the Code, or if he or she is subject to a collective bargaining agreement that does not provide for participation in the Plan.  Furthermore, in the case of the Non-423 Component, an individual may be excluded from participation in the Plan or an offering under the Plan if the Committee has determined that participation of such individual is not advisable or practicable.
(b)    No employee who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the Code, owns stock or holds options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or its Parent or Subsidiary or who, as a result of being granted an option under this Plan with respect to such Offering Period, would own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or its Parent or Subsidiary shall be granted an option to purchase Common Stock under the Plan.
5.    OFFERING DATES.
(a)    Each Offering Period of this Plan may be of up to twenty-seven (27) months duration and shall commence and end at the times designated by the Committee. Each Offering Period may consist of one or more Purchase Periods during which payroll deductions of Participants are accumulated under this Plan.
(b)    The initial Offering Period shall commence on the date on which the Registration Statement covering the IPO is declared effective by the U.S. Securities and Exchange Commission (the “Effective Date”), and shall end with the Purchase Date that occurs on a date selected by the Committee which is approximately 24 months after the Effective Date (but in any event not more than 27 months after the Effective Date). The initial Offering Period shall consist of four Purchase Periods. Thereafter, a new Offering Period shall commence every six (6) months thereafter, except as otherwise provided by an applicable sub-plan, or on such other date determined by the Committee. The Committee may at any time establish a different duration for an Offering Period or Purchase Period to be effective after the next scheduled Purchase Date.

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6.    PARTICIPATION IN THIS PLAN.
(a)    Any employee who is an eligible employee determined in accordance with Section 4 immediately prior to the initial Offering Period will be automatically enrolled in the initial Offering Period under this Plan. With respect to subsequent Offering Periods, any eligible employee determined in accordance with Section 4 will be eligible to participate in this Plan, subject to the requirement of Section 6(b) hereof and the other terms and provisions of this Plan.
(b)    Notwithstanding the foregoing, an eligible employee may elect to decrease the number of shares of Common Stock that such employee would otherwise be permitted to purchase for the initial Offering Period under the Plan and/or purchase shares of Common Stock for the initial Offering Period through payroll deductions by delivering a subscription agreement to the Company within thirty (30) days after the filing of an effective registration statement pursuant to Form S-8. With respect to Offering Periods after the initial Offering Period, a Participant may elect to participate in this Plan by submitting a subscription agreement prior to the commencement of the Offering Period (or such earlier date as the Committee may determine) to which such agreement relates.
(c)    Once an employee becomes a Participant in an Offering Period, then such Participant will automatically participate in each subsequent Offering Period commencing immediately following the last day of the prior Offering Period unless the Participant withdraws or is deemed to withdraw from this Plan or terminates further participation in an Offering Period as set forth in Section 11 below. Such Participant is not required to file any additional subscription agreement in order to continue participation in this Plan.
7.    GRANT OF OPTION ON ENROLLMENT.  Becoming a Participant with respect to an Offering Period will constitute the grant (as of the Offering Date) by the Company to such Participant of an option to purchase on the Purchase Date up to that number of shares of Common Stock of the Company determined by a fraction, the numerator of which is the amount accumulated in such Participant’s payroll deduction account during such Purchase Period and the denominator of which is the lower of (i) eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Offering Date (but in no event less than the par value of a share of the Common Stock), or (ii) eighty-five percent (85%) of the Fair Market Value of a share of the Common Stock on the Purchase Date (but in no event less than the par value of a share of the Common Stock) provided, however, that for the Purchase Period within the initial Offering Period the numerator shall be fifteen percent (15%) of the Participant’s compensation for such Purchase Period, or such lower percentage as determined by the Committee prior to the Effective Date, and provided, further, that the number of shares of Common Stock subject to any option granted pursuant to this Plan shall not exceed the lesser of (x) the maximum number of shares set by the Committee pursuant to Section 10(b) below with respect to the applicable Purchase Date, or (y) the maximum number of shares which may be purchased pursuant to Section 10(a) below with respect to the applicable Purchase Date.
8.    PURCHASE PRICE.  The Purchase Price per share at which a share of Common Stock will be sold in any Offering Period shall be eighty-five percent (85%) of the lesser of:
(a)    The Fair Market Value on the Offering Date; or
(b)    The Fair Market Value on the Purchase Date.

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9.    PAYMENT OF PURCHASE PRICE; PAYROLL DEDUCTION CHANGES; SHARE ISSUANCES.
(a)    The Purchase Price shall be accumulated by regular payroll deductions made during each Offering Period, unless the Committee determines with respect to categories of Participants outside the United States and/or on a Leave of Absence (as defined in Section 12) that contributions may be made in another form due to local legal requirements. The deductions are made as a percentage of the Participant’s compensation in one percent (1%) increments not less than one percent (1%), nor greater than fifteen percent (15%) or such lower limit set by the Committee. Compensation shall mean all compensation, including, but not limited to base salary, wages, commissions, overtime, shift premiums and regular bonuses, plus draws against commissions (or in foreign jurisdictions, equivalent cash compensation, including 13th/14th month payments or similar additional annual wage concepts under local law), but excluding amounts related to Company equity compensation; provided, however, that for purposes of determining a Participant’s compensation, any election by such Participant to reduce his or her regular cash remuneration under Sections 125 or 401(k) of the Code (or in foreign jurisdictions, equivalent salary deductions) shall be treated as if the Participant did not make such election. Payroll deductions shall commence on the first payday following the last Purchase Date (with respect to the initial Offering Period, first payday following the effective date of filing with the U.S. Securities and Exchange Commission a securities registration statement for the Plan) and shall continue to the end of the Offering Period unless sooner altered or terminated as provided in this Plan. Notwithstanding the foregoing, the terms of any offering under the Non-423 Component may permit matching shares without the payment of any purchase price.
(b)    Subject to Section 26 below and to the rules of the Committee, a Participant may make changes in the rate of payroll deductions during an Offering Period or any Purchase Period by filing with the Company a new authorization for payroll deductions.
(c)    Subject to Section 26 below and to the rules of the Committee, a Participant may reduce his or her payroll deduction percentage to zero during an Offering Period by filing with the Company a request for cessation of payroll deductions, and after such reduction becomes effective no further payroll deductions will be made for the duration of the Offering Period. Payroll deductions credited to the Participant’s account prior to the effective date of the request shall be used to purchase shares of Common Stock in accordance with Section (e) below. A reduction of the payroll deduction percentage to zero (not including a suspension of deductions pursuant to Section 10(a)) shall be treated as such Participant’s withdrawal from such Offering Period, and the Plan, effective as of the day after the next Purchase Date following the filing date of such request with the Company, (and therefore the Purchase Price associated with such Offering Period shall no longer be available to such Participant), provided however, that no reduction or suspension shall be treated as a withdrawal from either the Offering Period or the Plan if that reduction is necessary or advisable to comply with any provision in the ESPP or Section 423 of the Code or the regulations thereunder, as determined by the Committee.
(d)    All payroll deductions made for a Participant are credited to his or her account under this Plan.  Such payroll deductions are deposited with the general funds of the Company and may be used by the Company for any corporate purpose, except to the extent required to be segregated due to local legal restrictions outside the United States. No interest accrues on the payroll deductions (except to the extent required due to local legal requirements outside the United States).

