Document:

Amended and Restated Loan and Security Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 by and among 
 LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent 
 NATIONAL CITY BANK, as Documentation Agent 
 THE FINANCIAL INSTITUTIONS FROM TIME TO TIME

 A PARTY HERETO, as Lenders 
 and 
 COBRA ELECTRONICS CORPORATION, as Borrower 
 DATED AS OF OCTOBER 19, 2006 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	1.	  	DEFINITIONS	  	2
			
	2.	  	LOANS	  	15
		  	(a)	  	Revolving Loans	  	15
		  	(b)	  	Term Loan A	  	18
		  	(c)	  	Delayed-Draw Term Loan	  	18
		  	(d)	  	Repayments	  	19
		  	(e)	  	Notes	  	21
			
	3.	  	LETTERS OF CREDIT	  	22
		  	(a)	  	General Terms	  	22
		  	(b)	  	Requests for Letters of Credit	  	22
		  	(c)	  	Obligations Absolute	  	23
		  	(d)	  	Expiration Dates of Letters of Credit	  	23
		  	(e)	  	Participation	  	23
			
	4.	  	INTEREST, FEES AND CHARGES	  	24
		  	(a)	  	Interest Rate	  	24
		  	(b)	  	Other LIBOR Provisions.	  	24
		  	(c)	  	Fees And Charges	  	27
		  	(d)	  	Maximum Interest	  	29
		  	(e)	  	Replacement Lender for Increased Costs	  	29
			
	5.	  	COLLATERAL	  	30
		  	(a)	  	Grant of Security Interest to Administrative Agent	  	30
		  	(b)	  	Other Security	  	30
		  	(c)	  	Possessory Collateral	  	31
		  	(d)	  	Electronic Chattel Paper	  	31
			
	6.	  	PRESERVATION OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS THEREIN	  	31
			
	7.	  	POSSESSION OF COLLATERAL AND RELATED MATTERS	  	32
			
	8.	  	COLLECTIONS	  	32
			
	9.	  	COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES	  	34
		  	(a)	  	Borrowing Base Reports	  	34
		  	(b)	  	Monthly Reports	  	34
		  	(c)	  	Quarterly Reports	  	34
		  	(d)	  	Financial Statements	  	35
		  	(e)	  	Annual Projections	  	35
		  	(f)	  	Explanation of Budgets and Projections	  	35
		  	(g)	  	Public Reporting	  	35
		  	(h)	  	Other Information	  	36

  

 -i- 

							
			
	10.	  	TERMINATION	  	36
			
	11.	  	REPRESENTATIONS AND WARRANTIES	  	36
		  	(a)	  	Financial Statements and Other Information	  	37
		  	(b)	  	Locations	  	37
		  	(c)	  	Loans	  	37
		  	(d)	  	Accounts and Inventory	  	37
		  	(e)	  	Liens	  	38
		  	(f)	  	Organization, Authority and No Conflict	  	38
		  	(g)	  	Litigation	  	38
		  	(h)	  	Compliance with Laws and Maintenance of Permits	  	38
		  	(i)	  	Affiliate Transactions	  	39
		  	(j)	  	Names and Trade Names	  	39
		  	(k)	  	Equipment	  	39
		  	(l)	  	Enforceability	  	39
		  	(m)	  	Solvency	  	39
		  	(n)	  	Indebtedness	  	40
		  	(o)	  	Margin Security and Use of Proceeds	  	40
		  	(p)	  	Parent, Subsidiaries and Affiliates	  	40
		  	(q)	  	No Defaults	  	40
		  	(r)	  	Employee Matters	  	40
		  	(s)	  	Intellectual Property	  	41
		  	(t)	  	Environmental Matters	  	41
		  	(u)	  	ERISA Matters	  	41
		  	(v)	  	Related Agreements	  	41
			
	12.	  	AFFIRMATIVE COVENANTS	  	42
		  	(a)	  	Maintenance of Records	  	42
		  	(b)	  	Notices	  	43
		  	(c)	  	Compliance with Laws and Maintenance of Permits; OFAC Compliance	  	44
		  	(d)	  	Inspection and Audits	  	45
		  	(e)	  	Insurance	  	45
		  	(f)	  	Collateral	  	47
		  	(g)	  	Use of Proceeds	  	47
		  	(h)	  	Taxes	  	47
		  	(i)	  	Intellectual Property	  	48
		  	(j)	  	Checking Account	  	48
		  	(k)	  	Interest Rate Protection	  	48
			
	13.	  	NEGATIVE COVENANTS	  	48
		  	(a)	  	Guaranties	  	48
		  	(b)	  	Indebtedness	  	49
		  	(c)	  	Liens	  	49

  

 -ii- 

							
		  	(d)	  	Mergers, Sales, Acquisitions, Subsidiaries and Other Transactions Outside the Ordinary Course of Business	  	49
		  	(e)	  	Dividends and Distributions; Payments of Seller Earnout	  	50
		  	(f)	  	Investments; Loans	  	50
		  	(g)	  	Fundamental Changes, Line of Business	  	50
		  	(h)	  	Equipment	  	51
		  	(i)	  	Use of Proceeds	  	51
		  	(j)	  	Affiliate Transactions	  	51
		  	(k)	  	Settling of Accounts	  	51
		  	(l)	  	Management Fees; Compensation	  	51
		  	(m)	  	Amendments to Related Agreements	  	52
		  	(n)	  	Cobra UK	  	52
			
	14.	  	FINANCIAL COVENANTS	  	52
		  	(a)	  	Tangible Net Worth	  	52
		  	(b)	  	EBITDA	  	52
		  	(c)	  	Total Debt to EBITDA Ratio	  	53
		  	(d)	  	Fixed Charge Coverage Ratio	  	54
		  	(e)	  	Capital Expenditure Limitations	  	54
			
	15.	  	DEFAULT	  	54
		  	(a)	  	Payment	  	54
		  	(b)	  	Breach of this Agreement and the Other Agreements	  	54
		  	(c)	  	Breaches of Other Obligations	  	54
		  	(d)	  	Breach of Representations and Warranties	  	55
		  	(e)	  	Loss of Collateral	  	55
		  	(f)	  	Levy, Seizure or Attachment	  	55
		  	(g)	  	Bankruptcy or Similar Proceedings	  	56
		  	(h)	  	Appointment of Receiver	  	56
		  	(i)	  	Judgment	  	56
		  	(j)	  	Death or Dissolution of Obligor	  	56
		  	(k)	  	Default or Revocation of Guaranty	  	56
		  	(l)	  	Criminal Proceedings	  	57
		  	(m)	  	Change of Control	  	57
			
	16.	  	REMEDIES UPON AN EVENT OF DEFAULT	  	57
			
	17.	  	CONDITIONS PRECEDENT	  	58
			
	18.	  	SETTLEMENTS, DISTRIBUTIONS AND APPORTIONMENT OF PAYMENTS	  	59
			
	19.	  	AGENT	  	60
		  	(a)	  	Appointment of Administrative Agents	  	60
		  	(b)	  	Nature of Duties of Administrative Agent	  	61
		  	(c)	  	Lack of Reliance on Administrative Agent	  	61
		  	(d)	  	Certain Rights of Administrative Agent	  	62
		  	(e)	  	Reliance by Administrative Agent	  	62
		  	(f)	  	Indemnification of Administrative Agent	  	62

  

 -iii- 

							
		  	(g)	  	Administrative Agent in its Individual Capacity	  	63
		  	(h)	  	Holders of Notes	  	63
		  	(i)	  	Successor Administrative Agent	  	63
		  	(j)	  	Collateral Matters	  	64
		  	(k)	  	Actions with Respect to Defaults	  	65
		  	(l)	  	Delivery of Information	  	66
		  	(m)	  	Demand	  	66
		  	(n)	  	Notice of Default	  	66
		  	(o)	  	Documentation Agent	  	66
			
	20.	  	ASSIGNABILITY	  	67
			
	21.	  	AMENDMENTS, ETC	  	69
			
	22.	  	NONLIABILITY OF AGENTS AND LENDERS	  	70
			
	23.	  	INDEMNIFICATION	  	70
			
	24.	  	CUSTOMER IDENTIFICATION - USA PATRIOT ACT NOTICE	  	71
			
	25.	  	NOTICE	  	71
			
	26.	  	CHOICE OF GOVERNING LAW; CONSTRUCTION; FORUM SELECTION	  	71
			
	27.	  	HEADINGS OF SUBDIVISIONS	  	72
			
	28.	  	POWER OF ATTORNEY	  	72
			
	29.	  	CONFIDENTIALITY	  	73
			
	30.	  	COUNTERPARTS	  	73
			
	31.	  	ELECTRONIC SUBMISSIONS	  	73
			
	32.	  	WAIVER OF JURY TRIAL; OTHER WAIVERS	  	74
			
	33.	  	EFFECT OF AMENDED AND RESTATEMENT	  	75
		
	EXHIBIT A — BUSINESS AND COLLATERAL LOCATIONS	  	
		
	EXHIBIT B — COMPLIANCE CERTIFICATE	  	
		
	EXHIBIT C — COMMERCIAL TORT CLAIMS	  	
		
	EXHIBIT D — FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT	  	
		
	SCHEDULE 1 — CONCENTRATION LIMITS	  	
		
	SCHEDULE 1A — PERMITTED LIENS	  	
		
	SCHEDULE 11(f) —ORGANIZATIONAL IDENTIFICATION NUMBERS	  	
		
	SCHEDULE 11(g) — LITIGATION	  	
		
	SCHEDULE 11(i) — AFFILIATE TRANSACTIONS	  	
		
	SCHEDULE 11(j) — NAMES & TRADE NAMES	  	
		
	SCHEDULE 11(n) — INDEBTEDNESS	  	
		
	SCHEDULE 11(p) — PARENT, SUBSIDIARIES AND AFFILIATES	  	
		
	SCHEDULE 17(a) — CLOSING DOCUMENT CHECKLIST	  	

  

 -iv- 

 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as amended, modified or supplemented from time to time, this “Agreement”) made
this 19th day of October, 2006 by and among LASALLE BANK NATIONAL ASSOCIATION, a national banking association (in its individual capacity “LaSalle”), as a Lender and as administrative agent (“Administrative Agent”)
for itself and all other lenders from time to time a party hereto (“Lenders”), 135 South LaSalle Street, Chicago, Illinois 60603-4105, NATIONAL CITY BANK, as a Lender and as documentation agent (“Documentation Agent”)
for all Lenders, One North Franklin Street, Suite 3600, Chicago, Illinois 60606 all other Lenders and COBRA ELECTRONICS CORPORATION, a Delaware corporation, having its principal place of business at 6500 West Cortland Street, Chicago, Illinois 60707
(“Borrower”). 
 W I T N E S S E T H: 
 WHEREAS, Borrower, Administrative Agent and various financial institutions (collectively, the “Original Lenders”), are each party to
that certain Loan and Security Agreement dated as of January 31, 2002, as heretofore amended, supplemented or otherwise modified (without giving effect to this Amended and Restated Loan and Security Agreement, the “Original Loan
Agreement”) and the Other Agreements (as defined in the Original Loan Agreement; together with the Original Loan Agreement, the “Original Loan Documents”), pursuant to which the Original Lenders made available to Borrower
“Revolving Loans” (as such term is defined in the Original Loan Agreement, and with such loans outstanding immediately prior to the effectiveness of this Agreement being referred to as the “Original Revolving Loans”); and

 WHEREAS, in order to secure the Liabilities (as hereinafter defined), each Obligor has granted a security interest in and lien upon
substantially all of its personal property (the “Original Collateral”); 
 WHEREAS, Borrower, Administrative Agent and
Lenders desire to amend and restate the Original Loan Agreement, subject to the terms and conditions set forth herein, to, among other things, (i) restructure the terms of the credit facilities provided for under the Original Loan Agreement,
and (ii) continue to provide loans and other financial accommodations to Borrower for its working capital requirements and general corporate purposes; and 
 WHEREAS, Administrative Agent and Lenders are willing to amend and restate the Original Loan Agreement and Administrative Agent and Lenders are willing to make loans and provide other financial accommodations to
Borrower, in each case on the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of any Loan (including any Loan by
renewal or extension) hereafter made to Borrower by Administrative Agent and/or Lenders, 

 
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Borrower, the parties agree as follows:

 1. DEFINITIONS. 
 “ABN Facility” shall mean a working capital loan facility provided by ABN AMRO Bank to PPL on terms satisfactory to Administrative Agent. 
 “Account”, “Account Debtor”, “Chattel Paper”, “Commercial Tort Claims”, “Deposit Accounts”, “Documents”,
“Electronic Chattel Paper”, “Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Right”, “Proceeds” and “Tangible Chattel Paper” shall have the respective meanings assigned to such terms in the Illinois Uniform Commercial
Code, as the same may be in effect from time to time. 
 “Adjusted Total Debt” shall mean Total Debt, adjusted to reflect
indebtedness with respect to Revolving Loans based on the average daily outstanding principal balance of the Revolving Loans and the undrawn face amount of standby Letters of Credit during the four (4) fiscal quarter period ending on the date
of calculation. 
 “Adjusted Total Debt to EBITDA” shall mean as of the last day of any Computation Period, the ratio of
(i) Adjusted Total Debt to (ii) EBITDA for such Computation Period. 
 “Affiliate” shall mean any Person
(i) which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, Borrower, (ii) which beneficially owns or holds ten percent (10%) or more of the voting control or equity
interests of Borrower, or (iii) ten percent (10%) or more of the voting control or equity interests of which is beneficially owned or held by Borrower. 
 “Assignment and Acceptance” shall have the meaning in Section 20 hereof. 
 “Applicable Margin” means, for any day, the rate per annum set forth below opposite the level (the “Level”) then in effect. 
  

																		
	 Level
	  	 Adjusted Total Debt to EBITDA Ratio
	  	Applicable
Margin
for Prime
Rate
Loans	 	 	Applicable
Margin for
LIBOR
Rate Loans	 	 	Unused
Line Fee	 	 	Letter of Credit Fees	 
	  	  	 	 	 	Documentary L/C
Fees	 	 	Standby
L/C Fees	 
	 I
	  	 Greater than or equal to 1.75:1
	  	0.50	%	 	2.00	%	 	0.375	%	 	1.15	%	 	2.00	%
	 II
	  	Greater than or equal to 1.25:1 but less than 1.75:1	  	0.25	%	 	1.75	%	 	0.375	%	 	1.00	%	 	1.75	%
	 III
	  	Less than or equal to 1.25:1	  	0.00	%	 	1.50	%	 	0.375	%	 	0.85	%	 	1.50	%

  

 2 

 The Applicable Margins with respect to Prime Rate Loans, LIBOR Rate Loans, the Unused Line Fee and the
Letter of Credit Fees shall be adjusted, to the extent applicable, on the tenth (10th) Business Day after the
Borrower provides the annual and quarterly financial statements and other information pursuant to subsection 9(c), as applicable, and the related Compliance Certificate, with respect to fiscal quarters of Borrower ending on and after
September 30, 2007, based on the Adjusted Total Debt to EBITDA Ratio for such Computation Period. Notwithstanding anything contained in this paragraph to the contrary, (a) if the Borrower fails to deliver such financial statements and
Compliance Certificate in accordance with the provisions of subsection 9(c), the Applicable Margin shall be based upon Level I above beginning on the date such financial statements and Compliance Certificate were required to be delivered
until the tenth (10th) Business Day after such financial statements and Compliance Certificate are actually
delivered, whereupon the Applicable Margin shall be determined by the then current Level; (b) no reduction to any Applicable Margin shall become effective at any time when an Event of Default or unmatured Event of Default has occurred and is
continuing; and (c) the initial Applicable Margin on the Closing Date shall be based on Level II until the date on which the financial statements and Compliance Certificate are delivered for the Fiscal Quarter ending September 30, 2007.

 “Business Day” shall mean any day other than a Saturday, a Sunday or (i) with respect to all matters,
determinations, fundings and payments in connection with LIBOR Rate Loans, any day on which banks in London, England or Chicago, Illinois are required or permitted to close, and (ii) with respect to all other matters, any day that banks in
Chicago, Illinois are required or permitted to close. 
 “Capital Expenditures” shall mean with respect to any period, the
aggregate of all expenditures (whether paid in cash or accrued as liabilities and including expenditures for capitalized lease obligations) by Borrower during such period that are required by generally accepted accounting principles, consistently
applied, to be included in or reflected by the property, plant and equipment or similar fixed asset accounts (or intangible accounts subject to amortization) on the balance sheet of Borrower. 
 “Capital Lease” shall mean, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or
personal property by such Person that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of such Person. 
  

 3 

 “Closing Date” shall mean October 19, 2006. 
 “Cobra UK” shall mean Cobra Electronics U.K., a company organized under the laws of the United Kingdom. 
 “Cobra UK Loans” shall mean (i) the loan by Borrower to Cobra UK to facilitate Cobra UK’s purchase of the stock of PPL in the
original principal amount of £11,500,000 (and shall include additional principal obligations arising from the compounding of interest paid in kind pursuant to the terms thereof) and (ii) the Loans by Borrower to Cobra UK to be used by
Cobra UK to make payments owing with respect to the Seller Earnout, which loans shall be evidenced by promissory notes in form and substance satisfactory to Administrative Agent and delivered to Administrative Agent as Collateral. 
 “Collateral” shall mean all of the property of Borrower described in Section 5 hereof, together with all other real or
personal property of any Obligor or any other Person now or hereafter pledged to Administrative Agent, for the benefit of Administrative Agent and Lenders, to secure, either directly or indirectly, repayment of any of the Liabilities. 
 “Collateral Shortfall Reserve” shall mean a reserve calculated as follows: (i) the sum of the outstanding principal balance of Term
Loan A on the date of funding of the Delayed Draw Term Loan and the original principal balance of the Delayed Draw Term Loan, minus (ii) the sum of (x) 80% of the fair market value of Borrower’s real property located in
Chicago, Illinois pledged as Collateral, plus (y) 100% of the cash surrender value of life insurance policies pledged as Collateral, minus (iii) the aggregate scheduled payments of principal of the Term Loans from the date of
funding of the Delayed Draw Term Loan through the second anniversary of the date of funding of the Delayed Draw Term Loan, minus (iv) payments of principal of the Term Loans after the second anniversary of the date of funding of the
Delayed Draw Term Loan, until such reserve is reduced to zero. 
 “Computation Period” shall mean each period of four
consecutive calendar quarters ending on the last day of a calendar quarter; provided, that with respect to the Fixed Charge Coverage Ratio for the periods ending June 30, 2007 and September 30, 2007, the Computation Period shall be the
period from January 1, 2007 to the date of calculation. 
 “Defaulting Lender” shall have the meaning specified in
subsection 2(a) hereof. 
 “Delayed-Draw Term Loan” shall have the meaning specified in subsection 2(c)
hereof. 
 “Delayed-Draw Term Loan Commitment” shall mean, with respect to any Lender, the maximum amount of the
Delayed-Draw Term Loan which such Lender has agreed to make to Borrower, subject to the terms and conditions of this Agreement, as set forth on the signature page hereto or an Assignment and Acceptance Agreement executed by such Lender. 

 

 4 

 “Dollar Equivalent” shall mean, at any time, as to any amount denominated in any
currency other than Dollars, the equivalent amount in Dollars as determined by Administrative Agent at such time based on the rate as quoted in The Wall Street Journal as the exchange rate for the purchase of such currency with Dollars on the
date of such determination. 
 “Dollars” and “$” shall mean lawful currency of the United States.

 “EBITDA” shall mean, with respect to any period and without duplication, Borrower’s and its Subsidiaries’ net
income (including PPL with respect to periods before and after consummation of the Related Transactions) after taxes for such period (excluding any after-tax gains or losses on the sale of assets and excluding other after-tax extraordinary gains or
losses) plus interest expense and income tax expense for such period, plus, depreciation and amortization, plus or minus any other non-cash charges or gains which have been subtracted or added in calculating net income
after taxes for such period, minus earnings or plus losses on keyman life insurance policies owned by Borrower; provided, that for purposes hereof, EBITDA shall be deemed to be (i) $1,259,400 for the fiscal quarter of Borrower
ending March 31, 2006, and (ii) $2,560,614 for the fiscal quarter of Borrower ending June 30, 2006, and (iii) $1,745,356 for the fiscal quarter of Borrower ending September 30, 2006. 
 “Eligible Account” shall mean an Account (or in the case of clause (iii)(C) below, a claim arising from the sale of an Account) owing to
Borrower which is acceptable to Administrative Agent in its reasonable credit judgment for lending purposes. Without limiting Administrative Agent’s reasonable credit judgment, Administrative Agent shall, in general, consider an Account (or
such claim) to be an Eligible Account if it meets, and so long as it continues to meet, the following requirements: 
 (i) it
is genuine and in all respects what it purports to be; 
 (ii) it is owned by Borrower, Borrower has the right to subject it
to a security interest in favor of Administrative Agent or assign it to Administrative Agent and it is subject to a first priority perfected security interest in favor of Administrative Agent and to no other claim, lien, security interest or
encumbrance whatsoever, other than Permitted Liens; 
 (iii) it arises from (A) the performance of services by Borrower
in the ordinary course of Borrower’s business, and such services have been fully performed and acknowledged and accepted by the Account Debtor thereunder; or (B) the sale or lease of Goods by Borrower in the ordinary course of
Borrower’s business, and (x) such Goods have been completed in accordance with the Account Debtor’s specifications (if any) and delivered to the Account Debtor, (y) such Account Debtor has not refused to accept or returned, any
of the Goods which are the subject 

  

 5 

 
of such Account, and (z) Borrower has possession of, or Borrower has delivered to Administrative Agent (at Administrative Agent’s request) shipping
and delivery receipts evidencing delivery of such Goods or (C) from the sale of an Account pursuant to a Factoring Arrangement (provided, that Accounts arising under this clause (C) will not be required to be evidenced by an invoice as
required under clause (iv) below, though the other requirements of clause (iv) remain applicable); 
 (iv) it is
evidenced by an invoice rendered to the Account Debtor thereunder, is due and payable within one hundred eighty (180) days after the date of the invoice and does not remain unpaid sixty (60) days past the due date thereof; provided,
however, that if more than fifty percent (50%) of the aggregate dollar amount of invoices owing by a particular Account Debtor are due and payable more than one hundred eighty (180) days past the stated invoice dates thereof or remain
unpaid sixty (60) days after the respective due dates thereof, then all Accounts owing by that Account Debtor shall be deemed ineligible; 
 (v) it is a valid, legally enforceable and unconditional obligation of the Account Debtor thereunder, and it shall not be an Eligible Account to the extent of any setoff, counterclaim, credit, allowance or adjustment
by such Account Debtor, or if it is subject to any claim by such Account Debtor denying liability thereunder (other than with respect to a setoff, counterclaim, credit, allowance or adjustment as described above) in whole or in part; 
 (vi) it does not arise out of a contract or order which fails in any material respect to comply with the requirements of applicable law;

 (vii) the Account Debtor thereunder is not a director, officer, employee or agent of Borrower, or a Subsidiary, Parent or
Affiliate; 
 (viii) it is not an Account with respect to which the Account Debtor is the United States of America or any
state or local government, or any department, agency or instrumentality thereof, unless Borrower assigns its right to payment of such Account to Administrative Agent pursuant to, and in full compliance with, the Assignment of Claims Act of 1940, as
amended, or any comparable state or local law, as applicable; 
 (ix) it is not an Account with respect to which the Account
Debtor is located in a state which requires Borrower, as a precondition to commencing or maintaining an action in the courts of that state, either to (A) receive a certificate of authority to do business and be in good standing in such state;
or (B) file a notice of business activities report or similar report with such state’s taxing authority, unless (x) Borrower has taken one of the actions described in clauses (A) or (B); (y) the failure to take one of the
actions described in either clause (A) or (B) may be cured retroactively by Borrower at its election; or (z) Borrower has proven, to Administrative Agent’s satisfaction, that it is exempt from any such requirements under any such
state’s laws; 
  

 6 

 (x) the Account Debtor is located within the United States of America or Canada or is
supported by credit insurance, a Factoring Arrangement or other similar credit support acceptable to the Administrative Agent; 
 (xi) it is not an Account with respect to which the Account Debtor’s obligation to pay is subject to any repurchase obligation or return right, as with sales made on a bill-and-hold, guaranteed sale, sale on approval, sale or return or
consignment basis; 
 (xii) it is not an Account (A) with respect to which any representation or warranty contained in
this Agreement is untrue; or (B) which violates any of the covenants of Borrower contained in this Agreement; 
 (xiii)
it is not an Account which, when added to a particular Account Debtor’s other indebtedness to Borrower, exceeds 10% (or, with respect to the Account Debtors listed on Schedule 1 hereto, the corresponding percentages on such Schedule
1) of all Accounts of Borrower, provided, that such 10% limit shall be waived with respect to any Account Debtor for which Borrower has obtained accounts receivable insurance acceptable to Administrative Agent and the proceeds thereof have been
collaterally assigned to Administrative Agent, or such Account Debtor’s Accounts and other indebtedness to Borrower does not exceed a credit limit determined by Administrative Agent in its reasonable credit judgment for that Account Debtor
(except that Accounts excluded from Eligible Accounts solely by reason of this clause (xiii) shall be Eligible Accounts to the extent of such credit limit); and 
 (xiv) it is not an Account with respect to which the prospect of payment or performance by the Account Debtor is or will be impaired, as
determined by Administrative Agent in its reasonable credit judgment. 
 “Eligible Inventory” shall mean Inventory of
Borrower which is acceptable to Administrative Agent in its reasonable credit judgment for lending purposes. Without limiting Administrative Agent’s reasonable credit judgment, Administrative Agent shall, in general, consider Inventory to be
Eligible Inventory if it meets, and so long as it continues to meet, the following requirements: 
 (i) it is owned by
Borrower, Borrower has the right to subject it to a security interest in favor of Administrative Agent and it is subject to a first priority perfected security interest in favor of Administrative Agent and to no other claim, lien, security interest
or encumbrance whatsoever, other than Permitted Liens; 
 (ii) it is located on one of the premises listed on Exhibit A
(or other locations of which Administrative Agent has been advised in writing pursuant to subsection 12(b)(i) hereof) and is not in transit, except for Inventory of Borrower which is in transit to locations listed on Exhibit A hereto
which Inventory was the subject of documentary Letters of Credit drawn upon prior to receipt by Borrower of 

  

 7 

 
the Inventory subject thereto or was purchased by Borrower on open account and as to which title to such Inventory has passed including receipt of all
documents of title, provided, that Administrative Agent and Lenders shall not have outstanding advances with respect to Inventory which is in transit and purchased on open account, as described above, in excess of Four Million Dollars ($4,000,000)
at any time; 
 (iii) if held for sale or lease or furnishing under contracts of service, it is (except as Administrative
Agent may otherwise consent in writing) new and unused free from defects which would, in Administrative Agent’s reasonable credit judgment, affect its market value; 
 (iv) it is not stored with a bailee, consignee, warehouseman, processor or similar party unless Administrative Agent has given its prior
written approval and Borrower has caused any such bailee, consignee, warehouseman, processor or similar party to issue and deliver to Administrative Agent, in form and substance acceptable to Administrative Agent in its reasonable determination,
such Uniform Commercial Code financing statements, warehouse receipts, waivers and other documents as Administrative Agent shall require; 
 (v) Administrative Agent has determined, in accordance with Administrative Agent’s customary business practices, that it is not unacceptable due to age, type, category or quantity; provided, that for purposes
hereof, Inventory of each product line (other than new products introduced during the immediately preceding twelve (12) months) consisting of Inventory in excess of the immediately preceding twelve (12) months of sales of such Inventory,
shall be ineligible to the extent of such excess; and 
 (vi) it is not Inventory (A) with respect to which any of the
representations and warranties contained in this Agreement are untrue; or (B) which violates any of the covenants of Borrower contained in this Agreement. 
 “Environmental Laws” shall mean all federal, state, district, local and foreign laws, rules, regulations, ordinances, and consent decrees relating to health, safety, hazardous substances, pollution
and environmental matters, as now or at any time hereafter in effect, applicable to Borrower’s business or facilities owned or operated by Borrower, including laws relating to emissions, discharges, releases or threatened releases of
pollutants, contamination, chemicals, or hazardous, toxic or dangerous substances, materials or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise
relating to the generation, manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, modified or restated from time to time. 
  

 8 

 “Euros” means the currency of participating member states of the European Union that
adopted a single currency in accordance with the Treaty on European Union of February 7, 1992. 
 “Event of Default”
shall have the meaning specified in Section 15 hereof. 
 “Excess Availability” shall mean, as of any date of
determination by Administrative Agent, the excess, if any, of (i) the lesser of the Revolving Loan Limit and the Maximum Revolving Loan Limit pursuant to subsection 2(a) over (ii) the sum of outstanding Revolving Loans and Letter of
Credit Obligations, in each case as of the close of business on such date. For purposes of calculating Borrower’s Excess Availability and the amount of the Revolving Loans available to Borrower pursuant to paragraph 2(a) relating
thereto, all of Borrower’s trade payables (other than disputed trade payables) and payments on outstanding debt, other than the Liabilities hereunder, which remain unpaid more than sixty (60) days after the due dates thereof shall, on the
date of the determination of Excess Availability, be deemed to have been paid by Borrower by borrowing Revolving Loans. 
 “Factoring
Arrangement” shall mean an arrangement between Borrower and another Person pursuant to which Borrower sells Accounts to such Person and the purchase price for such Accounts is paid directly to the Lock Box Account. To constitute a Factoring
Arrangement hereunder, such arrangement must be made pursuant to documents, instruments and agreements reasonably satisfactory to Administrative Agent, an agreement among Administrative Agent, Borrower and the factor must be executed directing
payment for such factored Accounts to the Lock Box Account and Accounts which are sold pursuant to a Factoring Arrangement shall no longer be Eligible Accounts. 
 “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate per annum equal for each day during such period to (a) the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York or (b) if
such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 “Fiscal Year” shall mean each twelve (12) month accounting period of Borrower, which ends on
December 31st of each year. 
 “Fixed Charge Coverage Ratio” means, for any Computation Period, the ratio of (a) the total for such period of EBITDA minus the sum of income taxes paid in cash by Borrower and its
Subsidiaries and all Capital Expenditures to (b) the sum for such period of (i) cash Interest Expense plus (ii) required payments of principal of Funded Debt (including the Term Loans but excluding the Revolving Loans)
plus (iii) dividend payments by Borrower (provided, that with respect to such dividends, for the Computation Period ending June 30, 2007, dividends shall be deemed to be 50% of the dividends paid during such Fiscal Year of Borrower
and for the Computation Period ending September 30, 2007, dividends shall be deemed to by 75% of the dividends paid during such Fiscal Year of Borrower). 
  

 9 

 “Funded Debt” shall mean, as to any Person, all indebtedness for borrowed money of such
Person that matures more than one year from the date of its creation (or is renewable or extendible, at the option of such Person, to a date more than one year from such date). 
 “Hazardous Materials” shall mean any hazardous, toxic or dangerous substance, materials and wastes, including, without limitation,
hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials, biological substances, polychlorinated biphenyls, pesticides, herbicides and
any other kind and/or type of pollutants or contaminants (including, without limitation, materials which include hazardous constituents), sewage, sludge, industrial slag, solvents and/or any other similar substances, materials, or wastes and
including any other substances, materials or wastes that are or become regulated under any Environmental Law (including, without limitation any that are or become classified as hazardous or toxic under any Environmental Law). 
 “Hedging Agreements” shall mean any interest rate, currency or commodity swap agreement, cap agreement or collar agreement and any other
agreement entered into by Borrower providing for hedging against fluctuations in interest rates, currency exchange rates or commodity prices. 
 “Hedging Liabilities” shall mean all obligations, liabilities, charges, costs, expenses and other amounts payable to any Lender or any affiliate of a Lender under any Hedging Agreements including the incremental obligations
that would be reflected in the financial statements of such Person in accordance with generally accepted accounting principles consistently applied. 
 “Indemnified Party” shall have the meaning specified in Section 23 hereof. 
 “Interest Expense” shall mean for any period the consolidated interest expense of Borrower and its Subsidiaries for such period (including all imputed interest on Capital Leases). 
 “Interest Period” shall have the meaning specified in subsection 4(a)(ii) hereof. 
 “Letter of Credit” shall mean any Letter of Credit issued on behalf of Borrower or on behalf of any Subsidiary of Borrower with respect
to which Borrower is the co-applicant in accordance with this Agreement. 
 “Letter of Credit Obligations” shall mean, as of
any date of determination, the sum of (i) the aggregate undrawn face amount (including the Dollar Equivalent of all Letters of Credit denominated in Euros or Pounds Sterling) of all Letters of Credit, and (ii) the aggregate unreimbursed
amount (including the Dollar Equivalent of amounts drawn in Euros or Pounds Sterling) of all drawn Letters of Credit not already converted to Loans hereunder. 
  

 10 

 “Liabilities” shall mean any and all obligations, liabilities and indebtedness of any
Borrower to Administrative Agent and each Lender or to any parent, affiliate or subsidiary of Administrative Agent and each Lender of any and every kind and nature arising pursuant to this Agreement and the Other Agreements, howsoever created,
arising or evidenced and howsoever owned, held or acquired, whether now or hereafter existing, whether now due or to become due, whether primary, secondary, direct, indirect, absolute, contingent or otherwise (including, without limitation,
obligations of performance), whether several, joint or joint and several, and whether arising or existing under written or oral agreement or by operation of law including, without limitation, any Hedging Liabilities. 
 “LIBOR Rate” shall mean, with respect to any LIBOR Rate Loan for any Interest Period, a rate per annum equal to (a) the offered
rate for deposits in United States dollars for a period equal to such Interest Period as displayed in the Bloomberg Financial Markets system (or such other authoritative source as selected by Administrative Agent in its sole discretion) as of
11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period divided by (b) a number equal to 1.0 minus the maximum reserve percentages (expressed as a decimal fraction) including, without limitation, basic
supplemental, marginal and emergency reserves under any regulations of the Board of Governors of the Federal Reserve System or other governmental authority having jurisdiction with respect thereto, as now and from time to time in effect, for
Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of such Board) which are required to be maintained by Administrative Agent by the Board of Governors of the Federal Reserve System. The LIBOR Rate
shall be adjusted automatically on and as of the effective date of any change in such reserve percentage. 
 “LIBOR Rate
Loans” shall mean the Loans bearing interest with reference to the LIBOR Rate. 
 “Loan Commitment” shall mean,
with respect to any Lender, the amount equal to such Lender’s Revolving Loan Commitment plus such Lender’s Term Loan A Commitment plus such Lender’s Delayed-Draw Term Loan Commitment. 
 “Loans” shall mean all loans and advances made by Administrative Agent or Lenders to or on behalf of Borrower hereunder. 
 “Lock Box” and “Lock Box Account” shall have the meanings specified in subsection 8(a) hereof. 

“Material Adverse Effect” shall mean a material adverse effect on the business, property, assets, operations or condition, financial
or otherwise, of Borrower and its Subsidiaries taken as a whole. 
  

 11 

 “Maximum Loan Limit” shall mean Fifty-Three Million Six Hundred Thousand and No/100
Dollars ($53,600,000) as such amount may be increased or decreased from time to time in accordance with the terms of this Agreement. 
 “Maximum Revolving Loan Limit” shall have the meaning specified in subsection 2(a) hereof as such amount may be increased or decreased from time to time in accordance with the terms of this Agreement.

 “Obligor” shall mean Borrower and each other Person who is or shall become primarily or secondarily liable for any of the
Liabilities. 
 “Original Term” shall have the meaning specified in Section 10 hereof. 
 “Other Agreements” shall mean all agreements, instruments and documents, other than this Agreement, including, without limitation,
guaranties, mortgages, trust deeds, pledges, powers of attorney, consents, assignments, contracts, notices, security agreements, leases, financing statements and all other writings heretofore, now or from time to time hereafter executed by or on
behalf of Borrower, or any other Person and delivered to Administrative Agent and/or any Lender or to any parent, affiliate or subsidiary of Administrative Agent and/or any Lender in connection with the Liabilities or the transactions contemplated
hereby, as each of the same may be amended, modified or supplemented from time to time. 
 “Parent” shall mean any Person
now or at any time or times hereafter owning or controlling (alone or with any other Person) at least a majority of the issued and outstanding equity of Borrower. 
 “PBGC” shall have the meaning specified in subsection 12(b)(v) hereof. 
 “Permitted Liens” shall mean (i) statutory liens of landlords, carriers, warehousemen, processors, mechanics, materialmen or suppliers incurred in the ordinary course of business and securing amounts not yet due or
declared to be due by the claimant thereunder; (ii) liens or security interests in favor of Administrative Agent; (iii) zoning restrictions and easements, licenses, covenants and other restrictions affecting the use of real property that
do not individually or in the aggregate have a material adverse effect on Borrower’s ability to use such real property for its intended purpose in connection with Borrower’s business; (iv) liens in connection with purchase money
indebtedness and capitalized leases otherwise permitted pursuant to this Agreement, provided, that such liens attach only to the assets the purchase of which was financed by such purchase money indebtedness or which is the subject of such
capitalized leases; (v) liens securing the ABN Facility; (vi) liens set forth on Schedule 1A hereto; and (vii) liens specifically permitted by Administrative Agent in writing. 
 “Person” shall mean any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association,
corporation, limited liability company, institution, entity, party or foreign or United States government (whether federal, state, county, city, municipal or otherwise), including, without limitation, any instrumentality, division, agency, body or
department thereof. 
  

 12 

 “Plan” shall have the meaning specified in subsection 12(b)(v) hereof.

 “PPL” shall mean Performance Products Limited, a company formed under the laws of the United Kingdom. 
 “Pre-Settlement Determination Date” shall have the meaning specified in Section 18 hereof. 
 “Prime Rate” shall mean at any time the greater of (i) LaSalle’s publicly announced prime rate (which is not intended to be
Lender’s lowest or most favorable rate in effect at any time) in effect from time to time and (ii) the sum of the Federal Funds Rate plus 0.5%. 
 “Prime Rate Loans” shall means the Loans bearing interest with reference to the Prime Rate. 
 “Pro Rata Share” shall mean at any time, with respect to any Lender, a fraction (expressed as a percentage in no more than four (4) decimal places), the numerator of which shall be the Loan Commitment of such Lender at
such time and the denominator of which shall be the Maximum Loan Limit at such time. 
 “Purchase Agreement” shall mean that
certain Share Purchase Deed dated as of October 14, 2006 by and among the Sellers and Borrower. 
 “Related Agreements”
shall mean the Purchase Agreement and all other material, substantive agreements and documents executed or issued in connection therewith. 
 “Related Transactions” shall mean the transactions contemplated by the Related Agreements. 
 “Requisite
Lenders” shall mean, at any time, Lenders having Pro Rata Shares of at least seventy-five percent (75%) at such time. 
 “Revolving Loan Commitment” shall mean, with respect to any Lender, the maximum amount of Revolving Loans which such Lender has agreed to make to Borrower, subject to the terms and conditions of this Agreement, as set forth
on the signature page hereto or an Assignment and Acceptance Agreement executed by such Lender. 
 “Revolving Loan Limit”
shall have the meaning specified in subsection 2(a) hereof. 
 “Revolving Loans” shall have the meaning
specified in subsection 2(a) hereof. 
  

 13 

 “Seller Earnout” shall mean the aggregate earnout payments owing by Cobra UK to Seller
pursuant to and in accordance with Section 3 of the Purchase Agreement as in effect on the Closing Date. 
 “Seller”
shall collectively mean the Persons listed as “Sellers” in Schedule 1 Part 1 of the Purchase Agreement. 
 “Settlement
Date” shall have the meaning specified in Section 18 hereof. 
 “Subsidiary” shall mean any corporation
of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the time stock of any other class of such
corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, owned by Borrower, or any partnership, joint venture or limited liability company of which more than fifty
percent (50%) of the outstanding equity interests are at the time, directly or indirectly, owned by Borrower or any partnership of which Borrower is a general partner. 
 “Tangible Net Worth” shall have the meaning specified in subsection 14(a) hereof. 
 “Tax” shall mean, in relation to any LIBOR Rate Loans and the applicable LIBOR Rate, any tax, levy, impost, duty, deduction, withholding
or charges of whatever nature required to be paid by Administrative Agent or any Lender and/or to be withheld or deducted from any payment otherwise required hereby to be made by Borrower to Administrative Agent or any Lender; provided, that the
term “Tax” shall not include any taxes imposed upon the net income of Administrative Agent or any Lender. 
 “Term Loan
A” shall have the meaning specified in subsection 2(b) hereof. 
 “Term Loan A Commitment” shall mean, with
respect to any Lender, the maximum amount of Term Loan A which such Lender has agreed to make to Borrower, subject to the terms and conditions of this Agreement, as set forth on the signature page hereto or an Assignment and Acceptance Agreement
executed by such Lender. 
 “Term Loans” shall mean, collectively, Term Loan A and Delayed-Draw Term Loan. 
 “Total Debt” means all indebtedness for borrowed money of Borrower and its Subsidiaries, determined on a consolidated basis and any
contingent obligations with respect to undrawn standby Letters of Credit. 
 “Total Debt to EBITDA Ratio” shall mean, as of
the last day of any Computation Period, the ratio of (i) Total Debt as of such day to (ii) EBITDA for such period. 
  

