Document:

Exhibit 10(a)

SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT,

AND REAFFIRMATION OF GUARANTIES

This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND
REAFFIRMATION OF GUARANTIES, dated as of March 15, 2007 (the “Second Amendment”),
is entered into by and between QUIXOTE CORPORATION, a Delaware corporation (the
“Borrower”), whose address is Thirty Five East Wacker Drive, Chicago, Illinois
60601, and QUIXOTE TRANSPORTATION SAFETY, INC., TRANSAFE CORPORATION,
ENERGY ABSORPTION SYSTEMS, INC., ENERGY ABSORPTION SYSTEMS (AL) LLC, SURFACE
SYSTEMS, INC., NU-METRICS, INC., HIGHWAY INFORMATION SYSTEMS, INC., U.S.
TRAFFIC CORPORATION (formerly known as Green Light Acquisition Corporation),
PEEK TRAFFIC CORPORATION, (formerly known as Vision Acquisition Corporation),
as Subsidiary Guarantors, each
being referred to herein as a “Guarantor” and collectively referred to herein
as the “Guarantors”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking
association (the “Bank”), whose address is 135 South LaSalle Street, Chicago,
Illinois 60603.

R E C I T A L S:

A.            The
Borrower and the Bank entered into that certain Amended and Restated Credit
Agreement, dated as of April 20, 2005, as amended by a First Amendment, dated
as of December 1, 2006, and as modified and amended (collectively, the “Loan
Agreement”), pursuant to which Loan Agreement the Bank has made a Revolving
Loan to the Borrower evidenced by that certain Revolving Note, dated as of
April 20, 2005, in the maximum principal amount of $30,000,000, executed by
Borrower and made payable to the order of the Bank.

B.            In
connection with the Loan Agreement, the Guarantors executed and delivered to
the Bank that certain Guaranty, dated as of May 16, 2003 in favor of the Bank,
as amended by that Reaffirmation and Amendment of Subsidiary Guaranty, dated as
of April 20, 2005.

C.            At
the present time the Borrower and the Guarantors request and the Bank is
agreeable to (i) the extension of the Revolving Loan Termination Date to
February 1, 2009; and (ii) the modification of the pricing grid based on
Borrower’s Senior Leverage Ratio as set forth in Section 2.13(D)(ii), pursuant
to the terms and conditions hereinafter set forth.

NOW THEREFORE, in consideration of the premises and
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Borrower, the Guarantors and the Bank hereby agree as
follows:

A G R E E M E N T S:

1.             RECITALS.  The foregoing Recitals are hereby made a part
of this Second Amendment.

2.             DEFINITIONS.  Capitalized words and phrases used herein
without definition shall have the respective meanings ascribed to such words
and phrases in the Loan Agreement.

3.             AMENDMENTS
TO THE LOAN AGREEMENT.

3.1           Section
1.1 of the Loan Agreement.  The
definition of “Revolving Loan Termination Date” in Section 1.1 of the Loan
Agreement is hereby amended to delete “February 1, 2008” and insert “February
1, 2009”.

3.2           Section
1.1 of the Loan Agreement. 
References to “Section 2.14(D)(ii)” in the definitions of “Applicable ABR
Margin”; “Applicable Eurodollar Margin” and “Applicable Commitment Fee
Percentage” are amended and restated to read “Section 2.13(D)(ii).”

3.3           Section 2.13 of Loan Agreement.  Section 2.13(d)(ii) is hereby amended by
deleting the existing pricing grid set forth herein and inserting the following
pricing grid in lieu thereof:

	
  Level

  	
   

  	
  Senior Leverage

  Ratio

  	
   

  	
  Eurodollar

  Margin/L/C Fee

  Percentage

  	
   

  	
  ABR

  Margin

  	
   

  	
  Commitment

  Fee

  Percentage

  	
   

  
	
  VI

  	
   

  	
  >3.00

  	
   

  	
  2.50

  	
  %

  	
  0

  	
  %

  	
  0.375

  	
  %

  
	
  V

  	
   

  	
  >2.50
  BUT<3.00

  	
   

  	
  2.25

  	
  %

  	
  0

  	
  %

  	
  0.375

  	
  %

  
	
  IV

  	
   

  	
  >2.00
  BUT<2.50

  	
   

  	
  2.00

  	
  %

  	
  0

  	
  %

  	
  0.250

  	
  %

  
	
  III

  	
   

  	
  >1.50
  BUT<2.00

  	
   

  	
  1.75

  	
  %

  	
  0

  	
  %

  	
  0.250

  	
  %

  
	
  II

  	
   

  	
  >1.00
  BUT<1.50

  	
   

  	
  1.50

  	
  %

  	
  0

  	
  %

  	
  0.250

  	
  %

  
	
  I

  	
   

  	
  <1.00

  	
   

  	
  1.25

  	
  %

  	
  0

  	
  %

  	
  0.250

  	
  %

  

 

3.4           Revolving
Note.  All references in the Loan
Agreement to the Revolving Note in the form of “Exhibit A” to the Loan
Agreement shall be deemed to be references to the Replacement Revolving Note in
the form of Exhibit A attached hereto and made a part hereof (the “Replacement
Revolving Note”).

4.             REAFFIRMATION
OF GUARANTIES.  Each of the
Guarantors hereby expressly (a) consents to the execution by the Borrower and
the Bank of this Second Amendment, (b) acknowledges that the “Guaranteed Debt”
(as defined in each of the Guaranties) includes all of the obligations and
liabilities owing from the Borrower to the Bank, including, but not limited to,
the obligations and liabilities of the Borrower to the Bank under and pursuant
to the Loan Agreement, as amended from time to time, and as evidenced by the
Revolving Note, as modified, extended and/or replaced from time to time, (c)
reaffirms, assumes and binds themselves in all respects to all of the
obligations, liabilities, duties, covenants, terms and conditions that are
contained in their respective Guaranty, (d) agrees that all such obligations
and liabilities under their respective Guaranty shall continue in full force
and effect and shall not be 

 2
 

discharged, limited, impaired or affected in any manner whatsoever, and
(e) represents and warrants that each of the representations and warranties
made by such Guarantor in any of the documents executed in connection with the
Loans remain true and correct as of the date hereof.

5.             REPRESENTATIONS
AND WARRANTIES.  To induce the Bank
to enter into this Second Amendment, the Borrower hereby certifies, represents
and warrants to the Bank that:

5.1           Organization.  The Borrower is a corporation duly organized,
existing and in good standing under the laws of the State of Delaware with full
and adequate corporate power to carry on and conduct its business as presently
conducted.  The Borrower is duly licensed
or qualified in all foreign jurisdictions wherein the nature of its activities
require such qualification or licensing. The Articles of Incorporation and
Bylaws, Borrowing Resolutions and Incumbency Certificate of the Borrower have
not been changed or amended since the most recent date that certified copies
thereof were delivered to the Bank.  The
Borrower’s state issued organizational identification number is ________ [state
“None” if the Borrower’s state of organization does not issue such a
number].  The exact legal name of the
Borrower is as set forth in the preamble of this Second Amendment, and the
Borrower currently does not conduct, nor has it during the last five (5) years
conducted, business under any other name or trade name.  The Borrower will not change its name, its
organizational identification number, if it has one, its type of organization,
its jurisdiction of organization or other legal structure.

5.2           Authorization.  The Borrower is duly authorized to execute
and deliver this Second Amendment and is and will continue to be duly
authorized to borrow monies under the Loan Agreement, as amended hereby, and to
perform its obligations under the Loan Agreement, as amended hereby.