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(e)    On each Purchase Date, so long as this Plan remains in effect and provided that the Participant has not submitted a signed and completed withdrawal form before that date which notifies the Company that the Participant wishes to withdraw from that Offering Period under this Plan and have all payroll deductions accumulated in the account maintained on behalf of the Participant as of that date returned to the Participant, the Company shall apply the funds then in the Participant’s account to the purchase of whole shares of Common Stock reserved under the option granted to such Participant with respect to the Offering Period to the extent that such option is exercisable on the Purchase Date. The Purchase Price per share shall be as specified in Section 8 of this Plan. The Committee may determine with respect to all Participants that any fractional share, as calculated under this Subsection (c) shall be (i) rounded down to the next lower whole share or (ii) credited as a fractional share. Any amount remaining in a Participant’s account on a Purchase Date which is less than the amount necessary to purchase a full share of Common Stock shall be returned to the Participant, without interest (except to the extent required due to local legal requirements outside the United States). In the event that this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date shall be returned to the Participant, without interest (except to the extent required due to local legal requirements outside the United States). No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to such Purchase Date.
(f)    As promptly as practicable after the Purchase Date, the Company shall issue shares for the Participant’s benefit representing the shares purchased upon exercise of his or her option.
(g)    During a Participant’s lifetime, his or her option to purchase shares hereunder is exercisable only by him or her. The Participant will have no interest or voting right in shares covered by his or her option until such option has been exercised.
(h)    To the extent required by applicable federal, state, local or foreign law, a Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any shares of Common Stock under the Plan until such obligations are satisfied.
10.    LIMITATIONS ON SHARES TO BE PURCHASED.
(a)    Any other provision of the Plan notwithstanding, no Participant shall purchase Common Stock with a Fair Market Value in excess of the following limit:
(i)    In the case of Common Stock purchased during an Offering Period that commenced in the current calendar year, the limit shall be equal to (A) $25,000 minus (B) the Fair Market Value of the Common Stock that the Participant previously purchased in the current calendar year (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company).
(ii)    In the case of Common Stock purchased during an Offering Period that commenced in the immediately preceding calendar year, the limit shall be equal to (A) $50,000 minus (B) the Fair Market Value of the Common Stock that the Participant previously purchased (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the immediately preceding calendar year.
(iii)    In the case of Common Stock purchased during an Offering Period that commenced in the second preceding calendar year, the limit shall be equal to (A) $75,000 minus (B) the Fair Market Value of the Common Stock that the Participant previously purchased (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the two preceding calendar years.

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For purposes of this Subsection (a), the Fair Market Value of Common Stock shall be determined in each case as of the beginning of the Offering Period in which such Common Stock is purchased. Employee stock purchase plans not described in section 423 of the Code shall be disregarded. If a Participant is precluded by this Subsection (a) from purchasing additional Common Stock under the Plan, then his or her employee contributions shall automatically be discontinued and shall automatically resume at the beginning of the earliest Purchase Period that will end in the next calendar year (if he or she then is an eligible employee), provided that when the Company automatically resumes such payroll deductions, the Company must apply the rate in effect immediately prior to such suspension.
(b)    In no event shall a Participant be permitted to purchase more than 5,000 Shares on any one Purchase Date or such lesser number as the Committee shall determine. If a lower limit is set under this Subsection (b), then all Participants will be notified of such limit prior to the commencement of the next Offering Period for which it is to be effective.
(c)    If the number of shares to be purchased on a Purchase Date by all Participants exceeds the number of shares then available for issuance under this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be reasonably practicable and as the Committee shall determine to be equitable. In such event, the Company will give notice of such reduction of the number of shares to be purchased under a Participant’s option to each Participant affected.
(d)    Any payroll deductions accumulated in a Participant’s account which are not used to purchase stock due to the limitations in this Section 10, and not covered by Section 9(d), shall be returned to the Participant as soon as practicable after the end of the applicable Purchase Period, without interest (except to the extent required due to local legal requirements outside the United States).
11.    WITHDRAWAL.
(a)    Each Participant may withdraw from an Offering Period under this Plan pursuant to a method specified for such purpose by the Company. Such withdrawal may be elected at any time prior to the end of an Offering Period, or such other time period as specified by the Committee.
(b)    Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn Participant, without interest (except to the extent required due to local legal requirements outside the United States), and his or her interest in this Plan shall terminate. In the event a Participant voluntarily elects to withdraw from this Plan, he or she may not resume his or her participation in this Plan during the same Offering Period, but he or she may participate in any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in Section 6 above for initial participation in this Plan.
(c)    If the Fair Market Value on the first day of the current Offering Period in which a Participant is enrolled is higher than the Fair Market Value on the first day of any subsequent Offering Period, the Company will automatically enroll such Participant in the subsequent Offering Period.