 14 

 “Working Capital Note” shall mean that certain promissory note in the original principal
amount of £4,000,000 evidencing intercompany revolving loans from time to time made by Borrower to PPL to provide working capital financing. The initial proceeds of the ABN Facility shall be used to repay the outstanding principal balance of
the Working Capital Note. 
 2. LOANS. 
 (a) Revolving Loans. 
 Subject to the terms and conditions of this Agreement and the Other
Agreements, so long as no Event of Default is then continuing, during the Original Term, each Lender, severally and not jointly, agrees to make in Dollars, Euros or Pounds Sterling, as requested by Borrower its Pro Rata Share of revolving loans and
advances (the “Revolving Loans”) requested by Borrower up to such Lender’s Revolving Loan Commitment so long as after giving effect to such Revolving Loans, the sum of the aggregate unpaid principal balance of the Revolving
Loans and the Letter of Credit Obligations does not exceed a Dollar Equivalent amount of up to the sum of the following sublimits (the “Revolving Loan Limit”): 
 (i) Seventy-five percent (75%) of the face amount (less maximum discounts, credits and allowances which may be taken by or granted to Account Debtors
in connection therewith in the ordinary course of Borrower’s business) of Borrower’s Eligible Accounts; plus 
 (ii) Sixty percent
(60%) of the lower of cost or market value of Borrower’s Eligible Inventory; plus 
 (iii) Sixty percent (60%) against
the face amount of commercial Letters of Credit issued or guaranteed by Administrative Agent for the purpose of purchasing Eligible Inventory; provided, that such commercial Letters of Credit are in form and substance satisfactory to Administrative
Agent; minus 
 (iv) such reserves as Administrative Agent elects, in its reasonable credit judgment, to establish from time to time
(including, without limitation, a reserve in the amount of $2,880,000 until such time as Administrative Agent has received a first priority mortgage on the real property of Borrower located in Chicago, Illinois with title insurance and surveys
acceptable to Administrative Agent, a reserve in the amount of $3,600,000 with respect to the cash surrender value of life insurance policies to be pledged as Collateral until such policies are collaterally assigned to Administrative Agent on terms
and conditions satisfactory to Administrative Agent and, from the date of funding of the Delayed Draw Term Loan, the Collateral Shortfall Reserve); 
 provided, that (x) the sum of the advances with respect to clauses (ii) and (iii) above shall at no time exceed Twenty-Seven Million Five Hundred Thousand and No/100 Dollars ($27,500,000), and (y) the Revolving Loan
Limit shall in no event exceed Forty Million and 

  

 15 

 
No/100 Dollars ($40,000,000) (the “Maximum Revolving Loan Limit”). Notwithstanding the foregoing, the Maximum Revolving Loan Limit may be
increased to up to Fifty Million and No/100 Dollars ($50,000,000); provided, that (w) Borrower provides Administrative Agent with sixty (60) days notice to Administrative Agent of its desire for such increase, (x) no Event of Default
has occurred and is continuing, (y) Borrower is in compliance with the financial covenants set forth in Section 14 both before and on a pro forma basis after giving effect to such increase and (z) Administrative Agent is able
to arrange for Lenders to provide such increase, for which Administrative Agent shall use commercially reasonable efforts. 
 The aggregate
unpaid principal balance of the Revolving Loans (including the Dollar Equivalent of all Loans made in Euros or Pounds Sterling) shall not at any time exceed the lesser of the (i) Revolving Loan Limit minus the Letter of Credit Obligations and
(ii) the Maximum Revolving Loan Limit minus the Letter of Credit Obligations. If at any time the outstanding Revolving Loans (including the Dollar Equivalent of all Loans made in Euros or Pounds Sterling) exceeds either the Revolving Loan Limit
or the Maximum Revolving Loan Limit, in each case minus the Letter of Credit Obligations, or any portion of the Revolving Loans (including the Dollar Equivalent of all Loans made in Euros or Pounds Sterling) and Letter of Credit Obligations exceeds
any applicable sublimit within the Revolving Loan Limit, Borrower shall immediately, and without the necessity of demand by Administrative Agent, pay to Administrative Agent such amount as may be necessary to eliminate such excess and Administrative
Agent shall apply such payment to the Revolving Loans in such order as Administrative Agent shall determine in its sole discretion; provided that Administrative Agent may, in its sole discretion, permit such excess (the “Interim
Advance”) to remain outstanding and continue to advance Revolving Loans to Borrower on behalf of Lenders without the consent of any Lender for a period of up to sixty (60) calendar days, so long as (i) the amount of the Interim
Advances does not exceed at any time One Million and No/100 Dollars ($1,000,000), (ii) the aggregate outstanding principal balance of the Revolving Loans (including the Dollar Equivalent of all Loans made in Euros or Pounds Sterling) does not
exceed the Maximum Loan Limit, and (iii) Administrative Agent has not been notified by Requisite Lenders (or, if there are only three (3) Lenders, any two (2) of the Lenders) to cease making such Revolving Loans. If the Interim
Advance is not repaid in full within sixty (60) days of the initial occurrence of the Interim Advance, no future advances may be made to Borrower without the consent of all Lenders until the Interim Advance is repaid in full. 
 Neither Administrative Agent nor any Lender shall be responsible for any failure by any other Lender to perform its obligations to make Revolving Loans
hereunder, and the failure of any Lender to make its Pro Rata Share of any Revolving Loan hereunder shall not relieve any other Lender of its obligation, if any, to make its Pro Rata Share of any Revolving Loans hereunder. 
 If Borrower makes a request for a Revolving Loan as provided herein, Administrative Agent, at its option and in its sole discretion, shall do either of
the following: 
 (i) advance the amount of the proposed Revolving Loan to Borrower disproportionately (a
“Disproportionate Advance”) out of Administrative 

  

 16 

 
Agent’s own funds on behalf of Lenders, which advance shall be on the same day as Borrower’s request therefor with respect to Prime Rate Loans if
Borrower notifies Administrative Agent of such request by 12:00 noon, Chicago time on such day, and request settlement in accordance with Section 18 hereof such that upon such settlement each Lender’s share of the outstanding
Revolving Loans (including, without limitation, the amount of any Disproportionate Advance) equals its Pro Rata Share; or 
 (ii) Notify each Lender by telecopy or other similar form of teletransmission of the proposed advance on the same day Administrative Agent is notified or deemed notified by Borrower of Borrower’s request for an advance pursuant to this
Section 2(a). Each Lender shall remit, to the demand deposit account designated by Borrower (i) with respect to Prime Rate Loans, at or prior to 3:00 P.M., Chicago time, on the date of notification, if such notification is made
before 12:00 noon, Chicago time, or 10:00 A.M., Chicago time, on the business day immediately succeeding the date of such notification, if such notification is made after 12:00 noon, Chicago time, and (ii) with respect to LIBOR Rate Loans,
at or prior to 12:00 noon., Chicago time, on the date such LIBOR Rate Loans are to be advanced, immediately available funds in an amount equal to such Lender’s Pro Rata Share of such proposed advance. 
 If and to the extent that a Lender does not settle with Administrative Agent as required under this Agreement (a “Defaulting Lender”) Borrower and
Defaulting Lender severally agree to repay to Administrative Agent forthwith on demand such amount required to be paid by such Defaulting Lender to Administrative Agent, together with interest thereon, for each day from the date such amount is made
available to Borrower until the date such amount is repaid to Administrative Agent (x) in the case of a Defaulting Lender at the Federal Funds Rate and (y) in the case of Borrower, at the interest rate applicable at such time for such
Loans; provided, that Borrower’s obligation to repay such advance to Administrative Agent shall not relieve such Lender of its liability to Administrative Agent for failure to settle as provided in this Agreement. 
 Borrower hereby authorizes Administrative Agent, in its sole discretion, to charge any of Borrower’s accounts or advance Revolving Loans to make any
payments of principal, interest, fees, costs or expenses required to be made under this Agreement or the Other Agreements; provided, that at least ten (10) Business Days prior to charging such accounts or advancing Revolving Loans for the
payment of anything other than principal, interest and scheduled fees, Administrative Agent shall provided a statement to Borrower detailing such charges. 
 A request for a Revolving Loan shall be made or shall be deemed to be made, each in the following manner: Borrower shall give Administrative Agent same day notice, no later than 12:00 noon (Chicago time) for such day,
of its request for a Revolving Loan as a Prime Rate Loan, and at least three (3) Business Days prior notice of its request for a Revolving Loan as a LIBOR Rate Loan, in which notice Borrower shall specify the amount of the proposed borrowing
and the proposed borrowing date; provided, however, that no such 

  

 17 

 
request may be made at a time when there exists an Event of Default or an event which, with the passage of time or giving of notice, will become an Event of
Default. In the event that Borrower maintains a controlled disbursement account at Administrative Agent, each check presented for payment against such controlled disbursement account and any other charge or request for payment against such
controlled disbursement account shall constitute a request for a Revolving Loan as a Prime Rate Loan. As an accommodation to Borrower, Administrative Agent may permit telephone requests for Revolving Loans and electronic transmittal of instructions,
authorizations, agreements or reports to Administrative Agent by Borrower. Unless Borrower specifically directs Administrative Agent in writing not to accept or act upon telephonic or electronic communications from Borrower, Administrative Agent
shall have no liability to Borrower for any loss or damage suffered by Borrower as a result of Administrative Agent’s honoring of any requests, execution of any instructions, authorizations or agreements or reliance on any reports communicated
to it telephonically or electronically and purporting to have been sent to Administrative Agent by Borrower and Administrative Agent shall have no duty to verify the origin of any such communication or the authority of the Person sending it, other
than to verify that the Person purporting to make such request is a Person or officer identified by Borrower to Administrative Agent as having the authority to make such request. 
 Borrower hereby irrevocably authorizes Administrative Agent to disburse the proceeds of each Revolving Loan requested by Borrower, or deemed to be
requested by Borrower, as follows: the proceeds of each Revolving Loan requested under Section 2(a) shall be disbursed by Administrative Agent in lawful money of the United States of America in immediately available funds, in the case of
the initial borrowing, in accordance with the terms of the written disbursement letter from Borrower, and in the case of each subsequent borrowing, by wire transfer or Automated Clearing House (ACH) transfer to such bank account as may be agreed
upon by Borrower and Administrative Agent from time to time, or elsewhere if pursuant to a written direction from Borrower. 
 (b) Term
Loan A. 
 Subject to the terms and conditions of this Agreement and the Other Agreements, on the Closing Date Lender shall make a
term loan to Borrower in an amount equal to Seven Million and No/100 Dollars ($7,000,000) (the “Term Loan A”). Amounts repaid with respect to the Term Loan A may not be reborrowed. 
 (c) Delayed-Draw Term Loan. 
 Subject to the terms and conditions of this Agreement and the Other Agreements, on the date that the conditions set forth herein to the Delayed-Draw Term Loan are satisfied, Lender shall make a term loan to Borrower in an amount not greater
than Six Million Six Hundred Thousand and No/100 Dollars ($6,600,000) (the “Delayed-Draw Term Loan”). Amounts repaid with respect to the Delayed-Draw Term Loan may not be reborrowed. 
  

 18 

 Borrower shall give written notice to Administrative Agent of the proposed borrowing (including the
proposed amount thereof) of the Delayed-Draw Term Loan not later than 12:00 noon (Chicago Time) five (5) Business Days prior to the proposed date of such borrowing (the date that the Delayed-Draw Term Loan is so made, the “Delayed-Draw
Term Loan Funding Date”. The advance of the Delayed Draw Term Loan shall be subject to the following conditions (in addition to any other conditions set forth in this Agreement): (i) the Delayed-Draw Term Loan shall be funded solely on
one funding date and there shall not be multiple draws under the Delayed-Draw Term Loan, (ii) any portion of any Lender’s Delayed-Draw Term Loan Commitment not funded on the Delayed-Draw Term Loan Funding Date automatically shall be
terminated on the Delayed-Draw Term Loan Funding Date and shall thereafter not be available to the Borrower; (iii) the Delayed-Draw Term Loan Funding Date shall not be later than November 15, 2007 and if the Delayed-Draw Term Loan is not
funded by November 15, 2007 each Lender’s Delayed-Draw Term Loan Commitment automatically shall be terminated on such date and shall thereafter not be available to the Borrower) (iv) Borrower shall, simultaneously with the request for
the Delayed Draw Term Loan, deliver evidence of the calculation of the Seller Earnout, (v) the amount of the Delayed-Draw Term Loan shall not exceed the amount of the Seller Earnout payable on or before November 15, 2007 (including any
portion not paid in cash from the initial proceeds); provided, that the portion advanced and not initially paid in cash in respect of the Seller Earnout shall be held in an escrow account or other cash collateral account with Administrative Agent
until Paid, and (vi) Borrower shall have Excess Availability of not less than Three Million and No/100 Dollars ($3,000,000) after giving effect to the payment of the Seller Earnout. The notice of borrowing of the Delayed Draw Term Loan shall be
effective upon receipt by Administrative Agent, shall be irrevocable, and shall specify the amount of the proposed borrowing and the proposed borrowing date, and type of borrowing. Promptly upon receipt of such notice, Administrative Agent shall
advise each Lender with a Delayed-Draw Term Loan Commitment thereof in writing. Not later than 1:00 p.m. Chicago time on the date of the proposed Delayed-Draw Term Loan Funding Date, each Lender with a Delayed-Draw Term Loan Commitment shall provide
Administrative Agent at the office specified by Administrative Agent with immediately available funds covering such Lender’s applicable pro rata share of such borrowing and, so long as Administrative Agent has not received written notice that
the conditions precedent set forth in this paragraph with respect to such borrowing have not been satisfied, Administrative Agent shall pay over the funds received by Administrative Agent to Borrower on the requested borrowing date. The borrowing of
the Delayed-Draw Term Loan shall be on a Business Day. 
 (d) Repayments. 
 (i) Repayment of Revolving Loans. The Revolving Loans and all other Liabilities (other than the Term Loans) shall be repaid on the last day of the
Original Term. 
 (ii) Repayment of Term Loan A. Term Loan A shall be repaid in quarterly installments on the last day of each calendar
quarter in the amounts set forth below; provided that any remaining outstanding principal balance of the Term Loan A shall be repaid at the end of the Original Term. If any such payment due date is not a 

  

 19 

 
Business Day, then such payment may be made on the next succeeding Business Day and such extension of time shall be included in the computation of the amount
of interest and fees due hereunder. 
  

				
	 Payment Date
	  	Amount
	 Each calendar quarter ending December 31, 2006 through September 30, 2007
	  	$	250,000
	 Each calendar quarter ending December 31, 2007 through September 30, 2008
	  	$	310,000
	 Each calendar quarter ending December 31, 2008 through September 30, 2009
	  	$	310,000
	 Each calendar quarter ending December 31, 2009 through September 30, 2010
	  	$	440,000
	 Each calendar quarter ending December 31, 2010 through September 30, 2011
	  	$	440,000

 (iii) Repayment of Delayed-Draw Term Loan. Delayed-Draw Term Loan shall be
repaid in quarterly installments in the amounts and on the last day of each calendar quarter set forth below; provided, that (i) if the Delayed-Draw Term Loan is advanced prior to September 30, 2007, Lenders may elect, in their sole
discretion, to cause the amortization schedule set forth below to commence December 31, 2007, with all payments to occur one quarter earlier than the schedule set forth below and (ii) that any remaining outstanding principal balance of
Delayed-Draw Term Loan shall be repaid at the end of the Original Term. If any such payment due date is not a Business Day, then such payment may be made on the next succeeding Business Day and such extension of time shall be included in the
computation of the amount of interest and fees due hereunder. 
  

			
	 Payment Date
	  	 Amount

	Calendar quarters ending March 31, 2008
through December 31, 2008	  	Equal quarterly installments aggregating 20% of the original principal balance of the Delayed-Draw Term Loan
		
	 Calendar quarters ending March 31, 2009
 through
December 31, 2009
	  	Equal quarterly installments aggregating 20% of the original principal balance of the Delayed-Draw Term Loan
		
	 Calendar quarters ending March 31, 2010
 through
December 31, 2010
	  	Equal quarterly installments aggregating 25% of the original principal balance of the Delayed-Draw Term Loan
		
	 Calendar quarters ending March 31, 2011
 through
December 31, 2011
	  	Equal quarterly installments aggregating 35% of the original principal balance of the Delayed-Draw Term Loan

  

 20 

 (iv) Mandatory Prepayments of the Term Loans. 
 (A) Sales of Assets. Upon receipt of the proceeds of the sale or other disposition of any Equipment or real property of Borrower or any of its
Subsidiaries which is subject to a lien or security interest in favor of Administrative Agent, or if any of the Equipment or real property subject to such lien or security interest is damaged, destroyed or taken by condemnation in whole or in part,
the proceeds (net of closing fees, expenses and charges and amounts required to repay holders of Permitted Liens on such assets having priority over the liens of Administrative Agent), in each case in excess of $500,000 in the aggregate in any
Fiscal Year thereof shall be paid by Borrower to Administrative Agent as a mandatory prepayment of the Term Loans, such payment to be applied ratably against the Term Loans, to the remaining installments of principal thereof in the inverse order of
their maturities until repaid in full, and then against the other Liabilities, as determined by Administrative Agent, in its sole discretion. 
 (B) Excess Cash Flow. Ten (10) days after receipt of Borrower’s Fiscal Year end audited financial statements for each Fiscal Year of Borrower commencing with Borrower’s Fiscal Year ended December 31, 2007 Borrower
shall make a mandatory prepayment of the Term Loans in an amount equal to fifty percent (50%) of “Excess Cash Flow” (as described below) for the Fiscal Year most recently ended, such prepayment to be applied ratably against the
remaining installments of principal in the inverse order of their maturities, such mandatory prepayments to continue until the date on which the Term Loans shall be repaid in full. For purposes hereof, “Excess Cash Flow” shall mean for
each of Borrower’s Fiscal Years, EBITDA for such period, minus Borrower’s and its Subsidiaries’ taxes during such period minus interest payable in cash during such period, minus actual principal payments made with respect to long term
debt (excluding principal payments of the Revolving Loan) during such period, minus all unfinanced Capital Expenditures by Borrower and its Subsidiaries during such period. 
 (C) Equity/Debt Issuance. Upon the receipt by Borrower or any of its Subsidiaries of any proceeds from any issuance of equity securities of
Borrower or any of its Subsidiaries or any issuance of indebtedness owed by Borrower or any of its Subsidiaries (excluding indebtedness permitted by Section 13(b)), such proceeds (net of closing fees, expenses and charges) in excess of $500,000
in the aggregate in any Fiscal Year shall be paid by Borrower to Administrative Agent as a mandatory prepayment of the Term Loans, such payment to be applied ratably against the remaining installments of principal in the inverse order of their
maturities until repaid in full, and then against the other Liabilities, as determined by Administrative Agent, in its sole discretion. 
 (e) Notes. 
 The Loans shall, in Administrative Agent’s and Lenders’ sole discretion, be evidenced by one or
more promissory notes in form and substance satisfactory to each Lender. However, if such Loans are not so evidenced, such Loans may be evidenced solely by entries upon the books and records maintained by Administrative Agent and each Lender.

  

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 3. LETTERS OF CREDIT. 
 (a) General Terms. 
 Subject to
the terms and conditions of the Agreement and the Other Agreements, during the Original Term Administrative Agent shall, absent the existence of an Event of Default, from time to time issue, cause to be issued or otherwise guarantee, upon
Borrower’s request, commercial and/or standby Letters of Credit; provided, that (i) Borrower may request that the Letter of Credit be denominated in Euros or Pounds Sterling and (ii) the aggregate undrawn face amount of all such
Letters of Credit (including the Dollar Equivalent of the Letters of Credit denominated in Euros or Pounds Sterling) shall at no time exceed Fifteen Million and No/100 Dollars ($15,000,000). Payments made by Administrative Agent or Lenders to any
Person on account of any Letter of Credit shall constitute Loans hereunder and Borrower agrees that each payment made by the issuer of a Letter of Credit in respect of a Letter of Credit shall constitute a request by Borrower for a Loan to reimburse
such issuer. Borrower shall remit to Administrative Agent, for the benefit of Lenders, a Letter of Credit fee equal to (i) the Applicable Margin with respect to Letter of Credit Fees for standby Letters of Credit in effect from time to time per
annum on the aggregate undrawn face amount of all standby Letters of Credit outstanding, which fee shall be payable monthly in arrears on the last Business Day of each month, and (ii) the Applicable Margin with respect to Letter of Credit Fees
for documentary Letters of Credit in effect from time to time per annum on the aggregate undrawn face amount of all documentary Letters of Credit outstanding, which fee shall be payable in arrears on the last Business Day of each month. Borrower
shall also pay on demand the normal and customary administrative charges of the issuer of the Letter of Credit for issuance, amendment, negotiation, renewal or extension of any Letter of Credit. 
 (b) Requests for Letters of Credit. 
 Borrower shall make requests for Letters of Credit in writing. Each such request shall specify the date such Letter of Credit is to be issued, the amount thereof, the name and address of the beneficiary thereof and a description of the
transaction to be supported thereby. Administrative Agent shall make reasonable efforts to cause the issuer of the Letter of Credit to issue the requested Letter of Credit on the date specified in the request (including on the date of such request,
if requested before 10:00 a.m. Chicago time), however, none of Administrative Agent, any Lender or the issuer shall have any liability to Borrower for failing to issue a Letter of Credit requested and authorized pursuant to the terms and conditions
of this Agreement and the Other Agreements so long as such Letter of Credit is issued within two (2) Business Days of receipt of written request therefor by Administrative Agent. Any such notice shall be accompanied by the form of Letter of
Credit requested and any application or reimbursement agreement required by the issuer of such Letter of Credit. If any term of such application or reimbursement agreement is inconsistent with this Agreement, then the provisions of this Agreement
shall control to the extent of such inconsistency. 
  

 22 

 (c) Obligations Absolute. 
 Borrower shall be obligated to reimburse the issuer of any Letter of Credit, or Administrative Agent and/or Lenders if Administrative Agent and/or Lenders
have reimbursed such issuer on Borrower’s behalf, for any payments made in respect of any Letter of Credit, which obligation shall be unconditional and irrevocable and shall be paid regardless of: (i) any lack of validity or enforceability
of any Letter of Credit, (ii) any amendment or waiver of or consent or departure from all or any provisions of any Letter of Credit, this Agreement or any Other Agreement, (iii) the existence of any claim, set off, defense or other right
which Borrower or any other Person may have against any beneficiary of any Letter of Credit or Administrative Agent, any Lender or the issuer of the Letter of Credit, (iv) any draft or other document presented under any Letter of Credit proving
to be forged, fraudulent, invalid, or insufficient in any respect or any statement therein being untrue or inaccurate in any respect, (v) any payment under any Letter of Credit against presentation of a draft or other document that does not
comply with the terms of such Letter of Credit unless the issuer’s failure to determine such non-compliance is a result of such issuer’s gross negligence or willful misconduct, and (vi) any other act or omission to act or delay of any
kind of the issuer of such Letter of Credit, by Administrative Agent, any Lender or any other Person or any other event or circumstance that might otherwise constitute a legal or equitable discharge of Borrower’s obligations hereunder unless
such act or omission to act is the result of such party’s gross negligence or willful misconduct. It is understood and agreed by Borrower that the issuer of any Letter of Credit may accept documents that appear on their face to be in order
without further investigation or inquiry, regardless of any notice or information to the contrary. Borrower hereby further acknowledges that all Letters of Credit issued for the account of Cobra Electronics Europe, Ltd. under this loan facility with
respect to which Borrower is a co-applicant shall constitute Liabilities of Borrower under this Agreement, secured by the Collateral and shall in all other respects be subject to the terms of this Agreement as if such Letter of Credit had been
directly issued on behalf of Borrower. 
 (d) Expiration Dates of Letters of Credit. 
 The expiration date of each Letter of Credit shall be no later than the earlier of (i) one (1) year from the date of issuance and (ii) the
twenty-fifth (25th) day prior to the end of the Original Term. Notwithstanding the foregoing, a Letter of Credit may provide for automatic extensions of its expiration date for one or more one (1) year periods, so long as the issuer
thereof has the right to terminate the Letter of Credit at the end of each one (1) year period and no extension period extends past the twenty-fifth (25th) day prior to the end of the Original Term. 
 (e) Participation. 
 Immediately upon the issuance of a Letter of Credit in accordance with this Agreement, each Lender shall be deemed to have irrevocably and unconditionally purchased and received from Administrative Agent, without recourse or warranty, an
undivided interest and participation therein to the extent of such Lender’s Pro Rata Share (including, without limitation, all obligations of Borrower with respect thereto). Borrower hereby indemnifies 

  

 23 

 
Administrative Agent and each Lender against any and all liability and expense it may incur in connection with any Letter of Credit and agrees to reimburse
Administrative Agent and each Lender for any payment made by Administrative Agent or any Lender to the issue. 
 4. INTEREST, FEES AND
CHARGES.  
 (a) Interest Rate. 
 Subject to the terms and conditions set forth below, the Loans shall bear interest at the per annum rate of interest set forth in subsection (i), (ii) or (iii) below: 
 (i) The sum of the Applicable Margin then in effect with respect to Prime Rate Loans per annum plus the Prime Rate in effect from time to time, payable on
the last day of each calendar quarter in arrears Said rate of interest shall increase or decrease by an amount equal to each increase or decrease in the Prime Rate effective on the effective date of each such change in the Prime Rate. 
 (ii) The sum of the Applicable Margin then in effect with respect to LIBOR Rate Loans per annum plus the LIBOR Rate for the applicable Interest Period,
such rate to remain fixed for such Interest Period. “Interest Period” shall mean any continuous period of one (1), two (2), three (3) or six (6) months, as selected from time to time by Borrower by irrevocable notice (in
writing, by telecopy, telex, telegram, electronic mail or cable) given to Administrative Agent not less than three (3) Business Days prior to the first day of each respective Interest Period; provided that: (A) each such period occurring
after such initial period shall commence on the day on which the immediately preceding period expires; (B) the final Interest Period shall be such that its expiration occurs on or before the end of the Original Term; and (C) if for any
reason Borrower shall fail to timely select a period, then such Loans shall continue as, or revert to, Prime Rate Loans. Interest shall be payable on the last day of each Interest Period and, if the Interest Period is longer than three
(3) months, on the date in the third (3rd) month following the first day of the Interest Period that
corresponds numerically to such date (and if such month does not have a date that corresponds numerically thereto, then on the last day of such month), in each case in arrears. 
 (iii) Upon the occurrence of an Event of Default and during the continuance thereof, the Loans shall bear interest at the rate of two percent
(2.0%) per annum in excess of the interest rate otherwise payable thereon, which interest shall be payable on demand. All interest shall be calculated on the basis of a 360-day year. 
 (b) Other LIBOR Provisions. 
 (i) Subject to the provisions of this Agreement, Borrower shall have the option (A) as of any date, to convert all or any part of the Prime Rate Loans to, or request that new Loans be made as, LIBOR Rate Loans of various Interest
Periods, (B) as of the last day of any Interest Period, to continue all or any portion of the relevant LIBOR Rate Loans as LIBOR Rate Loans; (C) as of the last day of any Interest Period, 

  

 24 

 
to convert all or any portion of the LIBOR Rate Loans to Prime Rate Loans; and (D) at any time, to request new Loans as Prime Rate Loans; provided, that
Loans may not be continued as or converted to LIBOR Rate Loans, if the continuation or conversion thereof would violate the provisions of subsections 4(b)(ii) or 4(b)(iii) of this Agreement or if an Event of Default has occurred and is
continuing. 
 (ii) Administrative Agent’s determination of the LIBOR Rate as provided above shall be conclusive, absent
manifest error. Furthermore, if Administrative Agent or any Lender determines, in good faith (which determination shall be conclusive, absent manifest error), prior to the commencement of any Interest Period that (A) U.S. Dollar deposits
of sufficient amount and maturity for funding the Loans are not available to Administrative Agent or such Lender in the London Interbank Eurodollar market in the ordinary course of business, or (B) by reason of circumstances affecting the
London Interbank Eurodollar market, adequate and fair means do not exist for ascertaining the rate of interest to be applicable to the Loans requested by Borrower to be LIBOR Rate Loans or the Loans bearing interest at the rates set forth in
subsection 4(a)(ii) of this Agreement shall not represent the effective pricing to such Lender for U.S. Dollar deposits of a comparable amount for the relevant period (such as for example, but not limited to, official reserve
requirements required by Regulation D to the extent not given effect in determining the rate), Administrative Agent shall promptly notify Borrower and (1) all existing LIBOR Rate Loans shall convert to Prime Rate Loans upon the end of the
applicable Interest Period, and (2) no additional LIBOR Rate Loans shall be made until such circumstances are cured. 
 (iii) If, after the date hereof, the introduction of, or any change in any applicable law, treaty, rule, regulation or guideline or in the interpretation or administration thereof by any governmental authority or any central bank or other
fiscal, monetary or other authority having jurisdiction over Administrative Agent or any Lender or its lending offices (a “Regulatory Change”), shall, in the opinion of counsel to Administrative Agent or such Lender, make it
unlawful for Administrative Agent or such Lender to make or maintain LIBOR Rate Loans, then Administrative Agent shall promptly notify Borrower and (A) the LIBOR Rate Loans shall immediately convert to Prime Rate Loans on the last Business Day
of the then existing Interest Period or on such earlier date as required by law and (B) no additional LIBOR Rate Loans shall be made until such circumstance is cured. 
 (iv) If, for any reason, a LIBOR Rate Loan is paid prior to the last Business Day of any Interest Period or if a LIBOR Rate Loan does not
occur on a date specified by Borrower in its request (other than as a result of a default by Administrative Agent or a Lender), Borrower agrees to indemnify Administrative Agent and each Lender against any loss (including any loss on redeployment of
the deposits or other funds acquired by Administrative Agent or such Lender to fund or maintain such LIBOR Rate Loan) cost or expense incurred by Administrative Agent or such Lender as a result of such prepayment. 
  

 25 

 (v) If any Regulatory Change (whether or not having the force of law) shall
(A) impose, modify or deem applicable any assessment, reserve, special deposit or similar requirement against assets held by, or deposits in or for the account of or loans by, or any other acquisition of funds or disbursements by,
Administrative Agent or any Lender; (B) subject Administrative Agent or any Lender or the LIBOR Rate Loans to any Tax or change the basis of taxation of payments to Administrative Agent or any Lender of principal or interest due from Borrower
to Administrative Agent or such Lender hereunder (other than a change in the taxation of the overall net income of such Lender); or (C) impose on Administrative Agent or any Lender any other condition regarding the LIBOR Rate Loans or
Administrative Agent’s or any Lender’s funding thereof, and Administrative Agent’s or any Lender shall determine (which determination shall be conclusive, absent any manifest error) that the result of the foregoing is to increase the
cost to Administrative Agent or such Lender of making or maintaining the LIBOR Rate Loans or to reduce the amount of principal or interest received by Administrative Agent or such Lender hereunder, then Borrower shall pay to such party, on demand,
such additional amounts as such party shall, from time to time, determine are sufficient to compensate and indemnify such party from such increased cost or reduced amount; provided, that such demand is made within one hundred eighty (180) days
after such increased cost or reduced amount is incurred or subsequently determined to have been incurred if the determination that such increased cost or reduced amount is subsequently made as a result of a change to or reinterpretation of the
Regulatory Change, from an audit of the implementation of such Regulatory Change or if such Regulatory Change has retroactive effect. 
 (vi) Each of Administrative Agent and each Lender shall receive payments of amounts of principal of and interest with respect to the LIBOR Rate Loans free and clear of, and without deduction for, any Taxes. If
(A) Administrative Agent or any Lender shall be subject to any Tax in respect of any LIBOR Rate Loans or any part thereof or, (B) Borrower shall be required to withhold or deduct any Tax from any such amount, the LIBOR Rate applicable to
such LIBOR Rate Loans shall be adjusted by Administrative Agent or such Lender to reflect all additional costs incurred by Administrative Agent or such Lender in connection with the payment by Administrative Agent or such Lender or the withholding
by Borrower of such Tax and Borrower shall provide Administrative Agent or such Lender with a statement detailing the amount of any such Tax actually paid by Borrower. Determination by Administrative Agent or any Lender of the amount of such costs
shall be conclusive, absent manifest error. If after any such adjustment any part of any Tax paid by Administrative Agent or any Lender is subsequently recovered by Administrative Agent or such Lender, such party shall reimburse Borrower to the
extent of the amount so recovered. A certificate of an officer of Administrative Agent or any Lender setting forth the amount of such recovery and the basis therefor shall be conclusive, absent manifest error. Each Lender organized under the laws of
a jurisdiction outside the United States (a “Foreign Lender”) as to which payments to be made under this Agreement or under the notes are exempt from United States withholding tax or are subject to United States withholding tax at a
reduced rate under an applicable statute or tax treaty shall provide to Borrower and Administrative 

  

 26 

 
Agent (A) a properly completed and executed Internal Revenue Service Form W-8BEN or Form W-8ECI or other applicable form, certificate or document
prescribed by the Internal Revenue Service of the United States certifying as to such Foreign Lender’s entitlement to such exemption or reduced rate of withholding with respect to payments to be made to such Foreign Lender under this Agreement
and under the Notes (a “Certificate of Exemption”) or (B) a letter from any such Foreign Lender stating that it is not entitled to any such exemption or reduced rate of withholding (a “Letter of
Non-Exemption”). Prior to becoming a Lender under this Agreement and within fifteen (15) days after a reasonable written request of Borrower or Administrative Agent from time to time thereafter, each Foreign Lender that becomes a
Lender under this Agreement shall provide a Certificate of Exemption or a Letter of Non-Exemption to Borrower and Administrative Agent. If a Foreign Lender is entitled to an exemption with respect to payments to be made to such Foreign Lender under
this Agreement (or to a reduced rate of withholding) and does not provide a Certificate of Exemption to Borrower and Administrative Agent within the time periods set forth in the preceding paragraph, Borrower shall withhold taxes from payments to
such Foreign Lender at the applicable statutory rates and Borrower shall not be required to pay any additional amounts as a result of such withholding, provided that all such withholding shall cease upon delivery by such Foreign Lender of a
Certificate of Exemption to Borrower and Administrative Agent. 
 (vii) Each request for LIBOR Rate Loans shall be in an
amount not less than Five Hundred Thousand and No/100 Dollars ($500,000), and in integral multiples of, One Hundred Thousand and No/100 Dollars ($100,000). 
 (viii) Unless otherwise specified by Borrower, all Loans shall be Prime Rate Loans. 
 (ix) No
more than five (5) Interest Periods may be in effect with respect to outstanding LIBOR Rate Loans at any one time. 
 (c) Fees And
Charges. 
 (i) Fee Letter: Borrower shall pay to Administrative Agent the fees set forth in the Fee Letter of even date
herewith between Borrower and Administrative Agent. 
 (ii) Unused Line Fee: Borrower shall pay to Administrative Agent, for the
benefit of Lenders, an unused line fee equal to the Applicable Margin with respect to the Unused Line Fee in effect from time to time of the difference between the Maximum Revolving Loan Limit and the average daily balance of the Revolving Loans
plus the Letter of Credit Obligations for each month, which fee shall be fully earned by Lenders and payable monthly in arrears on the last Business Day of each month. Said fee shall be calculated on the basis of a 360 day year. 
  

 27 

 (iii) Delayed-Draw Non-Use Fee: Borrower shall pay to Administrative Agent for the
benefit of Lenders, a non-use fee with respect to the Delayed-Draw Term Loan equal to five-eighths of one percent (0.625%) of the average daily undrawn amount of the Delayed-Draw Term Loan payable quarterly in arrears on the last day of each
calendar quarter and on the Delayed-Draw Term Loan Funding Date, provided, that such fee shall cease to accrue after the Delayed Draw Term Loan Commitment is either funded or otherwise terminated. 
 (iv) Agency Fee: Borrower shall pay to Administrative Agent, for their own account, the fees described in a separate Fee Letter of
even date herewith between Borrower and Administrative Agent. 
 (v) Costs and Expenses: Borrower shall reimburse
Administrative Agent for all reasonable out-of-pocket costs and expenses, including, without limitation, legal expenses and reasonable attorneys’ fees, incurred by Administrative Agent in connection with the (i) documentation and
consummation of this transaction and any other transactions among Borrower, Administrative Agent and Lenders, including, without limitation, Uniform Commercial Code and other public record searches and filings, overnight courier or other express or
messenger delivery, appraisal costs, surveys, title insurance and environmental audit or review costs; (ii) collection, protection or enforcement of any rights in or to the Collateral; (iii) collection of any Liabilities; and
(iv) administration and enforcement of any of Administrative Agent’s and/or any Lender’s rights under this Agreement or any Other Agreement. Borrower shall also pay all normal service charges with respect to all accounts maintained by
Borrower with LaSalle and any additional services requested by Borrower from LaSalle. All such costs, expenses and charges shall constitute Liabilities hereunder, shall be payable by Borrower to LaSalle on demand, and until paid, shall bear interest
at the highest rate then applicable to Loans hereunder; provided, that Borrower shall receive a statement detailing all such costs and expenses at least ten (10) Business Days prior to such costs and expenses being due and payable hereunder. In
addition, following the occurrence of an Event of Default, Borrower shall reimburse each Lender for all reasonable out-of-pocket costs and expenses, including, without limitation, legal expenses and reasonable attorneys’ fees, incurred by such
Lender in connection with the (i) collection, protection or enforcement of any rights in or to the Collateral; (ii) collection of any Liabilities; and (iii) administration and enforcement of any of Lenders’ rights under this
Agreement. 
 (vi) Capital Adequacy Charge. If Administrative Agent or any Lender shall have determined that the
adoption of any law, rule or regulation regarding capital adequacy, or any change therein or in the interpretation or application thereof, or compliance by Administrative Agent or such Lender with any request or directive regarding capital adequacy
(whether or not having the force of law) from any central bank or governmental authority enacted after the date hereof, does or shall have the effect of reducing the rate of return on such party’s capital as a consequence of its obligations
hereunder to a level below that which Administrative Agent or such Lender could have achieved but for such adoption, change or compliance (taking into 

  

 28 

 
consideration such party’s policies with respect to capital adequacy) by a material amount, then from time to time, after submission by Administrative
Agent to Borrower of a written demand therefor (“Capital Adequacy Demand”) together with the certificate described below, Borrower shall pay to such party such additional amount or amounts (“Capital Adequacy
Charge”) as will compensate such party for such reduction, such Capital Adequacy Demand to be made within one hundred eighty (180) days following the date that such Capital Adequacy Charge is incurred or subsequently deemed to have
been incurred if the determination of such Capital Adequacy Charge is made as a result of a change or reinterpretation of the law, rule or regulation resulting in the Capital Adequacy Charge, subsequent audit discloses the incurrence of such Capital
Adequacy Charge or if such law, rule or regulation has retroactive effect. A certificate of Administrative Agent or such Lender claiming entitlement to payment as set forth above shall be conclusive in the absence of manifest error. Such certificate
shall set forth the nature of the occurrence giving rise to such reduction, the amount of the Capital Adequacy Charge to be paid to Administrative Agent or such Lender, and the method by which such amount was determined. In determining such amount,
the applicable party may use any reasonable averaging and attribution method, applied on a non-discriminatory basis. 
 (d) Maximum
Interest. 
 It is the intent of the parties that the rate of interest and other charges to Borrower under this Agreement and the
Other Agreements shall be lawful; therefore, if for any reason the interest or other charges payable under this Agreement are found by a court of competent jurisdiction, in a final determination, to exceed the limit which Administrative Agents or
any Lender may lawfully charge Borrower, then the obligation to pay interest and other charges shall automatically be reduced to such limit and, if any amount in excess of such limit shall have been paid, then such amount shall be refunded to
Borrower. 
 (e) Replacement Lender for Increased Costs. 
 If Borrower becomes obligated to pay any additional amounts to any Lender pursuant to subsection 4(b)(v), 4(b)(vi) or 4(c)(vi), or if
a Lender determines that LIBOR Rate Loans are unavailable as a result of subsection 4(b)(iii), Borrower may designate a replacement Lender (a “Replacement Lender”), which Replacement Lender is subject to approval by
Administrative Agent, in its reasonable discretion and which Replacement Lender must not be subject to the charge or Regulatory Change for which the original Lender is being replaced, to purchase the Loans and Revolving Loan Commitment of such
Lender and such Lender’s rights hereunder, without recourse to or warranty by, or expense to, such Lender for a purchase price equal to the outstanding principal amount of the Loans payable to such Lender plus accrued but unpaid interest
thereon and all accrued but unpaid fees owed to such Lender and any other amounts owed to such Lender under this Agreement or any of the Other Agreements, and to assume all the obligations of such Lender hereunder. Upon such purchase and assumption
(pursuant to an Assignment and Acceptance), such Lender shall no longer be a party hereto or have any rights hereunder (other than rights with respect to indemnities and similar rights applicable to such Lender prior to the date of such purchase and
assumption) and shall be relieved from all obligations to Borrower hereunder, and the Replacement Lender shall succeed to the rights and obligations of such Lender hereunder. 
  

 29 

 5. COLLATERAL. 
 (a) Grant of Security Interest to Administrative Agent. 
 As security for the payment of all Loans now or in the future made by Administrative Agent and Lenders to Borrower hereunder and for the payment or other satisfaction of all other Liabilities, Borrower hereby assigns
to Administrative Agent, for the benefit of Administrative Agent and Lenders, and grants to Administrative Agent, for the benefit of Lenders, a continuing security interest in the following property of Borrower, whether now or hereafter owned,
existing, acquired or arising and wherever now or hereafter located): (a) all Accounts (whether or not Eligible Accounts) and all Goods whose sale, lease or other disposition by Borrower has given rise to Accounts and have been returned to, or
repossessed or stopped in transit by, Borrower; (b) all Chattel Paper, Instruments, Documents and General Intangibles (including, without limitation, all patents, patent applications, trademarks, trademark applications, trade names, trade
secrets, goodwill, copyrights, copyright applications, registrations, licenses, software, franchises, customer lists, tax refund claims, claims against carriers and shippers, guarantee claims, contract rights, payment intangibles, security
interests, security deposits and rights to indemnification); (c) all Inventory (whether or not Eligible Inventory); (d) all Goods (other than Inventory), including, without limitation, Equipment, vehicles and Fixtures; (e) all
Investment Property; provided, that Investment Property consisting of equity of foreign Subsidiaries shall be limited to sixty-five percent (65%) of the equity of first tier foreign Subsidiaries; (f) all Deposit Accounts, bank accounts,
deposits and cash; (g) all Letter-of-Credit Rights; (h) Commercial Tort Claims listed on Exhibit C hereto; (i) any other property of Borrower now or hereafter in the possession, custody or control of Administrative Agent or any Lender
or any agent or any parent, affiliate or subsidiary of Administrative Agent or any Lender or any participant with any Lender in the Loans, for any purpose (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise);
and (j) all additions and accessions to, substitutions for, and replacements, products and Proceeds of the foregoing property, including, without limitation, proceeds of all insurance policies insuring the foregoing property, and all of
Borrower’s books and records relating to any of the foregoing and to Borrower’s business. 
 (b) Other Security.

 Administrative Agent, in its sole discretion, without waiving or releasing any obligation, liability or duty of Borrower under this
Agreement or the Other Agreements or any Event of Default, may at any time or times hereafter, but shall not be obligated to, pay, acquire or accept an assignment of any security interest, lien, encumbrance or claim asserted by any Person in, upon
or against the Collateral. All sums paid by Administrative Agent in respect thereof and all costs, fees and expenses including, without limitation, reasonable attorney fees, all court costs and all other charges relating thereto incurred by
Administrative Agent shall constitute Liabilities, payable by Borrower to Administrative Agent on demand and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder. 
  