5.3           No
Conflicts.  The execution and delivery
of this Second Amendment and the performance by the Borrower of its obligations
under the Loan Agreement, as amended hereby, do not and will not conflict with
any provision of law or of the articles of incorporation or bylaws of the
Borrower or of any agreement binding upon the Borrower.

5.4           Validity
and Binding Effect.  The Loan
Agreement, as amended hereby, is a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency or other similar
laws of general application affecting the enforcement of creditors’ rights or
by general principles of equity limiting the availability of equitable
remedies.

5.5           Compliance
with Loan Agreement.  The
representation and warranties set forth in Section VI of the Loan Agreement, as
amended hereby, are true and correct with the same effect as if such
representations and warranties had been made on the date hereof, with the
exception that all references to the financial statements shall mean the
financial statements most recently delivered to the Bank and except for such
changes as are specifically permitted under the Loan Agreement.  In addition, the Borrower has complied with
and is in compliance with all of the covenants set forth in the Loan Agreement,
as amended hereby, including, but not limited to, those set forth in Section
VII thereof.

 3
 

5.6           No
Event of Default.  As of the date
hereof, no Event of Default under Section VIII of the Loan Agreement, as amended
hereby, or event or condition which, with the giving of notice or the passage
of time, or both, would constitute an Event of Default, has occurred or is
continuing.

5.7           No
Subordinated Debt Default.  As of the
date hereof, no default under any of the documents evidencing or securing any
of the Junior Debt, or event or condition which, with the giving of notice or
the passage of time, or both, would constitute a default under any of the
documents evidencing or securing any of the Subordinated Debt, has occurred or
is continuing.

6.             CONDITIONS
PRECEDENT.  This Second Amendment
shall become effective as of the date above first written after receipt by the
Bank of the following documents:

6.1           Second
Amendment.  This Second Amendment
executed by the Borrower, the Guarantors, and the Bank.

6.2           Replacement
Revolving Note.  A Replacement
Revolving Note, dated as of March 15, 2007, in the maximum principal amount of
$30,000,000, executed by Borrower and made payable to the order of the Bank in
the form of Exhibit A attached hereto.

6.3           Resolutions.  A certified copy of Resolutions of the board
of directors of Borrower authorizing the execution, delivery and performance of
this Second Amendment and related loan documents.

6.4           Other
Documents.  Such other documents,
certificates and/or opinions of counsel as the Bank may request.

7.             GENERAL.

7.1           Governing
Law; Severability.  This Second
Amendment shall be construed in accordance with and governed by the laws of
Illinois.  Wherever possible each
provision of the Loan Agreement and this Second Amendment shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of the Loan Agreement and this Second Amendment shall be prohibited
by or invalid under such law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of the Loan Agreement and this Second
Amendment.

7.2           Successors
and Assigns.  This Second Amendment shall
be binding upon the Borrower, the Guarantors, and the Bank and their respective
successors and assigns, and shall inure to the benefit of the Borrower, the
Guarantors, and the Bank and the successors and assigns of the Bank.

 4
 

7.3           Continuing
Force and Effect of Loan Documents and Guaranty.  Except as specifically modified or amended by
the terms of this Second Amendment, all other terms and provisions of the Loan
Agreement and the other Loan Documents are incorporated by reference herein,
and in all respects, shall continue in full force and effect.  The Borrower, by execution of this Second
Amendment, hereby reaffirms, assumes and binds itself to all of the
obligations, duties, rights, covenants, terms and conditions that are contained
in the Loan Agreement and the other Loan Documents.  Each of the Guarantors, by execution of this
Second Amendment, hereby reaffirms, assumes and binds itself to all of the
obligations, duties, rights, covenants, terms and conditions that are contained
in Guaranty.

7.4           Financing
Statements.  The Borrower hereby
irrevocably authorizes the Bank at any time and from time to time to file in
any jurisdiction any initial UCC financing statements and/or amendments thereto
that (a) describe the Collateral, and (b) contain any other information
required by part 5 of Article 9 of the UCC for the sufficiency or filing office
acceptance of any financing statement or amendment.

7.5           References
to Loan Agreement.  Each reference in
the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, or words of like
import, and each reference to the Loan Agreement in any and all instruments or
documents delivered in connection therewith, shall be deemed to refer to the
Loan Agreement, as amended hereby.

7.6           Expenses.  The Borrower shall pay all costs and expenses
in connection with the preparation of this Second Amendment and other related
loan documents, including, without limitation, reasonable attorneys’ fees and
time charges of attorneys who may be employees of the Bank or any affiliate or
parent of the Bank.  The Borrower shall
pay any and all stamp and other taxes, UCC search fees, filing fees and other
costs and expenses in connection with the execution and delivery of this Second
Amendment and the other instruments and documents to be delivered hereunder,
and agrees to save the Bank harmless from and against any and all liabilities
with respect to or resulting from any delay in paying or omission to pay such
costs and expenses.

7.7           Counterparts.  This Second Amendment may be executed in any number
of counterparts, all of which shall constitute one and the same agreement.

 5
 

IN WITNESS WHEREOF, the parties hereto have executed
this Second Amendment to the Amended and Restated Credit Agreement and
Reaffirmation of Guaranties as of the date first above written.

	
  

  	
  QUIXOTE CORPORATION

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel P. Gorey

  
	
   

  	
  Name:

  	
  Daniel P. Gorey

  
	
   

  	
  Title:

  	
  Vice President, Chief Financial Officer

  
	
   

  	
   

  	
  and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  QUIXOTE TRANSPORTATION SAFETY, INC.

  
	
   

  	
  TRANSAFE CORPORATION

  
	
   

  	
  ENERGY ABSORPTION SYSTEMS, INC.

  
	
   

  	
  ENERGY ABSORPTION SYSTEMS (AL) LLC

  
	
   

  	
  SURFACE SYSTEMS, INC.

  
	
   

  	
  NU-METRICS, INC.

  
	
   

  	
  HIGHWAY INFORMATION SYSTEMS, INC.

  
	
   

  	
  U.S. TRAFFIC CORPORATION

  
	
   

  	
  PEEK TRAFFIC CORPORATION,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  /s/ Daniel P. Gorey

  
	
   

  	
  Title:

  	
  Vice President and
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL
  ASSOCIATION,

  
	
   

  	
  a national banking
  association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lora Backofen

  
	
   

  	
  Name:

  	
  Lora Backofen

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 6
 

REVOLVING LOAN NOTE

	
  $30,000,000

  	
  Chicago, Illinois

  
	
   

  	
  March 15, 2007

  

 

FOR VALUE RECEIVED, the undersigned, QUIXOTE
CORPORATION, a Delaware corporation (the “Borrower”), promises to pay to the
order of LaSalle Bank National Association and its registered assigns (the “Lender”),
on February 1, 2009, the principal sum of Thirty Million Dollars, or, if less,
the aggregate unpaid principal amount of all Loans made by the Lender to the
Borrower from time to time pursuant to that certain Amended and Restated Credit
Agreement, dated as of April 20, 2005, between the Borrower and Lender as
amended by a First Amendment, dated as of December 1, 2006, and a Second
Amendment, dated as of the date hereof, (together with all amendments, if any,
from time to time made thereto, the “Credit Agreement”).

The Borrower agrees to pay interest on the principal
hereof remaining from time to time unpaid in accordance with Section 2.13 of
the Credit Agreement.

All payments of principal of and interest on this
Note shall be payable in lawful currency of the United States of America at the
Agent’s office at 135 South LaSalle Street, Chicago, Illinois 60603, in
immediately available funds.