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12.    TERMINATION OF EMPLOYMENT.  Termination of a Participant’s employment for any reason, including retirement, death, disability, or the failure of a Participant to remain an eligible employee of the Company or of a Participating Corporation, immediately terminates his or her participation in this Plan. In such event, accumulated payroll deductions credited to the Participant’s account will be returned to him or her or, in the case of his or her death, to his or her legal representative, without interest (except to the extent required due to local legal requirements outside the United States).
For purposes of this Section 12, an employee will not be deemed to have terminated employment or failed to remain in the continuous employ of the Company or of a Participating Corporation in the case of sick leave, military leave, or any other leave of absence approved by the Company (“Leave of Absence”); provided that such leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is guaranteed by contract or statute. The Company will have sole discretion to determine whether a Participant has terminated employment and the effective date on which the Participant terminated employment, regardless of any notice period or garden leave required under local law.
13.    TRANSFER OF EMPLOYMENT.  If a Participant transfers employment from the Company or any Participating Corporation in the 423 Component of the Plan to a Participating Corporation in the Non-423 Component, the Participant shall immediately cease to participate in the 423 Component; however, any payroll deductions collected from the Participant for the Purchase Period in which such transfer occurs shall be transferred to the Non-423 Component, and such Participant shall immediately join the then current offering under the Non-423 Component upon the same terms and conditions in effect for his or her participation in the Plan, except for such modifications as may be required by applicable law or otherwise applicable to Participants at the Participating Corporation to which the Participant has transferred.  A Participant who transfers employment from a Participating Corporation in the Non-423 Component to the Company or any Participating Corporation in the 423 Component shall remain a Participant in the Non-423 Component until the earlier of (a) the end of the current Offering Period under the Non-423 Component, or (b) the Offering Date of the first Offering Period in which he or she participates following such transfer.  Notwithstanding the foregoing, the Committee may establish different rules to govern transfers of employment between companies participating in the 423 Component and the Non-423 Component, consistent with the applicable requirements of Section 423 of the Code.
14.    RETURN OF PAYROLL DEDUCTIONS.  In the event a Participant’s interest in this Plan is terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is terminated by the Board, the Company shall deliver to the Participant all accumulated payroll deductions credited to such Participant’s account. No interest shall accrue on the payroll deductions of a Participant in this Plan (except to the extent required due to local legal requirements outside the United States).
15.    CAPITAL CHANGES.  If the number of outstanding Shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company, without consideration, then the Committee shall adjust the number and class of Common Stock that may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, and the numerical limits of Sections 1 and 10 shall be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and in compliance with applicable securities laws; provided that fractions of a Share will not be issued.
16.    NONASSIGNABILITY.  Neither payroll deductions credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive shares under this Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 23 below) by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be void and without effect.

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17.    USE OF PARTICIPANT FUNDS AND REPORTS.  All payroll deductions made for a Participant are credited to his or her account under this Plan and are deposited with the general funds of the Company and may be used by the Company for any corporate purpose, except to the extent required to be segregated due to local legal requirements outside the United States.   Until Shares are issued, Participants will only have the rights of an unsecured creditor. Each Participant shall receive promptly after the end of each Purchase Period a report of his or her account setting forth the total payroll deductions accumulated, the number of shares purchased, the per share price thereof and the remaining cash balance, if any, carried forward to the next Purchase Period or Offering Period, as the case may be.
18.    NOTICE OF DISPOSITION.  Each U.S. taxpayer Participant in the 423 Component of the Plan shall notify the Company in writing if the Participant disposes of any of the shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years from the Offering Date or within one (1) year from the Purchase Date on which such shares were purchased (the “Notice Period”). The Company may, at any time during the Notice Period, place a legend or legends on any certificate representing shares acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any transfer of the shares. The obligation of the Participant to provide such notice shall continue notwithstanding the placement of any such legend on the certificates.
19.    NO RIGHTS TO CONTINUED EMPLOYMENT.  Neither this Plan nor the grant of any option hereunder shall confer any right on any employee to remain in the employ of the Company or any Participating Corporation, or restrict the right of the Company or any Participating Corporation to terminate such employee’s employment.
20.    EQUAL RIGHTS AND PRIVILEGES.  All eligible employees granted an option under this Plan that is intended to meet the Code Section 423 requirements shall have equal rights and privileges with respect to this Plan or within any separate offering under the Plan so that this Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision of the 423 Component of this Plan which is inconsistent with Section 423 or any successor provision of the Code shall, without further act or amendment by the Company, the Committee or the Board, be reformed to comply with the requirements of Section 423. With respect to the 423 Component of the Plan, this Section 20 shall take precedence over all other provisions in this Plan.
21.    NOTICES.  All notices or other communications by a Participant to the Company under or in connection with this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.
22.    TERM; STOCKHOLDER APPROVAL. This Plan will become effective on the Effective Date. This Plan shall be approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months before or after the date this Plan is adopted by the Board. No purchase of shares that are subject to such stockholder approval before becoming available under this Plan shall occur prior to stockholder approval of such shares and the Board or Committee may delay any Purchase Date and postpone the commencement of any Offering Period subsequent to such Purchase Date as deemed necessary or desirable to obtain such approval (provided that if a Purchase Date would occur more than twenty-four (24) months after commencement of the Offering Period to which it relates, then such Purchase Date shall not occur and instead such Offering Period shall terminate without the purchase of such shares and Participants in such Offering Period shall be refunded their contributions without interest, except as otherwise required under local laws). This Plan shall continue until the earlier to occur of (a) termination of this Plan by the Board (which termination may be effected by the Board at any time pursuant to Section 26 below), (b) issuance of all of the shares of Common Stock reserved for issuance under this Plan, or (c) the tenth anniversary of the first Purchase Date under the Plan.

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23.    DESIGNATION OF BENEFICIARY.
(a)    Unless otherwise determined by the Company, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under this Plan in the event of such Participant’s death prior to a Purchase Date. Such form shall be valid only if it was filed with the Company at the prescribed location before the Participant’s death.
(b)    Such designation of beneficiary may be changed by the Participant at any time by written notice filed with the Company at the prescribed location before the Participant’s death. In the event of the death of a Participant and in the absence of a beneficiary validly designated under this Plan who is living at the time of such Participant’s death, the Company shall deliver such cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), subject to applicable local inheritance laws, the Company, in its discretion, may deliver such shares or cash to the spouse or, if no spouse is known to the Company, then to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
24.    CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE OF SHARES.  Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange or automated quotation system upon which the shares may then be listed, exchange control restrictions and/or securities law restrictions outside the United States, and shall be further subject to the approval of counsel for the Company with respect to such compliance.  The inability or impracticability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by counsel for the Company to be necessary to the lawful issuance and sale of any shares under the Plan, or the approval of any securities exchange or market system upon which the Common Stock may then be listed, if any, deemed by counsel for the Company to be necessary to the issuance and sale of any shares under the Plan in compliance with the requirements of such securities exchange or market system, shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority or approval shall not have been obtained. Shares may be held in trust or subject to further restrictions as permitted by any rules, procedures or sub-plans established under the Plan.
25.    APPLICABLE LAW.  The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