 30 

 (c) Possessory Collateral. 
 Immediately upon Borrower’s receipt of any portion of the Collateral evidenced by an agreement, Instrument or Document, including, without
limitation, any Tangible Chattel Paper and any Investment Property consisting of certificated securities, Borrower shall deliver the original thereof to Administrative Agent together with an appropriate endorsement or other specific evidence of
assignment thereof to Administrative Agent (in form and substance acceptable to Administrative Agent). If an endorsement or assignment of any such items shall not be made for any reason, Administrative Agent is hereby irrevocably authorized, as
Borrower’s attorney and agent-in-fact, to endorse or assign the same on Borrower’s behalf. 
 (d) Electronic Chattel
Paper. 
 To the extent that Borrower obtains or maintains any Electronic Chattel Paper, Borrower shall create, store and assign the
record or records comprising the Electronic Chattel Paper in such a manner that (i) a single authoritative copy of the record or records exists which is unique, identifiable and except as otherwise provided in clauses (iv), (v) and
(vi) below, unalterable, (ii) the authoritative copy identifies Administrative Agent as the assignee of the record or records, (iii) the authoritative copy is communicated to and maintained by Administrative Agent or its designated
custodian, (iv) copies or revisions that add or change an identified assignee of the authoritative copy can only be made with the participation of Administrative Agent, (v) each copy of the authoritative copy and any copy of a copy is
readily identifiable as a copy that is not the authoritative copy and (vi) any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision. 
 6. PRESERVATION OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS THEREIN. 
 Borrower shall, at Administrative Agent’s request, at any time and from time to time, authenticate, execute and deliver to Administrative Agent such
financing statements, documents and other agreements and instruments (and pay the cost of filing or recording the same in all public offices deemed necessary or desirable by Administrative Agent) and do such other acts and things or cause third
parties to do such other acts and things as Administrative Agent may deem necessary or desirable in its sole discretion in order to establish and maintain a valid, attached and perfected security interest in the Collateral in favor of Administrative
Agent (free and clear of all other liens, claims, encumbrances and rights of third parties whatsoever, whether voluntarily or involuntarily created, except Permitted Liens) to secure payment of the Liabilities, and in order to facilitate the
collection of the Collateral. Borrower irrevocably hereby makes, constitutes and appoints Administrative Agent (and all Persons designated by Administrative Agent for that purpose) as Borrower’s true and lawful attorney and agent-in-fact to
execute and file such financing 

  

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statements, documents and other agreements and instruments and do such other acts and things as may be necessary to preserve and perfect Administrative
Agent’s security interest in the Collateral. Borrower further agrees that a carbon, photographic, photostatic or other reproduction of this Agreement or of a financing statement shall be sufficient as a financing statement. Borrower further
ratifies and confirms the prior filing by Administrative Agent of any and all financing statements which identify the Borrower as debtor, Administrative Agent as secured party and any or all Collateral as collateral. 
 7. POSSESSION OF COLLATERAL AND RELATED MATTERS. 
 Unless an Event of Default has occurred and is continuing, Borrower shall have the right, except as otherwise provided in this Agreement, in the ordinary course of Borrower’s business, to (a) sell, lease or
furnish under contracts of service any of Borrower’s Inventory normally held by Borrower for any such purpose; and (b) use and consume any raw materials, work in process or other materials normally held by Borrower for such purpose;
provided, however, that a sale in the ordinary course of business shall not include any transfer or sale in satisfaction, partial or complete, of a debt owed by Borrower. 
 8. COLLECTIONS. 
 (a) Borrower shall direct all of its Account Debtors to make all payments on
the Accounts directly to a post office box (the “Lock Box”) or, if by wire transfer, directly to the Lock Box Account; provided, that Borrower may in its reasonable business judgment direct Account Debtors to make payments to an alternate
location, so long as (i) no Event of Default is then continuing and (ii) if Excess Availability is less than $5,000,000 at such time, Borrower promptly notifies Administrative Agent of any such alternate arrangement. Borrower shall
establish an account (the “Lock Box Account”) in Borrower’s name with a Lender, into which all payments received in the Lock Box shall be deposited, and into which Borrower will immediately deposit all payments received by Borrower on
Accounts in the identical form in which such payments were received, whether by cash or check. If Borrower, any Affiliate or Subsidiary, any shareholder, officer, director, employee or agent of Borrower or any Affiliate or Subsidiary, or any other
Person acting for or in concert with Borrower shall receive any monies, checks, notes, drafts or other payments relating to or as Proceeds of Accounts or other Collateral, Borrower and each such Person shall immediately upon receipt thereof, shall
remit the same (or cause the same to be remitted) in kind to the Lock Box Account. Funds deposited in the Lock Box Account shall be the sole and exclusive property of Borrower, provided, that Borrower, Administrative Agent and LaSalle agree that
following the occurrence and during the continuance of an Event of Default, funds deposited in the Lock Box and Lock Box Account shall be under the exclusive control of Administrative Agent, and the institution at which such Lock Box and Lock Box
Account are maintained will follow the instructions of Administrative Agent with respect to disposition of funds in the Lock Box and Lock Box Account without further consent from Borrower. Borrower agrees that all payments made to such Lock Box
Account or otherwise received by Administrative Agent, whether in respect of the Accounts or as Proceeds of other Collateral or otherwise, will, following the occurrence and during the continuance of an Event of Default, be applied on account of the
Liabilities in accordance with the terms of this 

  

 32 

 
Agreement. Borrower agrees to pay all fees, costs and expenses in connection with opening and maintaining the Lock Box and Lock Box Account. All of such
fees, costs and expenses if not paid by Borrower, may be paid by Administrative Agent and in such event all amounts paid by Administrative Agent shall constitute Liabilities hereunder, shall be payable to Administrative Agent by Borrower upon
demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder. All checks, drafts, instruments and other items of payment or Proceeds of Collateral shall be endorsed by Borrower to LaSalle, and, if that
endorsement of any such item shall not be made for any reason, LaSalle is hereby irrevocably authorized to endorse the same on Borrower’s behalf. For the purpose of this section, Borrower irrevocably hereby makes, constitutes and appoints
LaSalle and Administrative Agent (and all Persons designated by LaSalle and Administrative Agent for that purpose) as Borrower’s true and lawful attorney and agent-in-fact (i) to endorse Borrower’s name upon said items of payment
and/or Proceeds of Collateral and upon any Chattel Paper, Document, Instrument, invoice or similar document or agreement relating to any Account of Borrower or Goods pertaining thereto; (ii) to take control in any manner of any item of payment
or Proceeds thereof and (iii) to have access to any lock box or postal box into which any of Borrower’s mail is deposited, and open and process all mail addressed to Borrower and deposited therein; provided, that Administrative Agent shall
not exercise any such powers described in clauses (i), (ii) and (iii) above (except for routine Lock Box payments/proceeds) unless and until an Event of Default has occurred and is continuing. 
 (b) Administrative Agent may, at any time and from time to time after the occurrence and during the continuance of an Event of Default, whether before or
after notification to any Account Debtor and whether before or after the maturity of any of the Liabilities, (i) enforce collection of any of Borrower’s Accounts or other amounts owed to Borrower by suit or otherwise; (ii) exercise
all of Borrower’s rights and remedies with respect to proceedings brought to collect any Accounts or other amounts owed to Borrower; (iii) surrender, release or exchange all or any part of any Accounts or other amounts owed to Borrower, or
compromise or extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder; (iv) sell or assign any Account of Borrower or other amount owed to Borrower upon such terms, for such amount and at such
time or times as Administrative Agent deems advisable; (v) prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or other similar document against any Account Debtor or other Person obligated to Borrower; and
(vi) do all other acts and things which are necessary, in Administrative Agent’s sole discretion, to fulfill Borrower’s obligations under this Agreement and the Other Agreements and to allow Administrative Agent to collect the
Accounts or other amounts owed to Borrower. In addition to any other provision hereof, Administrative Agent may at any time, after the occurrence and during the continuance of an Event of Default, at Borrower’s expense, notify any parties
obligated on any of the Accounts to make payment directly to Administrative Agent of any amounts due or to become due thereunder. 
 (c) For
purposes of calculating interest, fees and available funds for Loans and Letters of Credit, Administrative Agent shall, on the day of receipt by Administrative Agent at its office in Chicago of payments by Borrower apply the whole or any part of
such payments, first against any unpaid costs and expenses owing to Administrative Agent and/or 

  

 33 

 
Lenders, next to any interest and fees then due and payable and then to payment of the Revolving Loans and other Liabilities in such order as Administrative
Agent shall determine in its sole discretion. 
 (d) On a monthly basis, Administrative Agent shall deliver to Borrower an account statement
showing all Loans, charges and payments, and on a periodic basis a report regarding Letters of Credit shall be available, which reports shall be deemed final, binding and conclusive upon Borrower unless Borrower notifies Administrative Agent in
writing, specifying any error therein, within sixty (60) days of the date such account statement is sent or made available to Borrower and any such notice shall only constitute an objection to the items specifically identified. 
 9. COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES. 
 (a) Borrowing Base Reports. 
 Borrower shall deliver to Administrative Agent an executed borrowing base report and certificate in Administrative Agent’s then current form on or before the tenth (10th) day of each month, provided, that at any time that Excess Availability is less than Three Million Dollars ($3,000,000), Borrower shall deliver such
borrowing base report and certificate on a weekly basis on Monday of each week, which report and certificate shall be accompanied by copies of Borrower’s sales journal, cash receipts journal and credit memo journal for the relevant period. In
addition, Borrower may deliver Borrowing Base Certificates more often in its discretion. Such report shall reflect the activity of Borrower with respect to Accounts for the immediately preceding week, and shall be in a form and with such specificity
as is satisfactory to Administrative Agent and shall contain such additional information concerning Accounts and Inventory as may be requested by Administrative Agent including, without limitation, but only if specifically requested by
Administrative Agent, copies of all invoices prepared in connection with such Accounts. 
 (b) Monthly Reports. 
 Borrower shall deliver to Administrative Agent, in addition to any other reports, as soon as practicable and in any event: (i) within ten
(10) days after the end of each month, a detailed trial balance of Borrower’s Accounts aged per due date, in form and substance reasonably satisfactory to Administrative Agent including, without limitation, the names and addresses of all
Account Debtors of Borrower; (ii) within ten (10) days after the end of each month, the general ledger inventory account balance and (iii) such other information as Administrative Agent may reasonably request from time to time.

 (c) Quarterly Reports. 
 As soon as practicable and in any event within forty-five (45) days after the end of each of the first three (3) fiscal quarters of Borrower, copies of Borrower’s 10-Q report filed with the Securities and Exchange Commission
and a compliance certificate in the 

  

 34 

 
form of Exhibit B (a “Compliance Certificate”), which Compliance Certificate shall include a calculation of all financial
covenants contained in this Agreement, including a description of any deviation therefrom. 
 (d) Financial Statements.

 Borrower shall deliver to Administrative Agent and each Lender the following financial information, all of which shall be prepared in
accordance with generally accepted accounting principles consistently applied, and shall be accompanied by a Compliance Certificate consolidated and consolidating: (i) no later than thirty (30) days after each calendar month, copies of
internally prepared financial statements, including, without limitation, balance sheets and statements of income, retained earnings and cash flow of Borrower and its Subsidiaries, certified by the Chief Financial Officer or Vice President-Finance of
Borrower; and (ii) no later than ninety (90) days after the end of each of Borrower’s Fiscal Years, (x) audited annual financial statements with an unqualified opinion by independent certified public accountants selected by
Borrower and reasonably satisfactory to Administrative Agent, which financial statements shall be accompanied by copies of any management letters sent to the Borrower by such accountants and (y) copies of Borrower’s Form 10-K report filed
with the Securities and Exchange Commission; 
 (e) Annual Projections. 
 As soon as practicable and in any event no more than thirty (30) days after the beginning of each Fiscal Year, Borrower shall deliver to
Administrative Agent and each Lender projected balance sheets, statements of income and cash flow for Borrower and its Subsidiaries, for each of the twelve (12) months during such Fiscal Year, which shall include the assumptions used therein,
together with appropriate supporting details as reasonably requested by Administrative Agent and Lenders. 
 (f) Explanation of Budgets
and Projections. 
 In conjunction with the delivery of the annual presentation of projections or budgets referred to in subsection
9(d) above, Borrower shall deliver a letter signed by the President or a Vice President of Borrower and by the Treasurer or Chief Financial Officer of Borrower, describing, comparing and analyzing, in detail, all changes and developments between
the anticipated financial results included in such projections or budgets and the historical financial statements of Borrower. 
 (g)
Public Reporting. 
 Promptly upon the filing thereof, Borrower shall deliver to Administrative Agent and each Lender copies of
all registration statements and annual, quarterly, monthly or other regular reports which Borrower or any of its Subsidiaries files with the Securities and Exchange Commission, as well as promptly providing to Administrative Agent and each Lender
copies of any reports and proxy statements delivered to its shareholders. 
  

 35 

 (h) Other Information. 
 Promptly following request therefor by Administrative Agent and Lenders, such other business or financial data, reports, appraisals and projections as
Administrative Agent and Lenders may reasonably request. 
 10. TERMINATION. 
 This Agreement shall be in effect from the date hereof until October 19, 2011 (the “Original Term”) unless (A) the due date of
the liabilities is accelerated pursuant to section 16 hereof; or (B) Borrower elects at any time, upon at least thirty (30) days prior written notice to Administrative Agent and Lenders, to terminate this agreement. Upon termination
of this agreement, Borrower shall pay all of the Liabilities in full. If one or more of the events specified in clauses (A) or (B) occurs, then (i) Administrative Agent and Lenders shall not make any additional Loans on or after the
date identified as the date on which the Liabilities are to be repaid; and (ii) this Agreement shall terminate on the date thereafter that the Liabilities are paid in full. At such time as Borrower has repaid all of the Liabilities and this
Agreement has terminated, (i) Borrower shall deliver to Administrative Agent and Lenders a release, in form and substance reasonably satisfactory to Administrative Agent, of all obligations and liabilities of Administrative Agent and Lenders
and their officers, directors, employees, agents, parents, subsidiaries and affiliates to Borrower, and if Borrower is obtaining new financing from another lender, Borrower shall deliver such lender’s indemnification of Administrative Agent and
Lenders, in form and substance satisfactory to Administrative Agent, for checks which Administrative Agent has credited to Borrower’s account, but which subsequently are dishonored for any reason or for automatic clearinghouse or wire transfers
not yet posted to Borrower’s account and (ii) upon Borrower’s request, Administrative Agent and Lenders shall deliver to Borrower a release in form and substance reasonably satisfactory to Borrower. In addition, Borrower may at any
time, upon at least thirty (30) days prior written notice to Administrative Agent and Lenders, elect to reduce the Maximum Revolving Loan Limit, which reduction shall reduce each Lender’s Revolving Loan Commitment on a pro rata basis in
accordance with its Pro Rata Share; provided that any such reduction shall be in a minimum amount of Five Million Dollars ($5,000,000) and in integrals of Five Hundred Thousand Dollars ($500,000) above such amount. 
 11. REPRESENTATIONS AND WARRANTIES. 
 Borrower hereby represents and warrants to Administrative Agent and each Lender, which representations and warranties (whether appearing in this Section 11 or elsewhere) shall be true at the time of Borrower’s execution
hereof and the closing of the transactions described herein or related hereto, shall remain true until the repayment in full and satisfaction of all the Liabilities and termination of this Agreement, and shall be remade by Borrower at the time each
Loan is made pursuant to this Agreement. 
  

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 (a) Financial Statements and Other Information. 
 The financial statements and other information delivered or to be delivered by Borrower to Administrative Agent or any Lender at or prior to the date of
this Agreement accurately reflect in all material respects the consolidated and consolidating financial condition of Borrower and its Subsidiaries as of the date thereof, and there has been no material adverse change in the financial condition, the
operations or any other status of Borrower and its Subsidiaries since the date of the financial statements delivered to Administrative Agent most recently prior to the date of this Agreement. All written information now or heretofore furnished by
Borrower to Administrative Agent or any Lender (including information with respect to PPL) is true and correct in all material respects as of the date with respect to which such information was furnished. 
 (b) Locations. 
 The office
where Borrower keeps its books, records and accounts (or copies thereof) concerning the Collateral, Borrower’s principal place of business and all of Borrower’s other places of business, locations of Collateral (other than display booths
for consumer electronics shows, Inventory or consignment and tooling in the possession of vendors) and post office boxes and locations of bank accounts are as set forth in Exhibit A and at other locations within the continental United States
of which Administrative Agent has been advised by Borrower in accordance with subsection 12(b)(i). The Collateral (other than display booths for consumer electronic shows, Inventory on consignment and tooling in the possession of vendors),
including, without limitation, the Equipment (except any part thereof which Borrower shall have advised Administrative Agent in writing consists of Collateral normally used in more than one state) is kept, or, in the case of vehicles, based, only at
the addresses set forth on Exhibit A, and at other locations within the continental United States of which Administrative Agent has been advised by Borrower in writing in accordance with subsection 12(b)(i) hereof. 
 (c) Loans. 
 Neither Borrower
nor any of its Subsidiaries has any outstanding or advances to any Affiliate or other Person except for advances authorized hereunder to employees, officers and directors of Borrower and its Subsidiaries for travel and other expenses arising in the
ordinary course of Borrower and its Subsidiaries business and loans permitted pursuant to subsection 13(f) hereof. 
 (d)
Accounts and Inventory. 
 Each Account or item of Inventory which Borrower shall, expressly or by implication, request
Administrative Agent to classify as an Eligible Account or as Eligible Inventory, respectively, shall, as of the time when such request is made, conform in all respects to the requirements of such classification as set forth in the respective
definitions of “Eligible Account” and “Eligible Inventory” as set forth herein and as otherwise established by Administrative Agent from time to time. 
  

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 (e) Liens. 
 Borrower is the lawful owner of all Collateral now purportedly owned or hereafter purportedly acquired by Borrower, free from all liens, claims, security interests and encumbrances whatsoever, whether voluntarily or
involuntarily created and whether or not perfected, other than the Permitted Liens and liens or other encumbrances on Accounts (and property rights and interests related to such Accounts) that are sold pursuant to any Factoring Arrangement.

 (f) Organization, Authority and No Conflict. 
 Borrower is duly organized, validly existing and in good standing in its jurisdiction of organization, its state organizational identification number, if any, is as listed on Schedule 11(f), and Borrower is duly
qualified and in good standing in all jurisdictions where the nature and extent of the business transacted by it or the ownership of its assets makes such qualification necessary, except to the extent any such failure to be so qualified would not
reasonably be expected to have a Material Adverse Effect. Borrower has the right and power and is duly authorized and empowered to enter into, execute and deliver this Agreement and the Other Agreements and perform its obligations hereunder and
thereunder. Borrower’s execution, delivery and performance of this Agreement, if applicable, and the Other Agreements to which it is a party does not conflict with the provisions of the organizational documents of Borrower, any statute,
regulation, ordinance or rule of law, or any agreement, contract or other document which may now or hereafter be binding on Borrower, and Borrower’s execution, delivery and performance of this Agreement, if applicable, and the Other Agreements
to which it is a party shall not result in the imposition of any lien or other encumbrance upon any of Borrower’s property under any existing indenture, mortgage, deed of trust, loan or credit agreement or other agreement or instrument by which
Borrower or any of its property may be bound or affected. 
 (g) Litigation. 
 Except as described on Schedule 11(g) hereof, there are no actions or proceedings which are pending or threatened against Borrower or any of its
Subsidiaries which would reasonably be expected to have a Material Adverse Effect and Borrower shall, promptly upon becoming aware of any such pending or threatened action or proceeding, give written notice thereof to Administrative Agent. Borrower
has no Commercial Tort Claims pending other than those set forth on Exhibit C hereto as Exhibit C may be amended from time to time. 
 (h)
Compliance with Laws and Maintenance of Permits. 
 Borrower and each of its Subsidiaries have obtained all governmental
consents, franchises, certificates, licenses, authorizations, approvals and permits, the lack of which would have a Material Adverse Effect. Borrower and each of its Subsidiaries are in compliance in all material respects with all applicable
federal, state, local and foreign statutes, orders, regulations, rules and ordinances (including, without limitation, 

  

 38 

 
Environmental Laws and statutes, orders, regulations, rules and ordinances relating to taxes, employer and employee contributions and similar items,
securities, ERISA or employee health and safety) the failure to comply with which would have a Material Adverse Effect. 
 (i)
Affiliate Transactions. 
 Except as set forth on Schedule 11(i) hereto or as permitted pursuant to subsection
11(c) hereof, neither Borrower nor any of its Subsidiaries is conducting, permitting or suffering to be conducted, transactions with any Affiliate other than transactions with Affiliates for the purchase or sale of Inventory or services in the
ordinary course of business pursuant to terms that are no less favorable to such Person than the terms upon which such transactions would have been made had they been made to or with a Person that is not an Affiliate. 
 (j) Names and Trade Names. 
 Borrower’s name has been as set forth on the first page of this Agreement since 1993 (prior to which Borrower’s name was Dynascan Corporation) Borrower uses no trade names, assumed names, fictitious names or division names in the
operation of its business, except as set forth on Schedule 11(j) hereto. 
 (k) Equipment. 
 Borrower has good and indefeasible and merchantable title to and ownership of all Equipment reflected on its most recent balance sheet. No Equipment is a
Fixture to real estate unless such real estate is owned by Borrower free and clear of any mortgage liens (subject to Permitted Liens) or is subject to a mortgage in favor of Administrative Agent, or if such real estate is leased, is subject to a
landlord’s agreement in favor of Administrative Agent on terms acceptable to Administrative Agent, or an accession to other personal property unless such personal property is subject to a first priority lien in favor of Administrative Agent.

 (l) Enforceability. 
 This Agreement and the Other Agreements to which Borrower and any of its Subsidiaries are a party are the legal, valid and binding obligations of such Person and are enforceable against such Person in accordance with their respective terms.

 (m) Solvency. 
 Borrower is, and Borrower and its Subsidiaries taken as a whole are, after giving effect to the transactions contemplated hereby and the Related Transactions, solvent, able to pay its and their debts as they become due, has and have capital
sufficient to carry on its and their business, now owns and own property having a value both at fair valuation and at present fair saleable value greater than the amount required to pay its and their debts, and will not be rendered insolvent by the
execution and delivery of this Agreement or any of the Other Agreements or by completion of the transactions contemplated hereunder or thereunder. 
  

 39 

 (n) Indebtedness. 
 Except as set forth on Schedule 11(n) hereto or permitted pursuant to Section 13(b) hereof, neither Borrower nor any of its
Subsidiaries is obligated (directly or indirectly), for any loans or other indebtedness for borrowed money other than the Loans. 
 (o)
Margin Security and Use of Proceeds. 
 Borrower is not engaged and will not engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve system as in effect from time to time), and none of the proceeds of the Loans hereunder shall be
used for the purpose of purchasing or carrying any margin securities or for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase any margin securities or for any other purpose not permitted by Regulation U
of the Board of Governors of the Federal Reserve System as in effect from time to time. 
 (p) Parent, Subsidiaries and
Affiliates. 
 Except as set forth on Schedule 11(p) hereto, neither Borrower nor any of its Subsidiaries has any Parents,
Subsidiaries or other Affiliates or divisions, nor is Borrower or any of its Subsidiaries engaged in any joint venture or partnership with any other Person. 
 (q) No Defaults. 
 Neither Borrower nor any of its Subsidiaries is in default under any
material contract, lease or commitment to which it is a party or by which it is bound, nor does Borrower or any of its Subsidiaries know of any dispute regarding any contract, lease or commitment which would have a Material Adverse Effect.

 (r) Employee Matters. 
 There are no controversies pending or threatened between Borrower or any of its Subsidiaries and any of their employees, agents or independent contractors other than employee grievances arising in the ordinary course of business which would
not, in the aggregate, have a Material Adverse Effect, and Borrower and each of its Subsidiaries are in compliance with all federal and state laws respecting employment and employment terms, conditions and practices except for such non-compliance
which would not have a Material Adverse Effect. 
  

 40 

 (s) Intellectual Property. 
 Borrower and each of its Subsidiaries possess adequate licenses, patents, patent applications, copyrights, service marks, trademarks, trademark
applications, trade styles and trade names to continue to conduct its business as heretofore conducted by it. 
 (t) Environmental
Matters. 
 Neither Borrower nor any of its Subsidiaries has generated, used, stored, treated, transported, manufactured, handled,
produced or disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time violates any Environmental Law or any license, permit, certificate, approval or similar authorization thereunder in
any material respect and the operations of Borrower and each of its Subsidiaries comply in all material respects with all Environmental Laws and all licenses, permits, certificates, approvals and similar authorizations thereunder. There has been no
proceeding, complaint, order, directive, claim, citation or notice by any governmental authority or any other Person, nor is any pending or to the best of the Borrower’s knowledge threatened with respect to any non-compliance with or violation
of the requirements of any Environmental Law by Borrower or any of its Subsidiaries or the release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture,
handling, production or disposal of any Hazardous Materials or any other environmental, health or safety matter, which materially affects Borrower and its Subsidiaries or their business, operations or assets or any properties at which the Borrower
has transported, stored or disposed of any Hazardous Materials. Neither Borrower nor any of its Subsidiaries has any liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of any Hazardous
Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials which could reasonably be expected to have a Material Adverse Effect. 
 (u) ERISA Matters. 
 Borrower
and each of its Subsidiaries have paid and discharged all obligations and liabilities arising under ERISA of a character which, if unpaid or unperformed, might result in the imposition of a lien against any of its properties or assets. 

(v) Related Agreements. 
 Borrower has caused to be delivered to Administrative Agent as of the Closing Date a true and correct copy of the Related Agreements. Borrower and each of its Subsidiaries, and to Borrower’s knowledge each other party to the Related
Agreements, has duly taken all necessary organizational action to authorize the execution, delivery and performance of the Related Agreements and the consummation of transactions contemplated thereby. As of the Closing Date, the Related Transactions
have been consummated (or are being consummated substantially contemporaneously with the initial credit extension hereunder) in accordance with the terms of the Related Agreements. Except as expressly set forth in the Related Agreements to the
contrary, the Related Transactions comply with all 

  

 41 

 
applicable legal requirements, and all necessary governmental, regulatory, creditor, shareholder, partner and other material consents, approvals and
exemptions required to be obtained by Borrower and each of its Subsidiaries, and to Borrower’s knowledge each other party to the Related Agreements, in connection with the Related Transactions have been duly obtained and are in full force and
effect. Except as expressly set forth in the Related Agreements to the contrary, all applicable waiting periods with respect to the Related Transactions have expired without any action being taken by any competent governmental authority which
restrains, prevents or imposes material adverse conditions upon the consummation of the Related Transactions. Except as expressly set forth in the Related Agreements to the contrary, the execution and delivery of the Related Agreements did not, and
the consummation of the Related Transactions does not, violate any statute or regulation of the United States (including any securities law) or of any state or other applicable jurisdiction, or any order, judgment or decree of any court or
governmental body binding on Borrower or any of its Subsidiaries, or to Borrower’s knowledge any other party to the Related Agreements, or result in a breach of, or constitute a default under, any material agreement, indenture, instrument or
other document, or any judgment, order or decree, to which Borrower or any of its Subsidiaries is a party or by which Borrower or of its Subsidiaries is bound, or to Borrower’s knowledge to which any other party to the Related Agreements is a
party or by which any such party is bound. Except as expressly set forth in the Related Agreements to the contrary, no statement or representation made in the Related Agreements by Borrower or any of its Subsidiaries, or to Borrower’s knowledge
any other Person, contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they are made,
not misleading as of the time that such statement or representation is made. As of the Closing Date, (i) each of the representations and warranties contained in the Related Agreements made by Borrower and each of its Subsidiaries is true and
correct in all material respects and (ii) to Borrower’s knowledge each of the representations and warranties contained in the Related Agreements made by any other Person is true and correct in all material respects. 
 12. AFFIRMATIVE COVENANTS. 
 Until payment and satisfaction in full of all Liabilities and termination of this Agreement, unless Borrower obtains Requisite Lenders’ prior written consent waiving or modifying any of Borrower’s covenants hereunder in any
specific instance, Borrower covenants and agrees as follows: 
 (a) Maintenance of Records. 
 Borrower shall at all times keep, accurate and complete books, records and accounts with respect to all of Borrower’s business activities, in
accordance with sound accounting practices and generally accepted accounting principles consistently applied, and shall keep such books, records and accounts, and any copies thereof, only at the addresses indicated for such purpose on Exhibit
A. 
  

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 (b) Notices. 
 Borrower shall: 
 (i) Locations. Promptly (but in no event less than ten (10) days prior to the
occurrence thereof) notify Administrative Agent of the proposed opening of an new place of business or new location of Collateral, the closing of any existing place of business or location of Collateral, any change in the location of Borrower’s
books, records and accounts (or copies thereof), the opening or closing of any post office box, the opening or closing of any bank account or, if any of the Collateral consists of Goods of a type normally used in more than one state, the use of any
such Goods in any state or other jurisdiction other than a state or other jurisdiction in which Borrower has previously advised Administrative Agent that such Goods will be used. 
 (ii) Eligible Accounts and Inventory. Promptly upon becoming aware thereof, notify Administrative Agent if any Account or Inventory identified by
Borrower to Administrative Agent as an Eligible Account or Eligible Inventory becomes ineligible for any reason. 
 (iii) Litigation and
Proceedings. Promptly upon becoming aware thereof, notify Administrative Agent of any actions or proceedings which are pending or threatened against Borrower or any of its Subsidiaries which could reasonably be expected to have a Material
Adverse Effect and of any Commercial Tort Claims of Borrower which may arise and of which an officer of Borrower is aware, which notice shall constitute Borrower’s authorization to amend Exhibit C to add such Commercial Tort Claim. 

(iv) Names and Trade Names. Notify Administrative Agent within ten (10) days of the change of its name or the use of any trade name,
assumed name, fictitious name or division name not previously disclosed to Administrative Agent in writing. 
 (v) ERISA Matters.
Promptly notify Administrative Agent of (x) the occurrence of any “reportable event” (as defined in ERISA) which might result in the termination by the Pension Benefit Guaranty Corporation (the “PBGC”) of any employee
benefit plan (“Plan”) covering any officers or employees of Borrower or any of its Subsidiaries, any benefits of which are, or are required to be, guaranteed by the PBGC, (y) receipt of any notice from the PBGC of its intention
to seek termination of any Plan or appointment of a trustee therefor or (z) its intention to terminate or withdraw from any Plan. 
 (vi)
Environmental Matters. Promptly notify Administrative Agent upon becoming aware of any investigation, proceeding, complaint, order, directive, claim, citation or notice with respect to any non-compliance with or violation of the requirements
of any Environmental Law by Borrower or any of its Subsidiaries or the generation, use, storage, treatment, transportation, manufacture handling, production or 

  

 43 

 
disposal of any Hazardous Materials or any other environmental, health or safety matter which affects Borrower or any of its Subsidiaries or its business
operations or assets or any properties at which Borrower or any of its Subsidiaries has transported, stored or disposed of any Hazardous Materials. 
 (vii) Default; Material Adverse Change. Promptly advise Administrative Agent of any material adverse change in the business, property, assets, prospects, operations or condition, financial or otherwise, of Borrower, PPL or Borrower
and its Subsidiaries taken as a whole, the occurrence of any Event of Default hereunder or the occurrence of any event which, if uncured, will become an Event of Default after notice or lapse of time (or both). 
 All of the foregoing notices shall be provided by Borrower to Administrative Agent in writing. 
 (c) Compliance with Laws and Maintenance of Permits; OFAC Compliance. 
 Borrower shall maintain, and shall cause each of its Subsidiaries to maintain, all governmental consents, franchises, certificates, licenses,
authorizations, approvals and permits, the lack of which would have a Material Adverse Effect and Borrower shall remain in compliance with all applicable federal, state, local and foreign statutes, orders, regulations, rules and ordinances
(including, without limitation, Environmental Laws and statutes, orders, regulations, rules and ordinances relating to taxes, employer and employee contributions and similar items, securities, ERISA or employee health and safety) the failure with
which to comply would have a Material Adverse Effect. Following any determination by Administrative Agent that there is non-compliance, or any condition which reasonably requires any action by or on behalf of Borrower or any of its Subsidiaries in
order to avoid non-compliance, with any Environmental Law, Borrower shall at Borrower’s expense cause an independent environmental engineer acceptable to Administrative Agent to conduct such tests or assessments of the relevant site(s) as are
appropriate and prepare and deliver a report setting forth the results of such tests or assessments, a proposed plan for remediation or corrective measures and an estimate of the costs thereof. Without limiting the foregoing, Borrower shall, and
shall cause its Subsidiaries to, ensure that no person who owns a controlling interest in or otherwise controls Borrower or its Subsidiaries is or shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by
the Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a person designated under
Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar Executive Orders, and without limiting the foregoing, shall comply, and shall cause its
Subsidiaries to comply, with all applicable Bank Secrecy Act (“BSA”) and anti-money laundering laws and regulations. 
  

 44 

 (d) Inspection and Audits. 
 Borrower shall permit, and shall cause each of it Subsidiaries to permit, Administrative Agent and Lenders, or any Persons designated by Administrative
Agent, to call at Borrower’s places of business at any reasonable times, with reasonable prior notice to Borrower so long as no Event of Default is then continuing, and, without hindrance or delay, to inspect the Collateral and to inspect,
audit, check and make extracts from the books, records, journals, orders, receipts and any correspondence and other data relating to Borrower’s and its Subsidiaries’ business, the Collateral or any transactions between the parties hereto,
and shall have the right to make such verification concerning Borrower’s business as Administrative Agent may consider reasonable under the circumstances. Borrower shall furnish, and shall cause each of its Subsidiaries to furnish, to
Administrative Agent such information relevant to Administrative Agent’s and/or any Lender’s rights under this Agreement and the Other Agreements as Administrative Agent shall at any time and from time to time request. Administrative
Agent, through its officers, employees or agents shall have the right, at any time and from time to time, in Administrative Agent’s name, to verify the validity, amount or any other matter relating to any of Borrower’s Accounts, by mail,
telephone, telecopy, electronic mail or otherwise. Borrower authorizes and shall cause each Subsidiary to authorize, Administrative Agent and Lenders to discuss the affairs, finances and business of Borrower and its Subsidiaries with any officers,
employees or directors of Borrower or with its Parent or any Affiliate or the officers, employees or directors of its Parent or any Affiliate, and to discuss the financial condition of Borrower and its Subsidiaries with Borrower’s independent
public accountants, provided, that Borrower shall be given a reasonable opportunity to have an officer present at any such meeting. Any such discussions shall be without liability to Administrative Agent or any Lender or to Borrower’s
independent public accountants. Borrower shall pay to Administrative Agent all customary fees and all costs and out-of-pocket expenses incurred by Administrative Agent in the exercise of its rights hereunder, and all of such fees, costs and expenses
shall constitute Liabilities hereunder, shall be payable on demand and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder; provided, that such fees and expenses shall not exceed Twelve Thousand Five Hundred
Dollars ($12,500) during any calendar year unless an Event of Default has occurred. 
 (e) Insurance. 
 Borrower shall: 
 (i) Keep the Collateral
properly housed and insured for the full insurable value thereof against loss or damage by fire, theft, explosion, sprinklers, collision (in the case of motor vehicles) and such other risks as are customarily insured against by Persons engaged in
businesses similar to that of Borrower, with such companies, in such amounts, with such deductibles, and under policies in such form, as shall be reasonably satisfactory to Administrative Agent. Original (or certified) copies of such policies of
insurance have been or shall be, within ninety (90) days of the date hereof, delivered to Administrative Agent, together with evidence of payment of all premiums therefor, and shall contain an endorsement, in form and substance acceptable

  

 45 

 
to Administrative Agent, showing loss under such insurance policies payable to Administrative Agent, for the benefit of Administrative Agent and Lenders.
Such endorsement, or an independent instrument furnished to Administrative Agent, shall provide that the insurance company shall give Administrative Agent at least thirty (30) days written notice before any such policy of insurance is altered
or canceled and that no act, whether willful or negligent, or default of Borrower or any other Person shall affect the right of Administrative Agent to recover under such policy of insurance in case of loss or damage. In addition, Borrower shall
cause to be executed and delivered to Administrative Agent an assignment of proceeds of its business interruption insurance policies. Borrower hereby directs all insurers under all policies of insurance to pay all proceeds payable thereunder
directly to Administrative Agent; provided, that so long as no Event of Default is then continuing, Borrower may receive and retain proceeds of business interruption insurance. Borrower irrevocably makes, constitutes and appoints Administrative
Agent (and all officers, employees or agents designated by Administrative Agent) as Borrower’s true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the
name of Borrower on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and making all determinations and decisions with respect to such policies of insurance. To the extent that Administrative Agent
receives proceeds of insurance in excess of the then-outstanding Liabilities, Administrative Agent and Lenders shall deliver any excess proceeds to Borrower as directed by Borrower. 
 (ii) Maintain, at its expense, such public liability and third party property damage insurance as is customary for Persons engaged in businesses similar
to that of Borrower with such companies and in such amounts, with such deductibles and under policies in such form as shall be reasonably satisfactory to Administrative Agent and original (or certified) copies of such policies have been or shall be,
within ninety (90) days after the date hereof, delivered to Administrative Agent, together with evidence of payment of all premiums therefor; each such policy shall contain an endorsement showing Administrative Agent and Lenders as additional
insureds thereunder and providing that the insurance company shall give Administrative Agent at least thirty (30) days written notice before any such policy shall be altered or canceled. 
 If Borrower at any time or times hereafter shall fail to obtain or maintain any of the policies of insurance required above or to pay any premium relating thereto, then
Administrative Agent, without waiving or releasing any obligation or default by Borrower hereunder, may (but shall be under no obligation to) obtain and maintain such policies of insurance and pay such premiums and take such other actions with
respect thereto as Administrative Agent deems advisable. Such insurance, if obtained by Administrative Agent, may, but need not, protect Borrower’s interests or pay any claim made by or against Borrower with respect to the Collateral. Such
insurance may be more expensive than the cost of insurance Borrower may be able to obtain on its own and may be cancelled only upon Borrower providing evidence that it has obtained the insurance as required above. All sums disbursed by
Administrative Agent in connection with any such actions, including, without limitation, 

  

 46 

 
court costs, expenses, other charges relating thereto and reasonable attorneys’ fees, shall constitute Loans hereunder, shall be payable on demand by
Borrower to Administrative Agent and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder. 
 (f)
Collateral. 
 Borrower shall keep the Collateral in good condition, repair and order, ordinary wear and tear excepted, and
shall make all necessary repairs to the Equipment and replacements thereof so that the operating efficiency and the value thereof shall at all times be preserved and maintained. Borrower shall permit Administrative Agent and Lenders to examine any
of the Collateral at any time and wherever the Collateral may be located and, Borrower shall, immediately upon request therefor by Administrative Agent, deliver to Administrative Agent any and all evidence of ownership of any of the Equipment
including, without limitation, certificates of title and applications of title. Borrower shall, at the request of Administrative Agent, indicate on its records concerning the Collateral a notation, in form satisfactory to Administrative Agent, of
the security interest of Administrative Agent hereunder. 
 (g) Use of Proceeds. 
 All monies and other property obtained by Borrower from Administrative Agent and Lenders pursuant to this Agreement shall be used to consummate the
Related Transactions and otherwise for business purposes of Borrower. Notwithstanding the foregoing, Borrower shall not use the proceeds of the Delayed-Draw Term Loan for any purpose other than funding the payment to the Seller of the Seller Earnout
on the Delayed-Draw Term Loan Funding Date in accordance with Section 3 of the Purchase Agreement. 
 (h) Taxes.

 Borrower shall file, and shall cause each of its Subsidiaries to file, all required tax returns and pay all of their taxes when due,
including, without limitation, taxes imposed by federal, state or municipal agencies, and shall cause any liens for taxes to be promptly released; provided, that Borrower and its Subsidiaries shall have the right to contest the payment of such taxes
in good faith by appropriate proceedings so long as (i) the amount so contested is shown on such Person’s financial statements; (ii) the contesting of any such payment does not give rise to a lien for taxes; (iii) Borrower keeps
on deposit with Administrative Agent (such deposit to be held without interest) an amount of money which, in the reasonable credit judgment of Administrative Agent, is sufficient to pay such taxes and any interest or penalties that may accrue
thereon or, at Borrower’s option, Administrative Agent maintains a reserve against Borrower’s ability to borrow under subsection 2(a) hereof in such amount; and (iv) if Borrower or any of its Subsidiaries fails to prosecute
such contest with reasonable diligence, Administrative Agent may apply the money so deposited or advance a Revolving Loan against the reserved availability to make payment of such taxes. If Borrower or any Subsidiaries fails to pay any such taxes
and in the absence of any such contest by Borrower or such Subsidiary, Administrative Agent may (but shall be under no 

  

 47 

 
obligation to) advance and pay any sums required to pay any such taxes and/or to secure the release of any lien therefor, and any sums so advanced by
Administrative Agent shall constitute Loans hereunder, shall be payable by Borrower to Administrative Agent on demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder. 
 (i) Intellectual Property. 
 Borrower shall maintain, and shall cause its Subsidiaries to maintain, adequate licenses, patents, patent applications, copyrights, service marks, trademarks, trademark applications, trade styles and trade names to continue its business as
heretofore conducted by it or as hereafter conducted by them. 
 (j) Checking Account. 
 Borrower shall maintain its primary collection and disbursement accounts with a Lender. Normal charges shall be assessed thereon. Although no compensating
balance is required, Borrower must keep monthly balances in order to merit earnings credits which will cover Lender’s service charges for demand deposit account activities. In the event that such accounts are maintained at a Lender other than
LaSalle, such Lender, Borrower and Administrative Agent shall enter into a deposit account control agreement with respect thereto in form and substance satisfactory to Administrative Agent. 
 (k) Interest Rate Protection. 
 Borrower shall enter into, not later than ninety (90) days after the Closing Date, a Hedging Agreement with a term of at least three (3) years on an ISDA standard form with one or more Lenders or Affiliates thereof or with
counterparties reasonably acceptable to Administrative Agent to hedge the interest rate with respect to not less than one hundred percent (100%) of the principal amount of Term Loan A in form and substance reasonably satisfactory to the
Administrative Agent. 
 13. NEGATIVE COVENANTS. 
 Until payment and satisfaction in full of all Liabilities and termination of this Agreement, unless Borrower obtains Requisite Lenders’ prior written consent waiving or modifying any of Borrower’s covenants
hereunder in any specific instance, Borrower agrees as follows: 
 (a) Guaranties. 
 Borrower shall not, and shall not permit any of its Subsidiaries to, assume, guarantee or endorse, or otherwise become liable in connection with, the
obligations of any Person, except (i) guaranties of the ABN Facility, (ii) the guaranty by Borrower of indemnity obligations of PPL with respect to cash management operations, bank accounts and foreign exchange contracts with Barclays
Bank; provided that there shall be no foreign exchange contracts subject to the guaranty other than those existing on the date hereof and listed on Schedule 13(a) hereto and (iii) by endorsement of instruments for deposit or collection
or similar transactions in the ordinary course of business. 
  