This Note evidences indebtedness incurred under, and
is subject to the terms and provisions of, the Credit Agreement, to which
reference is made for a statement of those terms and provisions.  Should the indebtedness represented by this
Note or any part hereof be collected at law or in equity or in bankruptcy,
receivership, or other court proceedings, or this Note be placed in the hands
of attorneys for collection after maturity (by declaration or otherwise), the
undersigned agrees to pay, in addition to principal and interest due and
payable hereon, reasonable attorneys’ and collection fees.

This Revolving Note constitutes a renewal and
restatement of, and replacement and substitution for, that certain Revolving
Note, dated as of April 1, 2005 in the maximum principal amount of Thirty
Million and 00/100 Dollars ($30,000,000.00), executed by the Borrower and made
payable to the order of the Bank (the “Prior Note”).  The indebtedness evidenced by the Prior Note
is continuing indebtedness evidenced hereby, and nothing herein shall be deemed
to constitute a payment, settlement or novation of the Prior Note, or to release
or otherwise adversely affect any lien, mortgage or security interest securing
such indebtedness or any rights of the Bank against any guarantor, surety or
other party primarily or secondarily liable for such indebtedness.

	
  

  	
  QUIXOTE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel P. Gorey

  
	
   

  	
  Name:

  	
  Daniel P. Gorey

  
	
   

  	
  Title:

  	
  Vice President, Chief Financial 

  
	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
   

  	
   

  

 

 7Exhibit
10.3

AGREEMENT OF SALE

between

AIRCAST, LLC,

a Delaware limited liability
company,

Seller

and

HAMPSHIRE GLOBAL PARTNERS, LLC,

a New Jersey limited liability
company

Purchaser

Dated: May 7, 2007

AGREEMENT OF SALE

This AGREEMENT OF
SALE (this “Agreement”) is dated as of May 7, 2007, between AIRCAST, LLC, a Delaware limited liability company, having
an office at c/o DJO Incorporated, 1430 Decision Street, Vista, California
92081-8553 (“Seller”), and HAMPSHIRE GLOBAL PARTNERS,
LLC, a New Jersey limited liability company, having an office at 10
DeHart Street, Morristown, New Jersey 07960 (“Purchaser”).

Preliminary Statement

Seller is the owner in fee
simple of certain lands situated in the Borough of New Providence, County of
Union, and State of New Jersey, consisting of Block 220, Lot 26 on the Borough
of New Providence Tax Map, containing approximately 5.77 acres, more commonly
known as 691 Central Avenue, and being more particularly described on Exhibit A annexed hereto (the “Lands”), (b) the
building, fixtures and other improvements presently located on the Lands
(collectively the “Improvements”), (c) all easements, rights and
appurtenances relating to the Lands and the Improvements (the “Rights”),
and (e) all licenses, permits, plans, specifications, operating manuals,
guarantees and warranties relating to the Lands and the Improvements, but
excluding any of the foregoing relating to the business conducted by Seller or
its affiliates within the Lands and Improvements (the “Intangible Property”).

Subject to the terms and
conditions of this Agreement, Seller desires to sell to Purchaser, and
Purchaser desires to purchase from Seller, the Lands, the Improvements, the
Rights, and, if and to the extent assignable by Seller, the Intangible Property
(all such property intended to be sold, conveyed, transferred or assigned by
Seller to Purchaser being herein called the “Property”).

NOW, THEREFORE, for and in
consideration of the mutual covenants and agreements herein set forth, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by each party hereto, and intending to be legally bound,
Seller and Purchaser hereby agree as follows:

ARTICLE
1

Definitions;
Construction

1.1           Definitions. 
As used in this Agreement, the following terms have the following
respective meanings:

“Actual
Knowledge” means the current actual knowledge of Don Roberts or Luke
Faulstick, and does not include constructive knowledge or the obligation to
make inquiry.

“Closing” has the meaning specified in Section
7.1.

“Closing Date” has the meaning specified in Section
7.1.

“Deposit” means the monies paid pursuant to
clause (a) of Section 3.2.

“Due Diligence Period” means the period
commencing on the Effective Date and expiring on the first business day
occurring thirty (30) days after the Effective Date.

“Effective Date” means the date that this
Agreement is signed by Seller or Purchaser, whichever is later, regardless of
the date that this Agreement is signed by Escrow Agent.

“Environmental Documents” has the meaning
specified in Section 4.1.

“Escrow Agent” means Eddington Title Agency, LLC,
or any substitute escrow agent appointed hereunder.

“Hazardous
Substance” means any substance, chemical or waste that is listed as
hazardous, toxic or dangerous under Legal Requirements.

“Improvements” has the meaning specified in the
Preliminary Statement.

“Intangible Property” has the meaning specified
in the Preliminary Statement.

“Lands” has the meaning specified in the
Preliminary Statement.

“Legal Requirements” means all laws, statutes,
codes, ordinances, orders, regulations and requirements of all federal, state,
county and municipal governments, departments, boards, authorities, agencies,
officials and officers.

“Permitted Exceptions” has the meaning specified
in Section 2.2.

“Purchase Price” has the meaning specified in Section
3.1.

“Purchaser” has the meaning specified in the
introductory paragraph of this Agreement and includes any permitted assignee of
the Purchaser’s right, title and interest under this Agreement.

“Purchaser’s Broker” means NAI James E. Hanson,
Inc.

“Purchaser’s Statement” has the meaning specified
in Section 2.3.

“Related Parties” has the meaning specified in Section
5.4.

“Rights” has the meaning specified in the
Preliminary Statement.

 2
 

“Seller” has the meaning specified in the
introductory paragraph of this Agreement.

“Seller’s Broker” means CB Richard Ellis, Inc.

“Seller’s Counsel” means Riker, Danzig, Scherer,
Hyland & Perretti LLP.

“Taking” means any proceedings or negotiations
instituted which do or may result in a taking by condemnation or eminent domain
of the Property or any portion thereof or any threat or statement of intent to
commence such proceedings made by any applicable authority in writing.

“Title Insurance Commitment” has the meaning
specified in Section 2.3.

“Title Insurer” means Eddington Title Agency,
LLC.

1.2           Drafting Ambiguities; Interpretation.  In interpreting any provision of this
Agreement, no weight shall be given to, nor shall any construction or
interpretation be influenced by, the fact that counsel for one of the parties
drafted this Agreement, each party recognizing that it and its counsel have had
an opportunity to review this Agreement and have contributed to the final form
of same.  Unless otherwise specified (a)
whenever the singular number is used in this Agreement, the same shall include
the plural, and the plural shall include the singular; (b) the words “consent”
or “approve” or words of similar import, mean the prior written consent or
approval of Seller or Purchaser, as applicable; (c) the words “include” and “including”,
and words of similar import, shall be deemed to be followed by the words “without
limitation”; and (d) the Exhibits to this Agreement are incorporated herein by
reference.

ARTICLE
2

Sale
of Property; Title; Defects

2.1           Sale of Property. 
Subject to the terms and conditions of this Agreement, Seller hereby
agrees to sell, convey, transfer and assign to Purchaser, and Purchaser hereby
agrees to purchase and acquire from Seller, Seller’s interest in the Property.

2.2           Title to Lands and Improvements.  Title to the Lands and Improvements shall be
good, marketable and insurable at regular rates by the Title Insurer subject
only to (a) the exceptions set forth on Exhibit B
annexed hereto, (b) those additional exceptions to which Purchaser does not
object or which Purchaser waives pursuant to Section 2.3 hereof, (c) all
matters that arise out of actions of Purchaser or its agents, representatives
or contractors, and (d) the printed exclusions in the Title Insurance
Commitment (collectively, the “Permitted Exceptions”).