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26.    AMENDMENT OR TERMINATION.  The Committee, in its sole discretion, may amend, suspend, or terminate the Plan, or any part thereof, at any time and for any reason. If the Plan is terminated, the Committee, in its discretion, may elect to terminate all outstanding Offering Periods either immediately or upon completion of the purchase of shares of Common Stock on the next Purchase Date (which may be sooner than originally scheduled, if determined by the Committee in its discretion), or may elect to permit Offering Periods to expire in accordance with their terms (and subject to any adjustment pursuant to Section 15). If an Offering Period is terminated prior to its previously-scheduled expiration, all amounts then credited to Participants’ accounts for such Offering Period, which have not been used to purchase shares of Common Stock, shall be returned to those Participants (without interest thereon, except as otherwise required under local laws) as soon as administratively practicable. Further, the Committee will be entitled to establish rules to change the Purchase Periods and Offering Periods, limit the frequency and/or number of changes in the amount withheld during a Purchase Period or an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the administration of the Plan, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s base salary or regular hourly wages, and establish such other limitations or procedures as the Committee determines in its sole discretion advisable which are consistent with the Plan. Such actions will not require stockholder approval or the consent of any Participants. However, no amendment shall be made without approval of the stockholders of the Company (obtained in accordance with Section 22 above) within twelve (12) months of the adoption of such amendment (or earlier if required by Section 22) if such amendment would: (a) increase the number of shares that may be issued under this Plan; or (b) change the designation of the employees (or class of employees) eligible for participation in this Plan. In addition, in the event the Committee determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Committee may, in its discretion and, to the extent necessary or desirable, modify, amend or terminate the Plan to reduce or eliminate such accounting consequences including, but not limited to: (i) amending the definition of compensation, including with respect to an Offering Period underway at the time; (ii) altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price; (iii) shortening any Offering Period by setting a Purchase Date, including an Offering Period underway at the time of the Committee’s action; (iv) reducing the maximum percentage of compensation a participant may elect to set aside as payroll deductions; and (v) reducing the maximum number of Shares a Participant may purchase during any Offering Period. Such modifications or amendments will not require approval of the stockholders of the Company or the consent of any Participants.
27.    CORPORATE TRANSACTIONS. In the event of a Corporate Transaction, each outstanding right to purchase Common Stock will be assumed or an equivalent option substituted by the successor corporation or a parent or a subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the purchase right, the Offering Period with respect to which such purchase right relates will be shortened by setting a new Purchase Date and will end on the new Purchase Date. The new Purchase Date shall occur on or prior to the consummation of the Corporate Transaction, and the Plan shall terminate on the consummation of the Corporate Transaction.

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28.    CODE SECTION 409A.  The Plan is exempt from the application of Code Section 409A and any ambiguities herein will be interpreted to so be exempt from Code Section 409A. In particular, the Non-423 Component of the Plan is intended to be exempt from the application of Section 409A of the Code under the short-term deferral exception and any ambiguities shall be construed and interpreted in accordance with such intent.  In furtherance of the foregoing and notwithstanding any provision in the Plan to the contrary, if the Committee determines that an option granted under the Plan may be subject to Code Section 409A or that any provision in the Plan would cause an option under the Plan to be subject to Code Section 409A, the Committee may amend the terms of the Plan and/or of an outstanding option granted under the Plan, or take such other action the Committee determines is necessary or appropriate, in each case, without the Participant’s consent, to exempt any outstanding option or future option that may be granted under the Plan from or to allow any such options to comply with Code Section 409A, but only to the extent any such amendments or action by the Committee would not violate Code Section 409A.
Notwithstanding the foregoing, the Company shall have no liability to a Participant or any other party if the option to purchase Common Stock under the Plan that is intended to be exempt from or compliant with Code Section 409A is not so exempt or compliant or for any action taken by the Committee with respect thereto.
29.    TAX-QUALIFICATION.  Although the Company may endeavor to (a) qualify an option for favorable tax treatment under the laws of the United States or jurisdictions outside of the United States or (b) avoid adverse tax treatment (e.g., under Section 409A of the Code), the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment, notwithstanding anything to the contrary in this Plan, including Section 28.  The Company shall be unconstrained in its corporate activities without regard to the potential negative tax impact on Participants under the Plan.
30.    DEFINITIONS.
(a)    “Affiliate” means any entity other than a Parent or Subsidiary that, directly or indirectly, is controlled by, controls or is under common control with, the Company or in which the Company has a significant equity interest, in either case as determined by the Board.  An Affiliate may be designated as a Participating Corporation only under the Non-423 Component of the Plan.
(b)    “Board” shall mean the Board of Directors of the Company.
(c)    “Code” shall mean the Internal Revenue Code of 1986, as amended.
(d)    “Committee” shall mean a committee of the Board that consists exclusively or one or more members of the Board appointed by the Board.
(e)    “Common Stock” shall mean the common stock of the Company.
(f)    “Company” shall mean Infoblox Inc.
(g)    “Corporate Transaction” means the occurrence of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

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(h)    “Effective Date” shall mean the date on which the Registration Statement covering the initial public offering of the shares of Common Stock is declared effective by the U.S. Securities and Exchange Commission.
(i)    “Fair Market Value” shall mean, as of any date, the value of a share of Common Stock determined as follows:
(1)    if such Common Stock is then quoted on the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market (collectively, the “Nasdaq Market”), its closing price on the Nasdaq Market on the date of determination, or if there are no sales for such date, then the last preceding business day on which there were sales, as reported in The Wall Street Journal or such other source as the Board or the Committee deems reliable; or
(2)    if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal or such other source as the Board or the Committee deems reliable; or
(3)    if such Common Stock is publicly traded but is neither quoted on the Nasdaq Market nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal or such other source as the Board or the Committee deems reliable; or
(4)    with respect to the initial Offering Period, Fair Market Value on the Offering Date shall be the price at which shares of Common Stock are offered to the public pursuant to the Registration Statement covering the initial public offering of shares of Common Stock; and
(5)    if none of the foregoing is applicable, by the Board or the Committee in good faith.
(j)    “IPO” shall mean the initial public offering of Common Stock.
(k)    “Notice Period” shall mean within two (2) years from the Offering Date or within one (1) year from the Purchase Date on which such shares were purchased.
(l)    “Offering Date” shall mean the first business day of each Offering Period. However, for the initial Offering Period the Offering Date shall be the Effective Date.
(m)    “Offering Period” shall mean a period with respect to which the right to purchase Common Stock may be granted under the Plan, as determined by the Committee pursuant to Section 5(a).
(n)    “Parent” shall have the same meaning as “parent corporation” in Sections 424(e) and 424(f) of the Code.
(o)    “Participant” shall mean an eligible employee who meets the eligibility requirements set forth in Section 4 and who is either automatically enrolled in the initial Offering Period or who elects to participate in this Plan pursuant to Section 6(b).
(p)    “Participating Corporation” shall mean any Parent, Subsidiary or, for options granted under the Non-423 Component, Affiliate, that the Board designates from time to time as a corporation that shall participate in this Plan.