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 (b) Indebtedness. 
 Borrower shall not, and shall not permit any of its Subsidiaries to, create, incur, assume or become obligated (directly or indirectly), for any loans or
other indebtedness for borrowed money other than the Loans, except that each Borrower and any of its Subsidiaries may (i) borrow money from a person other than Administrative Agent and Lenders on an unsecured and subordinated basis if a
subordination agreement in favor of Administrative Agent and Lenders and in form and substance satisfactory to Administrative Agent is executed and delivered to Administrative Agent relative thereto; (ii) maintain its present indebtedness
listed on Schedule 11(n) hereto; (iii) incur unsecured indebtedness to trade creditors in the ordinary course of business; (iv) incur purchase money indebtedness or capitalized lease obligations in connection with Capital
Expenditures, not to exceed $500,000 in any Fiscal Year; (v) incur indebtedness with respect to the Cobra UK Loan; (vi) incur indebtedness with respect to promissory notes issued in respect of the Seller Earnout; (vii) incur
indebtedness with respect to the Working Capital Note, provided, that after the closing of the ABN Facility, such indebtedness pursuant to the Working Capital Note shall not exceed $2,000,000 outstanding at any time; (viii) incur indebtedness
at PPL in respect of the ABN Facility; (ix) incur indebtedness (to the extent deemed to be indebtedness) in respect of any Factoring Arrangements; and (x) incur indebtedness with respect to Hedging Liabilities as required pursuant to
Section 12(k) and as incurred in the ordinary course of business (and not for speculative purposes) so long as the total Hedging Liabilities outstanding at any time (other than pursuant to Section 12(k)) does not exceed
$4,000,000 outstanding at any time. 
 (c) Liens. 
 Borrower shall not, and shall not permit any of its Subsidiaries to, grant or permit to exist (voluntarily or involuntarily) any lien, claim, security interest or other encumbrance whatsoever on any of its assets,
other than Permitted Liens and liens or other encumbrances on Accounts (and property rights and interests related to such Accounts) that are sold pursuant to a Factoring Arrangement. 
 (d) Mergers, Sales, Acquisitions, Subsidiaries and Other Transactions Outside the Ordinary Course of Business. 
 Borrower shall not, and shall not permit any of its Subsidiaries to, (i) enter into any merger or consolidation; (ii) change the jurisdiction of
such Person’s organization or enter into any transaction which has the effect of changing such Person’s jurisdiction of organization (iii) sell, lease or otherwise dispose of any of its assets other than in the ordinary course of
business and sales of Accounts pursuant to a Factoring Arrangement; (iv) purchase the stock, other equity interests or all or a material portion of the assets of any Person or division of such Person; or (v) enter into any other
transaction outside the ordinary course of such Person’s business, including, without limitation, any purchase, redemption or retirement 

  

 49 

 
of any shares of any class of its stock or any other equity interest, and any issuance of any shares of, or warrants or other rights to receive or purchase
any shares of, any class of its stock or any other equity interest except (A) in connection with such Borrower’s stock option plans as in effect on the date hereof or arising after the date hereof (but subject to any limitations set forth
in clause (B) of this subsection); (B) such Borrower may repurchase any of its shares of stock on the open market or pay cash dividends or distributions on its shares of stock so long as (x) the aggregate amount of such purchases,
dividends and distributions does not exceed $1,200,000 during any calendar year, (y) and no Event of Default exists at the time of such payment or would be caused thereby; and (C) the transactions contemplated pursuant to subsection
13(b)(v), (vi) and (vii). Borrower shall promptly notify Administrative Agent of the filing of any Rule 13-d filing with the Securities Exchange Commission in respect of any Borrowers stock. Borrower shall not, and shall not
permit any of its Subsidiaries to, form any Subsidiaries or enter into any joint ventures or partnerships with any other Person. 
 (e)
Dividends and Distributions; Payments of Seller Earnout. 
 Borrower shall not declare or pay any cash dividend or other
distribution on any class of its stock except as expressly permitted pursuant to subsection 13(d). Borrower shall not make any payments with respect to the Seller Earnout unless Excess Availability after giving effect to such payment would
exceed Three Million and No/100 Dollars ($3,000,000). 
 (f) Investments; Loans. 
 Borrower shall not, and shall not permit any of its Subsidiaries to purchase or otherwise acquire, or contract to purchase or otherwise acquire, the
obligations or stock of any Person, other than (i) direct obligations of the United States, (ii) ordinary trade credit, (iii) notes or equity interests taken in restructuring or settlement of obligations of Account Debtors,
(iv) investments in foreign subsidiaries for operations, not to exceed Three Million Dollars ($3,000,000) at any time (excluding any Letters of Credit issued hereunder for the benefit of such foreign subsidiary and any guaranty by Borrower of
any Hedging Liabilities but including amounts outstanding under the Working Capital Note after the closing of the ABN Facility). Borrower shall not, and shall not permit any of its Subsidiaries to, lend or otherwise advance funds to any Person
except for (A) advances made to employees, officers and directors for travel and other expenses arising in the ordinary course of business not exceeding One Hundred Fifty Thousand Dollars ($150,000) in the aggregate outstanding to all Persons
at any one time; (B) the Cobra UK Loans; (C) loans with respect to the Working Capital Note and (D) loans to employees to allow employees to exercise stock options so long as the amount of such loans advanced does not exceed $620,000
outstanding at any time. 
 (g) Fundamental Changes, Line of Business. 
 Borrower shall not, and shall not permit any of its Subsidiaries to amend its organizational documents or change its Fiscal Year (provided, that PPL may change its Fiscal
Year from 

  

 50 

 
March 31 to December 31 and PPL may amend its organizational documents to change the size, constitution and voting rights of its board of
directors) or enter into a new line of business materially different from such Person’s current business. 
 (h)
Equipment. 
 Borrower shall not, (i) permit any Equipment to become a Fixture to real property unless such real property
is owned by Borrower, free and clear of any mortgage liens or is subject to a mortgage in favor of Administrative Agent, or if such real estate is leased, is subject to a landlord’s agreement in favor of Administrative Agent on terms acceptable
to Administrative Agent, or (ii) permit any Equipment to become an accession to any other personal property unless such personal property is subject to a first priority lien in favor of Administrative Agent. 
 (i) Use of Proceeds. 
 Neither
Borrower nor any Affiliate shall use any portion of the proceeds of the Loans, either directly or indirectly, for the purpose of (i) purchasing any securities underwritten or privately placed by ABN AMRO Securities (USA) Inc.
(“AASI”), an affiliate of LaSalle, (ii) purchasing from AASI any securities in which AASI makes a market, or (iii) refinancing or making payments of principal, interest or dividends on any securities issued by Borrower or
any Affiliate, and underwritten, privately placed or dealt in by AASI. 
 (j) Affiliate Transactions. 
 Except as set forth on Schedule 11(i) hereto or as permitted pursuant to subsection 11(c) hereof, Borrower shall not, and shall not permit
any of its Subsidiaries to, conduct, permit or suffer to be conducted, transactions with Affiliates other than transactions for the purchase or sale of Inventory or services in the ordinary course of business pursuant to terms that are no less
favorable to such Person than the terms upon which such transactions would have been made had they been made to or with a Person that is not an Affiliate. 
 (k) Settling of Accounts. 
 Borrower shall not settle or adjust any Account identified by
Borrower as an Eligible Account except for such settlements and adjustments made in the ordinary course of business and in a manner consistent with past practices, or with respect to which the Account Debtor is an Affiliate without the consent of
Administrative Agent, provided, that following the occurrence and during the continuance of an Event of Default, Borrower shall not settle or adjust any Account without the consent of Administrative Agent. 
 (l) Management Fees; Compensation. 
 Borrower shall not, and shall not permit any of its Subsidiaries to, (i) pay any management or consulting fees to any employee, director or Affiliate (other than a Subsidiary), or (ii) pay annual aggregate compensation, whether as
salary, bonus or otherwise, to all directors or officers of such Person which is on a basis inconsistent with past practices. 
  

 51 

 (m) Amendments to Related Agreements. 
 Borrower shall not, and shall not permit any of its Subsidiaries to, amend or otherwise modify, or waive any rights under any Related Agreement, other
than amendments, modifications and waivers not materially adverse to the interests of Administrative Agent or any Lender. 
 (n) Cobra
UK. 
 Cobra UK shall not have any material operations or own any material assets other than ownership of the equity of PPL, and shall
not incur any indebtedness other than intercompany indebtedness permitted pursuant to this Agreement. 
 14. FINANCIAL
COVENANTS. 
 Borrower shall maintain and keep in full force and effect each of the financial covenants set forth below: 

(a) Tangible Net Worth. 
 Borrower’s Tangible Net Worth shall not at any time be less than the Minimum Tangible Net Worth; “Minimum Tangible Net Worth” being defined for purposes of this subsection as (i) eight-five percent (85%) of
Borrower’s actual Tangible Net Worth as of October 31, 2006, at all times from the date hereof through December 30, 2006 and (ii) thereafter, from the last day of each Fiscal Year of Borrower through the day prior to the last day
of each immediately succeeding Fiscal Year of Borrower, the Minimum Tangible Net Worth during the immediately preceding period plus fifty percent (50%) of Borrower’s net income (but without reduction for any net loss) for the Fiscal Year
ending on the first day of the current period as reflected on Borrower’s audited year end financial statement; and “Tangible Net Worth” being defined for purposes of this subsection as Borrower’s consolidated
shareholders’ equity (including retained earnings) less the book value of all intangible assets (which shall consist of goodwill, intellectual property, prepaid expenses and deferred taxes) plus the amount of any debt subordinated to
Administrative Agent and Lenders, all as determined under generally accepted accounting principles applied on a basis consistent with the financial statements dated December 31, 2005 except as set forth herein. 
 (b) EBITDA. 
 Borrower shall
not permit EBITDA for the calendar quarter ending on the date set forth below to be less than the amount set forth below for such period. 
  

 52 

				
	 Period
	  	Amount
	 The one calendar quarter period ending December 31, 2006
	  	$	3,225,000
	 The one calendar quarter period ending March 31, 2007
	  	$	1,750,000
	 The two calendar quarter period ending June 30, 2007
	  	$	4,100,000

 (c) Total Debt to EBITDA Ratio. 
 Borrower shall not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to exceed the applicable ratio set forth below for
such Computation Period: 
  

			
	 Computation Period Ending
	  	 Total Debt to
 EBITDA Ratio

	 December 31, 2006
	  	2.80:1.0
	 March 31, 2007
	  	1.50:1.0
	 June 30, 2007
	  	1.50:1.0
	 September 30, 2007
	  	2.25:1.0
	 December 31, 2007
	  	2.00:1.0
	 March 31, 2008
	  	1.50:1.0
	 June 30, 2008
	  	1.50:1.0
	 September 30, 2008
	  	2.50:1.0
	 December 31, 2008
	  	2.00:1.0
	 March 31, 2009
	  	1.50:1.0
	 June 30, 2009
	  	1.50:1.0
	 September 30, 2009
	  	2.00:1.0
	 December 31, 2009
	  	1.75:1.0
	 March 31, 2010
	  	1.25:1.0
	 June 30, 2010
	  	1.25:1.0
	 September 30, 2010
	  	2.00:1.0
	 December 31, 2010
	  	1.75:1.0
	 March 31, 2011
	  	1.25:1.0
	 June 30, 2011
	  	1.25:1.0
	 September 30, 2011
	  	2.00:1.0

  

 53 

 (d) Fixed Charge Coverage Ratio. 
 Borrower shall not permit the Fixed Charge Coverage Ratio as of the last day of any period set forth below to be less than the applicable ratio set forth
below for such period: 
  

			
	 Computation Period Ending
	  	Fixed Charge
Coverage Ratio
	 June 30, 2007
	  	1.05:1.0
	 Each fiscal quarter thereafter
	  	1.25:1.0

 (e) Capital Expenditure Limitations. 
 Borrower and its Subsidiaries shall not make any Capital Expenditures if, after giving effect to such Capital Expenditures, the aggregate cost of all such
Capital Expenditures would exceed (i) $2,100,000 during the fiscal quarter ending December 31, 2006, (ii) $1,500,000 during the fiscal quarter ending March 31, 2007 or (iii) $2,750,000 during the six (6) months ending
June 30, 2007. 
 15. DEFAULT. 
 The occurrence of any one or more of the following events shall constitute an “Event of Default” by Borrower hereunder: 
 (a) Payment. 
 The failure of any Obligor (i) to pay when due, declared due, or demanded
by Administrative Agent, at the request of the Requisite Lenders any principal amount of the Loans, or (ii) to pay within five (5) days of the date any other Liabilities are due, declared due or demanded by Administrative Agent, any of the
other Liabilities. 
 (b) Breach of this Agreement and the Other Agreements. 
 The failure of any Obligor to perform, keep or observe any of the covenants, conditions, promises, agreements or obligations of such Obligor under this
Agreement or any of the Other Agreements which failure remains uncured for more than ten (10) Business Days after the occurrence thereof. 
 (c) Breaches of Other Obligations. 
 The failure of any Obligor or any of Borrower’s other Subsidiaries to
perform, keep or observe any of the covenants, conditions, promises, agreements or obligations of 

  

 54 

 
such Obligor or other Subsidiary of Borrower under any other agreement with any Person if such failure could reasonably be expected to have a Material
Adverse Effect or the occurrence of any payment default or any other breach or event of default which remains uncured past any applicable grace period, which breach or event of default would permit the creditor thereunder to accelerate the
indebtedness thereunder under any other agreement or instrument evidencing indebtedness for borrowed money in excess of Five Hundred Thousand Dollars ($500,000) executed or delivered by Borrower or pursuant to which agreement or instrument Borrower
or its properties is or may be bound. 
 (d) Breach of Representations and Warranties. 
 The making or furnishing by any Obligor, or any of Borrower’s other Subsidiaries to Administrative Agent or any Lender of any representation,
warranty, certificate, schedule, report or other communication within or in connection with this Agreement or the Other Agreements or in connection with any other agreement between such Obligor or any of Borrower’s other Subsidiaries and
Administrative Agent or any Lender, which is untrue or misleading in any material respect. 
 (e) Loss of Collateral.

 The loss, theft, damage or destruction of, or (except as permitted hereby) sale, lease or furnishing under a contract of service of, any of
the Collateral; provided that the loss, theft, damage or destruction (a “Loss”) of any of the Collateral shall not constitute an Event of Default hereunder if, (i) to the extent that such Losses involve Collateral which is
insured, such Losses involve Collateral worth less than Five Million and No/100 Dollars ($5,000,000) for a single such event or worth less than Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000) in the aggregate for all such events
during any year of the Original Term; provided, that with respect to such Losses, coverage is not denied or excluded by the insurer and Administrative Agent is in receipt of all insurance proceeds relative thereto within one hundred eighty
(180) days of the occurrence of such Loss; or (ii) to the extent that such Losses involve Collateral which is uninsured or for which coverage is denied or excluded by the insurer or for which Administrative Agent does not receive the
proceeds within one hundred eighty (180) days of the occurrence of such Loss, such Losses involve Collateral worth less than Seven Hundred Fifty Thousand and No/100 Dollars ($750,000) for a single event or worth less than One Million Two
Hundred Fifty Thousand and No/100 Dollars ($1,250,000) in the aggregate for all such events during any year of the Original Term. 
 (f)
Levy, Seizure or Attachment. 
 The making or any attempt by any Person to make any levy, seizure or attachment upon any of the
Collateral. 
  

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 (g) Bankruptcy or Similar Proceedings. 
 The commencement of any proceedings in bankruptcy by or against any Obligor or for the liquidation or reorganization of any Obligor or any of
Borrower’s other Subsidiaries, or alleging that such Obligor or Subsidiary of Borrower is insolvent or unable to pay its debts as they mature, or for the readjustment or arrangement of any Obligor’s or any of Borrower’s
Subsidiaries’ debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory
proceedings involving any Obligor or any of Borrower’s other Subsidiaries; provided, however, that if such commencement of proceedings against such Obligor or such Subsidiary of Borrower is involuntary, such action shall not constitute an Event
of Default unless such proceedings are not dismissed within thirty (30) days after the commencement of such proceedings. 
 (h)
Appointment of Receiver. 
 The appointment of a receiver or trustee for any Obligor or any of Borrower’s other
Subsidiaries, for any of the Collateral or for any substantial part of any Obligor’s or any of Borrower’s other Subsidiaries’ assets or the institution of any proceedings for the dissolution, or the full or partial liquidation, or the
merger or consolidation, of any Obligor or any of Borrower’s other Subsidiaries which is a corporation, limited liability company or a partnership; provided, however, that if such appointment or commencement of proceedings against such Obligor
or such Subsidiary of Borrower is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceedings are not dismissed within thirty (30) days after the commencement of such proceedings.

 (i) Judgment. 
 The entry of any judgment or order in excess of Five Hundred Thousand Dollars ($500,000) against any Obligor or any other Subsidiary of Borrower which remains unsatisfied or undischarged and in effect for thirty (30) days after such
entry without a stay of enforcement or execution. 
 (j) Death or Dissolution of Obligor. 
 The death of any Obligor who is a natural Person, or of any general partner who is a natural Person of any Obligor which is a partnership, or any member
who is a natural Person of any Obligor which is a limited liability company or the dissolution of any Obligor which is a partnership, limited liability company, corporation or other entity. 
 (k) Default or Revocation of Guaranty. 
 The occurrence of an event of default under, or the revocation or termination of, any agreement, instrument or document executed and delivered by any Person to Administrative Agent or any Lender pursuant to which such Person has guaranteed
to Administrative Agent and Lenders the payment of all or any of the Liabilities or has granted Administrative Agent a security interest in or lien upon some or all of such Person’s real and/or personal property to secure the payment of all or
any of the Liabilities. 
  

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 (l) Criminal Proceedings. 
 The institution in any court of a criminal proceeding against any Obligor or any other Subsidiary of Borrower, or the indictment of any Obligor or any
other Subsidiary of Borrower for any crime. 
 (m) Change of Control. 
 The acquisition by any Person, or two or more Persons acting in concert (other than any member of existing management as of the date hereof) of beneficial
ownership (within the meaning of Rule 13-d-3 of the Securities and Exchange Commission under the federal Securities Exchange Act of 1934, as amended) of more than fifty percent (50%) of the outstanding shares of voting stock of Borrower.

 16. REMEDIES UPON AN EVENT OF DEFAULT. 
 (a) Upon the occurrence of an Event of Default described in subsection 15(g) hereof, all of the Liabilities shall immediately and automatically become due and payable, without notice of any kind. Upon the
occurrence of any other Event of Default, all Liabilities may, at the option of Requisite Lenders, and without demand, notice or legal process of any kind, be declared, and immediately shall become, due and payable. 
 (b) Upon the occurrence of an Event of Default, Administrative Agent may exercise from time to time any rights and remedies available to it under the
Uniform Commercial Code and any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted in this Agreement or in any of the Other Agreements and all of Administrative Agent’s rights and remedies shall
be cumulative and non-exclusive to the extent permitted by law. In particular, but not by way of limitation of the foregoing, Administrative Agent may, without notice, demand or legal process of any kind, take possession of any or all of the
Collateral (in addition to Collateral of which it already has possession), wherever it may be found, and for that purpose may pursue the same wherever it may be found, and may enter onto any of Borrower’s premises where any of the Collateral
may be, and search for, take possession of, remove, keep and store any of the Collateral until the same shall be sold or otherwise disposed of, and Administrative Agent shall have the right to store the same at any of Borrower’s premises
without cost to Administrative Agent or Lenders. At Administrative Agent’s request, Borrower shall, at Borrower’s expense, assemble the Collateral and make it available to Administrative Agent at one or more places to be designated by
Administrative Agent and reasonably convenient to Administrative Agent and Borrower. Borrower recognizes that if Borrower fails to perform, observe or discharge any of its Liabilities under this Agreement or the Other Agreements, no remedy at law
will provide adequate relief to Administrative Agent and Lenders, and agrees that Administrative Agent and Lenders shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages. Any
notification of 

  

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intended disposition of any of the Collateral required by law will be deemed to be a reasonable authenticated notification of disposition if given at least
ten (10) days prior to such disposition and such notice shall (i) describe Administrative Agent and Borrower, (ii) describe the Collateral that is the subject of the intended disposition, (iii) state the method of the intended
disposition, (iv) state that Borrower is entitled to an accounting of the Liabilities and state the charge, if any, for an accounting and (v) state the time and place of any public disposition or the time after which any private sale is to
be made. Administrative Agent and Lenders may disclaim any warranties that might arise in connection with the sale, lease or other disposition of the Collateral and has no obligation to provide any warranties at such time. Any Proceeds of any
disposition by Administrative Agent of any of the Collateral may be applied by Administrative Agent to the payment of expenses in connection with the Collateral, including, without limitation, legal expenses and reasonable attorneys’ fees, and
any balance of such Proceeds may be applied by Administrative Agent toward the payment of such of the Liabilities, and in such order of application, as Administrative Agent may from time to time elect. 
 17. CONDITIONS PRECEDENT.  
 The obligation of Administrative Agent and Lenders to fund Term Loan A and the initial Revolving Loan, and to issue or cause to be issued the initial Letter of Credit, is subject to the satisfaction or waiver on or before the date hereof of
the following conditions precedent: 
 (a) Administrative Agent shall have received each of the agreements, opinions, reports, approvals,
consents, certificates and other documents set forth on the closing document list attached hereto as Schedule 17(a) (the “Closing Document List”); 
 (b) Administrative Agent shall have received (i) consolidated financial statements for Borrower and its Subsidiaries for the fiscal years ended December 31, 2003, December 31, 2004 and
December 31, 2005 and for PPL for the fiscal years ended March 31, 2004, March 31, 2005 and March 31, 2006 and (ii) unaudited interim consolidated financial statements for Borrower and its Subsidiaries and for PPL for the
most recent fiscal month for which such financial statements are available, in each case on a year-to-date basis; 
 (c) The Related
Transactions shall have been completed (or concurrently with the initial credit extension hereunder will be completed) in accordance with the terms of the Related Agreements (without any amendment thereto or waiver thereunder unless consented to by
Administrative Agent). 
 (d) Administrative Agent shall have received evidence acceptable to the Administrative Agent that after giving
effect to the transactions contemplated hereby and the Related Transactions, (i) Borrower shall have Excess Availability of at least Eleven Million and No/100 Dollars ($11,000,000), (ii) Borrower’s EBITDA calculated on a pro forma
basis for the twelve-month period ending on the Closing Date shall not be less than Twelve Million Four Hundred Thousand and No/100 Dollars ($12,400,000) and (iii) Borrower’s Total Debt to EBITDA Ratio calculated on a pro forma basis shall
be no greater than 2.50 to 1.0; 
  

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 (e) Administrative Agent shall have received evidence acceptable to Administrative Agent that
(i) the sum of (x) the aggregate purchase price with respect to the Related Transactions and (y) the amount required to refinance all existing indebtedness of PPL assumed on the closing date shall not exceed Twenty-Four Million Five
Hundred Thousand and No/100 Dollars ($24,500,000), and (ii) the aggregate fees and expenses with respect to the Related Transactions shall not exceed One Million Five Hundred Thousand and No/100 Dollars ($1,500,000); 
 (f) Since December 31, 2005, no event shall have occurred which has had or could reasonably be expected to have a Material Adverse Effect (exclusive
of the effect of a special charge in the amount of Four Million Six Hundred Fifty Thousand and No/100 Dollars ($4,650,000)) for write-downs of Inventory and non-recurring engineering expenses), as determined by Administrative Agent or Requisite
Lenders in their sole discretion; 
 (g) Administrative Agent shall have received payment in full of all fees and expenses payable to it by
Borrower or any other Person in connection herewith, on or before disbursement of the initial Loans hereunder; 
 (h) Borrower shall have
delivered projected income statements, balance sheets and cash flow statements prepared by Borrower after giving effect to the transactions set forth herein and the related transactions; and 
 (i) The Obligors shall have executed and delivered to Administrative Agent all such other information documents, instruments and agreements which
Administrative Agent determines are reasonably necessary to consummate the transactions contemplated hereby. 
 18. SETTLEMENTS,
DISTRIBUTIONS AND APPORTIONMENT OF PAYMENTS. 
 On a weekly basis (or more frequently if requested by Administrative Agent) (a
“Settlement Date”), Administrative Agent shall provide each Lender with a statement of the outstanding balance of the Liabilities as of the end of the Business Day immediately preceding the Settlement Date (the
“Pre-Settlement Determination Date”) and the current balance of the Loans funded by each Lender (whether made directly by such Lender to Borrower or constituting a settlement by such Lender of a previous Disproportionate Advance
made by Administrative Agent on behalf of such Lender to Borrower). If such statement discloses that such Lender’s current balance of the Loans as of the Pre-Settlement Determination Date exceeds such Lender’s Pro Rata Share of the
Liabilities outstanding as of the Pre-Settlement Determination Date, then Administrative Agent shall, on the Settlement Date, transfer, by wire transfer, the net amount due to such Lender in accordance with such Lender’s instructions, and if
such statement discloses that such Lender’s current balance of the Loans as of the Pre-Settlement Determination Date is less than such Lender’s Pro Rata 

  

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Share of the Liabilities outstanding as of the Pre-Settlement Determination Date, then such Lender shall, on the Settlement Date, transfer, by wire transfer
the net amount due to Administrative Agent in accordance with Administrative Agent’s instructions. In addition, payments actually received by Administrative Agent with respect to the following items shall be distributed by Administrative Agent
to Lenders as follows: 
 (a) Within one (1) Business Day of receipt thereof by Administrative Agent, payments to be applied to interest
on the Loans shall be paid to each Lender in proportion to its Pro Rata Share, subject to any adjustments for any Disproportionate Advances as provided in subsection 2(a)(i), so that Administrative Agent shall receive interest on the
Disproportion Advances and each Lender shall only receive interest on the amount of funds actually advanced by such Lender; 
 (b) Within one
(1) Business Day of receipt thereof by Administrative Agent, payments to be applied to the Letter of Credit fee set as provided in Section 3(a) hereof shall be paid to each Lender in proportion to its Pro Rata Share; 
 (c) Within one (1) Business Day of receipt thereof by Administrative Agent, payments to be applied to the closing fee as provide in subsection
4(c)(i) shall be paid to each Lender in proportion to its Pro Rata Share; 
 (d) Within one (1) Business Day of receipt thereof by
Administrative Agent, payments to be applied to the unused line fee set forth in subsection 4(c)(ii) hereof shall be paid to each Lender in proportion to its Pro Rata Share; and 
 (e) Within one (1) Business Day or receipt thereof by Administrative Agent, payments to be applied to the Delayed-Draw Non-Use Fee set forth in
subsection 4(c)(iii) hereof shall be paid to each Lender in proportion to its Pro Rata Share. 
 Notwithstanding the foregoing,
Administrative Agent shall not be obligated to transfer to any Defaulting Lender any payment made by Borrower to Administrative Agent, nor shall such Defaulting Lender be entitled to share any interest, fees or other payment hereunder, until payment
is made by such Defaulting Lender to Administrative Agent as required in this Agreement. 
 19. AGENT. 
 (a) Appointment of Administrative Agents. 
 (i) Each Lender hereby designates LaSalle as Administrative Agent to act as herein specified. Each Lender hereby designates National City Bank as Documentation Agent. Each Lender hereby irrevocably authorizes
Administrative Agent to take such action on its behalf under the provisions of this Agreement and the notes and any other instruments and agreements referred to herein and to exercise such powers and to perform such duties hereunder and thereunder
as are specifically delegated to or required of Administrative Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. Except as otherwise provided 

  

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herein, Administrative Agent shall hold all Collateral and all payments of principal, interest, fees, charges and expenses received pursuant to this
Agreement or any of the Other Agreements for the benefit of Lenders. Administrative Agent may perform any of its duties hereunder by or through its agents or employees. 
 (ii) The provisions of this Section 19 are solely for the benefit of Administrative Agent and Lenders, and neither Borrower nor any other Obligor shall have any rights as a third party beneficiary of any
of the provisions hereof (other than rights specifically granted to Borrower pursuant to subsections 19(i) and 19(j)(iv)). In performing its functions and duties under this Agreement, Administrative Agent shall act solely as agent of
Lenders and does not assume and shall not be deemed to have assumed any obligation toward or relationship of agency or trust with or for any Obligor. 
 (b) Nature of Duties of Administrative Agent. 
 Administrative Agent shall not have duties,
obligations or responsibilities except those expressly set forth in this Agreement and the Other Agreements. Neither Administrative Agent nor any of its officers, directors, employees or agents shall not be liable for any action taken or omitted by
it as such hereunder or in connection herewith, unless caused by its or their gross negligence or willful misconduct. The duties of Administrative Agent shall be mechanical and administrative in nature; Administrative Agent shall not have by reason
of this Agreement a fiduciary relationship in respect of any Lender; and nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon Administrative Agent any obligations in respect of this Agreement
except as expressly set forth herein. 
 (c) Lack of Reliance on Administrative Agent. 
 (i) Independently and without reliance upon Administrative Agent, each Lender, to the extent it deems appropriate, has made and shall continue to make
(A) its own independent investigation of the financial or other condition and affairs of Administrative Agent, each Obligor and any other Lender in connection with the taking or not taking of any action in connection herewith and (B) its
own appraisal of the creditworthiness of Administrative Agent, each Obligor and any other Lender, and, except as expressly provided in this Agreement, Administrative Agent shall not have any duty or responsibility, either initially or on a
continuing basis, to provide any Lender with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter. 
 (ii) Administrative Agent shall not be responsible to any Lender for any recitals, statements, information, representations or warranties herein or in any
document, certificate or other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, collectibility, priority or sufficiency of this Agreement or any notes or the financial or other
condition of any Obligor. Administrative Agent shall not be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or the notes, or the financial condition of any
Obligor, or the existence or possible existence of any Default or Event of Default. 
  

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 (d) Certain Rights of Administrative Agent. 
 Administrative Agent shall have the right to request instructions from Requisite Lenders or all Lenders, as applicable, pursuant to this Agreement, by
notice to each Lender. If Administrative Agent shall request instructions from Requisite Lenders or all Lenders, as applicable, with respect to any act or action (including the failure to act) in connection with this Agreement, Administrative Agent
shall be entitled to refrain from such act or taking such action unless and until Administrative Agent shall have received instructions from Requisite Lenders or all Lenders, as applicable, and Administrative Agent shall not incur liability to any
Person by reason of so refraining. Without limiting the foregoing, no Lender shall have any right of action whatsoever against Administrative Agent as a result of Administrative Agent acting or refraining from acting hereunder in accordance with the
instructions of Requisite Lenders or all Lenders, as applicable. 
 (e) Reliance by Administrative Agent. 
 Administrative Agent shall be under no duty to examine, inquire into, or pass upon the validity, effectiveness or genuineness of this Agreement any of the
Other Agreements or any instrument, document or communication furnished pursuant hereto or in connection herewith. Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order, electronic mail or other documentary, teletransmission or telephone message believed by it to be genuine and correct and to have been signed, sent or made by
the proper person. Administrative Agent may consult with legal counsel (including counsel for Borrower with respect to matters concerning Borrower), independent public accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts. 
 (f)
Indemnification of Administrative Agent. 
 To the extent Administrative Agent is not promptly reimbursed and indemnified by
Borrower, each Lender will reimburse and indemnify Administrative Agent, in proportion to its Pro Rata Share, for and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including
counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against Administrative Agent in performing its duties hereunder, in any way relating to or arising out of this
Agreement; provided, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from Administrative Agent’s gross negligence
or willful misconduct. If any indemnity furnished to Administrative Agent for any purpose shall, in the opinion of Administrative Agent, be insufficient or become impaired, Administrative Agent may call for additional indemnities and cease to do, or
not commence, the acts to be indemnified against, 

  

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even if so directed by Requisite Lenders or all Lenders, as applicable, until such additional indemnification is provided. The obligations of Lenders under
this subsection 19(f) shall survive the payment in full of the Liabilities and the termination of this Agreement. 
 (g)
Administrative Agent in its Individual Capacity. 
 With respect to the Loans made by it pursuant hereto, Administrative Agent
shall have the same rights and powers hereunder as any other Lender or holder of a note or participation interest and may exercise the same as though it was not performing the duties specified herein; and the terms “Lenders,”
“Requisite Lenders” or any similar terms shall, unless the context clearly otherwise indicates, include Administrative Agent in its individual capacity. Administrative Agent may accept deposits from, lend money to, acquire equity interests
in, and generally engage in any kind of banking, trust, financial advisor or other business with Borrower or any Affiliate of Borrower as if it were not performing the duties specified herein, and may accept fees and other consideration from
Borrower for services in connection with this Agreement and otherwise without having to account for the same to Lenders, to the extent such activities are not in contravention of the terms of this Agreement. 
 (h) Holders of Notes. 
 Administrative Agent may deem and treat the payee of any promissory note as the owner thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof shall have been filed with Administrative Agent.
Any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is the holder of any promissory note, shall be conclusive and binding on any subsequent holder, transferee or assignee of
such promissory note or of any promissory note or notes issued in exchange therefor. 
 (i) Successor Administrative Agent.

 (i) Administrative Agent may, upon five (5) business days’ notice to Lenders and Borrower, resign at any time (effective upon the
appointment of a successor Administrative Agent pursuant to the provisions of this subsection 19(i)) by giving written notice thereof to Lenders and Borrower. Upon any such resignation, Requisite Lenders shall have the right, upon five
(5) days’ notice, to appoint a successor Administrative Agent, provided, that if no Event of Default is then existing, such appointment shall require the consent of Borrower, which consent shall not be unreasonably withheld. If no
successor Administrative Agent shall have been so appointed by Requisite Lenders and accepted such appointment, within thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation, then, upon five
(5) days’ notice, the retiring Administrative Agent may, on behalf of Lenders (and if no Event of Default is then existing, with the consent of Borrower, which consent shall not be unreasonably withheld), appoint a successor Administrative
Agent, which shall be a bank or a trust company or other financial institution which maintains an office in the United States, or a commercial bank organized under the laws of the United States of America or of any State thereof, or any Affiliate of
such bank or trust company or other 

  

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financial institution which is engaged in the banking business, having a combined capital and surplus of at least Five Hundred Million and No/100 Dollars
($500,000,000.00). 
 (ii) Upon the acceptance of any appointment as an Administrative Agent hereunder by a successor Administrative Agent,
such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 19 shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was an Administrative Agent under this Agreement. 
 (j) Collateral Matters. 
 (i) Each Lender authorizes and directs Administrative Agent to enter into the Other Agreements for the benefit of Lenders. Each Lender hereby agrees that,
except as otherwise set forth herein, any action taken by Requisite Lenders in accordance with the provisions of this Agreement or the Other Agreements, and the exercise by the Requisite Lenders of the powers set forth herein or therein, together
with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all Lenders. Administrative Agent is hereby authorized on behalf of all Lenders, without the necessity of any notice to or further consent from any
Lender to take any action with respect to any Collateral or Other Agreements which may be necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted pursuant to this Agreement and the Other Agreements.

 (ii) Administrative Agent will not, without the verbal consent of all Lenders, which consent shall (a) be confirmed promptly
thereafter in writing and (b) not be unreasonably withheld or delayed, execute any release of Administrative Agent’s security interest in any Collateral except for releases relating to dispositions of Collateral (x) permitted by this
Agreement (including pursuant to Factoring Arrangements) and (y) in connection with the repayment in full of all of the Liabilities by Borrower and the termination of all obligations of Administrative Agent and Lenders under this Agreement and
the Other Agreements; provided, that with the consent of Requisite Lenders in the manner set forth above, Administrative Agent may release its liens on Collateral having a book value not greater than ten percent (10%) of the total book
value of all Collateral, as determined by Administrative Agent, either in a single transaction or series of related transactions, not to exceed twenty percent (20%) of the book value of all Collateral in any Fiscal Year. Administrative Agent
shall not be required to execute any such release on terms which, in Administrative Agent’s opinion, would expose Administrative Agent to liability or create any obligation or entail any consequence other than the release of such liens without
recourse or warranty. In the event of any sale or transfer of any of the Collateral, Administrative Agent shall be authorized to deduct all of the expenses reasonably incurred by Administrative Agent from the proceeds of any such sale, transfer or
foreclosure. 
  

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 (iii) Lenders hereby agree that the lien granted to Administrative Agent in any property sold or disposed
of in accordance with the provisions of the Agreement shall be automatically released; provided, however that Administrative Agent’s lien shall attach to and continue for the benefit of Administrative Agent and Lenders in the
proceeds and products of such property arising from any such sale or disposition. 
 (iv) To the extent, pursuant to the provisions of this
subsection 19(j), Administrative Agent’s execution of a release is required to release its lien upon any sale and transfer of Collateral which is consented to in writing by Requisite Lenders or all Lenders, as applicable, and upon at
least five (5) business days’ prior written request by Borrower, Administrative Agent shall (and is hereby irrevocably authorized by Lenders to) execute such documents as may be necessary to evidence the release of the liens granted to
Administrative Agent for the benefit of Lenders herein or pursuant hereto upon the Collateral that was sold or transferred. 
 (v)
Administrative Agent shall not have any obligation whatsoever to Lenders or to any other Person to assure that the Collateral exists or is owned by Borrower or any other Obligor or is cared for, protected or insured or that the liens granted to
Administrative Agent herein or pursuant hereto have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or
under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to Administrative Agent in this Section 19 or in any of the Other Agreements, it being understood and agreed that in respect of
the Collateral, or any act, omission or event related thereto, Administrative Agent may act in any manner it may deem appropriate, in its sole discretion, given Administrative Agent’s own interest in the Collateral as one of Lenders and that
Administrative Agent shall have no duty or liability whatsoever to Lenders, except for its gross negligence or willful misconduct. 
 (k)
Actions with Respect to Defaults. 
 In addition to Administrative Agent’s right to take actions on its own accord as
permitted under this Agreement, Administrative Agent shall take such action with respect to an Event of Default as shall be directed by Requisite Lenders or all Lenders, as applicable, under this Agreement; provided, that until Administrative Agent
shall have received such directions, Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as it shall deem advisable and in the best interests of
Lenders. No Lender shall have any right individually to enforce or seek to enforce this Agreement or any Other Agreement or to realize upon any Collateral, unless instructed to do so by Administrative Agent. 
  

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 (l) Delivery of Information. 
 Administrative Agent shall not be required to deliver to any Lender originals or copies of any documents, instruments, notices, communications or other
information received by Administrative Agent from Borrower or any other Obligor, Requisite Lenders, any Lender or any other Person under or in connection with this Agreement or any Other Agreement except (i) as specifically provided in this
Agreement or any Other Agreement and (ii) as specifically requested from time to time in writing by any Lender with respect to a specific document, instrument, notice or other written communication received by and in the possession of
Administrative Agent at the time of receipt of such request and then only in accordance with such specific request. 
 (m)
Demand. 
 Subject to the terms of this Agreement, Administrative Agent shall make demand for repayment by Borrower of all
Liabilities owing by Borrower hereunder, after the occurrence of an Event of Default, upon the written request of Requisite Lenders. Administrative Agent shall make such demand in such manner as it deems appropriate, in its sole discretion, to
effectuate the request of the Requisite Lenders. Nothing contained herein shall limit the discretion of Administrative Agent to take reserves, to deem certain Accounts and Inventory ineligible, or to exercise any other discretion granted to
Administrative Agent in this Agreement. 
 (n) Notice of Default. 
 Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default or any event which, with passage of time or
giving of notice, could become an Event of Default, except with respect to Events of Default arising as a result of Borrower’s failure to pay principal, interest or fees required to be paid to Administrative Agent for the benefit of Lenders,
unless Administrative Agent shall have received written notice from a Lender or Borrower describing such Event of Default or event which, with the passage of time or giving of notice, could become an Event of Default, and which identifies such event
as a “notice of default”. Upon receipt of any such notice, Administrative Agent will notify each Lender of such receipt. 
 (o)
Documentation Agent. 
 Notwithstanding anything to the contrary contained elsewhere in this Agreement or in any of the Other
Agreements, Documentation Agent shall not have any duties or responsibilities (except as specifically described in this Agreement), nor shall the Documentation Agent have or be deemed to have any fiduciary relationship with any Lender or Obligor and
no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or the Other Agreements or otherwise exist against the Documentation agent. If, at any time National City Bank is no longer a
Lender hereunder, National City Bank shall be deemed to have resigned as Documentation Agent and no new Documentation Agent will be appointed. 
  

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 20. ASSIGNABILITY. 
 (a) Borrower shall not have the right to assign this Agreement or any interest therein except with the prior written consent of Administrative Agent and
all Lenders. 
 (b) Any Lender may make, carry or transfer Loans at, to or for the account of, any of its branch offices or the office of an
Affiliate of such Lender except to the extent such transfer would result in increased costs to Borrower. 
 (c) Each Lender may, with the
consent of Administrative Agent and, so long as no Event of Default is then continuing, Borrower, which consents shall not be unreasonably withheld, but without the consent of any other Lender, assign to one or more banks or other financial
institutions all or a portion of its rights and obligations under this Agreement; provided, that (i) for each such assignment, the parties thereto shall execute and deliver to Administrative Agent, for its acceptance and recording in the
Register (as defined below), an Assignment and Acceptance Agreement in the form attached hereto as Exhibit D (the “Assignment and Acceptance”), and a processing and recordation fee of Three Thousand Five Hundred and No/100 Dollars
($3,500.00) to be paid by the assignee, and (ii) no such assignment shall be for less than Five Million and No/100 Dollars ($5,000,000.00) (or all of such Lender’s remaining Loans and Loan Commitments). Upon such execution and delivery of
the Assignment and Acceptance to Administrative Agent, from and after the date specified as the effective date in the Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto, and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment and Acceptance, such assignee shall have the rights and obligations of a Lender hereunder and (y) the assignor thereunder shall, to the extent that rights and obligations hereunder
have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other than any rights it may have pursuant to Section 23 of the Agreement which will survive) and be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto). 
 (d) By executing and delivering an Assignment and Acceptance Agreement in the form of Exhibit D hereto (an “Assignment and
Acceptance”), the assignee thereunder confirms and agrees as follows: (i) other than as provided in such Assignment and Acceptance, the assigning Lender makes no representation or warranty and assumes no responsibility with respect to
any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any of the Other Agreements, (ii) such
assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or any other Obligor or the performance or observance by Borrower or any other Obligor of its obligations under
this Agreement, (iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 9 of the Agreement and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to 

  

 67 

 
enter into such Assignment and Acceptance, (iv) such assignee will, independently and without reliance upon Administrative Agent, such assigning Lender
or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement, (v) such assignee appoints and authorizes
Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto and
(vi) such assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement are required to be performed by it as a Lender. 
 (e) Administrative Agent shall, maintain at its address referred to in Section 24 of the Agreement a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names and addresses of Lenders and the Revolving Loan Commitments and Term Loan Commitments of, and principal amount of the Loans owing to, each Lender from time to time (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and Borrower, Administrative Agent and Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register and copies of each Assignment and Acceptance shall be available for inspection by Borrower, Administrative Agent or any Lender at any reasonable time and from time to time upon
reasonable prior notice. 
 (f) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender, Administrative Agent shall,
if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit D hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register, (iii) give
notice thereof to Administrative Agent on the date of receipt and (iv) give prompt notice thereof to Borrower. Within five (5) Business Days after its receipt of such notice, Borrower shall execute and deliver to Administrative Agent in
exchange for the surrendered promissory note or notes, a new promissory note or notes to the order of the assignee in an amount equal to the maximum amount of Loans such assignee may at any time make under the terms of this Agreement and, if the
assigning Lender has retained a portion of the Loans, a new promissory note or notes to the order of the assigning Lender in an amount equal to the maximum amount of Loans such assigning Lender may at any time make under the terms of this Agreement.
Such new promissory note or notes shall re-evidence the indebtedness outstanding under the old promissory note or notes and shall be in the aggregate principal amount of such surrendered promissory note or notes, shall be dated of even date herewith
and shall otherwise be in substantially the form of the promissory note or notes subject to such assignment. 
 (g) Each Lender may sell
participations (without the consent of Administrative Agent, Borrower or any other Lender) to one or more parties, in or to all (or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its
Revolving Loan Commitment, or the Loans owing to it); provided, that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender 

  

 68 

 
shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) Borrower, Administrative Agent, and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement, (iv) such Lender shall not transfer, grant, assign or sell any participation under which the
participant shall have rights to approve any amendment or waiver of this Agreement and (v) any such participant shall agree to be bound by the confidentiality provisions set forth in Section 28 hereof. 
 (h) Each Lender agrees that, without the prior written consent of Borrower and Administrative Agent, it will not make any assignment hereunder in any
manner or under any circumstances that would require registration or qualification of, or filings in respect of, any Loan or other Liabilities under the securities laws of the United States of America or of any jurisdiction. 
 (i) In connection with the efforts of any Lender to assign its rights or obligations or to participate interests, such Lender may disclose any
information in its possession regarding Borrower so long as such potential assignee or participant agrees to be bound by the confidentiality provisions of Section 28 hereof prior to receiving any such information. 
 21. AMENDMENTS, ETC. 
 No
amendment or waiver of any provision of this Agreement or any of the Other Agreements, nor consent to any departure by any Obligor therefrom, shall in any event be effective unless the same shall be in writing and signed by Requisite Lenders, or if
Lenders shall not be parties thereto, by the parties thereto and consented to by Requisite Lenders, and each such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided,
that no amendment, waiver or consent shall, unless in writing and signed by all Lenders, do any of the following: (i) increase the Revolving Loan Commitments of Lenders or subject Lenders to any additional obligations to extend credit to
Borrower, other than in connection with the increase of the Maximum Revolving Loan Limit in accordance with Section 2(a) hereof, (ii) reduce the principal of, or interest on, the Loans (other than as expressly permitted herein) or
any fees hereunder, (iii) postpone any date fixed for any scheduled payment in respect of principal (excluding mandatory prepayments) of, or interest on, the Loans or any fees hereunder, including any extension of the maturity date of the
Liabilities, (iv) change the Pro Rata Shares of Lenders, other than in connection with the increase of the Maximum Revolving Loan Limit in accordance with Section 2(a) hereof, or any minimum requirement necessary for Lenders or
Requisite Lenders to take any action hereunder, (v) amend or waive this Section 21, or change the definition of Requisite Lenders, (vi) increase by more than 5% the advance rates set forth in subsection 2(a) hereof or
(vii) except in connection with the financing, refinancing, sale or other disposition of any asset of Borrower permitted under this Agreement (or to the extent Requisite Lender approval only is required with any such release pursuant to
subsection 19(j) hereof), release or subordinate any liens in favor of Administrative Agent, for the benefit of Administrative Agent and Lenders, on any of the Collateral and provided further, that no amendment, waiver or consent affecting
the rights or 

  

 69 

 
duties of Administrative Agent under this Agreement or any Other Agreement shall in any event be effective, unless in writing and signed by Administrative
Agent in addition to Lenders required hereinabove to take such action. Notwithstanding any of the foregoing to the contrary, (a) for purposes of voting or consenting to matters with respect to this Agreement and the Other Agreements, a
Defaulting Lender shall not be considered a Lender and such Defaulting Lender’s Revolving Loan Commitment shall each be deemed to be $0 until such Defaulting Lender makes the payments required in this Agreement and (b) the consent of
Borrower shall not be required for any amendment, modification or waiver of the provisions of this Section 21. 
 In the event
that any consent, waiver or amendment requiring the agreement of all Lenders as set forth above is agreed to by the Requisite Lenders, but not all Lenders, Administrative Agent may, in its sole discretion, cause any non-consenting Lender to assign
its rights and obligations under this Agreement and the Other Agreements to one or more new Lenders or existing Lenders in the manner and according to the terms set forth in Section 20 of this Agreement; provided, that (i) no Lender may be
required to assign its rights and obligations to a new Lender because such lender is unwilling to increase its own loan commitments, (ii) such new Lender must be willing to consent to the proposed amendment, waiver or consent and (iii) in
connection with such assignment the new Lender pays the assigning Lender an amount equal to the Liabilities owing to such assigning Lender, including all principal, accrued and unpaid interest and accrued and an unpaid fees to the date of
assignment. Such assignment shall occur within thirty (30) days of notice by Administrative Agent to such non-consenting Lender of Administrative Agent’s intent to cause such non-consenting Lender to assign its interests hereunder.