2.3           Title Defects. 
Purchaser shall furnish to
Seller on or before the date which is fourteen (14) days after the Effective Date,
a title commitment with respect to the Lands and Improvements prepared by the
Title Insurer (the “Title Insurance Commitment”), and copies of all
recorded documents noted in Schedule B of the Title Insurance Commitment,
together with a

 3
 

statement specifying any defects in title which are not Permitted
Exceptions (“Purchaser’s Statement”). 
In the event that
Purchaser shall fail to deliver Purchaser’s Statement to Seller prior to the
date set forth above, Purchaser shall be deemed to have waived its right to
raise any title objections that existed as of such date.  Seller
shall have no obligation to remove any defects to title except for monetary
liens which were voluntarily created by Seller. 
If Purchaser provides
timely notice of any title objections to Seller, Seller shall, within ten (10)
days after receipt of Purchaser’s Statement, notify Purchaser whether Seller
agrees to use commercially reasonable efforts to cause any title objections
raised by Purchaser to be omitted from the Title Insurance Commitment, or
insured over with affirmative insurance from the Title Insurer, prior to the
Closing.  If Seller does not deliver to
Purchaser within such ten (10) day period written notice agreeing in writing to
use commercially reasonable efforts to cause such title objections to be
removed from the Title Insurance Commitment, then Seller shall be deemed to
have elected not to cause any such title objections to be removed from the
Title Insurance Commitment, and subject to Section 2.4 below, Purchaser’s sole right and remedy shall be to
either (a) waive the title objections which Seller has not agreed to use
commercially reasonable efforts to cure, and close title without abatement or
reduction of the Purchase Price, or (b) terminate this Agreement, in ether case
upon notice to Seller given prior to the expiration of the Due Diligence
Period.  If Purchaser elects to terminate
this Agreement, the Deposit shall be returned to Purchaser, and upon such
return, except as expressly provided herein, this Agreement and all rights and
obligations of the respective parties hereunder shall be null and void.  If
Purchaser does not notify Seller of its election to terminate this Agreement
within such period, Purchaser shall conclusively be deemed to have waived its
right of termination on account of such defect which Seller has not agreed to
use commercially reasonable efforts to cure.

2.4           Right to Pay Off Monetary Encumbrances.  Seller shall have the right to pay off any
monetary encumbrances against the Property on the Closing Date out of the cash
then payable, provided (i) in the case of liens held by institutional lenders,
a payoff letter reasonably acceptable to the Title Insurer is delivered at the
Closing, and (ii) in the case of other liens, recordable instruments of release
or discharge of such encumbrances in form and substance reasonably satisfactory
to the Title Insurer are then delivered to Purchaser or the Title Insurer, and
the Title Insurer agrees to delete such encumbrance from the fee policy to be
issued to Purchaser and from any loan policy to be issued to Purchaser’s
mortgagee.  Seller shall pay the cost of
canceling or discharging all such monetary encumbrances.

ARTICLE
3

Purchase
Price; Payment Terms

3.1           Purchase Price. 
The aggregate purchase price (the “Purchase Price”) for the
Property shall be Three Million
Seven Hundred and Fifty Thousand and 00/100 Dollars ($3,750,000).

3.2           Payment of Purchase Price.  The Purchase Price shall be paid as follows:

 4
 

(a)           simultaneously
with the full execution of this Agreement, the sum of $175,000 shall be paid by
Purchaser to the Escrow Agent, by check (subject to collection) or by wire
transfer, plus any interest earned thereafter (the “Deposit”), to be held
pursuant to the provisions of Section 3.3 hereof, which Deposit shall be
non-refundable except as provided herein; and

(b)           upon
the Closing, a sum equal to the balance of the Purchase Price, plus or minus
any net closing adjustments provided herein, shall be payable by wire transfer
of immediately available funds.

3.3           Escrow
Terms.

(a)           The Deposit shall be
held in escrow by Escrow Agent in an interest bearing account until disbursed
as herein provided.  Any interest accrued
on the Deposit shall be paid to whichever party is entitled to the Deposit in
accordance with the provisions of this Agreement.  Seller and Purchaser agree that the Deposit
shall be non-refundable after the expiration of the Due Diligence Period unless
this Agreement is terminated pursuant to a provision which expressly states
that the Deposit shall be refunded to Purchaser.  Interest accrued on the Deposit shall be
credited to Purchaser at the Closing, if this transaction closes.  The Deposit shall be held and disbursed by Escrow
Agent in the following manner:

(i)            to Seller at the
Closing; or

(ii)           to Seller upon
receipt of written demand therefor, stating that either (x) this Agreement has
been terminated pursuant to a provision herein which states that Seller is
entitled to the Deposit upon termination, and certifying the basis for such
termination, or (y) Purchaser has defaulted in the performance of Purchaser’s
obligations under this Agreement and the facts and circumstances underlying
such default; provided, however, that Escrow Agent shall not honor such demand
until at least five (5) business days after it has delivered a copy of such
demand to Purchaser, nor thereafter if Escrow Agent shall have received written
notice of objection from Purchaser in accordance with the provisions of clause
(b) of this Section 3.3; or

(iii)          to Purchaser upon
receipt of written demand therefor, stating that either (x) this Agreement has
been terminated pursuant to a provision herein which states that Purchaser is
entitled to the Deposit upon termination, and certifying the basis for such
termination, or (y) Seller has defaulted in performance of Seller’s obligations
under this Agreement and the facts and circumstances underlying such default;
provided, however, that Escrow Agent shall not honor such demand until at least
five (5) business days after it has delivered a copy of such demand to Seller,
nor thereafter if Escrow Agent shall have received written notice of objection
from Seller in accordance with the provisions of clause (b) of this Section
3.3.

 5
 

(b)           Upon receipt of
written demand for the Deposit by Purchaser or Seller pursuant to clause (ii)
or (iii) of Section 3.3(a), Escrow Agent shall promptly send a copy
thereof to the other party.  The other
party shall have the right to object to the delivery of the Deposit by sending
written notice of such objection to Escrow Agent within five (5) business days
after the objecting party’s receipt of such notice from the Escrow Agent, but
not thereafter.  Such notice shall set
forth the basis for objecting to the delivery of the Deposit.  Upon receipt of such notice, Escrow Agent
shall promptly send a copy thereof to the party who made the written demand.

(c)           In
the event of any dispute between the parties regarding the Deposit, Escrow
Agent, at its option, may disregard all instructions received and either (i)
hold the Deposit until the dispute is mutually resolved and Escrow Agent is
advised of this fact in writing by both Seller and Purchaser, or Escrow Agent
is otherwise instructed by a final unappealable judgment of a court of
competent jurisdiction, or (ii) deposit the Deposit into a court of competent
jurisdiction (whereupon Escrow Agent shall be released and relieved of any and
all liability and obligations hereunder from and after the date of such
deposit).

(d)           In
the event Escrow Agent shall be uncertain as to its duties or rights hereunder
or shall receive conflicting instructions, claims or demands from the parties
hereto, or instructions which conflict with any of the provisions of this
Agreement, Escrow Agent shall be entitled (but not obligated) to refrain from
taking any action other than to keep safely the Deposit until Escrow Agent
shall be instructed otherwise in writing signed by both Seller and Purchaser,
or by final unappealable judgment of a court of competent jurisdiction.

(e)           Escrow
Agent may rely upon, and shall be protected in acting or refraining from acting
upon, any written notice, instruction or request furnished to it hereunder and
believed by it to be genuine and to have been signed or presented by the proper
party or parties, provided that any modification of this Agreement shall be
signed by Escrow Agent, Purchaser and Seller.