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(q)    “Plan” means this Infoblox Inc. 2012 Employee Stock Purchase Plan, including both the 423 Component and the Non-423 Component, as amended from time to time.
(r)    “Purchase Date” shall mean the last business day of each Purchase Period.
(s)    “Purchase Period” shall mean a period during which contributions may be made toward the purchase of Common Stock under the Plan, as determined by the Committee pursuant to Section 5(b).
(t)    “Purchase Price” shall mean the price at which Participants may purchase shares of Common Stock under the Plan, as determined pursuant to Section 8.
(u)    “Subsidiary” shall have the same meaning as “subsidiary corporation” in Sections 424(e) and 424(f) of the Code.

13Signature REIT 2013 10K EX 10.7

Exhibit 10.7
TRANSITION SERVICES AGREEMENT
THIS TRANSITION SERVICES AGREEMENT (this “Agreement”), effective as of January 1, 2014 (the “Effective Date”), is made and entered into by and among WELLS CORE OFFICE INCOME REIT, INC., a Maryland corporation (the “Company”), WELLS CORE OFFICE INCOME OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the “OP”), and WELLS REAL ESTATE FUNDS, INC., a Georgia corporation (“Wells REF”). Certain capitalized terms shall have the meanings given to such terms in Section 1 hereof.
W I T N E S S E T H:
WHEREAS, the Company is the general partner of the OP and conducts all of its business and makes all investments through the OP;
WHEREAS, the Company is now self-managed as a result of its hiring of the Targeted Personnel (as defined in the Transition to Self-Management Agreement dated as of November 26, 2013 (the “Transition Agreement”)) to direct and perform the day-to-day business affairs of the Company;
WHEREAS, the Company and Wells Core Office Income REIT Advisory Services, LLC (formerly known as Wells Real Estate Advisory Services III, LLC) (“Advisor”), which is owned and controlled by Wells REF, were parties to that certain Advisory Agreement (the “Advisory Agreement”) effective as of June 11, 2013, which agreement has now terminated, and the parties hereto, together with Advisor, remain parties to the Transition Agreement and certain related agreements; 
WHEREAS, the Company and the OP desire to avail themselves of the experience, sources of information and advice of Wells REF and its Affiliates and designees to assist the Company in a successful transition from being externally managed to being self‐managed and to have Wells REF and its Affiliates undertake the services hereinafter set forth, for the time period and at the request and subject to the supervision of the Company, all as provided herein; and
WHEREAS, Wells REF is willing to undertake to render such services upon the request and subject to the supervision of the Company, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Definitions. As used in this Agreement, the following terms have the definitions hereinafter indicated:
Advisor.  As such term is defined in the recitals of this Agreement.
Advisory Agreement.  As such term is defined in the recitals of this Agreement.
Affiliate or Affiliated.  An Affiliate of another person includes only the following: (i) any person directly or indirectly controlling, controlled by, or under common control with such other person; (ii) any person directly or indirectly owning, controlling or holding with the power to vote 10% or more of the outstanding voting securities of such other person; (iii) any legal entity for which such person acts as an executive officer, director, trustee or general partner; (iv) any person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such other 

person; and (v) any executive officer, director, trustee or general partner of such other person. An entity shall not be deemed to control or be under common control with an advisor-sponsored program unless (a) the entity owns 10% or more of the voting equity interests of such program or (b) a majority of the board (or equivalent governing body) of such program is comprised of Affiliates of the entity.
Board of Directors or Board.  The Board of Directors of the Company as of any particular time.  
Cause.  With respect to the termination of this Agreement, (i) fraud, criminal conduct, willful misconduct or willful or grossly negligent breach of fiduciary duty; or (ii) a material breach of this Agreement, including the failure by the Company or its Affiliate to make timely payments of the Consulting Fee hereunder provided that (a) the breaching party does not cure any such material breach within twenty (20) days of receiving notice of such material breach from the other parties, or (b) such material breach is not of a nature that can be remedied within such period.  “Cause” shall also include the filing of a voluntary petition for an order of relief under the federal bankruptcy code, as the same may be amended, so as to take advantage of any insolvency laws or file an answer admitting the general obligations of a bankruptcy petition.
Company.  As such term is defined in the preamble of this Agreement.
Confidential Information.  The term “Confidential Information” means all nonpublic and proprietary information relating to (i) the Company, the OP and their respective Affiliates or (ii) Wells REF and its Affiliates, as applicable.
Consulting Fee.  As such term is defined in Section 6(a) of this Agreement.
Director.  A member of the Board of Directors.
Effective Date.  As such term is defined in the preamble of this Agreement.
Independent Directors.  The term “Independent Director” shall mean a Director who satisfies the independence requirements under the rules and regulations of the New York Stock Exchange as in effect from time to time.  
OP.  As such term is defined in the preamble of this Agreement.
Termination Date.  The date of termination of this Agreement.
Transition Agreement.  As such term is defined in the recitals of this Agreement.
Wells REF.  As such term is defined in the preamble of this Agreement.
2.    Appointment.  Each of the Company and the OP hereby retains Wells REF to provide consulting, support and transitional services to them on the terms and conditions set forth in this Agreement, and Wells REF hereby accepts such appointment.  Each of the Company and the OP agree that this appointment does not render Wells REF an advisor to the Company because, among other reasons, the Company’s employees are the persons responsible for directing and performing the day-to-day business affairs of the Company.
3.    Duties of Wells REF.  As requested by the Company, Wells REF, either directly or by engaging an Affiliate, shall provide consulting, support and transitional services to the Company as set forth on Schedule A hereto.  Wells REF may delegate any of the foregoing duties to any person so long as Wells REF 