 22. NONLIABILITY OF AGENTS AND LENDERS. 
 The relationship between Borrower, Administrative Agent and Lenders shall be solely that of borrower and lender. Neither Administrative Agent nor any Lender shall have any fiduciary responsibilities to Borrower.
Neither Administrative Agent nor any Lender undertakes any responsibility to Borrower to review or inform Borrower of any matter in connection with any phase of Borrower’s business or operations. 
 23. INDEMNIFICATION. 
 Borrower
agrees to defend (with counsel satisfactory to the Indemnified Party (as defined below)), protect, indemnify and hold harmless each Administrative Agent and each Lender, each affiliate or subsidiary of each Administrative Agent and each Lender, and
each of their respective officers, directors, employees, attorneys and agents (each an “Indemnified Party”) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs,
expenses and disbursements of any kind or nature (including, without limitation, the disbursements and the reasonable fees of counsel for each Indemnified Party in connection with any investigative, administrative or judicial proceeding, whether or
not the Indemnified Party shall be designated a party thereto), which may be imposed on, incurred by, or asserted against, any Indemnified Party (whether direct, indirect or consequential and whether based on any federal, state or local laws or
regulations, 

  

 70 

 
including, without limitation, securities laws and regulations, Environmental Laws and commercial laws and regulations, under common law or in equity, or
based on contract or otherwise) in any manner relating to or arising out of this Agreement or any Other Agreement, or any act, event or transaction related or attendant thereto, the making or issuance and the management of the Loans or any Letters
of Credit or the use or intended use of the proceeds of the Loans or any Letters of Credit; provided, however, that Borrower shall not have any obligation hereunder to any Indemnified Party with respect to matters caused by or resulting from the
willful misconduct or gross negligence of such Indemnified Party. To the extent that the undertaking to indemnify set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, Borrower shall satisfy
such undertaking to the maximum extent permitted by applicable law. Any liability, obligation, loss, damage, penalty, cost or expense covered by this indemnity shall be paid to each Indemnified Party on demand, and, failing prompt payment, shall,
together with interest thereon at the highest rate then applicable to Loans hereunder from the date incurred by each Indemnified Party until paid by Borrower, be added to the Liabilities of Borrower and be secured by the Collateral. The provisions
of this Section 18 shall survive the satisfaction and payment of the other Liabilities and the termination of this Agreement. 
 24. CUSTOMER IDENTIFICATION - USA PATRIOT ACT NOTICE. 
 Each Lender and LaSalle (for itself and not on behalf of any
other party) hereby notifies Borrower and its Subsidiaries that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “Act”), it is required to obtain,
verify and record information that identifies Borrower and its Subsidiaries, which information includes the name and address of Borrower and its Subsidiaries and other information that will allow such Lender or LaSalle, as applicable, to identify
Borrower and its Subsidiaries in accordance with the Act. 
 25. NOTICE. 
 All written notices and other written communications with respect to this Agreement shall be sent by ordinary, certified or overnight mail, by telecopy or
delivered in person, and in the case of Administrative Agent shall be sent to it at 135 South LaSalle Street, Chicago, Illinois 60603-4105, attention: Steven Marks, facsimile number: (312) 904-4660, in the case of a Lender shall be sent to
it at the address set forth below its name on the signature page hereto or in the Assignment and Acceptance Agreement and in the case of Borrower shall be sent to it at its principal place of business set forth on Exhibit A hereto or as
otherwise directed by Borrower in writing. All notices shall be deemed received upon actual receipt thereof or refusal of delivery. 
 26.
CHOICE OF GOVERNING LAW; CONSTRUCTION; FORUM SELECTION. 
 This Agreement and the Other Agreements are submitted by Borrower to
Administrative Agent and Lenders for their acceptance or rejection at Administrative Agent’s principal place of business as an offer by Borrower to borrow monies from Administrative 

  

 71 

 
Agent and Lenders now and from time to time hereafter, and shall not be binding upon Administrative Agent or any Lender or become effective until accepted by
Administrative Agent and Lenders, in writing, at said place of business. If so accepted by Administrative Agent and Lenders, this Agreement and the Other Agreements shall be deemed to have been made at said place of business. THIS AGREEMENT AND
THE OTHER AGREEMENTS SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING, WITHOUT LIMITATION, THE LEGALITY OF THE
INTEREST RATE AND OTHER CHARGES, BUT EXCLUDING PERFECTION OF THE SECURITY INTERESTS IN COLLATERAL LOCATED OUTSIDE OF THE STATE OF ILLINOIS, WHICH SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE RELEVANT JURISDICTION IN WHICH SUCH COLLATERAL IS
LOCATED. If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or remaining provisions of this Agreement. 
 To induce Administrative Agent and Lenders to accept this Agreement, Borrower
irrevocably agrees that, subject to Administrative Agent’s sole and absolute election, ALL ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT, ARISING OUT OF OR FROM OR RELATED TO THIS AGREEMENT, THE OTHER AGREEMENTS OR THE COLLATERAL
SHALL BE LITIGATED IN COURTS HAVING SITUS WITHIN THE CITY OF CHICAGO, STATE OF ILLINOIS. BORROWER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURTS LOCATED WITHIN SAID CITY AND STATE. Borrower hereby agrees
that service of legal process may be made by U.S. mail to Borrower at its address set forth as its principal place of business on Exhibit A hereto and in the manner set forth in Section 24 hereof. Borrower agrees that service of such
process upon such person shall constitute personal service of such process upon Borrower. BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR CHANGE THE VENUE OF ANY LITIGATION BROUGHT AGAINST BORROWER BY AGENT OR LENDERS IN ACCORDANCE
WITH THIS SECTION. 
 27. HEADINGS OF SUBDIVISIONS. 
 The headings of subdivisions in this Agreement are for convenience of reference only, and shall not govern the interpretation of any of the provisions of
this Agreement. 
 28. POWER OF ATTORNEY. 
 Borrower acknowledges and agrees that its appointment of Administrative Agent as its attorney and agent-in-fact for the purposes specified in this Agreement is an appointment coupled with an interest and shall be
irrevocable until all of the Liabilities are satisfied and paid in full and this Agreement is terminated. 
  

 72 

 29. CONFIDENTIALITY. 
 Borrower, Administrative Agent and each Lender hereby agree and acknowledge that any and all information relating to Borrower which is (i) furnished
by Borrower to Administrative Agent or any Lender (or to any affiliate of Administrative Agent or any Lender); and (ii) non-public, confidential or proprietary in nature, shall be kept confidential by Administrative Agent and such Lender or
such affiliate in accordance with applicable law; provided, however, that such information and other credit information relating to Borrower may be distributed by such party to such party’s directors, officers, employees, attorneys, affiliates,
assignees, participants, auditors, agents (all of which parties shall be subject to the confidentiality restrictions set forth herein) and regulators, and upon the order of a court or other governmental agency having jurisdiction over Administrative
Agent or such Lender or such affiliate, to any other party. Borrower, Administrative Agent and each Lender further agree that this provision shall survive the termination of this Agreement. Notwithstanding the foregoing, Borrower hereby consents to
Administrative Agent publishing a tombstone or similar advertising material relating to the financing transaction contemplated by this Agreement. 
 30. COUNTERPARTS. 
 This Agreement, any of the Other Agreements and any amendments, waivers, consents or supplements
may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed an original, but all of which counterparts together shall constitute but one
agreement. 
 31. ELECTRONIC SUBMISSIONS. 
 Upon not less than thirty (30) days’ prior written notice (the “Approved Electronic Form Notice”), Administrative Agent may permit or require that any of the documents, certificates, forms,
deliveries or other communications, authorized, required or contemplated by this Agreement or the Other Agreements, be submitted to Administrative Agent in “Approved Electronic Form” (as hereafter defined), subject to any reasonable
terms, conditions and requirements in the applicable Approved Electronic Forms Notice. For purposes hereof “Electronic Form” means e-mail, e-mail attachments, data submitted on web-based forms or any other communication method that
delivers machine readable data or information to Administrative Agent, and “Approved Electronic Form” means an Electronic Form that has been approved in writing by Administrative Agent (which approval has not been revoked or
modified by Administrative Agent) and sent to Borrower in an Approved Electronic Form Notice. Except as otherwise specifically provided in the applicable Approved Electronic Form Notice, any submissions made in an applicable Approved Electronic Form
shall have the same force and effect that the same submissions would have had if they had been submitted in any other applicable form authorized, required or contemplated by this Agreement or the Other Agreements. 
  

 73 

 32. WAIVER OF JURY TRIAL; OTHER WAIVERS. 
 (a) BORROWER, AGENT AND EACH LENDER EACH HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO
THIS AGREEMENT, ANY OF THE OTHER AGREEMENTS, THE LIABILITIES, THE COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY BORROWER, AGENT OR SUCH LENDER OR WHICH, IN ANY WAY, DIRECTLY OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE RELATIONSHIP AMONG BORROWER,
AGENT AND LENDERS. IN NO EVENT SHALL AGENT OR ANY LENDER BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL OR CONSEQUENTIAL DAMAGES. 
 (b)
Borrower hereby waives demand, presentment, protest and notice of nonpayment, and further waives the benefit of all valuation, appraisal and exemption laws. 
 (c) Borrower hereby waives the benefit of any law that would otherwise restrict or limit Administrative Agent or any Lender or any affiliate of Administrative Agent or any Lender in the exercise of its right, which is
hereby acknowledged and agreed to, to set-off against the Liabilities, without notice at any time hereafter, any indebtedness, matured or unmatured, owing by Administrative Agent or any Lender or such affiliate of Administrative Agent or any Lender
to Borrower, including, without limitation any deposit account at Administrative Agent or any Lender or such affiliate. 
 (d) BORROWER
HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE BY LENDER OF ITS RIGHTS TO REPOSSESS THE COLLATERAL OF BORROWER WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON SUCH COLLATERAL. 
 (e) Administrative Agent’s and/or Lenders’ failure, at any time or times hereafter, to require strict performance by Borrower of any provision
of this Agreement or any of the Other Agreements shall not waive, affect or diminish any right of Administrative Agent or any Lender thereafter to demand strict compliance and performance therewith. Any suspension or waiver by Administrative Agent
or any Lender of an Event of Default under this Agreement or any default under any of the Other Agreements shall not suspend, waive or affect any other Event of Default under this Agreement or any other default under any of the Other Agreements,
whether the same is prior or subsequent thereto and whether of the same or of a different kind or character. No delay on the part of Administrative Agent or any Lender in the exercise of any right or remedy under this Agreement or any Other
Agreement shall preclude other or further exercise thereof or the exercise of any right or remedy. None of the undertakings, agreements, warranties, covenants and representations of Borrower contained in this Agreement or any of the Other Agreements
and no Event of Default under this Agreement or default under any of the Other Agreements shall be deemed to have been 

  

 74 

 
suspended or waived by Administrative Agent and/or Lenders unless such suspension or waiver is in writing, signed by a duly authorized officer of
Administrative Agent, Requisite Lenders or all Lenders, as required herein, and directed to Borrower specifying such suspension or waiver. 
 33. EFFECT OF AMENDED AND RESTATEMENT. 
 Upon the execution and delivery of this Agreement and the satisfaction of the
other conditions set forth in Section 17, the indebtedness and other liabilities of each Obligor previously governed by the Original Loan Documents shall continue in full force and effect, but shall be governed by the terms and
conditions set forth in this Agreement and the Other Agreements. Such liabilities, together with any and all additional liabilities incurred by each Obligor hereunder or under any of the other Loan Documents, shall continue to be secured by, among
other things, the Original Collateral, whether now existing or hereafter acquired and wheresoever located, all as more specifically set forth herein and in the Other Agreements. The execution and delivery of this Agreement shall not constitute a
novation or repayment of the indebtedness outstanding under the Original Loan Documents. Borrower hereby acknowledges and agrees that any and all references in any Other Agreements to the Original Loan Documents shall be deemed to be amended to
refer to this Agreement. 
 [REST OF PAGE INTENTIONALLY LEFT BLANK] 
  

 75 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first written
above. 
  

			
	COBRA ELECTRONICS CORPORATION
		
	By	 	 /s/ Michael Smith

	Title  	 	 Senior Vice President and Chief Financial
 Officer

					
	 LASALLE BANK NATIONAL ASSOCIATION,
 as
Administrative Agent and a Lender

		
	By	 	 /s/ Steven M. Marks

	Title  	 	Senior Vice President
	
	 Revolving Loan Commitment: $28,806,000.00
 Term Loan A Commitment: $5,041,000.00
 Delayed-Draw Term Loan
 Commitment: $4,753,000.00

	 Address:    135 South LaSalle Street
                   Chicago, Illinois 60603-4105
                   Attention: Steven Marks

	Telecopy Number: (312) 904-4660

  

 2 

			
	NATIONAL CITY BANK, as a Lender
		
	By	 	 /s/ Michael L. Monninger

	Title  	 	Vice President
	
	 Revolving Loan Commitment: $11,194,000.00
 Term Loan A Commitment: $1,959,000.00
 Delayed-Draw Term Loan
 Commitment: $1,847,000.00

	 Address:    One North Franklin, Suite 3600
                   Chicago, Illinois 60606
                   Attention: Michael L. Monninger

	Telecopy Number: (312) 384-4666

  

 3Purchase and Sale Agreement

 Exhibit 10.1 
  
  
  
  
 PURCHASE AND SALE AGREEMENT 
 BETWEEN 
 WELLS REAL ESTATE FUND I, 
 AS SELLER 
 AND 
 SCOTT & ASSOCIATES, INC., 
 AS PURCHASER 
 SUITES 100, 130, 229, 230, 250, 326, 328 & 329 
 PACES PAVILION 
 ATLANTA, GEORGIA 
  
  
 September 5, 2006 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 TABLE OF CONTENTS 
  

							
	 ARTICLE 1. DEFINITIONS
	  	1
	 ARTICLE 2. PURCHASE AND SALE
	  	7
		  	 2.1.
	  	 Agreement to Sell and Purchase the Property
	  	7
		  	 2.2.
	  	 Permitted Exceptions
	  	7
		  	 2.3.
	  	 Earnest Money
	  	7
		  	 2.4.
	  	 Purchase Price
	  	8
		  	 2.5.
	  	 Independent Contract Consideration
	  	8
		  	 2.6.
	  	 Closing
	  	8
	 ARTICLE 3. PURCHASER’S INSPECTION AND REVIEW RIGHTS
	  	9
		  	 3.1.
	  	 Due Diligence Inspections.
	  	9
		  	 3.2.
	  	 Deliveries by Seller to Purchaser; Purchaser’s Access to Property Records of Seller
	  	10
		  	 3.3.
	  	 Condition of the Property
	  	11
		  	 3.4.
	  	 Title and Survey
	  	12
		  	 3.5.
	  	 Termination of Agreement
	  	13
		  	 3.6.
	  	 Confidentiality
	  	13
	 ARTICLE 4. REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS
	  	14
		  	 4.1.
	  	 Representations and Warranties of Seller
	  	14
		  	 4.2.
	  	 Knowledge Defined
	  	17
		  	 4.3.
	  	 Covenants and Agreements of Seller
	  	17
		  	 4.4.
	  	 Representations and Warranties of Purchaser
	  	19
	 ARTICLE 5. CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS
	  	19
		  	 5.1.
	  	 Seller’s Closing Deliveries
	  	19
		  	 5.2.
	  	 Purchaser’s Closing Deliveries
	  	21
		  	 5.3.
	  	 Closing Costs
	  	22
		  	 5.4.
	  	 Prorations and Credits
	  	23
	 ARTICLE 6. CONDITIONS TO CLOSING
	  	25
		  	 6.1.
	  	 Conditions Precedent to Purchaser’s Obligations
	  	25
		  	 6.2.
	  	 Conditions Precedent to Seller’s Obligations
	  	26
	 ARTICLE 7. CASUALTY AND CONDEMNATION
	  	26
		  	 7.1.
	  	 Casualty
	  	26
		  	 7.2.
	  	 Condemnation
	  	27
	 ARTICLE 8. DEFAULT AND REMEDIES
	  	28
		  	 8.1.
	  	 Purchaser’s Default
	  	28
		  	 8.2.
	  	 Seller’s Default
	  	28
	 ARTICLE 9. ASSIGNMENT
	  	29
		  	 9.1.
	  	 Assignment
	  	29
	 ARTICLE 10. BROKERAGE COMMISSIONS
	  	29
		  	 10.1.
	  	 Broker
	  	29
	 ARTICLE 11. INDEMNIFICATION
	  	30
		  	 11.1.
	  	 Indemnification by Seller
	  	30
		  	 11.2.
	  	 Indemnification by Purchaser
	  	30
		  	 11.3.
	  	 Limitations on Indemnification
	  	30

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

							
		  	 11.4.
	  	 Survival
	  	31
		  	 11.5.
	  	 Indemnification as Sole Remedy
	  	31
	 ARTICLE 12. MISCELLANEOUS
	  	31
		  	 12.1.
	  	 Notices
	  	31
		  	 12.2.
	  	 Possession
	  	32
		  	 12.3.
	  	 Time Periods
	  	32
		  	 12.4.
	  	 Publicity
	  	32
		  	 12.5.
	  	 Discharge of Obligations
	  	33
		  	 12.6.
	  	 Severability
	  	33
		  	 12.7.
	  	 Construction
	  	33
		  	 12.8.
	  	 Sale Notification Letters
	  	33
		  	 12.9.
	  	 Access to Records Following Closing
	  	33
		  	 12.10.
	  	 General Provisions
	  	33
		  	 12.11.
	  	 Like-Kind Exchange
	  	34
		  	 12.12.
	  	 Attorney’s Fees
	  	34
		  	 12.13.
	  	 Counterparts
	  	35
		  	 12.14.
	  	 Effective Agreement
	  	35

  

					
	 PURCHASE AND SALE AGREEMENT
	  	ii	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 SCHEDULE OF EXHIBITS 
  
  

			
	 Exhibit “A”
	  	 Description of Real Property

		
	 Exhibit “B”
	  	 List of Personal Property

		
	 Exhibit “C”
	  	 List of Existing Commission Agreements

		
	 Exhibit “D”
	  	 Form of Escrow Agreement

		
	 Exhibit “E”
	  	 Property Tax Appeals

		
	 Exhibit “F”
	  	 Existing Surveys

		
	 Exhibit “G”
	  	 List of Leases

		
	 Exhibit “H”
	  	 Title Exceptions

		
	 Exhibit “I”
	  	 Exception Schedule

		
	 Exhibit “J”
	  	 List of Service Contracts

		
	 Exhibit “K”
	  	 Form of Tenant Estoppel Certificate

		
	 Exhibit “L”
	  	 Form of Association Estoppel Certificate

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	Schedule of Exhibits
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 SCHEDULE OF CLOSING DOCUMENTS 
  
  

			
	 Schedule 1
	  	 Form of Assignment and Assumption of Lease

		
	 Schedule 2
	  	 Form of Assignment and Assumption of Service Contracts

		
	 Schedule 3
	  	 Form of Bill of Sale to Personal Property

		
	 Schedule 4
	  	 Form of General Assignment of Seller’s Interest in Intangible Property

		
	 Schedule 5
	  	 Form of Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)

		
	 Schedule 6
	  	 Form of Seller’s Certificate (as to Seller’s Representations and Warranties)

		
	 Schedule 7
	  	 Form of Seller’s FIRPTA Affidavit

		
	 Schedule 8
	  	 Form of Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)

		
	 Schedule 9
	  	 Form of Affidavit of Transferor’s Residence

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	Schedule of Closing Documents
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 PURCHASE AND SALE AGREEMENT 
 SUITES 100, 130, 229, 230, 250, 326, 328 & 329 
 PACES PAVILION

 ATLANTA, GEORGIA 
  
 THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and entered into as of the 5th day of September, 2006, between WELLS REAL ESTATE FUND I, a Georgia limited partnership (“Seller”), and SCOTT &
ASSOCIATES, INC., a Georgia corporation (together with its permitted successors and assigns, “Purchaser”). 
 W I T N
E S S E T H: 
 WHEREAS, Seller desires to sell that certain improved real property consisting of that certain Unit
designated and described as “Convertible Space” under the Condominium Declaration and commonly known as Suites 100, 130, 229, 230, 250, 326, 328 & 329 at Paces Pavilion, Atlanta, Fulton County, Georgia, together with certain
related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and 
 WHEREAS, the parties hereto desire to provide for said sale and purchase on the terms and conditions set forth in this Agreement; 
 NOW, THEREFORE, for and in consideration of the premises, the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto hereby covenant and agree as follows: 
 ARTICLE 1. 
 DEFINITIONS 
 For
purposes of this Agreement, each of the following capitalized terms shall have the meaning ascribed to such terms as set forth below: 
 “Additional Earnest Money” shall mean the sum of One Hundred Thousand and No/100 Dollars ($100,000.00 U.S.). 
 “Assignment and Assumption of Leases” shall mean the form of assignment and assumption of Leases and Security Deposits and obligations under the Commission Agreements to be
executed and delivered by Purchaser and Seller as to the Leases, Security Deposits and Commission Agreements at the Closing in the form attached hereto as SCHEDULE 1. 
 “Assignment and Assumption of Service Contracts” shall mean the form of assignment and assumption of Service Contracts
to be executed and delivered by Purchaser and Seller as to the Service Contracts at the Closing in the form attached hereto as SCHEDULE 2. 
 “Association” shall mean Paces Pavillion Condominium Association, Inc. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 “Association Estoppel Certificate” shall mean the certificate to be
sought from the Association in substantially the form attached hereto as EXHIBIT “L”. 
 “Basket Limitation” shall mean an amount equal to Twenty Thousand and No/100 Dollars ($20,000.00 U.S.). 
 “Bill of Sale” shall mean the form of bill of sale to the Personal Property to be executed and delivered to Purchaser by Seller at the Closing in the form attached hereto as SCHEDULE 3. 
 “Business Day” shall mean any day other than a Saturday, Sunday or other day on which banking institutions in the State
of Georgia are authorized by law or executive action to close. 
 “Cap Limitation” shall mean an amount
equal to One Hundred Twenty-Nine Thousand and No/100 Dollars ($129,000.00 U.S.). 
 “Closing” shall mean the
consummation of the purchase and sale of the Property pursuant to the terms of this Agreement. 
 “Closing
Date” shall have the meaning ascribed thereto in Section 2.6 hereof. 
 “Closing
Documents” shall mean any certificate, instrument or other document delivered pursuant to this Agreement. 
 “Commission Agreements” shall have the meaning ascribed thereto in Section 4.1(f) hereof, and such agreements are more particularly described on EXHIBIT “C” attached hereto and made a
part hereof. 
 “Condominium” shall mean the Paces Pavilion Condominium. 
 “Condominium Declaration” shall mean that certain Declaration of Condominium of Paces Pavillion Condominium dated
November 10, 1987, recorded in Deed Book 11187, Page 22, of the Office of the Clerk of the Superior Court of Fulton County, Georgia (hereinafter called the “Original Declaration”), as amended by that certain Amendment No. 1 to
the Declaration of Condominium of Paces Pavillion Condominium filed for record March 24, 1988, recorded in Deed Book 11396, Page 74, aforesaid records, that certain Amendment No. 2 to the Declaration of Condominium of Paces Pavillion
Condominium filed for record January 4, 1990, recorded in Deed Book 13077, Page 243, aforesaid records, that certain Amendment No. 3 to the Declaration of Condominium of Paces Pavillion Condominium dated March 9, 1990, recorded in
Deed Book 13261, Page 278, aforesaid records, and that certain Amendment No. 4 to the Declaration of Condominium of Paces Pavillion Condominium dated October 2, 2002, recorded in Deed Book 33265, Page 142, aforesaid records. 
 “Condominium Documents” shall mean the Condominium Declaration, the articles of incorporation and by-laws of the
Association, the management agreement for the Condominium, the plats or plans of the portion of the real property subjected to the Condominium and the policies or certificates of insurance for the Association, and all other recorded documents
pertaining to the Condominium, all as modified or amended from time to time. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 “Due Diligence Deliveries” shall have the meaning ascribed thereto in
Section 3.2 hereof. 
 “Due Diligence Material” shall have the meaning ascribed thereto in
Section 3.6 hereof. 
 “Earnest Money” shall mean the Initial Earnest Money, together with any
Additional Earnest Money and Extension Earnest Money actually paid by Purchaser to Escrow Agent hereunder, and further together with all interest which accrues thereon as provided in Section 2.3 hereof and in the Escrow Agreement.

 “Effective Date” shall mean the date upon which Seller and Purchaser shall have delivered a fully
executed counterpart of this Agreement to the other, which date shall be inserted in the space provided on the cover page and page 1 hereof. For the purposes of determining the Effective Date, a facsimile or other electronic signature shall be
deemed an original signature. 
 “Environmental Law” shall mean any law, ordinance, rule, regulation, order,
judgment, injunction or decree now or hereafter relating to pollution or substances or materials which are considered to be hazardous or toxic, including, without limitation, the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et
seq.), the Comprehensive Environmental Response, Compensation and Liability Act (codified in various sections of 26 U.S.C., 33 U.S.C., 42 U.S.C. and 42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C.
§ 1801 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (21 U.S.C. § 349, 42 U.S.C. § 201 et seq. and § 300 et seq.), the Toxic Substances Control Act (15 U.S.C.
§ 2061 et seq.), the Emergency Planning and Community Right to Know Act (42 U.S.C. § 1100 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Occupational Safety & Health Act (29 U.S.C. § 655
et seq.), and any state and local environmental laws, all amendments and supplements to any of the foregoing and all regulations and publications promulgated or issued pursuant thereto. 
 “Escrow Agent” shall mean Chicago Title Insurance Company, at its office at 4170 Ashford Dunwoody Road, Suite 460, in
Atlanta, Georgia, 30319. 
 “Escrow Agreement” shall mean that certain Escrow Agreement in the form attached
hereto as EXHIBIT “D” entered into among Seller, Purchaser and Escrow Agent with respect to the Earnest Money. 
 “Existing Survey” shall mean that certain survey with respect to the applicable Real Property, as more particularly described on EXHIBIT “F” attached hereto and made a
part hereof. 
 “Extension Earnest Money” shall have the meaning ascribed thereto in Section 2.6
hereof. 
 “FIRPTA Affidavit” shall mean the form of FIRPTA Affidavit to be executed and delivered to
Purchaser at Closing in the form attached hereto as SCHEDULE 7. 
 “General
Assignment” shall mean an assignment by Seller of its interest in the Intangible Property (being Seller’s interest in the Intangible Property being conveyed as a part of the 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	3	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 Property), to be executed by Seller at Closing, substantially in the form attached hereto as
SCHEDULE 4 and made a part hereto, with such changes thereto as may be agreed upon by Seller and Purchaser to convey the Intangible Property. 
 “Hazardous Substances” shall mean any and all pollutants, contaminants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the
removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be
restricted, prohibited or penalized under any Environmental Law (including, without limitation, lead paint, asbestos, urea formaldehyde foam insulation, petroleum and polychlorinated biphenyls). 
 “Initial Earnest Money” shall mean the sum of One Hundred Thousand and No/100 Dollars ($100,000.00 U.S.). 
 “Inspection Period” shall mean the period expiring at 5:00 P.M. Eastern Standard Time on September 25, 2006.

 “Intangible Property” shall mean all intangible property, if any, owned by Seller and related to the Real
Property, including, without limitation, the rights and interests, if any, in and to the following (to the extent assignable): (i) all assignable plans and specifications and other architectural and engineering plans for the Real Property
located thereon; (ii) all assignable warranties and guaranties given or made in respect of the Real Property or Personal Property; (iii) all transferable consents, authorizations, variances or waivers, licenses, permits and approvals from
any governmental or quasi-governmental agency, department, board, commission, bureau or other entity or instrumentality solely in respect of the Real Property located thereon; and (iv) all of the right, title and interest of Seller in and to
all assignable Service Contracts that Purchaser agrees to assume (or is deemed to have agreed to assume). 
 “Land” shall mean that certain tract or parcel of land which has been subjected to the Condominium Declaration. 
 “Leases” shall mean the leases identified on EXHIBIT “G” attached hereto. 
 “Limited Warranty Deed” shall have the meaning ascribed thereto in Section 5.1(a). 
 “Losses” shall have the meaning ascribed thereto in Section 11.1 hereof. 
 “Monetary Objection” or “Monetary Objections” shall mean (a) any mortgage, deed to secure debt, deed of trust or similar security instrument encumbering all
or any part of the Property, (b) any mechanic’s, materialman’s or similar lien (unless resulting from any act or omission of Purchaser or any of its agents, contractors, representatives or employees or any tenant of the Property),
(c) the lien of ad valorem real or personal property taxes, assessments and governmental charges affecting all or any portion of the Property which are delinquent, and (d) any judgment of record against Seller in the county or other
applicable jurisdiction in which the Property is located. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	4	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 “Other Notices of Sale” shall have the meaning ascribed thereto in
Section 5.1(q) hereof. 
 “Permitted Exceptions” shall mean (a) liens for taxes,
assessments and governmental charges not yet due and payable or due and payable but not yet delinquent, (b) the Leases, (c) such state of facts as would be disclosed by a current survey of the Real Property, (d) the Condominium
Documents, (e) the matters set forth on EXHIBIT “H” attached hereto and made part hereof or otherwise disclosed in the Title Commitment issued with respect to the Real Property, and (f) such other easements,
restrictions and encumbrances with respect to the Real Property that do not constitute Monetary Objections, and that are approved (or are deemed approved) by Purchaser in accordance with the provisions of Section 3.4 hereof. 

“Personal Property” shall mean all furniture (including common area and interior landscaping items), carpeting,
draperies, appliances, personal property (excluding any computer software which is either licensed to a Wells Affiliate or which such Wells Affiliate deems proprietary), machinery, apparatus and equipment owned by Seller and currently used
exclusively in the operation, repair and maintenance of the Real Property situated thereon, including, without limitation, those specific items of personal property (if any) more particularly described on Exhibit “B” attached hereto
and made a part hereof, and all non-confidential books, records and files (excluding any appraisals, budgets, strategic plans, internal analyses, information regarding the marketing of the Property for sale, submissions relating to obtaining of
corporate or partnership authorization, attorney and accountant work product, attorney-client privileged documents, or similar information in the possession or control of any Wells Affiliate or any Wells Affiliate property manager which such Wells
Affiliate reasonably deems proprietary) relating to the Real Property. The Personal Property does not include any property owned by tenants, contractors or licensees, and shall be conveyed to Purchaser subject to depletions, replacements and
additions in the ordinary course of Seller’s business. 
 “Property” shall mean the Real Property, the
Personal Property, the Intangible Property, and all right, title and interest of Seller as “landlord” or “lessor” in and to the Leases, any guaranties of the Leases and the Security Deposits with respect to the Real Property.

 “Purchase Price” shall be the amount specified in Section 2.4 hereof. 
 “Purchaser-Related Entities” shall have the meaning ascribed thereto in Section 11.1 hereof. 
 “Purchaser Waived Breach” shall have the meaning ascribed thereto in Section 11.3 hereof. 
 “Purchaser’s Certificate” shall mean the form of certificate to be executed and delivered by Purchaser to Seller at
the Closing with respect to the truth and accuracy of Purchaser’s warranties and representations contained in this Agreement (modified and updated as the circumstances require), in the form attached hereto as SCHEDULE 8.

 “Purchaser’s Counsel” shall mean Schiff Hardin LLP, One Atlantic Center, Suite 2300, 1201 West
Peachtree Street, Atlanta, Georgia 30329, Attention: Alexander W. Suto. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	5	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 “Real Property” shall mean that certain real property consisting of that
certain Unit designated and described as “Convertible Space” as per plat recorded in Condominium Plat Book 9, Page 86, Fulton County, Georgia records, and according to the Condominium Declaration and commonly known as Suites 100, 130, 229,
230, 250, 326, 328 & 329 at Paces Pavilion, in Atlanta, Fulton County, Georgia, all as more particularly described on Exhibit “A” attached hereto and made a part hereof, together with all buildings, structures, fixtures and
improvements now or on the Closing Date situated on the Real Property, and all rights, privileges and easements appurtenant to said real property, and all right, title and interest, if any, of Seller in and to any land lying in the bed of any
street, road, alley or right-of-way, open or closed, adjacent to or abutting the Real Property. 
 “Seller-Related
Entities” shall have the meaning ascribed thereto in Section 11.2 hereof. 
 “Seller’s
Affidavit” shall mean the form of owner’s affidavit to be given by Seller at Closing to the Title Company with respect to the Property, in the form attached hereto as SCHEDULE 5. 
 “Seller’s Broker” shall mean Colliers Cauble & Co., a Georgia corporation. 
 “Seller’s Certificate” shall mean the form of certificate to be executed and delivered by Seller to Purchaser at
the Closing with respect to the truth and accuracy of Seller’s warranties and representations contained in this Agreement (modified and updated as the circumstances require), in the form attached hereto as SCHEDULE 6.

 “Seller’s Counsel” shall mean Troutman Sanders LLP, Bank of America Plaza, Suite 5200, 600 Peachtree
Street, N.E., Atlanta, Georgia 30308-2216, Attention: John W. Griffin. 
 “Service Contracts” shall mean
with respect to Seller and the Property all those certain contracts and agreements more particularly described as Service Contracts on EXHIBIT “J” attached hereto and made a part hereof. 
 “SNDA” or “SNDAs” shall mean the Subordination, Non-Disturbance and Attornment Agreements to be sought
from the Tenants in a commercially reasonable form provided by a mortgagee providing financing to Purchaser for the acquisition of the Property. 
 “Survey” shall have the meaning ascribed thereto in Section 3.4 hereof. 
 “Taxes” shall have the meaning ascribed thereto in Section 5.4(a) hereof. 
 “Tenant Estoppel Certificate” or “Tenant Estoppel Certificates” shall mean the certificates to be sought from the tenants under the leases in substantially the form attached hereto as
EXHIBIT “K”. 
 “Tenant Inducement Costs” shall mean any out-of-pocket
payments required under a Lease to be paid by the landlord thereunder to or for the benefit of the tenant thereunder which is in the nature of a tenant inducement, including specifically, but without limitation, tenant improvement costs, lease
buyout payments, and moving, design, refurbishment and costs. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	6	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 “Tenant Notices of Sale” shall have the meaning ascribed thereto in
Section 5.1(p) hereof. 
 “Title Company” shall mean Chicago Title Insurance Company.

 “Title Commitment” shall have the meaning ascribed thereto in Section 3.4 hereof. 

“Title Notice” shall have the meaning ascribed thereto in Section 3.4 hereof. 
 “Wells Affiliate” and “Wells Affiliates” shall mean each and every one of Seller, Wells Capital, Inc.,
a Georgia corporation, and Wells Management, Inc., a Georgia corporation. 
 ARTICLE 2. 
 PURCHASE AND SALE 
 2.1.    Agreement to Sell and Purchase the Property.  Subject to and in accordance with the terms and provisions of this Agreement, Seller agrees to sell and Purchaser agrees to purchase, the
Property. 
 2.2.    Permitted Exceptions.  The Property shall be conveyed
subject to the matters which are, or are deemed to be, Permitted Exceptions. 
 2.3.    Earnest
Money. 
 (a)    Within three (3) Business Days following the execution and delivery of this
Agreement by Seller and Purchaser, Purchaser shall deliver the Initial Earnest Money to Escrow Agent by federal wire transfer, which Initial Earnest Money shall be held and released by Escrow Agent in accordance with the terms of the Escrow
Agreement. The parties hereto mutually acknowledge and agree that time is of the essence in respect of Purchaser’s timely deposit of the Initial Earnest Money with Escrow Agent. If Purchaser fails to timely deposit the Initial Earnest Money
with Escrow Agent, then, at the option of Seller, exercisable by written notice to Purchaser and Escrow Agent, this Agreement shall terminate, and no party hereto shall have any further rights or obligations hereunder, except those provisions of
this Agreement which by their express terms survive the termination of this Agreement. 
 (b)    On or
before the expiration of the Inspection Period, Purchaser shall deliver the Additional Earnest Money to Escrow Agent by federal wire transfer, which Additional Earnest Money shall be held and released by Escrow Agent in accordance with the terms of
the Escrow Agreement. Seller and Purchaser mutually acknowledge and agree that time is of the essence in respect of Purchaser’s timely deposit of the Additional Earnest Money with Escrow Agent. If Purchaser fails to timely deposit the
Additional Earnest Money with Escrow Agent, such failure shall be deemed to constitute the termination of the Agreement by Purchaser pursuant to Section 3.5 hereof, and Escrow Agent shall return the Earnest Money actually deposited with Escrow
Agent (and any interest earned thereon) to Purchaser, and no party hereto shall have any further rights or obligations hereunder, except those provisions of this Agreement which by their express terms survive the termination of this Agreement.