(f)            Seller
and Purchaser shall jointly and severally hold Escrow Agent harmless against
any loss, damage, liability or expense incurred by Escrow Agent not caused by
its willful misconduct or gross negligence, arising out of or in connection
with its entering into this Agreement and the carrying out of its duties
hereunder, including the reasonable costs and expenses of defending itself
against any claim of liability or participating in any legal proceeding.  Escrow Agent may consult with counsel of its
choice, and shall have full and complete authorization and protection for any
action taken or suffered by it hereunder in good faith and in accordance with
the opinion of such counsel.

(g)           Escrow
Agent may resign at will and be discharged from its duties or obligations
hereunder by giving notice in writing of such resignation specifying a date
when such resignation shall take effect; provided, however, that (i) prior to
such resignation a substitute escrow agent is approved in writing by Seller and
Purchaser, which approval shall not be unreasonably withheld or delayed, or
(ii) Escrow Agent shall deposit the Deposit with

 6
 

a court of competent jurisdiction.  After such resignation, Escrow Agent shall
have no further duties or liability hereunder, except for its willful
misconduct or gross negligence.

(h)           Purchaser
and Seller, together, shall have the right to terminate the appointment of
Escrow Agent hereunder by giving to it notice of such termination, specifying
the date upon which such termination shall take effect and designating a
replacement Escrow Agent, who shall sign a counterpart of this Agreement or an
amendment hereto.  Upon demand of such
successor Escrow Agent, the Deposit shall be turned over and delivered to such
successor Escrow Agent, who shall thereupon be bound by all of the provisions
hereof.

(i)            Seller
and Purchaser shall share equally the responsibility for reimbursement to
Escrow Agent of all out-of-pocket expenses, disbursements and advances incurred
or made by Escrow Agent in connection with the carrying out of its duties
hereunder, unless otherwise specified herein.

(j)            Escrow
Agent’s agreements and obligations hereunder shall terminate and Escrow Agent
shall be discharged from further duties and obligations hereunder upon final
payment of the Deposit in accordance with the terms of this Agreement.

3.4           Federal Tax Identification Numbers.  Purchaser represents that its federal tax
identification number is 22-3845887.  Purchaser’s tax identification number shall be
used for tax reporting purposes with respect to the account where the Deposit
is held.

ARTICLE
4

Termination Rights; Approvals; Contingencies.

4.1           Due Diligence.  Purchaser shall have the right, during the
Due Diligence Period, to inspect the Property and to investigate existing
zoning, the physical and environmental condition of the Property, the adequacy
of existing utilities and any other factors Purchaser deems relevant in
determining whether to purchase the Property. 
Within two (2) business days after the Effective Date, Seller shall make
available to Purchaser at the offices of Seller’s Counsel in Morristown, New
Jersey all documentation in possession of Seller’s Counsel relating to environmental
conditions at the Property (the “Environmental Documents”) and shall make
available to the Purchaser’s environmental and property condition consultants
at the Property a person in Seller’s employ knowledgeable about the Property’s
use by Seller, and Seller’s counsel shall deliver to Purchaser’s counsel a copy
of Seller’s current title policy and survey relating to the Property.  For purposes of conducting such inspections
and studies, Purchaser shall have access to the Property at all reasonable
times, subject to Section 4.2 below. 
If for any reason (including but not limited to Purchaser’s discovery
during the Due Diligence Period of additional areas of environmental concern
not previously identified by Philips Electronics North America Corporation (“PENAC”)
in the course of its investigation or remediation of the Property pursuant to
the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et al. (“ISRA”) or the
absence of documentation evidencing PENAC’S responsibility to remediate the
Property) or for no reason Purchaser is not satisfied with the results 

 7
 

of its investigations,
Purchaser may terminate this Agreement on notice to Seller and Escrow Agent
given within the Due Diligence Period. 
In the event of such termination, the Deposit, shall be returned to
Purchaser, whereupon, except as expressly provided in this Agreement, all
rights and obligations of the respective parties hereunder shall be null and
void.  If Purchaser does not deliver such
notice of termination pursuant to this Section 4.1 within the Due
Diligence Period, Purchaser shall conclusively be deemed to have waived its
right of termination under this Section 4.1.  Purchaser may, in its sole discretion, waive
the balance of the Due Diligence Period at any time prior to the end of the Due
Diligence Period by notifying Seller, in writing, in which instance the Due
Diligence Period will be deemed to have expired.

4.2           Right of Entry.  Seller shall permit Purchaser and its agents
and consultants access to the Property from time to time upon reasonable notice
to Seller for the purpose of undertaking surveys and engineering,
environmental, soils, wetlands and other similar tests and studies, provided
Purchaser promptly repairs any damage to the Property caused by such entry and
restores the Property to the condition that existed prior to such entry.  Purchaser shall hold and save Seller and the
Related Parties harmless from and against any and all loss, liability, cost,
damage, injury or expense arising out of or in any way related to the acts or
omissions of Purchaser, its agents, employees and consultants, relating to any
such entry.  Notwithstanding the
foregoing, Purchaser shall not have the right to conduct any soil sampling or
other intrusive testing without the prior consent of Seller, which Seller
consent Seller shall not unreasonably withhold, condition or delay.  Prior to any entry onto the Property
hereunder, Purchaser shall furnish to Seller evidence that Purchaser and
consultants entering the Property have procured comprehensive liability
insurance from an insurer authorized to do business in the State of New Jersey
which is reasonably acceptable to Seller protecting Seller from claims for
bodily injury or death in single limit amount of not less than $1,000,000,
naming Seller as an additional insured. 
The indemnity, repair and restoration obligations set forth in this Section
4.2 shall survive the Closing or termination of this Agreement

4.3           ISRA.  (a) 
Purchaser and Seller acknowledge that the Property is the subject of an
ongoing remediation being conducted by PENAC pursuant to a number of ISRA
triggers (collectively, “ISRA Case No. 88717”) and in accordance with an
Administrative Consent Order, dated August 4, 1988, as may have been amended
(the “ACO”) and that subject to Purchaser’s right to cancel during the Due
Diligence Period, Purchaser is willing to accept the Property in its present
environmental condition with no recourse toward Seller or its Related
Parties.  Purchaser and Seller further acknowledge
that the transaction being contemplated herein (the “Transaction”) will once
again give rise to the requirement to comply with ISRA.  Within five (5) days of execution of this
Agreement, Seller shall prepare and submit to the New Jersey Department of
Environmental Protection (“NJDEP”) an ISRA General Information Notice for the
Transaction and Seller shall promptly thereafter take all steps necessary to
apply to NJDEP for an ISRA Remediation In Progress Waiver allowing the
Transaction to be consummated without further ISRA compliance by Seller or
Purchaser.  In the event that NJDEP does
not approve the Remediation In Progress Waiver prior to the expiration of the
Due Diligence Period, either party can request an extension of the Closing Date
of up to 60 days for Seller to continue pursuing NJDEP approval of the
Remediation In Progress Waiver.  In the
event written approval of the Remediation In Progress Waiver is not obtained,
received by Seller and delivered to Purchaser by the end of the 60-day extension
period, then either Purchaser or Seller may terminate this Agreement, provided
however, if either party 

 8
 

elects not to terminate this
Agreement then that party shall obtain an ACO Amendment, post the Remediation
Funding Source if NJDEP requires one in order to permit the Closing to occur,
and take any other pre- or post-Closing steps required by NJDEP to allow the
Closing to occur.

(b)           In the event this Agreement is
terminated by either party pursuant to this Section 4.3, the Deposit
shall be refunded to Purchaser, whereupon, except as provided herein, this
Agreement and all rights and obligations of the parties hereunder shall be null
and void.