or any Affiliate remains responsible for the performance of such duties.
4.    Obligations of the Company and the OP.  The Company and the OP shall, to the extent the Company deems necessary and appropriate to enable the provision of such consulting, support and transitional services by Wells REF and its Affiliates and designees, use commercially reasonable efforts to, in accordance with applicable law: (i) provide timely responses to any information requested by Wells REF and its Affiliates and designees; (ii) provide access to the Company’s and the OP’s facilities, employees, assets and information and records as reasonably requested by Wells REF and its Affiliates and designees; and (iii) obtain and maintain all hardware and other equipment, leases and contracts in the ordinary course of business consistent with past practice.  Wells REF and its Affiliates and designees, when on the property of the Company or the OP or when given access to any equipment, computer, software, network or files owned or controlled by the Company or the OP, will conform to, and abide by, the reasonable policies and procedures of the Company and the OP concerning health, safety, security, confidentiality and privacy which have been made known to Wells REF or its applicable Affiliates or designees in advance.  Wells REF and its Affiliates shall also keep strictly confidential and shall not disclose to any third party (except as required by law) or use, other than for purposes of providing the services under this Agreement, any Confidential Information of the Company.  Wells REF and its Affiliates and designees shall be entitled to rely conclusively on, and will not be in breach or default under this Agreement or have any liability to the Company solely for relying upon, any instruction, notice, certificate, instrument, report or other paper or document which the Company or any authorized person acting on its behalf provides to Wells REF or its Affiliates or designees, including any instructions and other information provided by the Board, in connection with the performance of the Company’s obligations under this Agreement. 
5.    Obligations of Wells REF.  The performance of services pursuant to this Agreement shall be consistent with the standards applicable under the Advisory Agreement and consistent with past practice of the provisions of services thereunder, and Wells REF shall maintain sufficiently skilled personnel during the term of this Agreement to ensure that Wells REF performs under this Agreement satisfactorily, including the retention of any third-party contractors retained in accordance with Section 3 hereof.  To the extent that Wells REF retains independent contractors to perform duties that it is required to perform under this Agreement as a result of Wells REF or its Affiliates having a reduced number of skilled personnel available to provide such services, then Wells REF shall be responsible for the cost of such independent contractors.  Notwithstanding the foregoing, the parties acknowledge and agree that the scope of services to be provided by Wells REF and its Affiliates hereunder include services considered outside the scope of the Advisory Agreement and is limited to the services set forth on Schedule A hereto, which are substantially less than the day-to-day management services provided pursuant to the Advisory Agreement.
6.    Fees.  Commencing on the Effective Date, Wells REF shall be entitled to receive a consulting fee in consideration for the services rendered under this Agreement in an amount equal to $51,267 per month (the “Consulting Fee”).  The Consulting Fee shall be payable monthly in arrears by the Company in cash.
7.    Expenses.
(a)    In addition to the compensation paid to Wells REF pursuant to Section 6, the Company or the OP shall pay directly or reimburse Wells REF for any third-party expenses paid or incurred by Wells REF and its Affiliates on behalf of the Company or the OP in connection with the services it provides to the Company pursuant to this Agreement; provided, however, that Wells REF shall obtain the Company’s or the OP’s written approval prior to incurring any third-party expenses for the account of, or reimbursable by, the Company or the OP.  In the event that Wells REF does not obtain the Company’s or the OP’s written approval prior to incurring any third-party expenses for the account of, or reimbursable by, the Company or the OP, Wells REF shall be responsible for the payment of any fees paid to, and expenses incurred by, a third-party 

consultant engaged by Wells REF to perform services otherwise required to be provided by Wells REF.
(b)    Notwithstanding anything else in this Agreement to the contrary, the Company shall not be required to reimburse Wells REF for any administrative service expenses, including Wells REF overhead, personnel costs and costs of goods used in the performance of services hereunder.
(c)    Expenses incurred by Wells REF on behalf of the Company or the OP and payable pursuant to this Section 7 shall be reimbursed no less than monthly to Wells REF. Wells REF shall deliver a statement within twenty (20) days of the end of any calendar month documenting the expenses of the Company during such month which are to be reimbursed pursuant to this Section 7 and shall also deliver such statement to the Company within twenty (20) days of the Termination Date.  
8.    Other Activities of Wells REF.  Nothing herein contained shall prevent Wells REF or any of its Affiliates from engaging in or earning fees from other activities, including, without limitation, the rendering of advice to other persons (including other real estate investment trusts) and the management of other programs advised, sponsored or organized by Wells REF or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, employee or stockholder of Wells REF or its Affiliates to engage in or earn fees from any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association. Wells REF and its Affiliates may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein.
9.    Relationship of Wells REF and Company.  The Company and the OP, on the one hand, and Wells REF, on the other hand, are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.
10.    Term.  The term of this Agreement shall commence on the Effective Date and shall continue until June 30, 2014 unless otherwise terminated in accordance with this Agreement. Notwithstanding the foregoing, this Agreement may be terminated: (i) by the Company immediately for Cause; (ii) by Wells REF immediately for Cause; or (iii) by the Company or Wells REF upon ninety (90) days’ prior written notice without Cause, which notice may not be given prior to January 31, 2014.  
11.    Assignment to an Affiliate.  This Agreement may be assigned by Wells REF to an Affiliate with the approval of the Board, including a majority of the Independent Directors. Wells REF may assign any rights to receive fees or other payments under this Agreement to an Affiliate without obtaining the approval of the Board.  This Agreement shall not be assigned by the Company or the OP without the consent of Wells REF, except in the case of an assignment by the Company or the OP to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company or the OP, as the case may be, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company and the OP is bound by this Agreement.
12.    Office Space.  
(a)    In addition to its duties under this Agreement, during the period commencing on the Hire Date (as defined in the Transition Agreement) and ending on the earlier of the Office Space Termination Date (as hereinafter defined) and June 30, 2014 (the “Office Term”), Wells REF shall make available to the Company, the OP and those Targeted Personnel (as defined in the Transition Agreement) actually hired by the Company or the OP and such other personnel as the Company or the OP may determine (the “Onsite Employees”)  certain on-site space and services in the offices of Wells REF located at 6200 The Corners Parkway, Norcross, GA 30092 (the “Offices”). 