  

					
	 PURCHASE AND SALE AGREEMENT
	  	7	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 (c)    The Earnest Money shall be applied to the Purchase Price at
the Closing and shall otherwise be held, refunded, or disbursed in accordance with the terms of the Escrow Agreement and this Agreement. Interest and other income from time to time earned on the Earnest Money shall be earned for the account of
Purchaser, and shall be a part of the Earnest Money; and the Earnest Money hereunder shall be comprised of the Initial Earnest Money, the Additional Earnest Money (to the extent actually deposited by Purchaser with Escrow Agent as provided herein)
and the Extension Earnest Money (to the extent actually deposited by Purchasers with Escrow Agent as provided in Section 2.6 hereof) and all such interest and other income. 
 2.4.     Purchase Price.  Subject to adjustment and credits as otherwise specified in this
Section 2.4 and elsewhere in this Agreement, the purchase price (the “Purchase Price”) to be paid by Purchaser to Seller for the Property shall be the sum of FOUR MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS
($4,300,000.00 U.S.). The Purchase Price shall be paid by Purchaser to Seller at the Closing as follows: 
 (a)    The Earnest Money shall be paid by Escrow Agent to Seller at Closing; and 
 (b)    At Closing, the balance of the Purchase Price, after applying, as partial payment of the Purchase Price the Earnest Money paid by Escrow Agent to Seller, and subject to prorations and other adjustments specified
in this Agreement, shall be paid by Purchaser in immediately available funds to the Title Company, for further delivery to an account or accounts designated by Seller. If the Closing occurs, but the amount due from Purchaser pursuant to this
Agreement is not received by Seller on or before the later of 3:00 p.m. Eastern Standard Time or in sufficient time for reinvestment on the Closing Date, all prorations under Section 5.4 shall be recalculated promptly after Closing so that the
items for proration in Section 5.4 shall be prorated and adjusted as of 11:59 p.m. on the day preceding the Business Day upon which Seller actually receives the amount due from Purchaser pursuant to this Agreement, and Seller and Purchaser
shall make such payments between them to give effect to such prorations and adjustments. The provisions of the preceding sentence of this Section 2.4(b) shall survive the Closing. 
 2.5.     Independent Contract Consideration.  In addition to, and not in lieu of the delivery
to Escrow Agent of the Earnest Money, concurrently with Purchaser’s execution and delivery of this Agreement to Seller, Purchaser shall deliver to Seller Purchaser’s check, payable to the order to Seller, in the amount of One Hundred and
No/100 Dollars ($100.00). Seller and Purchaser hereby mutually acknowledge and agree that said sum represents adequate bargained for consideration for Seller’s execution and delivery of this Agreement and Purchaser’s right to inspect the
Property pursuant to Article 3. Said sum is in addition to and independent of any other consideration or payment provided for in this Agreement and is nonrefundable in all events. 
 2.6.     Closing.  Unless extended as provided in the following sentence, the consummation of
the sale by Seller and purchase by Purchaser of the Property (the “Closing”) shall be held on or before October 10, 2006. Purchaser shall have the right to extend the final date for Closing to a date no later than
November 9, 2006, by giving written notice of such extension to Seller on or before October 4, 2006 and by depositing with Escrow Agent the sum of Fifty Thousand and No/100 Dollars ($50,000.00) (the “Extension Earnest
Money”) as additional “Earnest Money” under this Agreement. The Closing shall take place at an office in 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	8	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 the metropolitan Atlanta, Georgia, area, and at such specific place, time and date (the “Closing
Date”) as shall be designated by Purchaser in a written notice to Seller not less than three (3) Business Days prior to Closing. If Purchaser fails to give such notice of the Closing Date, the Closing shall be at the offices of the
Title Company, 4170 Ashford Dunwoody Road, Suite 460, Atlanta, Georgia 30399, at 10:00 a.m. on October 10, 2006 (or November 9, 2006 if Purchaser shall have extended the final date for Closing as provided above). It is
contemplated that the transaction shall be closed with the concurrent delivery of the documents of title and the payment of the Purchase Price. Notwithstanding the foregoing, there shall be no requirement that Seller and Purchaser physically meet
for the Closing, and all documents and funds to be delivered at the Closing shall be delivered to the Title Company unless the parties hereto mutually agree otherwise. Seller and Purchaser agree to use reasonable efforts to complete all requirements
for the Closing prior to the Closing Date. 
 ARTICLE 3. 
 PURCHASER’S INSPECTION AND REVIEW RIGHTS 
 3.1.    Due
Diligence Inspections. 
 (a)    From and after the Effective Date until the Closing Date or
earlier termination of the inspection rights of Purchaser under this Agreement, Seller shall permit Purchaser and its authorized representatives to inspect the Property, to perform due diligence and environmental investigations, to examine the
records of Seller with respect to the Property, and make copies thereof, at such times during normal business hours as Purchaser or its representatives may request. All such inspections shall be nondestructive in nature, and specifically shall not
include any physically intrusive testing. After the expiration of the Inspection Period and the delivery by Purchaser of the Additional Ernest Money to Escrow Agent, Purchaser may show the Property to prospective tenants. All such inspections and
tours under this Section 3.1(a) shall be performed in such a manner to minimize any interference with the business of the tenants under the Leases, and, in each case, in compliance with the rights and obligations of Seller as landlord under the
Leases. Purchaser agrees that Purchaser shall make no contact with and shall not interview any tenants of the Property without the express prior approval of Seller, which approval shall not be unreasonably withheld, delayed or conditioned. All
inspection fees, appraisal fees, engineering fees and all other costs and expenses of any kind incurred by Purchaser relating to the inspection of the Property shall be solely Purchaser’s expense. Seller reserves the right to have a
representative present at the time of making any such inspection and tour and at the time of any interviews with the tenants of the Property. Purchaser shall notify Seller not less than two (2) Business Days in advance of making any such
inspection or tour. 
 (b)    If the Closing is not consummated hereunder, Purchaser shall promptly
deliver to Seller copies of all reports, surveys and other information furnished to Purchaser by third parties in connection with such inspections; provided, however, that delivery of such copies and information shall be without warranty or
representation whatsoever, express or implied, including, without limitation, any warranty or representation as to ownership, accuracy, adequacy or completeness thereof or otherwise. This Section 3.1(b) shall survive the termination of
this Agreement. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	9	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 (c)    To the extent that Purchaser or any of its representatives,
agents or contractors damages or disturbs the Property or any portion thereof, Purchaser shall return the same to substantially the same condition which existed immediately prior to such damage or disturbance. Purchaser hereby agrees to and shall
indemnify, defend and hold harmless Seller from and against any and all expense, loss or damage which Seller may incur (including, without limitation, reasonable attorney’s fees actually incurred) as a result of any act or omission of Purchaser
or its representatives, agents or contractors. Said indemnification shall not extend to pre-existing conditions merely discovered by Purchaser. Said indemnification agreement shall survive the Closing, or earlier termination of this Agreement.
Purchaser shall maintain and shall ensure that Purchaser’s consultants and contractors maintain commercial general liability insurance in an amount not less than $2,000,000, combined single limit, and in form and substance adequate to insure
against all liability of Purchaser and its consultants and contractors, respectively, and each of their respective agents, employees and contractors, arising out of inspections and testing of the Property or any part thereof made on Purchaser’s
behalf. Purchaser agrees to provide to Seller a certificate of insurance with regard to each applicable liability insurance policy prior to any entry upon the Property by Purchaser or its consultants or contractors, as the case may be, pursuant to
this Section 3.1. 
 3.2.     Deliveries by Seller to Purchaser; Purchaser’s
Access to Property Records of Seller. 
 (a)    Seller and Purchaser acknowledge that all of the
following (the “Due Diligence Deliveries”) either have been or shall be delivered or made available to Purchaser to the extent the same are in the possession of Seller (and Purchaser further acknowledges that no additional items are
required to be delivered by Seller to Purchaser except as may be expressly set forth in other provisions of this Agreement): 
  

	 	 (i)
	 Copies of current property tax bills with respect to the Property. 

  

	 	 (ii)
	 Copies of operating budgets for 2005 and 2006 and building operating expenses for 2004 and 2005 with respect to the Property. 

  

	 	 (iii)
	 Copies of the Leases and any guarantees relating thereto existing as of the Effective Date. 

  

	 	 (iv)
	 Copies of the Commission Agreements. 

  

	 	 (v)
	 A copy of the Existing Survey. 

  

	 	 (vi)
	 A copy of Seller’s existing title policy. 

  

	 	 (vii)
	 Copies of any existing environmental reports in the possession of Seller with respect to the Property. 

  

	 	 (viii)
	 Copies of the Condominium Declaration and other Condominium Documents in the possession of Seller with respect to the Property. 

  

					
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 In addition, if not currently attached as Exhibit “B” to this Agreement, Seller
will provide to Purchaser a list of the Personal Property, if any, prior to the expiration of the Inspection Period. 
 (b)    From the Effective Date until the Closing Date, or earlier termination of this Agreement, Seller shall allow Purchaser and Purchaser’s representatives, on reasonable advance notice and during normal business
hours, to have access to Seller’s existing non-confidential books, records and files relating to the Property, at the office of Seller at 6200 The Corners Parkway, Norcross, Georgia 30092, for the purpose of inspecting and (at Purchaser’s
expense) copying the same, including, without limitation, copies of any financial statements or other financial information of the tenants under the Leases (and the lease guarantors, if any), written information relative to the tenants’ payment
history, and tenant correspondence, to the extent Seller has the same in its possession; available surveys, construction plans and specifications, copies of any permits, licenses or other similar documents, available records of any operating costs
and expenses and similar materials relating to the construction, operation, maintenance, repair, management and leasing of the Property, to the extent any or all of the same are in the possession of Seller, subject, however, to the limitations of
any confidentiality or nondisclosure agreement to which Seller may be bound, and provided that Seller shall not be required to deliver or make available to Purchaser any appraisals, third party property condition reports obtained by Seller in
connection with the Property, strategic plans for the Property, internal analyses, information regarding the marketing for sale of the Property, submissions relating to Seller’s obtaining of corporate or partnership authorization, attorney and
accountant work product, attorney-client privileged documents, or other information in the possession or control of Seller which Seller reasonably deems confidential or proprietary. Alternatively, at Purchaser’s request and at Purchaser’s
cost and expense, and subject to the provisions hereof, Seller will make copies of non-confidential and non-proprietary due diligence materials relating to the Property as may be reasonably requested by Purchaser in writing and as may be in
Seller’s possession, and will deliver the same to Purchaser. Purchaser acknowledges and agrees, however, that Seller makes no representation or warranty of any nature whatsoever, express or implied, with respect to the ownership,
enforceability, accuracy, adequacy or completeness or otherwise of any of such records, evaluations, data, investigations, reports or other materials. If the Closing contemplated hereunder fails to take place for any reason, Purchaser shall promptly
return (or certify as having destroyed) all copies of materials copied from the books, records and files of Seller or furnished by Seller or Seller’s representatives relating to the Property. It is understood and agreed that Seller shall not
have any obligation to obtain, commission or prepare any such books, records, files, reports or studies not now in the possession or control of Seller. 
 3.3.    Condition of the Property. 
 (a)    Seller recommends that Purchaser employ one or more independent engineering and/or environmental professionals to perform engineering, environmental and physical assessments on Purchaser’s behalf in respect
of the Property and the condition thereof. Purchaser and Seller mutually acknowledge and agree that, except for Seller’s representations and warranties contained herein and in any of the Closing Documents, the Property is being sold in an
“AS IS” condition and “WITH ALL FAULTS,” known or unknown, contingent or existing. Purchaser has the sole responsibility to fully inspect the Property, to investigate all matters 
  

					
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 relevant thereto, including, without limitation, the condition of the Property, and to reach its own,
independent evaluation of any risks (environmental or otherwise) or rewards associated with the ownership, leasing, management and operation of the Property. Effective as of the Closing and except as expressly set forth in this Agreement, Purchaser
hereby waives and releases Seller and its partners and their respective officers, directors, shareholders, partners, agents, affiliates, employees and successors and assigns from and against any and all claims, obligations and liabilities arising
out of or in connection with the Property. 
 (b)    To the fullest extent permitted by law, Purchaser
does hereby unconditionally waive and release Seller and its partners and their respective officers, directors, shareholders, partners, agents, affiliates and employees from any present or future claims and liabilities of any nature arising from or
relating to the presence or alleged presence of Hazardous Substances in, on, at, from, under or about the Property or any adjacent property, including, without limitation, any claims under or on account of any Environmental Law, regardless of
whether such Hazardous Substances are located in, on, at, from, under or about the Property or any adjacent property prior to or after the date hereof (collectively, “Environmental Liabilities”); provided, however, that the
foregoing release as it applies to Seller and its partners and their respective officers, directors, shareholders, partners, agents, affiliates and employees, shall not release Seller from any Environmental Liabilities of Seller relating to any
Hazardous Substances which may be placed, located or released on the Property by Seller after the date of Closing. The terms and provisions of this Section 3.3 shall survive the Closing. 
 3.4.    Title and Survey.  Purchaser shall order from the Title Company a preliminary
owner’s title commitment with respect to the Property issued in favor of Purchaser (the “Title Commitment”). Purchaser shall request that the Title Company make copies of the Title Commitment, and copies of all underlying
recorded exceptions referenced in the Title Commitment, available to Seller on the Title Company’s website. In addition, Purchaser may elect to obtain an ALTA as-built survey of the Land and the Property (the “Survey”), which
Survey, if obtained by Purchaser, shall be certified to Purchaser, Seller and the Title Company. If the Survey is obtained by Purchaser, Purchaser shall promptly deliver a copy of the Survey to Seller. Purchaser shall have until
September 19, 2006 to give written notice (the “Title Notice”) to Seller of such objections as Purchaser may have to any exceptions to title disclosed in the Title Commitment (or in the Survey if obtained by Purchaser)
or otherwise in Purchaser’s examination of title. Seller shall have the right, but not the obligation (except as to Monetary Objections affecting the Property), to attempt to remove, satisfy or otherwise cure any exceptions to title to which
the Purchaser so objects. Within three (3) Business Days after receipt of Purchaser’s Title Notice, Seller shall give written notice to Purchaser informing the Purchaser of Seller’s election with respect to such objections. If Seller
fails to give written notice of election within such three (3) Business Day period, Seller shall be deemed to have elected not to attempt to cure the objections (other than Monetary Objections). If Seller elects to attempt to cure any
objections, Seller shall be entitled to one or more reasonable adjournments of the Closing of up to but not beyond the tenth (10th) day following the initial date set for the Closing to attempt such cure, but, except for Monetary Objections affecting the Property, Seller shall not be obligated to expend any sums, commence any suits or take any other action
to effect such cure. Except as to Monetary Objections affecting the Property, if Seller elects, or is deemed to have elected, not to cure any exceptions to title to which Purchaser has objected or if, after electing to attempt to 
  

					
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 cure, Seller determines that it is unwilling or unable to remove, satisfy or otherwise cure any such
exceptions, Purchaser’s sole remedy hereunder in such event shall be either (i) to accept title to the Property subject to such exceptions as if Purchaser had not objected thereto and without reduction of the Purchase Price, or
(ii) to terminate this Agreement within three (3) Business Days after receipt of written notice from Seller either of Seller’s election not to attempt to cure any objection or of Seller’s determination, having previously elected
to attempt to cure, that Seller is unable or unwilling to do so, whereupon Escrow Agent shall return the Earnest Money to Purchaser. Notwithstanding anything to the contrary contained elsewhere in this Agreement, Seller shall be obligated to cure or
satisfy all Monetary Objections affecting the Property at or prior to Closing, and Seller may use the proceeds of the Purchase Price at Closing for such purpose. 
 3.5.    Termination of Agreement.  Purchaser shall have until the expiration of the Inspection Period to determine, in Purchaser’s sole opinion
and discretion, the suitability of the Property for acquisition by Purchaser or Purchaser’s permitted assignee. Purchaser shall have the right to terminate this Agreement at any time on or before said time and date of expiration of the
Inspection Period by giving written notice to Seller of such election to terminate. If Purchaser so elects to terminate this Agreement pursuant to this Section 3.5, Escrow Agent shall pay the Earnest Money to Purchaser, whereupon, except
for those provisions of this Agreement which by their express terms survive the termination of this Agreement, no party hereto shall have any other or further rights or obligations under this Agreement. If Purchaser fails to so terminate this
Agreement prior to the expiration of the Inspection Period, Purchaser shall have no further right to terminate this Agreement pursuant to this Section 3.5. The parties acknowledge that this Agreement shall not be void or voidable for
lack of mutuality. 
 3.6.    Confidentiality.  All information acquired by
Purchaser or any of its designated representatives (including by way of example, but not in limitation, the officers, directors, shareholders and employees of Purchaser, and Purchaser’s engineers, consultants, counsel and potential lenders, and
the officers, directors, shareholders and employees of each of them) with respect to the Property, whether delivered by Seller or any representatives of Seller or obtained by Purchaser as a result of its inspection and investigation of the Property,
examination of the books, records and files of Seller in respect of the Property, or otherwise (collectively, the “Due Diligence Material”) shall be used solely for the purpose of determining whether the Property is suitable for
Purchaser’s acquisition and ownership thereof and for no other purpose whatsoever. Prior to Closing, the terms and conditions which are contained in this Agreement and all Due Diligence Material which is not published as public knowledge or
which is not generally available in the public domain shall be kept in strict confidence by Purchaser and shall not be disclosed to any individual or entity other than to those authorized representatives of Purchaser and Purchaser’s prospective
and actual counsel, accountants, professionals, consultants, attorneys and lenders, who need to know the information for the purpose of assisting Purchaser in evaluating the Property for Purchaser’s potential acquisition thereof; provided,
however, that Purchaser shall have the right to disclose any such information if required by applicable law or as may be necessary in connection with any court action or proceeding with respect to this Agreement. Purchaser shall and hereby agrees to
indemnify and hold Seller harmless from and against any and all loss, liability, cost, damage or expense that Seller may suffer or incur (including, without limitation, reasonable attorneys’ fees actually incurred) as a result of the

  

					
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 unpermitted disclosure of any of the Due Diligence Material to any individual or entity other than an
appropriate representative of Purchaser and Purchaser’s prospective and actual counsel, accountants, professionals, consultants, attorneys and lenders and/or the use of any Due Diligence Material for any purpose other than as herein
contemplated and permitted. The foregoing indemnity shall not extend to disclosure of any Due Diligence Material (i) as may be required by applicable law to be disclosed, or (ii) that is or becomes public knowledge other than by virtue of
a breach of Purchaser’s covenant under this Section 3.6. If Purchaser or Seller elects to terminate this Agreement pursuant to any provision hereof permitting such termination, or if the Closing contemplated hereunder fails to occur
for any reason, Purchaser will promptly return to Seller all Due Diligence Material in the possession of Purchaser and any of its representatives, and destroy all copies, notes or abstracts or extracts thereof, as well as all copies of any analyses,
compilations, studies or other documents prepared by Purchaser or for its use (whether in written or electronic form) containing or reflecting any Due Diligence Material. In the event of a breach or threatened breach by Purchaser or any of its
representatives of this Section 3.6, Seller shall be entitled, in addition to other available remedies, to an injunction restraining Purchaser or its representatives from disclosing, in whole or in part, any of the Due Diligence Material
and any of the terms and conditions of this Agreement. Nothing contained herein shall be construed as prohibiting or limiting Seller from pursuing any other available remedy, in law or in equity, for such breach or threatened breach. The provisions
of this Section shall survive any termination of this Agreement. 
 ARTICLE 4. 
 REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS 
 4.1.    Representations and Warranties of Seller.  Seller hereby makes the following representations and warranties to Purchaser: 
  

	 	 (a)
	 Organization, Authorization and Consents. 

  

	 	 (i)
	 Generally. Subject only to receiving the approval of Seller’s Investment Committee no later than August 31, 2006, Seller has the right, power
and authority to enter into this Agreement and to sell the Property in accordance with the terms and provisions of this Agreement, to engage in the transaction contemplated in this Agreement and to perform and observe all of the terms and provisions
hereof. 

  

	 	 (ii)
	 Wells Real Estate Funds I. Wells Real Estate Fund I is a duly formed and validly existing limited partnership under the laws of the State of Georgia,
whose general partners are Wells Capital, Inc. and Leo F. Wells, III. 

  

	 	 (iii)
	 Wells Capital, Inc. Wells Capital, Inc. is a duly organized and validly existing corporation under the laws of the State of Georgia.

 (b)    Action of Seller, Etc. Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon the execution and delivery of any document to be delivered by Seller on or prior to the Closing, this Agreement and such document shall constitute the valid and binding
obligation and agreement of Seller, enforceable 
  

					
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 against Seller in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors. 
 (c)    No Violations of Agreements.  Neither the execution, delivery or performance of this Agreement by Seller, nor compliance with the terms and provisions hereof, will result in any breach of the
terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon the Property or any portion thereof pursuant to the terms of any indenture, deed to secure debt,
mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Seller or the Property is bound. 
 (d)    Litigation.  To Seller’s knowledge, and except as disclosed on EXHIBIT “I” attached hereto, Seller has not received written notice
of any pending or threatened suit, action or proceeding, which (i) if determined adversely to Seller, materially and adversely affects the use or value of or access to the Property, or (ii) questions the validity of this Agreement or any
action taken or to be taken pursuant hereto, or (iii) involves condemnation or eminent domain proceedings involving the Property, or any portion thereof. 
 (e)    Existing Leases.  Other than the Leases listed on EXHIBIT “G” attached hereto, there is no contract or agreement
with respect to the occupancy of the Property or any portion or portions thereof which will be binding on Purchaser or the Property after the Closing. The copies of the Leases heretofore delivered or made available by Seller to Purchaser are true,
correct and complete copies thereof in all material respects, and the Leases have not been amended except as evidenced by amendments similarly delivered and listed on EXHIBIT “G” attached hereto and constitute
the entire agreement between Seller and the tenants thereunder. Except as set forth in EXHIBIT “I” attached hereto, Seller has not given or received any written notice of any party’s default or failure to comply
with the terms and provisions of the Leases which remains uncured. 
 (f)    Leasing
Commissions.  To Seller’s knowledge, there are no lease brokerage agreements, leasing commission agreements or other agreements providing for payments of any amounts for leasing activities or procuring tenants with respect to the
Property or any portion or portions thereof other than as disclosed in EXHIBIT “C” attached hereto (the “Commission Agreements”), and all leasing commissions and brokerage fees accrued or due and
payable under the Commission Agreements as of the date hereof and at the Closing have been or shall be paid in full. Notwithstanding anything to the contrary contained herein, Purchaser shall be responsible for the payment of all leasing commissions
payable for (a) any new leases entered into after the Effective Date that have been approved (or deemed approved) by Purchaser, and (b) the renewal, expansion or extension of any Lease existing as of the Effective Date and exercised or
effected after the Effective Date. 
 (g)    Management Agreement.  There is no
agreement currently in effect and entered into by Seller relating to the management of the Property by any third party management company. Seller has provided to Purchaser a copy of the management agreement for the Condominium between the
Association and Richmond Property Management, Inc. dated January 1, 2005. 
  

					
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 (h)    Taxes and Assessments.  Except as may be set
forth on EXHIBIT “E” attached hereto and made a part hereof, Seller has not filed, and has not retained anyone to file, notices of protests against, or to commence action to review, real property tax assessments
against the Property, which are still pending. 
 (i)    Compliance with Laws.  To
Seller’s knowledge, and except as set forth on EXHIBIT “I”, Seller has received no written notice alleging any violations of law (including any Environmental Law), municipal or county ordinances, or other legal
requirements with respect to the Property where such violations remain outstanding. 
 (j)    Other
Agreements.  To Seller’s knowledge, except for the Leases, the Commission Agreements, the Condominium Documents, and the Permitted Exceptions affecting the Property, there are no leases, management agreements, brokerage
agreements, leasing agreements or other agreements or instruments in force or effect that grant to any person or any entity (other than to Seller) any right, title, interest or benefit in and to all or any part of the Property or any rights relating
to the use, operation, management, maintenance or repair of all or any part of the Property which will survive the Closing or be binding upon Purchaser other than those which Purchaser has agreed in writing to assume prior to the expiration of the
Inspection Period (or is deemed to have agreed to assume) or which are terminable upon thirty (30) days notice without payment of premium or penalty. 
 (k)    Seller Not a Foreign Person.  Seller is not a “foreign person” which would subject Purchaser to the withholding tax provisions of Section 1445 of the Internal
Revenue Code of 1986, as amended. 
 (l)    Employees.  Seller has no employees to whom
by virtue of such employment Purchaser will have any obligation after the Closing. 
 (m)    Environmental.  To Seller’s knowledge, or except as may be set forth in the Due Diligence Material, (i) Seller has no knowledge of the presence of any Hazardous Substances on or under
the Land or the Property, other than such Hazardous Substances and in such amounts as are commonly used, stored and disposed of in the operation, repair and maintenance of a medical office building, or as may be used, stored and disposed of by the
tenants under the Leases in the conduct of their businesses at the Land and the Property; (ii) Seller has not used and has no knowledge that any other person has used the Land or the Property for the generation, recycling, use, reuse, sale,
storage, handling, transportation and/or disposal of any Hazardous Substances on or under the Land or the Property (except for such Hazardous Substances and in such amounts as are commonly used, stored and disposed of in the operation, maintenance
and repair of a medical office building, or as may be used, stored and disposed of by the tenants under the Leases in the conduct of their businesses at the Land and the Property); and (iii) Seller has not received any written notification from
any governmental authority as to any violations of or failure to comply with any Environmental Law with respect to the Land or the Property. 
 The representations and warranties made in this Agreement by Seller shall be continuing and shall be deemed made as of the date hereof and remade by Seller as of the Closing Date in all material respects, with the
same force and effect as if made on, and as of, such date, subject to 
  

					
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 Seller’s right to update such representations and warranties by written notice to Purchaser and in
the certificate of Seller to be delivered pursuant to Section 5.1(g) hereof. 
 Except as otherwise expressly
provided in this Agreement or in any documents to be executed and delivered by Seller to Purchaser at the Closing, Seller has not made, and Purchaser has not relied on, any information, promise, representation or warranty, express or implied,
regarding the Property, whether made by Seller, on behalf of Seller, or otherwise, including, without limitation, the physical condition of the Property, the financial condition of the tenants under the Leases, title to or the boundaries of the
Property, pest control matters, soil conditions, the presence, existence or absence of hazardous wastes, toxic substances or other environmental matters, compliance with building, health, safety, land use and zoning laws, regulations and orders,
structural and other engineering characteristics, traffic patterns, market data, economic conditions or projections, past or future economic performance of the tenants under the Leases or the Property, and any other information pertaining to the
Property or the market and physical environments in which the Property are located. Purchaser acknowledges (i) that Purchaser has entered into this Agreement with the intention of making and relying upon its own investigation or that of
Purchaser’s own consultants and representatives with respect to the physical, environmental, economic and legal condition of the Property and (ii) that Purchaser is not relying upon any statements, representations or warranties of any
kind, other than those specifically set forth in this Agreement or in any document to be executed and delivered by Seller to Purchaser at the Closing, made (or purported to be made) by Seller or anyone acting or claiming to act on behalf of Seller.
Purchaser will inspect the Property and become fully familiar with the physical condition thereof and, subject to the terms and conditions of this Agreement, shall purchase the Property in its “as is” condition, “with all
faults,” on the Closing Date. The provisions of this paragraph shall survive the Closing until the expiration of any applicable statute of limitations. 
 4.2.    Knowledge Defined.  All references in this Agreement to the “knowledge of Seller” or “to Seller’s knowledge” shall
refer only to the actual knowledge of Jerry Banks, Vice President, Asset Management, who has been actively involved in the management of Seller’s business in respect of the Property. The term “knowledge of Seller” or “to
Seller’s knowledge” shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller, or to any other partner, beneficial owner, officer, director, agent, manager, representative or
employee of Seller, or any of their respective affiliates, or to impose on either of the individuals named above any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains. There shall be no personal
liability on the part of either of the individuals named above arising out of any representations or warranties made herein or otherwise. 
 4.3.    Covenants and Agreements of Seller. 
 (a)    Leasing Arrangements.  During the pendency of this Agreement, Seller will not enter into any lease affecting the Property, or modify or amend in any material respect, or terminate, the existing
Leases without Purchaser’s prior written consent in each instance, which consent, prior to the end of the Inspection Period, shall not be unreasonably withheld, delayed or conditioned and which shall be deemed given unless withheld by written
notice to Seller given within three (3) Business Days after Purchaser’s receipt of Seller’s written request therefor, each 
  

					
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 of which requests shall be accompanied by a copy of any proposed modification or amendment of an existing
Lease or of any new lease that Seller wishes to execute between the Effective Date and the Closing Date, including, without limitation, a description of any Tenant Inducement Costs and leasing commissions associated with any proposed renewal or
expansion of an existing Lease or with any such new lease, as well as any additional information regarding such proposed transaction as Purchaser may reasonably request. If Purchaser fails to notify Seller in writing of its approval or disapproval
within said three (3) Business Day period, such failure by Purchaser shall be deemed to be the approval of Purchaser. After the end of the Inspection Period, Seller shall not enter into any lease affecting the Property, or modify or amend in
any respect, or terminate the existing Leases without Purchaser’s prior written consent in each instance, which consent may be withheld in Purchaser’s sole discretion. 
 (b)    New Contracts.  During the pendency of this Agreement, Seller will not enter into any
contract or agreement, or modify, amend, renew or extend any existing contract or agreement, that will be an obligation affecting or an encumbrance on title to the Property or any part thereof subsequent to the Closing without Purchaser’s prior
written consent in each instance (which Purchaser agrees not to withhold or delay unreasonably), except contracts entered into in the ordinary course of business that are terminable without cause (and without penalty or premium) on thirty (30)
days (or less) notice. 
 (c)    Operation of Property.  During the pendency of this
Agreement, Seller shall continue to operate the Property in a good and businesslike fashion consistent with Seller’s past practices. 
 (d)    Insurance. During the pendency of this Agreement, Seller shall, at Seller’s expense, continue to maintain, or cause to be maintained, the insurance policies covering the Real
Property owned by Seller as required by the terms of the Leases. 
 (e)    Tenant Estoppel
Certificates.  Seller shall endeavor in good faith (but without obligation to incur any cost or expense) to obtain and deliver to Purchaser a written Tenant Estoppel Certificate in the form attached hereto as
EXHIBIT “K” (as the same may be modified upon the reasonable request of Purchaser submitted to Seller prior to September 13, 2006) signed by each of the Tenants; provided that delivery of such signed
Tenant Estoppel Certificates shall be a condition of Closing only to the extent set forth in Section 6.1(c) hereof; and in no event shall the inability or failure of Seller to obtain and deliver said Tenant Estoppel Certificates (Seller
having used its good faith efforts as set forth above as to the Tenants) be a default of Seller hereunder. 
 (f)    Subordination, Non-Disturbance and Attornment Agreements.  At the request of a mortgage lender providing financing to Purchaser for the acquisition of the Property, Seller shall endeavor in good
faith (but without obligation to incur any cost or expense) to obtain and deliver to such mortgagee, on or before Closing, a written SNDA signed by each of the Tenants; provided that delivery of such signed SNDAs shall not be a condition of Closing;
and in no event shall the inability or failure of Seller to obtain and deliver said SNDAs (Seller having used its good faith efforts as set forth above as to the Tenants) be a default of Seller hereunder. 
  

					
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 (g)    Association Estoppel Certificate.  Seller
shall endeavor in good faith (but without any obligation to incur any cost or expense) to obtain and deliver to Purchaser a written Association Estoppel Certificate in the form attached hereto as EXHIBIT “L” signed on
behalf of the Association and addressed to Seller and Purchaser (and also for the benefit of Purchaser’s lender); provided that only the inability or failure of Seller to obtain and deliver said Association Estoppel Certificate (Seller having
used its good faith efforts as set forth above) be a default of Seller hereunder. 
 4.4.    Representations and Warranties of Purchaser. 
 (a)    Organization, Authorization and Consents.  Purchaser is a duly organized and validly existing corporation under the laws of the State of Georgia. Purchaser has the right, power and authority to
enter into this Agreement and to purchase the Property in accordance with the terms and conditions of this Agreement, to engage in the transactions contemplated in this Agreement and to perform and observe the terms and provisions hereof.

 (b)    Action of Purchaser, Etc.  Purchaser has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon the execution and delivery of any document to be delivered by Purchaser on or prior to the Closing, this Agreement and such document shall constitute the valid and binding
obligation and agreement of Purchaser, enforceable against Purchaser in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the
rights and remedies of creditors. 
 (c)    No Violations of Agreements.  Neither the
execution, delivery or performance of this Agreement by Purchaser, nor compliance with the terms and provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under the terms of
any indenture, deed to secure debt, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Purchaser is bound. 
 (d)    Litigation.  To Purchaser’s knowledge, Purchaser has received no written notice that any action or proceeding is pending or threatened, which
questions the validity of this Agreement or any action taken or to be taken pursuant hereto. 
 The representations and
warranties made in this Agreement by Purchaser shall be continuing and shall be deemed remade by Purchaser as of the Closing Date, with the same force and effect as if made on, and as of, such date subject to Purchaser’s right to update such
representations and warranties by written notice to Seller and in Purchaser’s certificate to be delivered pursuant to Section 5.2(e) hereof. The provisions of this paragraph shall survive the Closing for a period of one hundred
eighty (180) days following the Closing, subject to Article 11 hereof. 
 ARTICLE 5. 
 CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS 
 5.1.    Seller’s Closing Deliveries.  For and in consideration of, and as a condition precedent to Purchaser’s delivery to Seller of the Purchase Price, Seller
shall obtain or execute 
  

					
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 and deliver to Purchaser at Closing the following documents with respect to the Property, all of which
shall be duly executed, acknowledged and notarized where required: 
 (a)    Limited Warranty
Deed.  A limited warranty deed in the form customarily used in the State of Georgia pursuant to which a grantor warrants title only as to parties claiming by, through or under the grantor but not otherwise, from Seller with respect to
the Real Property owned by Seller (the “Limited Warranty Deed”), subject only to the Permitted Exceptions, and executed and acknowledged by Seller. The legal description of the Real Property owned by Seller set forth
in the Limited Warranty Deed shall be based upon and conform to the applicable legal description attached hereto as EXHIBIT “A”. If and to the extent that any of the Permitted Exceptions requires the recitation
or incorporation in any deed of any provisions of such Permitted Exception, the Limited Warranty Deed may conform to such requirements; 
 (b)    Assignment and Assumption of Leases.  Two (2) counterparts of the Assignment and Assumption of Leases, executed and acknowledged by Seller; 
 (c)    Assignment and Assumption of Service Contracts.  Two (2) counterparts of the Assignment
and Assumption of Service Contracts, executed and acknowledged by Seller; 
 (d)    Bill of
Sale.  The Bill of Sale, executed by Seller; 
 (e)    General
Assignment.  The General Assignment, executed and acknowledged by Seller; 
 (f)    Seller’s Affidavit.  The Seller’s Affidavit, executed by an authorized officer of Seller; 
 (g)    Seller’s Certificate.  The Seller’s Certificate, executed by Seller; 
 (h)    FIRPTA Certificate.  The FIRPTA Affidavit, executed by Seller; 
 (i)    Affidavit of Transferor’s Residence.  An affidavit from Seller in the form attached hereto as SCHEDULE 9 confirming that Seller is a Georgia
resident for purposes of O.C.G.A. § 48-7-128 so that proceeds from the sale of the Property are not subject to the withholding laws of the State of Georgia. 
 (j)    Evidence of Authority.  Such documentation as may reasonably be required by the Title Company to establish that this Agreement, the transactions
contemplated herein, and the execution and delivery of the documents required hereunder, are duly authorized, executed and delivered on behalf of Seller; 
 (k)    Settlement Statement.  A settlement statement setting forth the amounts paid by or on behalf of and/or credited to each of Purchaser and Seller pursuant to this Agreement;

 (l)    Surveys and Plans.  Such surveys, site plans, plans and specifications, and
other matters relating to the Property as are in the possession of Seller to the extent not theretofore delivered to Purchaser; 
  

					
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 (m)    Certificates of Occupancy.  To the extent the
same are in the possession of Seller, original or photocopies of certificates of occupancy for all space within the Real Property; 
 (n)    Leases.  To the extent the same is in the possession or control of Seller, an original executed counterpart of each of the Leases affecting the Property; 
 (o)    Tenant Estoppel Certificates and SNDAs.  Any originally executed Tenant Estoppel Certificates
and SNDAs as may be in the possession of Seller; 
 (p)    Notices of Sale to
Tenants.  Seller will join with Purchaser in executing a notice, in form and content reasonably satisfactory to Seller and Purchaser (each, a “Tenant Notice of Sale”), which Purchaser shall send to the tenants under
the Leases informing the tenants of the sale of the Property and of the assignment to and assumption by Purchaser of Seller’s interest in the Leases and directing that all rent and other sums payable for periods after the Closing under the
Leases shall be paid as set forth in said notice; 
 (q)    Notices of Sale to Service Contractors and
Leasing Agents.  Seller will join with Purchaser in executing notices, in form and content reasonably satisfactory to Seller and Purchaser (the “Other Notices of Sale”), which Purchaser shall send to each service
provider and leasing agent under the Service Contracts and Commission Agreements (as the case may be) assumed by Purchaser at Closing informing such service provider or leasing agent (as the case may be) of the sale of the Property and of the
assignment to and assumption by Purchaser of Seller’s obligations under the Service Contracts and Commission Agreements arising after the Closing Date and directing that all future statements or invoices for services under such Service
Contracts and/or Commission Agreements for periods after the Closing be directed to Seller or Purchaser as set forth in said notices; 
 (r)    Association Estoppel Certificate.  An original counterpart of the Association Estoppel Certificate, to the extent the same may be in the possession of Seller; 
 (s)    Keys and Records.  All of the keys to any door or lock on the Property and the original
tenant files and other non-confidential books and records (excluding any appraisals, budgets, third party reports obtained by Seller in connection with the Property (other than the Existing Environmental Reports), strategic plans for the Property,
internal analyses, information regarding the marketing of the Property for sale, submissions relating to Seller’s obtaining of corporate or partnership authorization, attorney and accountant work product, attorney-client privileged documents,
or other information in the possession or control of Seller which Seller reasonably deems proprietary) relating to the Property in the possession of Seller; and 
 (t)    Other Documents.  Such other documents as shall be reasonably requested by the Title Company or Purchaser’s Counsel to effectuate the purposes and
intent of this Agreement. 
 5.2.    Purchaser’s Closing
Deliveries.  Purchaser shall obtain or execute and deliver to Seller at Closing the following documents, all of which shall be duly executed, acknowledged and notarized where required: 
  

					
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 (a)    Assignment and Assumption of Leases.  Two
(2) counterparts of the Assignment and Assumption of Leases, executed and acknowledged by Purchaser; 
 (b)    Assignment and Assumption of Service Contracts.  Two (2) counterparts of the Assignment and Assumption of Service Contracts, executed and acknowledged by Purchaser; 
 (c)    Purchaser’s Certificate.  The Purchaser’s Certificate, executed by Purchaser;

 (d)    Notices of Sale to Tenants.  The Tenant Notices of Sale, executed by
Purchaser, as contemplated in Section 5.1(p) hereof; 
 (e)    Notices of Sale to Service
Contractors and Leasing Agents.  The Other Notices of Sale to service providers and leasing agents, as contemplated in Section 5.1(q) hereof; 
 (f)    Settlement Statement  A settlement statement setting forth the amounts paid by or on behalf of and/or credited to each of Purchaser and Seller pursuant
to this Agreement; 
 (g)    Evidence of Authority.  A copy of resolutions of the Board
of Directors of Purchaser, certified by the Secretary or Assistant Secretary of Purchaser to be in force and unmodified as of the date and time of Closing, authorizing the purchase contemplated herein, the execution and delivery of the documents
required hereunder, and designating the signatures of the persons who are to execute and deliver all such documents on behalf of Purchaser or if Purchaser is not a corporation, such documentation as Seller may reasonably require to establish that
this Agreement, the transaction contemplated herein, and the execution and delivery of the documents required hereunder, are duly authorized, executed and delivered; and 
 (h)    Other Documents.  Such other documents as shall be reasonably requested by the Title Company or Seller’s Counsel to effectuate the purposes and
intent of this Agreement. 
 5.3.    Closing Costs.  Seller shall pay the
attorneys’ fees of Seller, the brokerage commission due Seller’s Broker pursuant to Section 10.1 of this Agreement with respect to the sale of the Property, the cost of the transfer taxes imposed upon the conveyance of the
Property and all other costs and expenses incurred by Seller in closing and consummating the purchase and sale of the Property pursuant hereto. Seller and Purchaser shall each pay one-half of any escrow closing fees charged by the Title Company.
Purchaser shall pay the cost of recording the Limited Warranty Deed, the costs of all title examination fees and expenses and title insurance premiums payable with respect to the owner’s title insurance policy issued by the Title Company to
Purchaser, the cost of all endorsements to Purchaser’s owner’s title insurance policy, the costs of issuing and title insurance premiums for any mortgagee title insurance policy obtained by Purchaser, the cost of the Survey, all other
recording fees on all instruments to be recorded in connection with these transactions, the attorneys’ fees of Purchaser, and all other costs and expenses incurred by Purchaser in the performance of Purchaser’s due diligence inspection of
the Property (including without limitation appraisal costs, environmental audit and assessment costs, and engineering review costs) and in closing and consummating the purchase and sale of the Property pursuant hereto. 
  