4.4           Post Closing Access.  Purchaser acknowledges that PENAC will need
access to the Property in order to complete ISRA Case No. 8871 and Purchaser
shall cooperate with PENAC and grant access to PENAC on terms set forth in the
Access Agreement attached hereto as Exhibit G or some other form thereof with
terms mutually agreeable to Purchaser and PENAC, provided however, that Closing
shall not be conditioned, delayed or otherwise affected by the failure of
Purchaser and PENAC to enter into an access agreement.

4.5           Confidentiality; Test Results.  (a) 
All information obtained by Purchaser or its representatives relating to
the Property or the transactions contemplated hereby shall be treated as
confidential information.  Purchaser
shall not disclose any information obtained by Purchaser, including, without
limitation, the results of environmental inspections or analysis, to any party
without obtaining Seller’s prior written consent, except that Purchaser may
disclose such information to its consultants, attorneys and prospective lenders
engaged in the review of same and may disclose the existence of this Agreement
to prospective purchasers and/or tenants; provided such consultants, attorneys,
prospective lenders, purchasers and tenants agree to the confidentiality
provisions herein.  Notwithstanding the
foregoing, Purchaser shall have the right to disclose confidential information
to third parties if such disclosure relates to an unreported discharge from an
underground storage tank or if such disclosure is required by an order of a
court of competent jurisdiction, provided that Purchaser delivers reasonable
advance notice thereof to Seller.

(b)           In the event this Agreement is
terminated for any reason, Purchaser shall deliver to Seller, within ten (10)
days after receipt of a written demand therefor from Seller, copies of all
reports, studies, data, surveys, title reports, concept plans, site plans and
specifications in Purchaser’s possession or under its control with respect to
the Property, unless same contain Purchaser’s proprietary or confidential
information in which case same shall not be provided to Seller, and, upon  Seller’s request, shall assign to Seller all
of Purchaser’s right, title and interest therein, without warranty as to title
or as to the accuracy or completeness thereof.

ARTICLE
5

Representations
and Warranties

5.1           Seller’s Representations and Warranties.  As an inducement to Purchaser to enter into
this Agreement, Seller represents and warrants to Purchaser that:

 9
 

(a)           Seller
is a limited liability company, duly organized and validly existing under the
laws of the State of Delaware, is qualified to transact business in the State
of New Jersey, has the power and authority to enter into this Agreement and to
consummate the transactions herein contemplated, and the execution and delivery
hereof and the performance by Seller of its obligations hereunder will not
violate or constitute an event of default under the terms or provisions of any
agreement, document or other instrument to which Seller is a party or by which
it or the Property are bound;

(b)           Except
for compliance with ISRA, the execution, delivery and performance of this
Agreement by Seller and the consummation of the transaction contemplated hereby
in the manner contemplated herein will not, to Seller’s Actual Knowledge,
violate any provision of any Legal Requirement to which Seller or the Property
is subject, or violate any judgment, order, writ, injunction or decree of any
court applicable to Seller or the Property;

(c)           This
Agreement is the legal, valid and binding obligation of Seller enforceable in
accordance with its terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally;

(d)           Subject
to compliance with ISRA, the execution, delivery and performance of this
Agreement and the documents to be executed and delivered by Seller at the Closing
pursuant to Section 7.2 do not require the consent or authorization of
any governmental or private party or body other than any approvals or consents
of Seller’s directors, members, managers, shareholders or partners which have
been obtained;

(e)           Except
as disclosed in the Environmental Documents and with the exception of ISRA Case
No. 88717, to the Actual Knowledge of Seller, there are no proceedings at law
or in equity before any court, grand jury, administrative agency or other
investigative body, or governmental department, commission, board, agency,
bureau or instrumentality of any kind affecting Seller or the Property that (i)
involve the validity or enforceability of this Agreement, (ii) enjoin or
prevent or threaten to enjoin or prevent the performance of Seller’s
obligations hereunder, or (iii) relate specifically to the Property or the
title thereto, and Seller has not been served with process in any such
proceeding;

(f)            Seller
is not a party to any contract of sale, option to purchase, right of first
refusal or first offer, lease or occupancy agreement in force or effect with
respect to the Property, or any part thereof, recorded or unrecorded;

(g)           Seller has not received notice from
any governmental authority that there are any violations of law, including
environmental laws, zoning laws and building codes, with respect to the
Property, or, except as disclosed in the 

 10
 

Environmental Documents and with the exception of ISRA Case No. 88717, that
there are any Hazardous Substances at the Property in excess of governmental
tolerances;

(h)           Seller has not received any notice of
any condemnation proceeding or other proceeding in the nature of eminent domain
with respect to the Property;

(i)            All sums payable by reason of any
labor or materials heretofore furnished to, or on behalf of, Seller with
respect to the Property have been, or in the ordinary course of business prior
to the Closing Date will be, paid, and Seller knows of no material dispute in
connection therewith;

(j)            To Seller’s Actual Knowledge,
neither the Lands nor the Improvements is subject to or has been granted any
abatement from real estate taxes during the period of Seller’s ownership;

(k)           Except as may be disclosed in the
Environmental Documents and with the
exception of ISRA Case No. 88717, Seller has not received any written notice of
violation from any governmental agency, entity, department or authority having
jurisdiction over the Property;

(l)            Don
Roberts and Luke Faulstick are the persons at Seller with the most actual
knowledge relating to the representations contained in this Section 5.1, and
there are no other persons now or recently affiliated with the Seller who have
or are likely to have knowledge related to the representations contained in
this Section 5.1 greater than Don Roberts and Luke Faulstick.

5.2           Material Changes in Representations and Warranties.  (a) 
Seller and Purchaser shall promptly inform the other of any material
change in any of Seller’s representations or warranties of which it has
knowledge.  If before the Closing Seller
acquires knowledge, or notice from Purchaser, of any condition which
constitutes a material change in any of the representations and warranties set
forth in Section 5.1, Seller shall have the right (but not the
obligation) to cure such condition before the Closing.  Seller shall notify Purchaser within ten (10)
days after Seller first acquires knowledge or receives notice from Purchaser of
the existence of such condition whether Seller will diligently pursue the cure
of such condition prior to the Closing Date, provided that Seller shall have
the right to extend the Closing Date from time to time, for no longer than
ninety (90) days in the aggregate, to enable Seller to complete such cure.

(b)           Subject to the provisions of clauses (a) and (c)
of this Section 5.2, provided such material change is not the result of
the willful conduct of Seller, Purchaser’s exclusive remedy in the event there
is a material change in the representations and warranties shall be the
termination of this Agreement.  If Purchaser
desires to terminate this Agreement due to a material change in any
representation or warranty, Purchaser shall notify Seller (i) within ten (10)
days after receipt of a 

 11
 

notice from Seller advising that Seller will not
cure such material change, or (ii) if Seller has previously notified Purchaser
that it intends to cure such material change, within ten (10) days after the
earlier to occur of (A) Seller’s notification to Purchaser that it is unable to
complete such cure, or (B) the expiration of the ninety (90) day period set
forth in Section 5.2(a) if Seller has failed to complete such cure
within such time period, whereupon, except as expressly provided herein, this
Agreement and all rights and obligations of the respective parties hereunder
shall be null and void.  If Purchaser
does not terminate this Agreement within the time period set forth above,
Purchaser shall be deemed to have accepted such condition.