(b)    During the Office Term, Wells REF shall provide the Onsite Employees with fully furnished offices or cubicles that are the same or comparable to the space occupied by the Onsite Employees prior to the Hire Date, and shall further provide the Onsite Employees with the following services and access: (i) keys, swipe cards or passcodes to enable the Onsite Employees to access the Offices, both during regular business hours and after hours on weekends, holidays and evenings; (ii) access to, and use of, common areas, including, without limitation, copy centers and supply rooms, break rooms or cafeterias, file rooms (including the right to utilize file space), elevators, stairwells, hallways, restrooms and reception areas; (iii) access to, and use of, amenities made available to Wells REF employees from time to time, such as beverage services; (iv) access to parking lots and use of walkways, paths and other exterior areas to which others working in the Offices have regular access; (v) assistance or support of security guards, IT "help desk" personnel, general office management personnel, administrative personnel delivering mail, supplies, facsimiles or packages or performing copying and other document management services or otherwise providing administrative support; (vi) use of conference rooms in common with Wells REF employees and all whiteboards, smart boards, presentation easels, and audiovisual equipment therein and all supplies customarily found therein;  (vii) telephone and computer equipment at least comparable to that being used by the On-Site Employees prior to the Hire Date and use of printers, copiers, facsimile machines and other office equipment available to Wells REF employees in the Offices from time to time, including, without limitation, all paper, toner, ink cartridges and other supplies necessary or appropriate for the proper use and operation of the foregoing, and all office supplies generally made available to Wells REF employees in the Offices; (viii) regular cleaning and maintenance of offices and work areas occupied by OnSite Employees consistent with those services provided with respect to those areas of the Offices occupied by Wells REF employees; and (ix) electric, water and other utility services consistent with those supplied to the Offices prior to the Hire Date; and (x) office maintenance and repair services consistent with those services supplied to the Offices prior to the Hire Date and consistent with those services provided to areas of the Offices occupied by Wells REF employees after the Hire Date.  Except as otherwise provided in Section 12(c), the foregoing shall be made available at Wells REF’s sole cost and expense consistent with past practice in the ordinary course of business.  The office space and services provided by Wells REF pursuant to this Section 12(b) shall be referred to in this Agreement as the “Onsite Services”
(c)    During the Office Term, in consideration for the OnSite Services, the Company shall pay to Wells REF monthly rent in the amount of $4,552 (the “Rent”), which Rent shall be paid no later than the fifth (5th) day of each calendar month during the Office Term.
(d)    During the Office Term, the Company and the OP shall take reasonable care, and shall require that the OnSite Employees take reasonable care, of the condition of all portions of the Offices utilized or accessed by OnSite Employees.
(e)    Each of the Company and the OP, on one hand, and Wells REF, on the other hand, has interest in the confidentiality of its own Confidential Information.  Nothing in this Section 12 will be deemed to give either party any right of access to Confidential Information of the other party.  If one party receives or otherwise acquires any Confidential Information of the other party as a result of the office sharing arrangement in this Section 12, then the receiving party shall: (i) immediately notify the other party; (ii) keep such Confidential Information strictly confidential and not use such information or discuss it with any third party (except as may be required by law); and (iii) promptly return such Confidential Information to the other party.
(f)    The Company may terminate this Section 12 (except Section 12(e) which shall survive the termination or expiration of the OnSite Services and the Agreement) and its right to receive the OnSite Services upon thirty (30) days’ prior written notice to Wells REF.  The date of any such termination or such other date as may be specified in the written notice to Wells REF shall be referred to in this Agreement as 

the “Office Space Termination Date.”  The Company shall not be required to pay Rent with respect to any period after the Office Space Termination Date.  Any termination of this Section 12 and the OnSite Services shall not constitute a termination of the Agreement.
(g)    During the Office Term, Wells REF may, upon no less than sixty (60) days’ prior written notice, relocate the OnSite Employees to a different location in the 6200 The Corners Parkway building so long as (i) such office space is comparable to the office space that the OnSite Employees are then occupying and (ii) Wells REF continues to provide the OnSite Services.  Wells REF shall not give such notice prior to January 31, 2014.  
13.    Payments to and Duties of Wells REF upon Termination.
(a)    After the Termination Date, Wells REF shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within thirty (30) days after the Termination Date all unpaid reimbursements of expenses and all earned but unpaid Consulting Fees payable to Wells REF prior to termination of this Agreement.  Notwithstanding the foregoing, if the Company terminates this Agreement without Cause pursuant to Section 10 prior to June 30, 2014, then Wells REF shall be entitled to payment of the Consulting Fee through June 30, 2014, with such compensation to be paid pursuant to this Section 13.
(b)    Wells REF shall promptly upon termination:
(i)    pay over to the Company all money collected and held for the account of the Company pursuant to this Agreement, after deducting any earned but unpaid fees and reimbursement for its expenses to which it is then entitled;
(ii)    deliver to the Company a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Company; and
(iii)    deliver to the Company all assets and documents of the Company then in the custody of Wells REF, and any reasonable expenses associated with delivery of such assets and documents shall be reimbursed by the Company to Wells REF.
14.    Indemnification by the Company. The Company shall indemnify and hold harmless Wells REF and its Affiliates, including their respective officers, directors, managers, partners and employees, from all liability, claims, damages, taxes or losses and related expenses, including reasonable attorneys’ fees and costs (collectively, “Losses”), arising as a result of any acts or omissions in connection with the performance of their duties hereunder, subject to any limitations imposed by the laws of the State of Maryland.  Notwithstanding the foregoing, Wells REF shall not be entitled to indemnification or be held harmless pursuant to this Section 14 for any activity for which Wells REF shall be required to indemnify or hold harmless the Company pursuant to Section 15.  
15.    Indemnification by Wells REF.  Wells REF shall indemnify and hold harmless the Company and its Affiliates, including their respective officers, directors, managers, partners and employees, from all Losses to the extent that such Losses are incurred by reason of Wells REF’s bad faith, fraud, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement.
16.    Limitation on Liability. Notwithstanding any other provision contained in this Agreement, the Company, the OP and Wells REF agree that neither Wells REF, on one hand, or the Company and the OP, on the other hand, will be liable to the other party, whether based on contract, tort (including negligence), 

warranty or any other legal or equitable grounds, for any special, indirect, punitive, incidental or consequential losses, damages or expenses of such party.
17.    Cooperation.  Each of the parties hereby agrees to cooperate with the other parties with respect to all transitional matters occurring in connection with the execution, delivery and performance of this Agreement and the Transition Agreement, including, without limitation, the assignment of all contracts and arrangements used in connection with Wells REF’s provision of advisory services under the Advisory Agreement prior its termination as may be requested by the Company or the OP from time to time.
18.    Notices.  Any notice, report or other communication required or permitted to be given hereunder shall be in writing and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein: 
To the Board and the Company:    Wells Core Office Income REIT, Inc.
6200 The Corners Parkway
Norcross, Georgia 30097-3365
Attention: Chief Executive Officer