					
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 5.4.    Prorations and Credits.  The
following items in this Section 5.4 shall be adjusted and prorated between Seller and Purchaser as of 11:59 P.M. on the day preceding the Closing, based upon the actual number of days in the applicable month or year: 
 (a)    Taxes.  All general real estate taxes imposed by any governmental authority
(“Taxes”) for the year in which the Closing occurs shall be prorated between Purchaser and Seller with respect to the Property as of the Closing. If the Closing occurs prior to the receipt by Seller of the tax bill for the Property
for the calendar year or other applicable tax period in which the Closing occurs, Taxes with respect to the Property shall be prorated for such calendar year or other applicable tax period based upon the prior year’s tax bill. Taxes for any
year prior to the year in which the Closing occurs are the responsibility of Seller. If the Taxes for calendar year 2003 are still under appeal as of the Closing Date, and if less than 100% of the taxes billed for 2003 were paid by Seller, the
difference between the taxes billed and the taxes paid for 2003 shall be escrowed at Closing to assure the availability of funds to pay the balance of the taxes due if the appeal shall fail. 
 (b)    Reproration of Taxes.  Within thirty (30) days of receipt of final bills for Taxes, the
party receiving said final tax bills shall furnish copies of the same to the other party and shall prepare and present to such other party a calculation of the reproration of such Taxes based upon the actual amount of such Taxes for the year. The
parties shall make the appropriate adjusting payment between them within thirty (30) days after presentment to Seller of Purchaser’s calculation and appropriate back-up information. The provisions of this Section 5.4(b) shall
survive the Closing for a period of one (1) year after the Closing Date. 
 (c)    Rents, Income
and Other Expenses.  Rents and any other amounts paid to Seller by the tenants under the Leases (and any new lease entered into in accordance with the terms of this Agreement) shall be prorated as of the Closing Date and be adjusted
against the Purchase Price on the basis of a schedule which shall be prepared by Seller and delivered to Purchaser for Purchaser’s review and approval prior to Closing. Seller and Purchaser shall prorate all rents, additional rent, common area
maintenance charges, operating expense contributions, tenant reimbursements and escalations, and all other payments under the Leases (and any such new lease) received as of the Closing Date so that at Closing Seller will receive monthly basic rent
payments through the day prior to the Closing Date and so that Seller will receive reimbursement for all expenses paid by Seller through the day prior to the Closing Date for which Seller is entitled to reimbursement under the Leases (and any such
new lease) (including, without limitation, Taxes) (such expenses shall be reasonably estimated if not ascertainable as the Closing Date and then shall be re-adjusted as provided in (f) below when actual amounts are determined), and so that the
excess, if any, is credited to Purchaser. Purchaser agrees to pay to Seller, upon receipt, any rents or other payments by the tenants under the Leases with respect to the Property that apply to periods prior to Closing but which are received by
Purchaser after Closing; provided, however, that any rents or other payments by such tenants received by Purchaser after Closing shall be applied first to any current amounts then owed to Purchaser by such tenants, with the balance, if any, paid
over to Seller to the extent of delinquencies existing on the date of Closing to which Seller is entitled. It is understood and agreed that Purchaser shall not be legally responsible to Seller for the collection of any rents or other charges payable
with respect to the Leases of Seller or any portion thereof which are delinquent or past due as of the Closing Date; but Purchaser agrees that Purchaser shall send 
  

					
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 monthly notices for a period of three (3) consecutive months in an effort to collect any rents and
charges not collected as of the Closing Date. Seller hereby retains its right to pursue the tenants under the Leases for sums due Seller for periods attributable to Seller’s ownership of the Property, but in no event shall Seller be permitted
to seek eviction of such tenants or the termination of their Leases. The provisions of this Section 5.4(c) shall survive the Closing. 
 (d)    Tenant Inducement Costs.  Seller shall pay all such Tenant Inducement Costs and leasing commissions payable under the Leases with respect to all expansions or renewals of
any Lease exercised prior to the Effective Date. If said amounts have not been paid in full on or before Closing, Purchaser shall receive a credit against the Purchase Price in the aggregate amount of all such Tenant Inducement Costs and leasing
commissions remaining unpaid at Closing, and Purchaser shall assume the obligation to pay amounts payable after Closing up to the amount of such credit received at Closing. In furtherance of the preceding sentence, Seller agrees to provide a credit
to Purchaser at Closing in the amount of the remaining unpaid balance as of the Closing of the tenant improvement allowances provided by Seller under the Lease with Eye Consultants of Atlanta, P.C. and under the Lease with Eye Consultants of
Atlanta/Piedmont System Ambulatory Surgery Center LLC. Except as may be specifically provided to the contrary elsewhere in this Agreement, Purchaser shall be responsible for the payment of all Tenant Inducement Costs and leasing commissions
(i) as a result of any renewals or extensions or expansions of the existing Leases entered into or exercised after the Effective Date hereof with the approval of Purchaser as set forth in this Agreement, and (ii) under any new leases
approved or deemed approved by Purchaser in accordance with Section 4.3(a). The provisions of this Section 5.4(d) shall survive the Closing. 
 (e)    Security Deposits.  Purchaser shall receive at Closing a credit with respect to the Purchase Price for all security deposits transferred and assigned
to Purchaser at Closing in connection with the Leases affecting the Property, together with a detailed inventory of such security deposits certified by Seller at Closing. 
 (f)    Operating Expenses; Year End Reconciliation.  Personal property taxes, installment payments of special assessment liens, vault charges, sewer charges,
utility charges, assessments under the Condominium Declaration, and normally prorated operating expenses actually paid or payable by Seller as of the Closing Date with respect to the Property shall be prorated as of the Closing Date and adjusted
against the Purchase Price, provided that within ninety (90) days after the Closing, Purchaser and Seller will make a further adjustment for such expenses which may have accrued or been incurred prior to the Closing Date, but which were not
paid as of the Closing Date. In addition, within ninety (90) days after the close of the fiscal year used in calculating the pass-through to the tenants of operating expenses and/or common area maintenance costs under the Leases affecting the
Property (where such fiscal year includes the Closing Date), Seller and Purchaser shall re-prorate on a fair and equitable basis all rents and income prorated pursuant to this Section 5.4 as well as all expenses prorated pursuant to this
Section 5.4. All prorations of rent and other income shall be made based on the cumulative amounts collected from the tenants under the Leases in such fiscal year and applied first to actual expense amounts paid by Seller prior to the
Closing Date and then to Purchaser for actual expense amounts paid by Purchaser from and after the Closing Date. After Closing, to the extent Seller (and not the Association) has liability for water, sewer and utilities charges attributable to

  

					
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 the Property, Seller shall continue to be responsible for the payment of all water, sewer and utility
charges related to the ownership and operation of the Property for all periods prior to the Closing. The provisions of this Section 5.4(f) shall survive the Closing. 
 ARTICLE 6. 
 CONDITIONS TO CLOSING 
 6.1.    Conditions Precedent to Purchaser’s Obligations.  The obligations of Purchaser
hereunder to consummate the transaction contemplated hereunder shall in all respects be conditioned upon the satisfaction of each of the following conditions prior to or simultaneously with the Closing, any of which may be waived by Purchaser in its
sole discretion by written notice to Seller at or prior to the Closing Date: 
 (a)    Seller shall have
performed, in all material respects, all covenants, agreements and undertakings of Seller contained in this Agreement; 
 (b)    All representations and warranties of Seller as set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of Closing, provided that solely for purposes
of this subparagraph such warranties and representations shall be deemed to be given without being limited to Seller’s knowledge and without modification (by update or otherwise, as provided in Section 5.1(g) hereof); and

 (c)    Tenant Estoppel Certificates from the two largest tenants plus such additional tenants which,
together with the two largest tenants, lease 80% of the total leased space within the Real Property shall have been delivered to Purchaser, with each such estoppel certificate (i) to be substantially in the form attached hereto as
EXHIBIT “K”; (ii) to confirm the terms of the applicable Lease as contained in the copies of the Leases obtained by or delivered to Purchaser, and (iii) to confirm the absence of any defaults under the
applicable Lease as of the date thereof. The delivery of said Tenant Estoppel Certificates from such requisite number of tenants under the Leases shall be a condition of Closing, and the failure or inability of Seller to obtain and deliver said
Tenant Estoppel Certificates from any tenant, Seller having used its good faith efforts to obtain the same from such tenant(s) under the Leases, shall not constitute a default by Seller under this Agreement. 
 (d)    Purchaser shall have obtained the Association Estoppel Certificate from the Association substantially in the
form attached hereto as EXHIBIT “L”. 
 (e)    The Property and the
common elements of the Condominium shall be in substantially the same physical condition as they are as of the Effective Date, ordinary wear and tear and damage by casualty excepted (it being acknowledged that damage to the Property by casualty is
governed by Section 7.1 hereof). 
 In the event any condition in this Section 6 has not been satisfied (or otherwise waived
in writing by Purchaser) prior to or on the Closing Date (as the same may be extended or postponed as provided in this Agreement), Purchaser shall have the right, in its sole discretion, to terminate this Agreement by written notice to Seller given
prior to the Closing, whereupon (i) Escrow Agent shall return the Earnest Money to Purchaser; and (ii) except for those provisions of this 
  

					
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 Agreement which by their express terms survive the termination of this Agreement, no party hereto shall
have any other or further rights or obligations under this Agreement. 
 6.2.    Conditions
Precedent to Seller’s Obligations.  The obligations of Seller hereunder to consummate the transactions contemplated hereunder shall in all respects be conditioned upon the satisfaction of each of the following conditions prior
to or simultaneously with the Closing (or at such earlier time as may be provided below), any of which may be waived by Seller in Seller’s sole discretion by written notice to Purchaser at or prior to the Closing Date: 
 (a)    Purchaser shall have paid and Seller shall have received the Purchase Price, as adjusted pursuant to the terms
and conditions of this Agreement, which Purchase Price shall be payable in the amount and in the manner provided for in this Agreement; 
 (b)    Purchaser shall have performed, in all material respects, all covenants, agreements and undertakings of Purchaser contained in this Agreement; 
 (c)    All representations and warranties of Purchaser as set forth in this Agreement shall be true and correct in
all material respects as of the date of this Agreement and as of Closing, provided that solely for purposes of this subparagraph such warranties and representations shall be deemed to be given without being limited to Purchaser’s knowledge and
without modification (by update or otherwise, as provided in Section 5.2(c) hereof); and 
 (d)    The approval no later than August 31, 2006 of the transactions contemplated hereunder by the Investment Committee of Seller. 
 ARTICLE 7. 
 CASUALTY AND CONDEMNATION 
 7.1.    Casualty.  Risk of loss up to and including the Closing Date shall be borne by
Seller. In the event of any immaterial damage or destruction to the Property owned by Seller or any portion thereof, Seller and Purchaser shall proceed to close under this Agreement, and Seller will assign to Purchaser at the Closing Seller’s
rights to receive any insurance proceeds (including any rent loss insurance applicable to any period on and after the Closing Date) due Seller as a result of such damage or destruction (less any amounts reasonably expended for restoration or
collection of proceeds), and Purchaser shall assume responsibility for such repair and shall receive a credit at Closing for any deductible amount under said insurance policies maintained by Seller. For purposes of this Agreement, the term
“immaterial damage or destruction” shall mean such instances of damage or destruction of the subject Property: (i) which can be repaired or restored at a cost of $250,000.00 or less; (ii) which can be restored and repaired
within one hundred eighty (180) days from the date of such damage or destruction; and (iii) which are not so extensive as to allow more than two tenants of the Property, or tenants leasing more than 9,500 square feet of rentable area in
the aggregate, to terminate their Leases or abate or reduce rent payable thereunder (unless business loss or rent loss insurance shall be available in the full amount of such abatement or reduction, subject to applicable deductibles) on account of
such damage or destruction. 
  

					
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 In the event of any material damage or destruction to the Property or any portion
thereof, Purchaser may, at its option, by notice to Seller given within the earlier of twenty (20) days after Purchaser is notified by Seller of such damage or destruction, or the Closing Date, but in no event less than ten (10) days after
Purchaser is notified by Seller of such damage or destruction (and if necessary the Closing Date shall be extended to give Purchaser the full 10-day period to make such election): (i) terminate this Agreement, whereupon Escrow Agent shall
immediately return the Earnest Money to Purchaser, or (ii) proceed to close under this Agreement, whereupon Seller will assign to Purchaser at the Closing the rights of Seller to receive any insurance proceeds (including any rent loss insurance
applicable to the period on or after the Closing Date) due Seller as a result of such damage or destruction (less any amounts reasonably expended for restoration), and Purchaser shall assume responsibility for such repair and shall receive a credit
at Closing for any deductible amount under said insurance policies maintained by Seller. If Purchaser fails to deliver to Seller notice of its election within the period set forth above, Purchaser will conclusively be deemed to have elected to
proceed with the Closing as provided in clause (ii) of the preceding sentence. If Purchaser elects clause (ii) above, Seller will cooperate with Purchaser after the Closing to assist Purchaser in obtaining the insurance proceeds from the
applicable insurers. For purposes of this Agreement “material damage or destruction” shall mean all instances of damage or destruction that are not immaterial, as defined herein. 
 7.2.    Condemnation.  If, prior to the Closing, all or any part of the Land or the Property
is subjected to a bona fide threat of condemnation by a body having the power of eminent domain or is taken by eminent domain or condemnation (or sale in lieu thereof), or if Seller has received written notice that any condemnation action or
proceeding with respect to the Land or the Property is contemplated by a body having the power of eminent domain (collectively, a “Taking”), Seller shall give Purchaser immediate written notice of such Taking. In the event of any
immaterial Taking with respect to the Property or any portion thereof, Seller and Purchaser shall proceed to close under this Agreement. For purposes of this Agreement, the term “immaterial Taking” shall mean such instances of
Taking of the Land or the Property: (i) which do not result in a taking of any portion of the building structure of the building occupied by tenants on the Property; (ii) which do not result in a decrease in the number of parking spaces on
the Land (taking into account the number of additional parking spaces that can be provided within 180 days of such Taking); and (iii) which are not so extensive as to allow more than two tenants of the Property to terminate their Leases or
abate or reduce rent payable thereunder [unless business loss or rent insurance (subject to applicable deductibles) or condemnation award proceeds shall be available in the full amount of such abatement or reduction, and Purchaser shall receive a
credit at Closing for such deductible amount] on account of such Taking. 
 In the event of any material Taking of the Land
or the Property or any portion thereof, Purchaser may, at its option, by written notice to Seller given within thirty (30) days after receipt of such notice from Seller, elect to terminate this Agreement, or Purchaser may choose to proceed to
close. If Purchaser chooses to terminate this Agreement in accordance with this Section 7.2, then the Earnest Money shall be returned immediately to Purchaser by Escrow Agent and the rights, duties, obligations, and liabilities of the
parties hereunder shall immediately terminate and be of no further force and effect, except for those provisions of this Agreement 
  

					
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 which by their express terms survive the termination of this Agreement. For purposes of this Agreement
“material Taking “ shall mean all instances of a Taking that are not immaterial, as defined herein. 
 If
Purchaser does not elect to, or has no right to, terminate this Agreement in accordance herewith on account of a Taking, this Agreement shall remain in full force and effect and the sale of the Property contemplated by this Agreement, less any
interest taken by eminent domain or condemnation, or sale in lieu thereof, shall be effected with no further adjustment and without reduction of the Purchase Price, and at the Closing, Seller shall assign, transfer, and set over to Purchaser all of
the right, title, and interest of Seller in and to any awards applicable to the Property that have been or that may thereafter be made for such Taking. At such time as all or a part of either Property is subjected to a bona fide threat of
condemnation and Purchaser shall not have elected to terminate this Agreement as provided in this Section 7.2, and provided that the Inspection Period has expired, (i) Purchaser shall thereafter be permitted to participate in the
proceedings as if Purchaser were a party to the action, and (ii) Seller shall not settle or agree to any award or payment pursuant to condemnation, eminent domain, or sale in lieu thereof without obtaining Purchaser’s prior written consent
thereto in each case. 
 ARTICLE 8. 
 DEFAULT AND REMEDIES 
 8.1.    Purchaser’s Default.  If
Purchaser defaults under this Agreement or otherwise fails to consummate this transaction for any reason other than the default of Seller, failure of a condition to Purchaser’s obligation to close, or the exercise by Purchaser of an
express right of termination granted herein, Seller shall be entitled, as their sole remedy hereunder, to terminate this Agreement and to receive and retain the Earnest Money as full liquidated damages for such default of Purchaser, the parties
hereto acknowledging that it is impossible to estimate more precisely the damages which might be suffered by Seller upon Purchaser’s default, and that said Earnest Money is a reasonable estimate of the probable loss of Seller in the event of
default by Purchaser. The retention by Seller of said Earnest Money is intended not as a penalty, but as full liquidated damages. The right to retain the Earnest Money as full liquidated damages is the sole and exclusive remedy of Seller in the
event of default hereunder by Purchaser, and Seller hereby waives and releases any right to (and hereby covenant that they shall not) sue the Purchaser: (a) for specific performance of this Agreement, or (b) to recover actual damages in
excess of the Earnest Money. The foregoing liquidated damages provision shall not apply to or limit Purchaser’s liability for Purchaser’s obligations under Sections 3.1(b), 3.1(c), 3.6 and 10.1 of this
Agreement or for Purchaser’s obligation to pay to Seller all attorneys’ fees and costs of Seller to enforce the provisions of this Section 8.1. Purchaser hereby waives and releases any right to (and hereby covenants that it
shall not) sue Seller or seek or claim a refund of said Earnest Money (or any part thereof) on the grounds it is unreasonable in amount and exceeds the actual damages of Seller or that its retention by Seller constitutes a penalty and not agreed
upon and reasonable liquidated damages. 
 8.2.    Seller’s Default.  If
Seller fails to perform any of its obligations under this Agreement for any reason other than Purchaser’s default or the permitted termination of this Agreement by Seller or Purchaser as expressly provided herein, Purchaser shall be entitled,
as its 
  

					
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 sole remedy, either (a) to receive the return of the Earnest Money from Escrow Agent, which return
shall operate to terminate this Agreement and release Seller from any and all liability hereunder, or (b) to enforce specific performance of the obligation of Seller to execute and deliver the documents required to convey the Property to
Purchaser in accordance with this Agreement; it being specifically understood and agreed that the remedy of specific performance shall not be available to enforce any other obligation of Seller hereunder; provided, however, if Seller shall have
conveyed title to the Property to another party or intentionally and knowingly taken any other action to defeat the remedy of specific performance, Purchaser shall be entitled to seek actual damages from Seller. Purchaser expressly waives its rights
to seek damages in the event of the default of Seller hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and to receive a return of the Earnest Money from Escrow Agent if Purchaser fails to file suit for specific
performance against Seller in a court having jurisdiction, on or before sixty (60) days following the date upon which the Closing was to have occurred. 
 ARTICLE 9. 
 ASSIGNMENT 
 9.1.    Assignment.  Subject to the next following sentence, this Agreement and all rights and obligations hereunder shall not be assignable by any
party without the written consent of the other, except in accordance with Section 12.11. Notwithstanding the foregoing to the contrary, this Agreement and all of Purchaser’s rights hereunder may be transferred and assigned to any
entity controlling, controlled by or under common control with Purchaser. Any assignee or transferee under any such assignment or transfer by Purchaser as to which the written consent of Seller has been given or as to which the consent of Seller is
not required hereunder shall expressly assume all of Purchaser’s duties, liabilities and obligations under this Agreement (whether arising or accruing prior to or after the assignment or transfer) by written instrument delivered to Seller as a
condition to the effectiveness of such assignment or transfer. Upon the assignment of all of Purchaser’s rights hereunder made with the written consent of Seller or as to which the consent of Seller is not required hereunder, and the assumption
by the assignee of all of Purchaser’s duties, liabilities and obligations under this Agreement as aforesaid, the original Purchaser shall thereafter be relieved of any duties and obligations hereunder; provided, however, no assignment or
transfer shall relieve the original Purchaser of its indemnity obligations under Sections 31 and 10.2 hereof, and the written assignment and assumption agreement shall expressly so provide. For purposes of this Section 9.1, the term
“control” shall mean the ownership of at least fifty percent (50%) of the applicable entity. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
legal representatives, successors and permitted assigns. This Agreement is not intended and shall not be construed to create any rights in or to be enforceable in any part by any other persons. 
 ARTICLE 10. 
 BROKERAGE COMMISSIONS

 10.1.    Broker.  Upon the Closing, and only in the event of the Closing
and the funding of the Purchase Price by Purchaser, Seller shall pay a brokerage commission to Seller’s Broker pursuant to a separate agreement between Seller and Seller’s Broker. Seller’s Broker is 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	29	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 representing Seller in this transaction. Seller shall and does hereby indemnify and hold Purchaser
harmless from and against any and all liability, loss, cost, damage, and expense, including reasonable attorneys’ fees actually incurred and costs of litigation, Purchaser shall ever suffer or incur because of any claim by any agent, salesman,
or broker, whether or not meritorious, for any fee, commission or other compensation with regard to this Agreement or the sale and purchase of the Property contemplated hereby, and arising out of any acts or agreements of Seller, including any claim
asserted by Seller’s Broker. Likewise, Purchaser shall and does hereby indemnify and hold Seller free and harmless from and against any and all liability, loss, cost, damage, and expense, including reasonable attorneys’ fees actually
incurred and costs of litigation, Seller shall ever suffer or incur because of any claim by any agent, salesman, or broker, whether or not meritorious, for any fee, commission or other compensation with respect to this Agreement or the sale and
purchase of the Property contemplated hereby and arising out of the acts or agreements of Purchaser. This Section 10.1 shall survive the Closing until the expiration of any applicable statute of limitations and shall survive any earlier
termination of this Agreement. 
 ARTICLE 11. 
 INDEMNIFICATION 
 11.1.    Indemnification by
Seller.  Following the Closing and subject to Sections 11.3 and 11.4, Seller shall indemnify and hold Purchaser, its affiliates, members and partners, and the partners, shareholders, officers, directors, employees,
representatives and agents of each of the foregoing (collectively, “Purchaser-Related Entities”) harmless from and against any and all costs, fees, expenses, damages, deficiencies, interest and penalties (including, without
limitation, reasonable attorneys’ fees and disbursements) suffered or incurred by any such indemnified party in connection with any and all losses, liabilities, claims, damages and expenses (“Losses”), arising out of, or in any
way relating to, (a) any breach of any representation or warranty of Seller contained in this Agreement or in any Closing Document, and (b) any breach of any covenant of Seller contained in this Agreement which survives the Closing or in
any Closing Document. 
 11.2.    Indemnification by Purchaser.  Following the
Closing and subject to Sections 11.3 and 11.4, Purchaser (and Purchaser’s permitted assignees to whom any rights of Purchaser are assigned pursuant to Section 9.1 hereof) shall indemnify and hold Seller, its
affiliates, members and partners, and the partners, shareholders, officers, directors, employees, representatives and agents of each of the foregoing (collectively, “Seller-Related Entities”) harmless from any and all Losses arising
out of, or in any way relating to, (a) any breach of any representation or warranty by Purchaser contained in this Agreement or in any Closing Document, and (b) any breach of any covenant of Purchaser contained in this Agreement which
survives the Closing or in any Closing Documents. 
 11.3.    Limitations on
Indemnification.  Notwithstanding the foregoing provisions of Section 11.1, (a) Seller shall not be required to indemnify Purchaser or any Purchaser-Related Entities under this Agreement unless the aggregate of all
amounts for which an indemnity would otherwise be payable by Seller under Section 11.1 above exceeds the Basket Limitation and in such event, Seller shall be responsible for only the amount in excess of the Basket Limitation, 

 

					
	 PURCHASE AND SALE AGREEMENT
	  	30	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 (b) in no event shall the liability of Seller with respect to the indemnification provided for in
Section 11.1 above exceed in the aggregate the Cap Limitation, (c) if prior to the Closing, Purchaser obtains knowledge in writing of any inaccuracy or breach of any representation, warranty or covenant of Seller contained in this
Agreement (a “Purchaser Waived Breach”) and nonetheless proceeds with and consummates the Closing, then Purchaser and any Purchaser-Related Entities shall be deemed to have waived and forever renounced any right to assert a claim
for indemnification under this Article 11 for, or any other claim or cause of action under this Agreement, at law or in equity on account of any such Purchaser Waived Breach, and (d) notwithstanding anything herein to the contrary, the
Basket Limitation and the Cap Limitation shall not apply with respect to Losses suffered or incurred as a result of breaches of any covenant or agreement of Seller set forth in Section 5.3, Section 5.4 or
Section 10.1 of this Agreement. 
 11.4.    Survival.  The representations,
warranties and covenants contained in this Agreement and the Closing Documents shall survive for 180 days following the Closing, unless a longer or shorter survival period is expressly provided for in this Agreement, or unless on or before the date
that is the 180th day following the Closing, Purchaser or Seller, as the case may be, delivers written notice to the
other party of such alleged breach specifying with reasonable detail the nature of such alleged breach and files an action with respect thereto within one hundred twenty (120) days after the giving of such notice. 
 11.5.    Indemnification as Sole Remedy.  If the Closing has occurred, the sole and exclusive remedy
available to a party in the event of a breach by the other party to this Agreement of any representation, warranty, or covenant or other provision of this Agreement or any Closing Document which survives the Closing shall be the indemnifications
provided for under Section 3.1(c), Section 10.1, and this Article 11. 
 ARTICLE 12. 
 MISCELLANEOUS 
 12.1.    Notices.  Wherever any notice or other communication is required or permitted hereunder, such notice or other communication shall be in writing and shall be delivered by overnight
courier, hand, facsimile or other electronic transmission, or sent by U.S. registered or certified mail, return receipt requested, postage prepaid, to the addresses or facsimile numbers set out below or at such other addresses as are specified by
written notice delivered in accordance herewith: 
  

			
	 PURCHASER:
	  	 Scott & Associates, Inc.

		  	 1200 Lake Hearn Drive

		  	 Suite 275

		  	 Atlanta, Georgia 30342

		  	 Attention:   M. Hugh Scott, Jr.

		  	 Facsimile:   (404) 252-0600

		  	 Email: hughscott@scottre.com

		
	 with a copy to:
	  	 Schiff Hardin LLP

		  	 One Atlantic Center

  

					
	 PURCHASE AND SALE AGREEMENT
	  	31	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

			
		  	 Suite 2300

		  	 1201 West Peachtree Street

		  	 Atlanta, Georgia 30309

		  	 Attention:   Alexander W. Suto

		  	 Facsimile:   (404) 437-7100

		  	 Email: asuto@schiffhardin.com

		
	 SELLER:
	  	 Wells Real Estate Fund I

		  	 c/o Wells Real Estate Funds

		  	 6200 The Corners Parkway

		  	 Norcross, Georgia 30092

		  	 Attention:   Mr. F. Parker Hudson

		  	 Facsimile:   (770) 243-4684

		  	 Email: parker.hudson@wellsref.com

		
	 with a copy to:
	  	 Troutman Sanders LLP

		  	 Suite 5200

		  	 600 Peachtree Street, N.E.

		  	 Atlanta, Georgia 30308-2216

		  	 Attn:   John W. Griffin

		  	 Facsimile:   (404) 962-6577

		  	 Email:   john.griffin@troutmansanders.com

 Any notice or other communication (i) mailed as hereinabove provided shall be deemed
effectively given or received on the third (3rd) Business Day following the postmark date of such notice or
other communication, (ii) sent by overnight courier or by hand shall be deemed effectively given or received upon receipt, and (iii) sent by facsimile or other electronic transmission shall be deemed effectively given or received on the
day of such electronic transmission of such notice or other communication and confirmation of such transmission if transmitted and confirmed prior to 6:00 p.m. local Atlanta, Georgia time on a Business Day and otherwise shall be deemed effectively
given or received on the first Business Day after the day of transmission of such notice and confirmation of such transmission. Refusal to accept delivery shall be deemed delivered. Any notice may be given by a party’s attorney. 
 12.2.    Possession.  Full and exclusive possession of the Property, subject to the Permitted
Exceptions applicable to the Property and the rights of the tenants under the Leases, shall be delivered by Seller to Purchaser on the Closing Date. 
 12.3.    Time Periods.  If the time period by which any right, option, or election provided under this Agreement must be exercised, or by which any act required hereunder
must be performed, or by which the Closing must be held, expires on a Saturday, Sunday, or holiday, then such time period shall be automatically extended through the close of business on the next regularly scheduled Business Day. 
 12.4.    Publicity.  The parties agree that, prior to Closing, and except for disclosures
required by law or governmental regulations applicable to such party, no party shall, with respect 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	32	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 to this Agreement and the transactions contemplated hereby, contact or conduct negotiations with public
officials, make any public announcements or issue press releases regarding this Agreement or the transactions contemplated hereby to any third party without the prior written consent of the other party hereto. No party shall record this Agreement or
any notice hereof. 
 12.5.    Discharge of Obligations.  The acceptance
by Purchaser of the Limited Warranty Deed hereunder shall be deemed to constitute the full performance and discharge of each and every warranty and representation made by Seller and Purchaser herein and every agreement and obligation on the part of
Seller and Purchaser to be performed pursuant to the terms of this Agreement, except those warranties, representations, covenants and agreements which are specifically provided in this Agreement to survive Closing. 
 12.6.    Severability.  This Agreement is intended to be performed in accordance with, and
only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the application thereof to any person or circumstance, shall, for any reason and to any extent be invalid or
unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby but rather shall be enforced to the greatest extent permitted by law. 
 12.7.    Construction.  This Agreement shall not be construed more strictly against one party
than against the other merely by virtue of the fact that this Agreement may have been prepared by counsel for one of the parties, it being mutually acknowledged and agreed that Seller and Purchaser and their respective counsel have contributed
substantially and materially to the preparation and negotiation of this Agreement. Accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto. 
 12.8.    Sale
Notification Letters.  Promptly following the Closing, Purchaser shall deliver the Tenant Notices of Sale to the tenants under the Leases, and the Other Notices of Sale to each service provider and leasing agent, the obligations
under whose respective Service Contracts and Commission Agreements Purchaser has assumed at Closing. 
 12.9.    Access to Records Following Closing.  Purchaser agrees that for a period of twenty-four (24) months following the Closing, Seller shall have the right during regular business hours,
on five (5) days’ written notice to Purchaser, and at Seller’s sole cost, to examine and review at Purchaser’s office (or, at Purchaser’s election, at the Property), the books and records of Seller relating to the ownership
and operation of the Property which were delivered by Seller to Purchaser at the Closing. Likewise, Seller agrees that for a period of twenty-four (24) months following the Closing, Purchaser shall have the right during regular business hours,
on five (5) days’ written notice to Seller, and at Purchaser’s sole cost, to examine and review at Seller’s office, all books, records and files, if any, retained by Seller relating to the ownership and operation by Seller prior
to the Closing of the Property. The provisions of this Section shall survive the Closing for a period of twenty-four (24) months year after the Closing Date. 
 12.10.    General Provisions.  No failure of either party to exercise any power given hereunder or to insist upon strict compliance with any obligation
specified herein, and no custom or practice at variance with the terms hereof, shall constitute a waiver of either party’s right to 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	33	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 demand exact compliance with the terms hereof. This Agreement contains the entire agreement of the
parties hereto, and no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein shall be of any force or effect. Any amendment to this Agreement shall not be binding upon Seller or Purchaser
unless such amendment is in writing and executed by Seller and Purchaser. Subject to the provisions of Section 9.1 hereof, the provisions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective heirs, legal representatives, successors, and permitted assigns. Time is of the essence in this Agreement. The headings inserted at the beginning of each paragraph are for convenience only, and do not add to or subtract from the meaning
of the contents of each paragraph. This Agreement shall be construed, interpreted and enforced under the laws of the State of Georgia. Except as otherwise provided herein, all rights, powers, and privileges conferred hereunder upon the parties shall
be cumulative but not restrictive to those given by law. All personal pronouns used in this Agreement, whether used in the masculine, feminine, or neuter gender shall include all genders, and all references herein to the singular shall include the
plural and vice versa. 
 12.11.    Like-Kind Exchange.  Any of the parties
hereto may desire, and each other party is willing to cooperate (subject to the limitations set forth below), to effectuate the sale of the Property by means of an exchange of “like-kind” property which will qualify as such under
Section 1031 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. Each party expressly reserves the right to assign its rights, but not its obligations, hereunder to a qualified intermediary as provided
in I.R.C. Reg. 1.1031(k)-1(g)(4) on or before the date of Closing. Upon written notice from any party (a “Requesting Party”) to the other, the party to whom such notice is given (the “Other Party”) agrees to
cooperate with such Requesting Party to effect one or more like-kind exchanges with respect to the Property, provided that such cooperation shall be subject to the following conditions: (a) such exchange shall not delay the Closing and shall
occur either simultaneously with the Closing or the purchase money proceeds payable to Seller shall be paid, upon Seller’s prior written direction to Purchaser, to a third party escrow agent or intermediary such that Purchaser shall not be
required to participate in any subsequent closing, (b) the Other Party shall not be obligated to spend any sums or incur any expenses in excess of the sums and expenses which would have been spent or incurred by the Other Party if there had
been no exchange, and (c) Purchaser shall not be obligated to acquire or accept title to any property other than the Property, and Seller shall not be obligated to acquire or accept title to any property. The Other Party makes no representation
or warranty that the conveyance of any Property made pursuant to this Section 12.11 shall qualify for a like-kind exchange. Once Purchaser has paid the purchase money proceeds as directed by Seller (if Seller is the Requesting Party), or
Seller has conveyed the Property as directed by Purchaser (if Purchaser is the Requesting Party), the Other Party shall have no further obligation hereunder with respect to such “like-kind” exchange. Each Requesting Party hereby
indemnifies and holds the Other Party harmless from and against any costs, liabilities and expenses incurred or suffered by the Other Party in connection with the “like-kind” exchange or exchanges described herein with respect to the
Property, which indemnity shall survive the Closing until the expiration of any applicable statute of limitations. 
 12.12.    Attorney’s Fees.  If Purchaser or Seller bring an action at law or equity against the other in order to enforce the provisions of this Agreement or as a result of an alleged default

  

					
	 PURCHASE AND SALE AGREEMENT
	  	34	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 under this Agreement, the prevailing party in such action shall be entitled to recover court costs and
reasonable attorney’s fees actually incurred from the other. 
 12.13.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which when taken together shall constitute one and the same original. To facilitate the execution and
delivery of this Agreement, the parties may execute and exchange counterparts of the signature pages by facsimile, and the signature page of either party to any counterpart may be appended to any other counterpart. 
 12.14.    Effective Agreement.  The submission of this Agreement for examination is not
intended to nor shall constitute an offer to sell, or a reservation of, or option or proposal of any kind for the purchase of the Property. In no event shall any draft of this Agreement create any obligation or liability, it being understood that
this Agreement shall be effective and binding only when a counterpart of this Agreement has been executed and delivered by each party hereto. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day, month and year first above written. 
  

					
	 SELLER:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	 	 Wells Capital, Inc., a Georgia
 corporation, general partner

			
		 	 By:
	 	 /s/ Douglas P. Williams

		 	 Name:
	 	 Douglas P. Williams

		 	 Title:
	 	 Senior Vice President

  
 [Signatures
continued on following page] 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	35	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 [Signatures continued from previous page] 
  
  

			
	 PURCHASER:

	
	 SCOTT & ASSOCIATES, INC.,
 a Georgia corporation

		
	 By:
	 	 /s/ Hugh H. Scott III

	 Name:
	 	 Hugh H. Scott III

	 Title:
	 	 Vice President and Secretary

  

					
	 PURCHASE AND SALE AGREEMENT
	  	36	  	
	 PACES PAVILION
	  		  	
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “A” 
 LEGAL DESCRIPTION OF REAL PROPERTY 
  
  
 ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lot 197 of the 17th District of Fulton County, Georgia, and being the “Convertible Space”, commonly known as Suites 100, 130, 229, 239, 250, 326, 328 and 329 of the
Paces Pavillion Condominium, as per plat recorded in Condominium Plat Book 9, Page 86, Fulton County, Georgia records, and according to Declaration of Condominium of Paces Pavillion Condominium by HCA Realty, Inc. and Wells Real Estate Fund I, dated
November 10, 1987, recorded in Deed Book 11187, Page 22, of the Office of the Clerk of the Superior Court of Fulton County, Georgia (hereinafter called the “Original Declaration”), as amended by that certain Amendment No. 1 to
the Declaration of Condominium of Paces Pavillion Condominium filed for record March 24, 1988, recorded in Deed Book 11396, Page 74, aforesaid records, that certain Amendment No. 2 to the Declaration of Condominium of Paces Pavillion
Condominium filed for record January 4, 1990, recorded in Deed Book 13077, Page 243, aforesaid records, that certain Amendment No. 3 to the Declaration of Condominium of Paces Pavillion Condominium dated March 9, 1990, filed for
record March 12, 1990, recorded in Deed Book 13261, Page 278, aforesaid records, and that certain Amendment No. 4 to the Declaration of Condominium of Paces Pavillion Condominium dated October 2, 2002, filed for record October 9,
2002, recorded in Deed Book 33265, Page 142, aforesaid records. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “A”
	 PACES PAVILION
	  		  	LEGAL DESCRIPTION OF LAND
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “B” 
 LIST OF PERSONAL PROPERTY 
  
  
 [TO BE PROVIDED BY SELLER PRIOR TO 
 EXPIRATION OF INSPECTION PERIOD] 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “B”
	 PACES PAVILION
	  		  	PERSONAL PROPERTY
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “C” 
 LIST OF COMMISSION AGREEMENTS 
  
  
 Office Lease Commission Agreement dated October 22, 2003, between Seller and Atlanta Leasing Associates 
 Office Lease Commission Agreement dated January 7, 2002, between Seller and Richard Bowers & Company 
 Office Lease Commission Agreement dated June 8, 2000, between Seller and Cauley Capital LLC 
 Commission Agreement dated October 11, 2001, between Seller and Carter & Associates, Inc. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “C”
	 PACES PAVILION
	  		  	COMMISSION AGREEMENTS
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “D” 
 FORM OF ESCROW AGREEMENT 
 THIS ESCROW AGREEMENT (the
“Agreement”), made and entered into this          day of September, 2006, by and among SCOTT & ASSOCIATES, INC., a Georgia corporation (“Purchaser”),
WELLS REAL ESTATE FUND I, a Georgia limited partnership (“Seller”), and CHICAGO TITLE INSURANCE COMPANY (“Escrow Agent”). 
 W I T N E S S E T H: 
 WHEREAS, Purchaser and Seller have entered into that certain
Purchase and Sale Agreement, dated as of                             , 2006 (the
“Contract”) regarding the purchase and sale of certain improved real property consisting of that certain Unit designated and described as “Convertible Space” under the Condominium Declaration (as defined in the Contract),
and commonly known as Suites 100, 130, 229, 230, 250, 326, 328 and 329 at Paces Pavilion, Atlanta, Fulton County, Georgia (the “Property”); and 
 WHEREAS, Paragraph 2.3 of the Contract provides for Purchaser’s payment to Escrow Agent, within three (3) business days following execution and delivery by Seller and Purchaser of
the Contract, of One Hundred Thousand and No/100 Dollars ($100,000.00 U.S.) as the Initial Earnest Money (as defined in the Contract) to be held and applied by said Escrow Agent in accordance with this Agreement and the Contract; and 
 WHEREAS, the Contract provides for Purchaser’s payment to Escrow Agent, no later than the expiration of the Inspection Period (as
defined in the Contract) of the additional sum of One Hundred Thousand and No/100 Dollars ($100,000.00 U.S.) as the Additional Earnest Money (as defined in the Contract) and for the possible payment to Escrow Agent of certain additional
“Earnest Money” in connection with the extension of the Closing Date under the Contract; and 
 WHEREAS, the
parties hereto desire to set forth the terms and conditions of Escrow Agent’s holding, investment and disbursement of the Escrow Funds (as hereinafter defined). 
 NOW, THEREFORE, for and in consideration of the agreements set forth in the Contract and the mutual covenants set forth herein, the parties hereto, intending to be legally bound, hereby agree as
follows: 
 1.    Escrow Agent does hereby acknowledge receipt of a wire transfer, payable to the order
of Escrow Agent, in the amount of One Hundred Thousand and No/100 Dollars ($100,000.00 U.S.) as the Initial Earnest Money (as defined in the Contract). Said Initial Earnest Money, together with any additional earnest money actually deposited by
Purchaser with Escrow Agent pursuant to the terms of the Contract, all interest and other income earned on the Initial Earnest Money, any such additional earnest money and interest thereon, is herein referred to as 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

 the “Escrow Funds”. Escrow Agent hereby agrees to hold, administer and disburse the
Escrow Funds pursuant to this Agreement and the Contract. Escrow Agent shall invest the Escrow Funds in a Cash Investment Account at Wachovia Bank of Georgia, in Atlanta, Georgia. All interest or other income shall be earned for the account of
Purchaser and shall be held, invested and disbursed as a part of the Escrow Funds hereunder. Purchaser’s Federal Identification Number is #58-1890431; and Seller’s Federal Identification Number is #58-1565512. Escrow Agent’s fee, if
any, for services rendered hereunder shall be paid one-half (1/2) by Purchaser and one-half (1/2) by Seller. 
 2.    At such time as Escrow Agent receives written notice from either Purchaser or Seller, or any of them, setting forth the identity of the party to whom such Escrow Funds (or portions thereof) are to be disbursed and
further setting forth the specific section or paragraph of the Contract pursuant to which the disbursement of such Escrow Funds (or portions thereof) is being requested, Escrow Agent shall disburse such Escrow Funds pursuant to such notice;
provided, however, that if such notice is given by either Purchaser or Seller but not both, Escrow Agent shall (i) promptly notify the other party (either Purchaser or Seller, as the case may be) that Escrow Agent has received a
request for disbursement, and (ii) withhold disbursement of such Escrow Funds for a period of ten (10) days after receipt of such notice of disbursement and if Escrow Agent receives within said ten (10) day period either (A) a
written notice from the party that submitted the request for disbursement which notice countermands the earlier notice of disbursement, or (B) a written notice from the other party that conflicts with the request for disbursement given by the
party submitting such request, then Escrow Agent shall withhold such disbursement until Purchaser and Seller can agree upon a disbursement of such Escrow Funds. Purchaser and Seller hereby agree to send to the other, pursuant to Paragraph 6
below, a duplicate copy of any written notice sent to Escrow Agent and requesting any such disbursement or countermanding a request for disbursement. 
 3.    In performing any of its duties hereunder, Escrow Agent shall not incur any liability to anyone for any damages, losses, or expenses, except for willful default, gross negligence, fraud or
breach of trust, and it shall accordingly not incur any such liability with respect to (i) any action taken or omitted in good faith upon advice of its legal counsel given with respect to any questions relating to the duties and
responsibilities of Escrow Agent under this Agreement, or (ii) any action taken or omitted in reliance upon any instrument, including any written notice or instruction provided for in this Agreement, not only as to its due execution and the
validity and effectiveness of its provisions but also as to the truth and accuracy of any information contained therein, which Escrow Agent shall in good faith believe to be genuine, to have been signed or presented by a proper person or persons,
and to conform with the provisions of this Agreement. 
 4.    Notwithstanding the provisions of
Paragraph 2 above, in the event of a dispute between or among Purchaser and Seller sufficient in the sole discretion of Escrow Agent to justify its doing so or in the event that Escrow Agent has not disbursed the Escrow Funds on or before
December 15, 2006, Escrow Agent shall be entitled to tender the Escrow Funds into the registry or custody of any court of competent jurisdiction, together with such legal pleadings as it may deem appropriate, and thereupon be discharged
from all further duties and liabilities under this Agreement. Any such legal action may be brought in such court as Escrow Agent shall 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

 determine to have jurisdiction thereof. The actual and reasonable costs and expenses (including actual
and reasonable attorneys’ fees) incurred by Escrow Agent in connection with tendering the Escrow Funds to such court may be deducted from the Escrow Funds. 
 5.    Purchaser and Seller hereby jointly and severally agree to indemnify and hold Escrow Agent harmless against any and all losses, claims, damages, liabilities, and
expenses, including, without limitation, reasonable costs of investigation and legal counsel fees, which may be imposed upon Escrow Agent or incurred by Escrow Agent in connection with the performance of its duties hereunder, including, without
limitation, any litigation arising from this Agreement or involving the subject matter hereof. 
 6.    Wherever any notice or other communication is required or permitted hereunder, such notice or other communication shall be in writing and shall be delivered by overnight courier, hand delivery, facsimile or other
electronic transmission, or sent by U.S. registered or certified mail, return receipt requested, postage prepaid, to the addresses set out below or at such other addresses as are specified by written notice delivered in accordance herewith:

  

			
	 PURCHASER:
	 	 Scott & Associates, Inc.

		 	 1200 Lake Hearn Drive

		 	 Suite 275

		 	 Atlanta, Georgia 30342

		 	 Attention:   M. Hugh Scott, Jr.

		 	 Facsimile:   (404) 252-0600

		 	 Email:   hughscott@scottre.com

		
	 with a copy to:
	 	 Schiff Hardin LLP

		 	 One Atlantic Center

		 	 Suite 2300

		 	 1201 West Peachtree Street

		 	 Atlanta, Georgia 30309

		 	 Attention:   Alexander W. Suto

		 	 Facsimile:   (404) 437-7100

		 	 Email:   asuto@schiffhardin.com

		
	 SELLER:
	 	 Wells Real Estate Fund I

		 	 c/o Wells Real Estate Fund

		 	 6200 The Corners Parkway

		 	 Norcross, Georgia 30092

		 	 Attention:   Mr. Parker Hudson

		 	 Telephone:   (770) 243-4684

		 	 Facsimile:   (770) 243-8540

		 	 Email:   parker.hudson@wellsref.com

  

					
	 PURCHASE AND SALE AGREEMENT
	  	3	  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

			
	 with a copy to:
	  	 Troutman Sanders LLP

		  	 Suite 5200

		  	 600 Peachtree Street, N.E.

		  	 Atlanta, Georgia 30308-2216

		  	 Attention:   Mr. John W. Griffin

		  	 Telephone:   (404) 885-3151

		  	 Facsimile:   (404) 962-6577

		  	 Email:   john.griffin@troutmansanders.com

		
	 ESCROW AGENT:
	  	 Chicago Title Insurance Company

		  	 4170 Ashford Dunwoody Road

		  	 Suite 460

		  	 Atlanta, Georgia 30319

		  	 Attention:   Ms. Judy A. Stillings

		  	 Telephone:   (404) 419-3224

		  	 Facsimile:   (404) 303-6307

		  	 Email:   judy.stillings@ctt.com

 Any notice or other communication (i) mailed as hereinabove provided shall be deemed
effectively given or received on the third (3rd) business day following the postmark date of such notice or
other communication, (ii) sent by overnight courier or by hand shall be deemed effectively given or received upon receipt, and (iii) sent by facsimile or other electronic transmission shall be deemed effectively given or received on the
first business day after the day of transmission of such notice and confirmation of such transmission. 
 7.    This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors, and assigns. Any and all rights
granted to any of the parties hereto may be exercised by their agents or personal representatives. 
 8.    Time is of the essence of this Agreement. 
 9.    If proceedings
shall be instituted before any court of competent jurisdiction for the resolution of any dispute arising under this Agreement between any parties hereto, then upon final resolution of such dispute, the prevailing party in such dispute shall be
promptly paid by the non-prevailing party therein all of such prevailing party’s attorneys’ fees and expenses, court costs and costs of appeal actually incurred in connection with such proceeding. 
 10.    This Agreement is governed by and is to be construed under the laws of the State of Georgia and may be
executed in several counterparts, each of which shall be deemed an original, and all such counterparts together shall constitute one and the same instrument. 
 [Signatures begin on next page] 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	4	  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives as of the day, month and year first above written. 
  