(c)           In the event any of the representations and warranties of
Seller shall be determined to be untrue as a result of, directly or indirectly,
Purchaser’s due diligence investigation (or that of any of Purchaser’s agents,
employees or consultants), and/or the information learned as a result thereof,
then, if Purchaser does not terminate this Agreement pursuant to clause (b)
above, such change shall be incorporated and become part of the applicable
representation or warranty so as to make same a true statement, the parties
understanding that the Property is being sold “AS IS”.

5.3           Limitation on Seller’s Representations, Warranties,
Covenants and Agreements.  PURCHASER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
NEITHER SELLER, NOR ANY AGENT OR REPRESENTATIVE OF SELLER HAS MADE, AND SELLER
IS NOT LIABLE OR RESPONSIBLE FOR OR BOUND IN ANY MANNER BY, ANY EXPRESS OR
IMPLIED REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS, OBLIGATIONS,
GUARANTEES, STATEMENTS, INFORMATION OR INDUCEMENTS PERTAINING TO THE PROPERTY
OR ANY PART THEREOF, TITLE TO THE PROPERTY, THE PHYSICAL CONDITION THEREOF, THE
FITNESS AND QUALITY THEREOF, THE VALUE AND PROFITABILITY THEREOF, OR ANY OTHER
MATTER OR THING WHATSOEVER WITH RESPECT THERETO.  PURCHASER ACKNOWLEDGES, AGREES, REPRESENTS
AND WARRANTS THAT AS OF THE CLOSING DATE IT WILL HAVE HAD SUCH ACCESS TO THE
PROPERTY AND SUCH OTHER MATTERS AND TO INFORMATION AND DATA RELATING TO ALL OF
SAME AS PURCHASER HAS CONSIDERED NECESSARY, PRUDENT, APPROPRIATE AND/OR
DESIRABLE FOR THE PURPOSES OF THIS TRANSACTION AND, WITHOUT LIMITING THE
FOREGOING, THAT PURCHASER AND ITS AGENTS AND REPRESENTATIVES AS OF THE CLOSING
DATE WILL HAVE HAD THE OPPORTUNITY TO INDEPENDENTLY INSPECT, EXAMINE,
INVESTIGATE, ANALYZE AND APPRAISE ALL OF SAME. 
PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE PROVIDED IN
THIS AGREEMENT, PURCHASER IS PURCHASING THE PROPERTY, “AS IS” AT THE DATE
HEREOF, AND AT THE CLOSING DATE.

5.4           Covenant Not to Sue Seller.  Purchaser, by paying the Purchase Price on
the Closing Date, agrees that it will not commence any proceeding against
Seller, Seller’s affiliates or any  their
respective principals, officers, directors, employees or agents (collectively,
the “Related Parties”) for any claims of liability against Seller or any
of the Related Parties for or attributable to any condition of the Property,
including, without limitation, claims or causes of action under any federal,
state, county or local law, statute, judgment, order, regulation or
requirement, or any 

 12
 

common law, relating to
environmental contamination of or emanating from the Property.  The provisions of this Section 5.4
shall survive the Closing.

5.5           Survival of Seller’s Representations and Warranties.  The representations and warranties contained
in Section 5.1 are true, accurate and complete and not misleading in any
material respect as of the date hereof. 
Purchaser’s obligation to close title is conditioned upon such
representations and warranties being be true, accurate and complete and not
misleading in any material respect as of the Closing Date, subject to the provisions
of Section 5.2.  The
representations and warranties in Section 5.1 shall survive the Closing
hereunder for a period of six (6) months.

5.6           Purchaser’s Representations and Warranties.  As an inducement to Seller to enter into this
Agreement, Purchaser represents and warrants that:

(a)           Purchaser
is a duly organized and validly existing limited liability company under the
laws of the State of New Jersey, is qualified to transact business in the State
of New Jersey, and has the power and authority to enter into this Agreement and
to consummate the transactions herein contemplated, and the execution and
delivery hereof and the performance by Purchaser of its obligations hereunder
will not violate or constitute an event of default under the terms or provisions
of any agreement, document or other instrument to which Purchaser is a party or
by which it is bound;

(b)           the
execution, delivery and performance of this Agreement by Purchaser and the
consummation of the transactions contemplated hereby in the manner contemplated
herein will not violate any provisions of any Legal Requirement to which
Purchaser is subject, or violate any judgment, order, writ, injunction or
decree of any court applicable to Purchaser;

(c)           this
Agreement is the legal, valid and binding obligation of Purchaser enforceable
in accordance with its terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally;

(d)           no
consent, authorization, license, permit, registration or approval of, or
exemption or other action by any governmental or public body, commission or
authority is required in connection with the execution and delivery by
Purchaser of this Agreement; and

(e)           Purchaser
has available to it unrestricted funds to pay the Purchase Price of the
Property, and the Closing is not conditioned upon Purchaser obtaining mortgage
or other financing.

5.7           Survival of Purchaser’s Representations and Warranties.  The representations and warranties contained in
Section 5.6 are true, accurate and complete and not misleading in any
material respect as of the date hereof. 
Seller’s obligation to close title is conditioned upon such 

 13
 

representations and warranties being be true,
accurate and complete and not misleading in any material respect as of the
Closing Date.  The representations and
warranties in Section 5.6 shall survive the Closing hereunder for a
period of six (6) months.

5.8           Other Covenants and Agreements.

(a)           If
any governmental authority requires that certificates of occupancy,
certificates of continued occupancy, smoke detector certifications or other
inspection or occupancy certificates be obtained in connection with the
conveyance of the Property to Purchaser, Seller shall, at its cost, apply for and
obtain such documents and make any repairs, replacements, alterations and
changes to the Property required in connection therewith prior to Closing,
provided such cost does not exceed $5,000. 
If such cost exceeds $5,000, Seller may terminate this Agreement on
notice to Purchaser and Escrow Agent, unless Purchaser agrees, in writing, to
be responsible for all costs in excess of $5,000.  In the event of such termination, the
Deposit, shall be returned to Purchaser, whereupon, except as expressly
provided in this Agreement, all rights and obligations of the respective
parties hereunder shall be null and void. 
Notwithstanding the above, the foregoing does not include, and Seller
shall not be responsible to conduct any environmental remediation or restoration
or obtain any environmental permits or approvals except as may be required
pursuant to the terms and conditions of Article 4 of this Agreement.

(b)           Seller
will not enter into contracts or agreements related to the operation or
maintenance of the Property except in good faith and in the ordinary course of
business and which provide that same may be terminated without cost to
Purchaser on not more than thirty (30) days notice.

ARTICLE
6

Damage;
Condemnation

6.1           Risk of Loss. 
In the event of any fire or other casualty affecting the Property prior
to the Closing Date, Seller shall promptly notify Purchaser thereof, describing
the nature and extent thereof.  If such
casualty would cost at least ten percent (10%) of the Purchase Price to repair,
Purchaser may, at its election, at any time within fifteen (15) calendar days
after receipt of notice of such casualty, terminate this Agreement by notice to
Seller and Escrow Agent, whereupon the Deposit shall be refunded to Purchaser
and, except as provided herein, neither party shall have any further rights
against the other hereunder.  In the
event Purchaser does not terminate this Agreement by reason of any such
casualty within such fifteen (15) day period, or in the event that Purchaser
does not have the right to so terminate this Agreement, then and in that event,
the sale of the Property shall be consummated as herein provided and Seller
shall assign to Purchaser on the Closing Date all of Seller’s right, title and
interest in and to all insurance proceeds payable by reason of such casualty
and shall pay over to Purchaser all amounts theretofore received by Seller in
connection with such casualty, in each case, net of Seller’s costs reasonably
incurred in obtaining 

 14
 

such proceeds or restoring the Property.  Seller shall maintain its current insurance
policies with respect to the Property in effect until the Closing.