To the OP:     Wells Core Office Income Operating Partnership, L.P.
6200 The Corners Parkway
Norcross, Georgia 30097-3365
Attention: Chief Executive Officer of
Wells Core Office Income REIT, Inc., General Partner

To Wells REF:    Wells Real Estate Funds, Inc.
6200 The Corners Parkway
Norcross, Georgia 30097-3365
Attention:  President
Any party may at any time give notice in writing to the other parties of a change in its address for the purposes of this Section 18.
19.    Modification. This Agreement shall not be changed, modified, terminated or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.
20.    Severability.  The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.
21.    Governing Law.  This Agreement will be governed by the laws of the State of Georgia, without regard to the conflicts of law principles of such State.  The parties hereto consent and submit to the exclusive jurisdiction of the courts (State and federal) located in the State of Georgia in connection with any controversy arising under this Agreement or its subject matter.  The parties hereby waive any objection they may have in any such action based on lack of personal jurisdiction, improper venue or inconvenient forum.  The parties further agree that service of any process, summons, notice or document by U.S. registered mail to its respective address set forth below shall be effective local service for any litigation brought in such courts.
22.    Construction.  The parties have participated jointly in the drafting of this Agreement, and each party was represented by counsel in the negotiation of this Agreement.  In the event an ambiguity or question 

of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
23.    Entire Agreement.  This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.
24.    Indulgences, not Waivers.  Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
25.    Gender.  Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.
26.    Titles not to Affect Interpretation.  The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.
27.    Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when the counterparts hereof, taken together, bear the signatures of all of the parties reflected hereon as the signatories.  Counterparts may be delivered by facsimile or other electronic transmission.
28.    Survival.  The provisions of Sections 1, 12(e), 13 through 26 and 28 shall survive termination of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Transition Services Agreement effective as of the Effective Date.
WELLS CORE OFFICE INCOME REIT, INC.
By: /s/ Douglas P. Williams
Name: Douglas P. Williams
Title: Executive Vice President
WELLS CORE OFFICE INCOME OPERATING PARTNERSHIP, L.P.
		
	By:
	Wells Core Office Income REIT, Inc., its 
General Partner

By: /s/ Douglas P. Williams
Name: Douglas P. Williams
Title: Executive Vice President
WELLS REAL ESTATE FUNDS, INC.
By: /s/ Randy A. Simmons
Name: Randy A. Simmons    
Title: Chief Operating Officer    

SCHEDULE A

TRANSITION SERVICES:

Information technology infrastructure design and implementation
		
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	Manage expansion and assignment of private cloud for purposes of hosting business applications and file storage.

		
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	Establish business processes by the date of self-management for the following:

		
	◦
	Corporate financials

		
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	Treasury Operations

		
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	Expense Reporting

		
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	Payroll

		
	•
	Manage assignment of current WREF MRI contract on the date of self-management.

		
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	Develop, implement and manage the plan for dealing with non-Core REIT data currently in MRI, including support for non-Core REIT users accessing MRI after date of self-management.

		
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	Establish service contracts with technology utility service providers.

		
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	Migrate legacy email and files to the new utility platforms.

		
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	Support the marketing web identity launch.

		
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	Web Domain redirects

		
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	Email under new web domain

		
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	Establish and transition a contract management/administration solution to targeted personnel.

Human Resources
		
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	Vendor selection and setup for payroll and human resources information system (HRIS).

		
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	Selection and implantation of all health, welfare and retirement programs.

		
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	Establish all HR related policies and procedures.  Documentation via Employee Handbook and applicable Plan Documents (i.e. PTO, Severance).

		
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	Establish/document guidelines and best practices for recruiting, employee relations performance management.

		
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	Training of Target Employees on all HRIS and related systems.

Treasury and cash management infrastructure design and implementation
		
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	Procuring and implementing remote deposit console, check printer with signature card, check stock and postage machine.

		
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	Creating new bank accounts and updating company information.

		
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	Updating bank account access/permissions.

		
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	Training Target Employees on accounts payable and treasury functions.

Marketing and Investor Communications Support
		
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	Update website and other electronic media to represent name change.

		
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	Other website updates, as necessary.

		
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	Oversight of copywriting, ongoing edits, etc.

		
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	Working with and transitioning duties with vendors for specific projects and mail house needs.

Physical Move to a private suite in 6200 The Corners Parkway or to new office location
		
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	Site selection and planning (technology specific).

		
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	Establish internet and phone circuits.

		
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	Select and implement telephony solution.

		
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	Build out local network and wireless solutions.

		
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	Select and implement imaging solution (print, scan, copy, fax, etc.).

		
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	Deploy new workstations (computers).

		
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	Establish site security measures (technology specific).

		
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	Establish relationships and contracts with technology support providers for site specific services.

SUPPORT SERVICES:

Client Services and DST on-going support services
		
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	Escalated service issues.

		
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	NIGO resolution.

		
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	Inbound investor emails.

		
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	DST call center training and oversight.

		
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	Proxy oversight and support.

		
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	Tax form preparation oversight, validation and approval.

		
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	DST Vision & FANmail approvals.

		
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	DST project management oversight.

		
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	DST work queue oversight and review.

		
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	DST invoice review and reconciliation. 

		
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	Product accounting support.

		
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	Evaluation of alternative service providers, upon request.

		
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	Broker Dealer and Financial Advisor back-office support.

		
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	Training targeted personnel to transition DST relationship internally.

		
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	Contract oversight and management.

Compliance and risk management support
		
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	Information requests and data reporting requests.

		
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	Written inquiry response support.

		
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	Quarterly statement oversight and approval.

Investor Communications services
		
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	Provide oversight and review of investor and FA communications.

		
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	Coordinate investor communications with transfer agent.

		
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	Validate investor and FA mailing lists.

		
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	Coordinate statement inserts.

		
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	Investor forms- updates and reviews. 

Infrastructure support (while residing at current office location)
		
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	Technical helpdesk.

		
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	Utilities support – Phones, Network, Imaging, Desktops/Laptops.

		
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	Application Support.

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