					
	 SELLER:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	 	     Wells Capital, Inc., a Georgia
     corporation, general partner

			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Title:
	 	  

 [Signatures continued on following page] 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	5	  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

 [Signatures continued from previous page] 
  

			
	 PURCHASER:

	
	 SCOTT & ASSOCIATES, INC.,
 a Georgia corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 [Signatures continued on following page] 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	6	  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

 [Signatures continued from previous page] 
  

			
	 ESCROW AGENT:

	
	 CHICAGO TITLE INSURANCE COMPANY

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	7	  	EXHIBIT “D”
	 PACES PAVILION
	  		  	FORM OF ESCROW AGREEMENT
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “E” 
 PROPERTY TAX APPEALS 
  
 Tax appeals with respect to the Real Property for tax years 2004 and 2005 have been resolved. The tax appeal with respect to tax year 2003 is still pending. Seller shall be entitled to any recovery of taxes resulting
from the appeal of 2003 taxes and shall be responsible for any increase in 2003 taxes resulting from the appeal of 2003 taxes. An appeal of the assessment for tax year 2006 is pending. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “E”
	 PACES PAVILION
	  		  	INTENTIONALLY OMITTED
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “F” 
 EXISTING SURVEY 
  
 As Built Survey for Wells Real Estate Fund I, dated November 26, 1985, prepared by Robert M. Kirkley, Georgia Registered Land Surveyor No. 1844. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “F”
	 PACES PAVILION
	  		  	EXISTING SURVEY
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “G” 
 LIST OF LEASES 
  
 Lease Agreement dated October 11, 2001, between Seller and Peachtree Park Pediatric, LLP 
 Lease
Agreement dated May 17, 2001, between Seller and Eye Consultants of Atlanta, P.C., as amended by First Amendment to Lease Agreement dated as of March 13, 2006 
 Lease Agreement dated December 1, 2003, between Seller and Center for Pain Management, Inc. 
 Lease
Agreement dated December 31, 2001, between Seller and Nu/Hart Advantages, Inc. 
 Lease Agreement dated August 10, 2004, between
Seller and Arthur J. Simon, M.D., LLC 
 Lease Agreement dated May 17, 2001, between Seller and Eye Consultants of Atlanta/Piedmont
System Ambulatory Surgery Center LLC, as amended by First Amendment to Lease Agreement dated as of March 13, 2006 
 Lease Agreement
dated June 7, 2000, between Seller and Aaron L. King, Jr., Leonard R. Sanderson, D.W. Heidecker, Jr. and Steven B. Sanderson, as amended by First Amendment to Lease dated November 14, 2000 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “G”
	 PACES PAVILION
	  		  	LIST OF LEASES
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “H” 
 TITLE EXCEPTIONS 
  
  

	 1.
	 All taxes for the year 2006 and subsequent years. 

  

	 2.
	 Indemnity Agreement from Albritton Interests, a Texas general partnership, Gary S. Arnold, Partner, to City of Atlanta, dated May 25, 1984, filed
May 29, 1984, recorded in Deed Book 8993, Page 264, Fulton County, Georgia records. 

  

	 3.
	 Easement from Albritton Interests to Georgia Power Company, dated April 24, 1985, recorded in Deed Book 9522, Page 250, aforesaid records.

  

	 4.
	 Declaration of Easements and Covenants by and between Wells Real Estate Fund I, a Georgia limited partnership, Hospital Corporation of America, a Tennessee
corporation, and HCA Realty, Inc., a Tennessee corporation, dated as of December 27, 1985, filed December 27, 1985, recorded in Deed Book 9890, Page 205, aforesaid records. 

  

	 5.
	 Restrictive Covenants among West Paces Ferry Hospital, Inc., Wells Real Estate Fund I, and HCA Realty, Inc., dated as of November 10, 1987, recorded in Deed
Book 11187, Page 10, aforesaid records. 

  

	 6.
	 Declaration of Condominium of Paces Pavillion Condominium dated November 10, 1987, recorded in Deed Book 11187, Page 22, aforesaid records, as amended by
that certain Amendment No. 1 to the Declaration of Condominium of Paces Pavillion Condominium filed for record March 24, 1988, recorded in Deed Book 11396, Page 74, aforesaid records, that certain Amendment No. 2 to the Declaration of
Condominium of Paces Pavillion Condominium filed for record January 4, 1990, recorded in Deed Book 13077, Page 243, aforesaid records, that certain Amendment No. 3 to the Declaration of Condominium of Paces Pavillion Condominium dated
March 9, 1990, recorded in Deed Book 13261, Page 278, aforesaid records, and that certain Amendment No. 4 to the Declaration of Condominium of Paces Pavillion Condominium dated October 2, 2002, recorded in Deed Book 33265, Page 142,
aforesaid records. 

  

	 7.
	 Declaration of Mutual Easements for Pedestrian Bridges, Ingress and Egress among West Paces Ferry Hospital, Inc., Hospital Corporation of America, HCA Realty,
Inc., Wells Real Estate Fund I, Paces Pavillion Condominium Association, Inc. and The Palisades at West Paces, Inc., dated as of May 7, 1991, recorded in Deed Book 14602, Page 248, aforesaid records. 

  

	 8.
	 Agreement among West Paces Ferry Hospital, Inc., Hospital Corporation of America, HCA Realty, Inc., Wells Real Estate Fund I, Paces Pavillion Condominium
Association, Inc. and The Palisades at West Paces, Inc., dated as of May 7, 1991. 

  

	 9.
	 Right of Way Easement in favor of Southern Bell Telephone and Telegraph Company dated April 7, 1988, recorded in Deed Book 11498, Page 301, aforesaid
records. 

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “H”
	 PACES PAVILION
	  		  	TITLE EXCEPTIONS
	 ATLANTA, GEORGIA
	  		  	

	 10.
	 Easement in favor of Georgia Power Company dated April 24, 1985, recorded in Deed Book 9522, Page 250, aforesaid records. 

  

	 11.
	 The matters shown on recorded plat filed November 19, 1987, in Condominium Plat Book 9, Page 86, aforesaid records. 

  

	 12.
	 Rights of tenants in possession under the Leases identified in Exhibit “G” to this Agreement, as tenants only. 

  

	 13.
	 All matters as would be disclosed by a current survey of the Property. 

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	EXHIBIT “H”
	 PACES PAVILION
	  		  	TITLE EXCEPTIONS
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “I” 
 EXCEPTION SCHEDULE 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “I”
	 PACES PAVILION
	  		  	EXCEPTION SCHEDULE
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “J” 
 LIST OF SERVICE CONTRACTS 
  
 Contract between Wells Management Company, Inc., as manager for Wells Real Estate Fund I, and GMI Group, Inc. dated January 24, 2006, for janitorial services. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “J”
	 PACES PAVILION
	  		  	LIST OF SERVICE CONTRACTS
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “K” 
 FORM OF TENANT ESTOPPEL CERTIFICATE 
 Scott & Associates,
Inc. 
 Suite 275 
 1200 Lake Hearn Drive 
 Atlanta, Georgia 30342 
 Attn: M. Hugh Scott, Jr.

 Wells Real Estate Fund I 
 6200 The Corners Parkway 
 Norcross, Georgia 30092

 Attn:    Mr. F. Parker Hudson 
              Managing Director, Dispositions 

 

	 	 RE:
	 Lease:                                    
                                     

 

					
	 Premises:
	  	                                     
 	  	
	 Commencement Date:
	  	                                     
 	  	
	 Expiration Date:
	  	                                     
 	  	
	 Current Monthly Base Rent:
	  	$                                    	  	
	 Current Monthly Additional Rent:
	  	$                                    	  	
	 Base Year or Expense Stop (if applicable):
	  	                                    	  	
	 Security Deposit:
	  	$                                    	  	
	 Monthly Base Rent Paid Through:
	  	                            , 2006	  	
	 Monthly Additional Rent Paid Through:
	  	                            , 2006	  	

 Ladies and Gentlemen: 
 We are the Tenant under the Lease described above. We give you this certificate to permit you and your successors or assigns and your lenders to rely on
it as conclusive evidence of the matters stated below, in evaluating and completing the purchase by you or your assignee of the property known as “Convertible Space”, Paces Pavilion, Atlanta, Georgia, which includes the Premises. We
certify to you and your successors and assigns, as follows: 
  

	 1.
	 We are the Tenant at the Premises and are in sole possession of and are occupying the Premises. Tenant has not subleased all or any part of the Premises or
assigned the Lease, or otherwise transferred its interest in the Lease or the Premises, except as follows:
                                        
                                        
                                        
                                        
                        . 

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “K”
	 PACES PAVILION
	  		  	FORM OF TENANT ESTOPPEL CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	

	 2.
	 The attached Lease is currently in full force and effect and constitutes the entire agreement between Landlord and Tenant. The Lease has not been amended,
modified, or changed, whether in writing or orally, except as may be stated in the copy of the Lease attached. 

  

	 3.
	 The Commencement Date and Expiration Date of the term of the Lease are correctly stated above. Tenant has no options or rights and has not exercised any options
or rights to renew, extend, amend, modify, or change the term of the Lease, except as may be stated in the copy of the Lease attached. 

  

	 4.
	 The current monthly Base Rent under the Lease and the current monthly Additional Rent under the Lease are correctly stated above. Monthly Base Rent and monthly
Additional Rent have been paid through the respective dates stated above. No rent has been prepaid for more than one month. Tenant has not been given any free rent, partial rent, rebates, rent abatements, or rent concessions of any kind, except as
may be stated in the copy of the Lease attached. 

  

	 5.
	 To Tenant’s knowledge, any construction, build-out, improvements, alterations, or additions to the Premises required under the Lease to have been performed
by the Landlord have been completed in accordance with the Lease. There are no unfunded allowances payable to Tenant under the Lease[, except as follows:
                                    ].

  

	 6.
	 To Tenant’s knowledge, Landlord has fully performed all of its obligations under the Lease and is not in default under any term or provision of the Lease.
In addition, to Tenant’s knowledge, no circumstances exist under which Landlord may be deemed in default merely upon service of notice or passage of time. 

  

	 7.
	 Tenant does not currently assert and, to Tenant’s knowledge, Tenant has no defenses, set-offs, or counterclaims to the payment of rent and all other amounts
due from Tenant to Landlord under the Lease. 

  

	 8.
	 Tenant has not been granted and has not exercised any options or rights of expansion, or first refusal to lease concerning the Lease or the Premises, except as
may be stated in the copy of the Lease attached. Tenant has not been granted any options or rights to purchase, or first refusal to purchase, concerning the Premises, except as may be stated in the copy of the Lease attached.

  

	 9.
	 The address for notices to Tenant under the Lease is correctly set forth in the Lease. 

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	EXHIBIT “K”
	 PACES PAVILION
	  		  	FORM OF TENANT ESTOPPEL CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	

	 10.
	 The person signing this letter on behalf of Tenant is duly authorized to execute and deliver this certificate for and on behalf of the Tenant.

 This             
day of                     , 2006. 
  

					
	 Sincerely,
	 	
		
	  
	 	
		
	 By:
	 	  

	 Its:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	3	  	EXHIBIT “K”
	 PACES PAVILION
	  		  	FORM OF TENANT ESTOPPEL CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	

 EXHIBIT “L” 
 FORM OF ASSOCIATION ESTOPPEL CERTIFICATE 
 Scott & Associates,
Inc. 
 1200 Lake Hearn Drive 
 Suite 275 
 Atlanta, Georgia 30342 
 Attention: Mr. Hugh Scott, Jr. 
 Wells Real Estate Fund I 
 6200 The Corners Parkway 
 Norcross, Georgia
30092 
 Attention: Mr. F. Parker Hudson 
  

			
	 Re:
	  	 Declaration of Condominium of Paces Pavillion Condominium dated November 10, 1987, recorded in Deed Book 11187, Page 22, Fulton County, Georgia records, as amended by
that certain Amendment No. 1 to the Declaration of Condominium of Paces Pavillion Condominium filed for record March 24, 1988, recorded in Deed Book 11396, Page 74, aforesaid records, that certain Amendment No. 2 to the Declaration of
Condominium of Paces Pavillion Condominium filed for record January 4, 1990, recorded in Deed Book 13077, Page 243, aforesaid records, that certain Amendment No. 3 to the Declaration of Condominium of Paces Pavillion Condominium dated
March 9, 1990, recorded in Deed Book 13261, Page 278, aforesaid records, and that certain Amendment No. 4 to the Declaration of Condominium of Paces Pavillion Condominium dated October 2, 2002, recorded in Deed Book 33265, Page 142,
aforesaid records (collectively, the “Condominium Declaration”)

 Ladies and Gentlemen: 
 The undersigned is the duly elected and acting                      of Paces Pavillion
Condominium Association, Inc., a Georgia non-profit corporation (the “Association”), and hereby certifies the statements set forth below to you and your assigns with the understanding that you are authorized to rely on the statements
herein made in connection with the sale by Wells Real Estate Fund I (“Seller”) to Scott & Associates, Inc. and its assigns (collectively, “Purchaser”) of the Unit designated and described as “Convertible Space”
under the Condominium Declaration. Accordingly, the undersigned hereby certifies to Seller, Purchaser and Purchaser’s lender as follows with respect to the Condominium Declaration: 
 1.     The Condominium Declaration is in full force and effect and has not been modified or amended except as set
forth above. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	EXHIBIT “L”
	 PACES PAVILION
	  		  	FORM OF ASSOCIATION ESTOPPEL CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	

 2.     Seller is not in default under the Condominium Declaration,
and to the best knowledge and belief of the undersigned, no event has occurred or circumstance exists which, with the giving of notice or the passage of time, or both, would create or constitute an event of default by Seller under the Condominium
Declaration. 
 3.     The Percentage Interest allocated to the Convertible Space under the Condominium
Declaration is 28.49%. 
 4.     The total annual Assessment for calendar year 2006 for the Convertible
Space under the Condominium Declaration is $154,612.80. Such annual Assessment is payable in monthly installments in the amount of $12,884.40, and all monthly installments of such annual Assessment payable by the owner of the Convertible Space have
been paid through                     , 2006. 
 5.     No Special Assessments have been made by the Association which are due and payable by the owner of the Convertible Space under the Condominium Declaration, and except for annual Assessments,
no other Common Expenses have been assessed by the Association against the Convertible Space under the Condominium Declaration. 
 6.     The sale to Purchaser of the Unit designated and described as “Convertible Space” under the Condominium Declaration does not require any approval or consent by the Association. 
 Capitalized terms used for this certificate but not defined herein shall have the meaning given to such terms in the Condominium
Declaration. 
 The statements contained herein are made as of
                    , 2006. 
  

	
	 Sincerely yours.

	
	 PACES PAVILLION CONDOMINIUM

	 ASSOCIATION, INC.

	
	 By:___________________________________

	 Name:_________________________________

	 Title:__________________________________

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	EXHIBIT “L”
	 PACES PAVILION
	  		  	FORM OF ASSOCIATION ESTOPPEL CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	

 SCHEDULE 1 
 FORM OF ASSIGNMENT AND ASSUMPTION OF LEASES 
 ASSIGNMENT AND ASSUMPTION OF LEASES

 THIS ASSIGNMENT AND ASSUMPTION OF LEASES (“Assignment”) is made and entered into as of the
             day of                     , 2006, by and between WELLS REAL
ESTATE FUND I, a Georgia limited partnership (“Assignor”), and
                                        
                , a
                                       
 (“Assignee”). 
 W I T N E S S E T H: 
 WHEREAS, contemporaneously with the execution hereof, Assignor has conveyed to Assignee certain real property located in Atlanta,
Fulton County, Georgia, and more particularly described on Exhibit “A” attached hereto (the “Property”) ; and 
 WHEREAS, in connection with said conveyance, Assignor desires to transfer and assign to Assignee all of Assignor’s right, title and interest in and to certain leases affecting the Property, together with
the security deposits and future leasing commission obligations associated therewith, and, subject to the terms and conditions hereof, Assignee desires to assume Assignor’s right, title, interest and obligations in respect of said leases,
security deposits and leasing commission obligations; 
 NOW, THEREFORE, for and in consideration of the sum of Ten
and No/100 Dollars ($10.00) in hand paid to Assignor by Assignee, Assignee’s purchase of the Property and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by Assignor and Assignee,
Assignor and Assignee hereby covenant and agree as follows: 
 1.    Assignor hereby
unconditionally and absolutely assigns, transfers, sets over and conveys to Assignee, without warranty or representation of any kind, express or implied, except as set forth below and except for any warranty or representation contained in that
certain Purchase and Sale Agreement dated as of                     , 2006, between Assignor, as “Seller”, and Assignee, as
“Purchaser” (the “Contract”), applicable to the property assigned herein, all of Assignor’s right, title and interest in, to and under (a) those certain leases set forth on Exhibit “B”
attached hereto and by this reference made a part hereof affecting or relating to the Property or the improvements thereon (the “Leases”), together with all rents, issues and profits under the Leases, (b) all security
deposits or other security held by or for the benefit of Assignor with respect to the Leases or the performance of the obligations of the tenants under the Leases; and (c) those certain leasing commission agreements more particularly described
on Exhibit “C” attached hereto and made a part hereof (the “Commission Agreements”), subject to the matters more particularly described on Exhibit “D” attached hereto and made a
part hereof. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

 2.    Assignee, by acceptance hereof, hereby assumes and agrees to
perform all of Assignor’s duties and obligations under the Leases arising from and after the date hereof, including, without limitation, Assignor’s obligations to pay leasing commissions due and payable in respect of any renewal or
expansion of the existing Leases, or any new lease with the tenant under the Leases, after the date hereof pursuant to the Commission Agreements, provided that any renewal or expansion of any existing Lease, or any new lease with a tenant under an
existing Lease that was entered into after the Effective Date of the Contract (as defined therein) and prior to the date hereof was approved (or deemed approved) by Purchaser as and to the extent required in the Contract. 
 3.    This Assignment shall inure to the benefit of and be binding upon Assignor and Assignee, their respective legal
representatives, successors and assigns. This Assignment may be executed in counterparts, each of which shall be deemed an original and all of such counterparts together shall constitute one and the same Assignment. 
 IN WITNESS WHEREOF, the duly authorized representatives of Assignor and Assignee have caused this Assignment to be properly
executed under seal as of this day and year first above written. 
  

	
	 “ASSIGNEE”:

	
	 __________________________,

	 a______________________

	
	 By:________________________________________

	 Name:______________________________________

	 Title:_______________________________________

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

					
	 “ASSIGNOR”:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	    	 Wells Capital, Inc., a Georgia
 corporation, general partner

			
		    	 By:
	 	  

		    	 Name:
	 	  

		    	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	3	  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

 EXHIBIT A 
 Legal Description 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

 EXHIBIT B 
 Leases 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

 EXHIBIT C 
 Lease Commission Agreements 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

 EXHIBIT D 
 Permitted Exceptions 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 1
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF LEASE

 SCHEDULE 2 
 FORM OF ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS 
  
 ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS 
 THIS ASSIGNMENT AND
ASSUMPTION OF CONTRACTS (“Assignment”) is made and entered into as of the              day of
                    , 2006, by and between WELLS REAL ESTATE FUND I, a Georgia limited partnership (“Assignor”), and
                                        
    , a
                                        
(“Assignee”). 
 W I T N E S S E T H: 
 WHEREAS, contemporaneously with the execution hereof, Assignor has conveyed to Assignee certain real property located in Atlanta, Fulton County, Georgia, and more particularly described on
Exhibit “A” attached hereto (the “Property”); and 
 WHEREAS, in connection
with said conveyance, Assignor desires to transfer and assign to Assignee, to the extent assignable, all of Assignor’s right, title and interest in and to certain service contracts related to the Property; and Assignee desires to assume
Assignor’s obligations under said service contracts; 
 NOW, THEREFORE, for and in consideration of the sum of
Ten and No/100 Dollars ($10.00) in hand paid to Assignor by Assignee, the Premises and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by Assignor and Assignee, Assignor and Assignee
hereby covenant and agree as follows: 
 1.    Assignor hereby unconditionally and absolutely assigns,
transfers, sets over and conveys to Assignee, to the extent assignable, and without warranty or representation of any kind, express or implied, except as set forth below and except for any warranty or representation contained in that certain
Purchase and Sale Agreement dated as of                     , 2006, between Assignor, as “Seller”, and Assignee, as
“purchaser” (the “Contract”) applicable to the property assigned herein, all of Assignor’s right, title and interest in, to and under those certain contracts set forth on Exhibit “B” attached
hereto and by this reference made a part hereof (the “Service Contracts”), subject to the matters set forth on Exhibit “C” attached hereto and by this reference made a part hereof. 
 2.    Assignee, by acceptance hereof, hereby assumes and agrees to perform all of Assignor’s duties and
obligations under the Service Contracts arising from and after the date hereof. 
 3.    This Assignment
shall inure to the benefit and be binding upon Assignor and Assignee and their respective legal representatives, successors and assigns. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 2
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF SERVICE CONTRACTS

 IN WITNESS WHEREOF, the duly authorized representatives of Assignor and Assignee have
caused this Assignment to be properly executed under seal as of this day and year first above written. 
  

			
	 “ASSIGNEE”:

	
	 ____________________________________,

	 a________________________

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 2
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF SERVICE CONTRACTS

					
	 “ASSIGNOR”:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	 	 Wells Capital, Inc., a Georgia
 corporation, general partner

			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	3	  	SCHEDULE 2
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF SERVICE CONTRACTS

 Exhibit A 
 Legal Description 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 2
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF SERVICE CONTRACTS

 Exhibit B 
 Assigned Contracts 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 2
	 PACES PAVILION
	  		  	FORM OF ASSIGNMENT AND
	 ATLANTA, GEORGIA
	  		  	ASSUMPTION OF SERVICE CONTRACTS

 SCHEDULE 3 
 FORM OF BILL OF SALE TO PERSONAL PROPERTY 
  
 BILL OF SALE 
 THIS BILL OF SALE (“Bill of Sale”) is made and
entered into as of the              day of                     , 2006, by
WELLS REAL ESTATE FUND I, a Georgia limited partnership (“Seller”), for the benefit of
                                        
                        , a
                        (“Purchaser”). 
 W I T N E S S E T H: 
 WHEREAS, contemporaneously with
the execution hereof, Seller has conveyed to Purchaser certain improved real property described on Exhibit “A-1” attached hereto and commonly known as Suites 100, 130, 229, 230, 250, 326, 328 and 329 at Paces Pavilion, Atlanta,
Fulton County, Georgia, (hereinafter referred to as the “Property”); and 
 WHEREAS, in connection
with said conveyance, Seller desires to transfer and convey to Purchaser all of Seller’s right, title and interest in and to certain tangible personal property, inventory and fixtures located in and used exclusively in connection with the
ownership, maintenance or operation of the Property; 
 NOW, THEREFORE, for and in consideration of the sum of Ten and
No/100 Dollars ($10.00) in hand paid to Seller by Purchaser, the premises and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by Seller and Purchaser, it is hereby agreed as follows:

 1.     All capitalized terms not defined herein shall have the meanings ascribed to such terms as set
forth in that certain Purchase and Sale Agreement dated as of                     , 2006, between Seller and Purchaser (the “Sales
Contract”). 
 2.     Seller hereby unconditionally and absolutely transfers, conveys and sets
over to Purchaser, without warranty or representation of any kind, express or implied, all right, title and interest of Seller in any and all furniture (including common area furnishings and interior landscaping items), carpeting, draperies,
appliances, personal property, machinery, apparatus and equipment owned by Seller and currently used exclusively in the operation, repair and maintenance of the Property, including, without limitation, all of Seller’s right, title and interest
in and to those items of tangible personal property set forth on Exhibit “B” attached hereto and all non-confidential books, records and files (excluding any appraisals, strategic plans for the Property, internal analyses,
information regarding the marketing of the Property for sale, submissions relating to Seller’s obtaining of corporate or partnership authorization, attorney and accountant work product, attorney-client privileged documents, or other similar
information in the possession or control of Seller which Seller reasonably deems confidential or proprietary) 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 3
	 PACES PAVILION
	  		  	FORM OF BILL OF SALE
	 ATLANTA, GEORGIA
	  		  	TO PERSONAL PROPERTY

 relating to the Property (the “Personal Property”). The Personal Property does
not include any property owned by tenants, contractors or licensees. 
 3.     The Personal
Property is hereby transferred and conveyed subject to those certain matters more particularly described on Exhibit “C” attached hereto and made a part hereof. 
 4.     This Bill of Sale shall inure to the benefit of Purchaser, and be binding upon Seller, and their respective
legal representatives, transfers, successors and assigns. 
 [Remainder of Page Intentionally Left Blank] 
  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 3
	 PACES PAVILION
	  		  	FORM OF BILL OF SALE
	 ATLANTA, GEORGIA
	  		  	TO PERSONAL PROPERTY

 IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed under seal as of
this day and year first above written. 
  

			
	 “SELLER”:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	 	 Wells Capital, Inc., a Georgia

		 	 corporation, general partner

		 	 By:__________________________________

		 	 Name:________________________________

		 	 Title:_________________________________

  

					
	 PURCHASE AND SALE AGREEMENT
	  	3	  	SCHEDULE 3
	 PACES PAVILION
	  		  	FORM OF BILL OF SALE
	 ATLANTA, GEORGIA
	  		  	TO PERSONAL PROPERTY

 Exhibit “A” 
 Legal Description 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 3
	 PACES PAVILION
	  		  	FORM OF BILL OF SALE
	 ATLANTA, GEORGIA
	  		  	TO PERSONAL PROPERTY

 Exhibit “B” 
 List of Personal Property 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 3
	 PACES PAVILION
	  		  	FORM OF BILL OF SALE
	 ATLANTA, GEORGIA
	  		  	TO PERSONAL PROPERTY

 SCHEDULE 4 
 FORM OF GENERAL ASSIGNMENT OF 
 SELLER’S INTEREST IN INTANGIBLE PROPERTY 

GENERAL ASSIGNMENT 
 THIS GENERAL ASSIGNMENT (“Assignment”) is made and entered into as of the              day of
                    , 2006, by WELLS REAL ESTATE FUND I, a Georgia limited partnership (“Assignor”) to
                                        
            , a                         
(“Assignee”). 
 W I T N E S S E T H: 
 WHEREAS, contemporaneously with the execution hereof, Assignor has conveyed to Assignee certain real property located in Atlanta,
Fulton County, Georgia, and more particularly described on Exhibit “A” attached hereto and made a part hereof (the “Property”); and 
 WHEREAS, in connection with said conveyance, Assignor desires to transfer and assign to Assignee all of Assignor’s right, title and interest (if any) in and to all assignable trade
names, entitlements and other intangible property used and owned by Assignor (if any) in connection with the Property, subject to the matters set forth on Exhibit “B” attached hereto and made a part hereof; 
 NOW, THEREFORE, for and in consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid to Assignor by Assignee, the
premises and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by Assignor and Assignee, Assignor and Assignee hereby covenant and agree as follows: 
 1.    Assignor hereby unconditionally and absolutely assigns, transfers, sets over and conveys to Assignee, to the
extent assignable, and without warranty or representation of any kind, express or implied, except as set forth below and except for any warranty or representation contained in that certain Purchase and Sale Agreement dated as of
                    , 2006, between Assignor, as seller, and Assignee as purchaser (the “Contract”) applicable to the
property assigned herein, all of Assignor’s right, title and interest (if any) in and to all intangible property, if any, owned by Assignor related to the real property and improvements constituting the Property (excluding any computer software
which either is licensed to Assignor or Assignor deems proprietary), including, without limitation, Assignor’s rights and interests in and to the following (i) all assignable plans and specifications and other architectural and engineering
drawings for the Real Property (as defined in the Contract); (ii) all assignable warranties or guaranties given or made in respect of the Real Property or Personal Property (as defined in the Contract); and (iii) all transferable consents,
authorizations, variances or waivers, licenses, permits and approvals from any governmental or quasi-governmental agency, department, board, commission, bureau or other entity or instrumentality solely in respect of the Real Property. 
 2.    This Assignment shall inure to the benefit and be binding upon Assignor and Assignee and their respective legal
representatives, successors and assigns. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 4
	 PACES PAVILION
	  		  	FORM OF GENERAL ASSIGNMENT OF
	 ATLANTA, GEORGIA
	  		  	SELLER’S INTEREST IN INTANGIBLE PROPERTY

 IN WITNESS WHEREOF, the duly authorized representative of Assignor has caused this
Assignment to be properly executed under seal as of this day and year first above written. 
  

					
	 “ASSIGNOR”:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	 	 Wells Capital, Inc., a Georgia
 corporation, general partner

			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 4
	 PACES PAVILION
	  		  	FORM OF GENERAL ASSIGNMENT OF
	 ATLANTA, GEORGIA
	  		  	SELLER’S INTEREST IN INTANGIBLE PROPERTY

 Exhibit “A” 
 Legal Description 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 4
	 PACES PAVILION
	  		  	FORM OF GENERAL ASSIGNMENT OF
	 ATLANTA, GEORGIA
	  		  	SELLER’S INTEREST IN INTANGIBLE PROPERTY

 SCHEDULE 5 
 FORM OF SELLER’S AFFIDAVIT 
 (FOR PURCHASER’S TITLE INSURANCE PURPOSES)

 SELLER’S AFFIDAVIT 
 STATE OF GEORGIA 
 COUNTY OF
                     
 Personally appeared before me, the undersigned deponent                     , who being duly sworn, deposes and says on oath the
following to the best of his knowledge and belief: 
 1.    That the undersigned is the
                             of Wells Capital, Inc., the general partner of Wells Real Estate Fund I
(hereinafter referred to as “Owner”) and as such officer of such general partner of the Owner, the undersigned has personal knowledge of the facts sworn to in this Affidavit. 
 2.    That Owner is the owner of certain real property located in Fulton County, Georgia, being described on
EXHIBIT A, attached hereto and made a part hereof (hereinafter referred to as the “Property”), subject to those matters set forth on EXHIBIT B, attached hereto and made a part hereof.

 3.    That Owner is in possession of the Property, and to the best knowledge and belief of the
undersigned, no other parties have any claim to possession of the Property, except as set forth on EXHIBIT B hereto. 
 4.    That the undersigned is not aware of and has received no notice of any pending suits, proceedings, judgments, bankruptcies, liens or executions against the Owner which affect title to the
Property except for any matters set forth on EXHIBIT B hereto. 
 5.    That except
as may be set forth on EXHIBIT B hereto, there are no unpaid or unsatisfied security deeds, mortgages, deeds of trust, claims of lien, special assessments for sewer or streets, or ad valorem taxes which constitute a lien
against the Property or any part thereof. 
 6.    That, except as may be set forth on
EXHIBIT C attached hereto and made a part hereof, no improvements or repairs have been made upon the Property at the instance of Owner within the ninety-five (95) days immediately preceding the date hereof for which the
cost has not been paid; and, except as may be set forth on EXHIBIT C hereto, there are no outstanding bills for labor or materials used in making improvements or repairs on the Property at the instance of 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 5
	 PACES PAVILION
	  		  	FORM OF SELLER’S AFFIDAVIT
	 ATLANTA, GEORGIA
	  		  	(FOR PURCHASER’S TITLE INSURANCE PURPOSES)

 Owner or for services of architects, surveyors, or engineers incurred in connection therewith at the
instance of Owner. 
 7.    That except as provided in the following sentence, no broker’s services
have been engaged by Owner with regard to the management, sale, purchase, lease, option or other conveyance of any interest in the Property by Owner and that no notices of lien for any such services have been received by Owner. Owner has engaged
Colliers Cauble & Co. as Owner’s agent in connection with the sale of the Property to
                                , and Owner has engaged Wells Management Company,
Inc. as Owner’s manager and leasing agent in connection with the Property. 
 8.    That to
Owner’s knowledge there are no boundary disputes affecting the Property. 
 9.    The lease
evidenced by the Memorandum of Lease recorded in Deed Book 9890, page 245, Fulton County, Georgia records has expired or been terminated and the tenant under such lease has vacated the Property. 
 10.    The lease evidenced by the Memorandum of Lease recorded in Deed Book 9890, page 250, Fulton County, Georgia
records has expired or been terminated and the tenant under such lease has vacated the Property. 
 11.    That this Affidavit is made to induce Chicago Title Insurance Company to insure title to the Property, without exception other than as set forth on EXHIBIT B hereto, relying on information in
this document. 
 Sworn to and subscribed before me, 
 this              day of
                    , 2006. 
  

									
		 		 	  
	 	 (SEAL)

		 		 	 Name:
	 	  

	  
	 		 	 Title:
	 	  

	 Notary Public
	 		 		 		 	
					
	 My Commission Expires:
	 		 		 		 	
	  
	 		 		 		 	
					
	                     (NOTARIAL SEAL)
	 		 		 		 	

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 5
	 PACES PAVILION
	  		  	FORM OF SELLER’S AFFIDAVIT
	 ATLANTA, GEORGIA
	  		  	(FOR PURCHASER’S TITLE INSURANCE PURPOSES)

 EXHIBIT A 
 Legal Description 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 5
	 PACES PAVILION
	  		  	FORM OF SELLER’S AFFIDAVIT
	 ATLANTA, GEORGIA
	  		  	(FOR PURCHASER’S TITLE INSURANCE PURPOSES)

 EXHIBIT B 
 Existing Encumbrances 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 5
	 PACES PAVILION
	  		  	FORM OF SELLER’S AFFIDAVIT
	 ATLANTA, GEORGIA
	  		  	(FOR PURCHASER’S TITLE INSURANCE PURPOSES)

 EXHIBIT C 
 List of any Contractors, Materialmen or Suppliers Not Yet Paid in Full 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 5
	 PACES PAVILION
	  		  	FORM OF SELLER’S AFFIDAVIT
	 ATLANTA, GEORGIA
	  		  	(FOR PURCHASER’S TITLE INSURANCE PURPOSES)

 SCHEDULE 6 
 FORM OF SELLER’S CERTIFICATE 
 (AS TO SELLER’S REPRESENTATIONS AND WARRANTIES)

 SELLER’S CERTIFICATE AS TO REPRESENTATIONS 
 THIS SELLER’S CERTIFICATE AS TO REPRESENTATIONS (this “Certificate”) is given and made by WELLS REAL ESTATE FUND I, a Georgia limited partnership
(“Seller”), this          day of                     , 2006, for the benefit
of                                 , a
                         (“Purchaser”). 
 Pursuant to the provisions of that certain Purchase and Sale Agreement, dated as of
                    , 2006, among Seller and Purchaser (the “Contract”), for the purchase and sale of the property described
on EXHIBIT “A” attached hereto and made a part hereof (the “Property”), Seller certifies that except as may be set forth to the contrary in EXHIBIT “B”
attached hereto and made a part hereof, all of the representations and warranties of Seller contained in Section 4.1 of the Contract remain true and correct in all material respects as of the date hereof. 
 The representations and warranties contained herein and in Section 4.1 of the Contract shall survive for the period specified
in Section 11.4 of the Contract, and upon the expiration of the applicable survival period, such representations and warranties of Seller shall be of no further force or effect except that with respect to any particular alleged breach,
Purchaser shall give Seller written notice prior to the expiration of the survival period of such alleged breach with reasonable detail as to the nature of such breach and files an action against Seller with respect thereto within one hundred twenty
(120) days after the giving of such notice. 
 Remainder of Page Intentionally Left Blank 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 6
	 PACES PAVILION
	  		  	FORM OF SELLER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO SELLER’S REPRSENTATIONS AND WARRANTIES)

 IN WITNESS WHEREOF, Seller has caused this Certificate to be executed by its duly
authorized representatives as of the day and year first above written. 
  

					
	 “ASSIGNOR”:

	
	 WELLS REAL ESTATE FUND I,
 a Georgia limited partnership

		
	 By:
	 	 Wells Capital, Inc., a Georgia
 corporation, general partner

			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 6
	 PACES PAVILION
	  		  	FORM OF SELLER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO SELLER’S REPRSENTATIONS AND WARRANTIES)

 EXHIBIT “A” 
 LEGAL DESCRIPTION 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 6
	 PACES PAVILION
	  		  	FORM OF SELLER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO SELLER’S REPRSENTATIONS AND WARRANTIES)

 EXHIBIT “B” 
 EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 6
	 PACES PAVILION
	  		  	FORM OF SELLER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO SELLER’S REPRSENTATIONS AND WARRANTIES)

 SCHEDULE 7 
 FORM OF SELLER’S FIRPTA AFFIDAVIT 
 CERTIFICATION OF NON-FOREIGN STATUS

 Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest
must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of
the property and not the disregarded entity. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by WELLS REAL ESTATE FUND I, a Georgia limited partnership (the
“Seller”), Seller hereby certifies as follows: 
 1.    Seller is not a foreign
corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 
 2.    Seller is not a disregarded entity as defined in §1.1445-2(b)(2)(iii) of the Income Tax Regulations; 
 3.    Seller’s U.S. employer identification number is 58-1565512; and 
 4.    Seller’s office address is 6200 The Corners Parkway, Norcross, Georgia 30092. 
 The undersigned understands that this Certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or
both.
 This Certificate is made with the knowledge that
                                        ,
a                                    , will rely upon this
Certificate in purchasing that certain real property from Seller more particularly described on Exhibit A attached hereto. 
 Under penalties of perjury I declare that I have examined this Certification and to the best of my knowledge and belief, it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of
Seller. 
  

							
	 Date:                     , 2006
	 	  
	 	 (Seal)

		 	 By:
	 	  

 THIS CERTIFICATION MUST BE RETAINED UNTIL THE END OF THE FIFTH TAXABLE YEAR FOLLOWING THE
TAXABLE YEAR IN WHICH THE TRANSFER TAKES PLACE. 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 7
	 PACES PAVILION
	  		  	FORM OF SELLER’S FIRPTA AFFIDAVIT
	 ATLANTA, GEORGIA
	  		  	

 SCHEDULE 8 
 FORM OF PURCHASER’S CERTIFICATE 
 (AS TO PURCHASER’S REPRESENTATIONS AND WARRANTIES)

 PURCHASER’S CERTIFICATE AS TO REPRESENTATIONS 
 THIS PURCHASER’S CERTIFICATE AS TO REPRESENTATIONS (this “Certificate”) is given and made by
                            , a
                         (“Purchaser”), this      day of
                    , 2006, for the benefit of WELLS REAL ESTATE FUND I, a Georgia limited partnership (“Seller”).

 Pursuant to the provisions of that certain Purchase and Sale Agreement, dated as of
                    , 2006, among Wells Real Estate Fund I, Seller and Purchaser (the “Contract”), for the purchase and sale
of certain real property more particularly described on EXHIBIT “A” attached hereto, Purchaser certifies that except as may be set forth to the contrary in EXHIBIT “B”
attached hereto and made a part hereof, all of the representations and warranties of Purchaser contained in Section 4.4 of the Contract remain true and correct in all material respects as of the date hereof. 
 The representations and warranties contained herein and in Section 4.4 of the Contract shall survive for the period specified
in Section 11.4 of the Contract, and upon the expiration of the applicable survival period, such representations and warranties of Purchaser shall be of no further force or effect except that with respect to any particular alleged
breach, Seller shall give Purchaser written notice prior to the expiration of the survival period of such alleged breach with reasonable detail as to the nature of such breach and files an action against Purchaser with respect thereto within one
hundred twenty (120) days after the giving of such notice. 
 IN WITNESS WHEREOF, Purchaser has caused this Certificate
to be executed by its duly authorized representative as of the day and year first above written. 
  

			
	 “PURCHASER”:

	
	 _____________________________________________,

	 a_____________________________________

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 8
	 PACES PAVILION
	  		  	FORM OF PURCHASER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO PURCHASER’S REPRSENTATIONS AND WARRANTIES)

 EXHIBIT “A” 
 LEGAL DESCRIPTION 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 8
	 PACES PAVILION
	  		  	FORM OF PURCHASER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO PURCHASER’S REPRSENTATIONS AND WARRANTIES)

 EXHIBIT “B” 
 EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 
  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 8
	 PACES PAVILION
	  		  	FORM OF PURCHASER’S CERTIFICATE
	 ATLANTA, GEORGIA
	  		  	(AS TO PURCHASER’S REPRSENTATIONS AND WARRANTIES)

 SCHEDULE 9 
 FORM OF AFFIDAVIT OF TRANSFEROR’S RESIDENCE 
 AFFIDAVIT OF TRANSFEROR’S RESIDENCE

  

			
	 Wells Real Estate Fund I                               
                 
	  	 58-1565512                                     
                               

	 Transferor’s Name
	  	 Transferor’s Identification Number (SSN or FEI)

	
	 600 The Corners Parkway, Norcross, Georgia 30092

	 Street Address
	  	

 INSTRUCTIONS 
 This form is provided to be executed by the Transferor and furnished to the Buyer to establish Georgia residency, such that withholding from the proceeds of the sale of property are not
subject to the withholding laws of this State. (See O.C.G.A. §48-7-128.) 
 Transferors are not subject to
withholding from the proceeds of sale if either they reside in Georgia, or they are deemed to be a Georgia resident by virtue of the fact that they have filed Georgia tax returns in the preceding two years, do business or own property in Georgia,
intend to file a Georgia Tax return for the current year, and if a corporation or limited partnership, are registered to do business in this State. 
 Transferee is not required to withhold if this affidavit (or one in substantially the same form) is submitted to the Department in lieu of a withholding tax return. 
 The Transferor is to execute this affidavit by placing an initial in the blanket preceding statements which apply. 
 Transferor is exempt from withholding on the sale of property because: 
  

	   X  
	 Transferor is a resident of Georgia. 

 Transferor is not a resident of Georgia, but is deemed a resident for purposes of withholding by virtue of the following: 
  

	         
	 Transferor is a nonresident who has filed Georgia tax returns for the preceding two years; and 

  

	         
	 Transferor is an established business in Georgia and will continue substantially the same business in Georgia after the sale OR the Transferor has real
property in the State at the time of closing of equal or greater value than the withholding tax liability as measured by the 100% property tax assessment of such remaining property; and 

  

	         
	 Transferor will report the sale on a Georgia Income Tax return for the current year and file by its due date; and 

  

	         
	 If Transferor is a corporation or limited partnership, Transferor is registered to do business in Georgia. 

  

					
	 PURCHASE AND SALE AGREEMENT
	  		  	SCHEDULE 9
	 PACES PAVILION
	  		  	FORM OF AFFIDAVIT OF TRANSFEROR’S RESIDENCE
	 ATLANTA, GEORGIA
	  		  	

 Under penalty or perjury, I swear that the above information is, to the best of my knowledge and
belief, true, correct, and complete. 
  

									
	 WELLS REAL ESTATE FUND I,
	  		  	
	 a Georgia limited partnership
	  		  	  

		 		 		  		  	 Date

	 By:
	 	 Wells Capital, Inc., a Georgia
	  		  	
		 	 corporation, general partner
	  		  	
					
		 	 By:
	 	  
	  		  	
		 	 Name:
	 	  
	  		  	
		 	 Title:
	 	  
	  		  	
	 Sworn to and subscribed before me this
      day of                     , 2006
	  		  	
			
	  
	  		  	
	 Notary Public
	  		  	
			
	 My Commission Expires
                    
	  		  	

  

					
	 PURCHASE AND SALE AGREEMENT
	  	2	  	SCHEDULE 9
	 PACES PAVILION
	  		  	FORM OF AFFIDAVIT OF TRANSFEROR’S RESIDENCE
	 ATLANTA, GEORGIA

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