6.2           Condemnation. 
In the event of any Taking prior to the Closing Date, Seller shall
promptly notify Purchaser thereof, describing the nature and extent
thereof.  Purchaser may, at its election,
at any time within fifteen (15) calendar days after receipt of notice of such
condemnation, terminate this Agreement by notice to Seller and Escrow Agent,
whereupon the Deposit shall be refunded to Purchaser and, except as provided
herein, neither party shall have any further rights against the other
hereunder.  In the event Purchaser does
not terminate this Agreement by reason of any such Taking within such fifteen
(15) day period, then and in that event, the sale of the Property shall be
consummated as herein provided and Seller shall assign to Purchaser on the
Closing Date all of Seller’s right, title and interest in and to all awards
payable by reason of such Taking and shall pay over to Purchaser all amounts theretofore
received by Seller in connection with such Taking, in each case, net of Seller’s
costs reasonably incurred in obtaining such award or restoring the Property.

ARTICLE
7

Closing
Date; Delivery of Documents

7.1           Closing Date. 
The closing of the transaction
contemplated hereby (“Closing”) shall be conducted on the first business
day occurring fifteen (15) days after the expiration of the Due Diligence
Period (the “Closing Date”), which Closing Date may be extended by
either party for up to sixty (60) days pursuant to Section 4.3
hereof.  The Closing shall be conducted
by mail at the offices of the Title Insurer, or at such place as the parties
may otherwise agree.  Upon the Closing,
possession of the Property shall be delivered to Purchaser, and Purchaser shall
thence have the right to enjoy the rents, issues and profits therefrom.

7.2           Deliveries by Seller.  On the Closing Date, Seller shall deliver to
Purchaser the following:

(a)           a bargain and sale deed with covenants
against grantor’s acts for the Lands and Improvements, which shall be free and
clear of tenancies or tenancy rights of third parties in possession, in the
form of Exhibit C annexed hereto, duly executed
and acknowledged by the Seller;

(b)           a duly executed assignment and assumption of
Intangible Property in the form annexed hereto as 

Exhibit D;

(c)           a duly executed affidavit of title in
the form annexed hereto as Exhibit E;

(d)           a duly executed FIRPTA Affidavit of
Seller in the form annexed hereto as Exhibit F;

 15
 

(e)           evidence reasonably satisfactory to
the Title Insurer that all consents and authorizations that are necessary for
Seller to consummate this transaction have been obtained;

(f)            a duly executed affidavit of Seller’s
residency status in form required for recording the deed;

(g)           a title closing statement showing all
prorations to the Purchase Price; and

(h)           the
tax bills for the Property, if available; and

(i)            the
Remediation in Progress Waiver approval for the Transaction, unless waived
pursuant to section 4.3(a); and

(j)            such
other documents and instruments as Purchaser or Title Insurer may reasonably
request to perfect title to any of the Property in Purchaser, provided Seller
shall not be obligated to execute any document which increases its liability
hereunder;

7.3           Deliveries by Purchaser.  On the Closing Date, Purchaser shall pay to
Seller the Purchase Price (less the Deposit which shall be paid to Seller by
the Escrow Agent, and plus or minus any net closing adjustments provided
herein), and shall deliver to Seller the following documents:

(a)           a duly executed assignment and
assumption of Intangible Property in the form annexed hereto as

Exhibit D;

(b)           evidence reasonably satisfactory to
the Title Insurer that all necessary consents and authorizations for Purchaser
to consummate this transaction have been obtained;

(c)           a title closing statement showing all
prorations to the Purchase Price; and

(d)           such
other documents and instruments as Seller or Title Insurer may reasonably
request in order to carry out the purposes of this Agreement,  provided Purchaser shall not be obligated to
execute any document which increases its liability hereunder.

ARTICLE
8

Closing
Adjustments

8.1           Adjustment Time.  All apportionments and adjustments shall be
made as of 11:59 p.m. on the day preceding the Closing Date.

8.2           Description of Items to be
Adjusted.  The following
apportionments and adjustments shall be made:

 16
 

(a)           real estate taxes assessed against the Lands and
Improvements based upon the calendar year assessed shall be prorated;

(b)           water and sewer
charges, if any, relating to the Property shall be prorated;

(c)           other income and expense from the Property of every type
and nature shall be prorated.  If any of
the foregoing cannot be apportioned at the Closing Date because of the
unavailability of the amounts which are to be apportioned, such items shall be
apportioned as soon as practicable after the Closing Date.  Seller shall obtain final meter readings for
any utilities as of the Closing Date and Seller shall be responsible for same;

(d)           Seller shall pay any special assessments assessed against
the Lands and Improvements that are due and payable prior to the Closing
Date.  All other special assessments
shall be paid or assumed by Purchaser;

(e)           Seller shall pay the real estate transfer tax.  Any mansion tax (the 1% surcharge payable by
upon the purchase of property for $1,000,000 or more) shall be paid by
Purchaser, if applicable;

(f)            any fees for recording the deed and any title charges
shall be paid by Purchaser;

(g)           any fees for the recording any discharges or cancellations
of any liens or encumbrances which Seller is obligated to remove on the Closing
Date shall be deducted from the Purchase Price and paid by Purchaser upon the
recordation of such instrument;

(h)           Purchaser shall pay any title insurance charges, including
search and premium fees;

(i)            any escrow fees shall be paid by Purchaser.

8.3           Final Adjustment of Real Estate
Taxes.  If on the Closing Date final
real estate tax bills for the calendar year in which the Closing occurs are not
available and the real estate tax adjustment is based upon preliminary tax
bills, a final tax adjustment shall be made within ten (10) days after the
final tax bill is issued, and Seller or Purchaser, as the case may be, shall
make an appropriate payment to the other based upon such re-adjustment.  No such adjustments shall be made after
December 1, 2007.

8.4           Errors in Closing Adjustments.  If after the Closing, the parties discover
any errors in adjustments and apportionments, same shall be corrected as soon
after their discovery as possible. The provisions of Sections 8.2, 8.3
and 8.4 shall survive the Closing, except that no adjustments shall be
made later than December 1, 2007 unless prior to such date the party seeking
the adjustment shall have delivered a written notice to the other specifying
the nature and basis for such claim.

 17
 

ARTICLE
9

Default;
Remedies

9.1           Default
by Purchaser.  Seller shall have the
right to declare Purchaser to be in default under this Agreement prior to the
Closing hereunder, by delivering written notice thereof to Purchaser, in the
event of: (i) a default by Purchaser under this Agreement (other than a default
described in clause (ii) or (iii) below) which remains uncured for ten (10)
days after Seller’s notice to Purchaser thereof, unless such default cannot be
cured by the payment of money and cannot with due diligence be wholly cured
within such ten (10) day period, in which case Purchaser shall have such longer
period as shall be necessary to cure such default, so long as Purchaser
proceeds promptly to cure such default within such ten (10) day period,
prosecutes such cure to completion with due diligence within fifteen (15) days
and advises Seller of the actions which Purchaser is taking and the progress
being made, (ii) a material breach of any representation or warranty by
Purchaser expressly set forth in this Agreement, or (iii) the failure of
Purchaser to close on a closing date for which time was of the essence.

9.2           Default
by Seller.  Purchaser shall have the
right to declare Seller to be in default under this Agreement prior to the
Closing hereunder, by delivering written notice thereof to Seller, in the event
of: (i) a default by Seller under this Agreement (other than a default
described in clause (ii) or (iii) below) which remains uncured for ten (10)
days after Purchaser’s notice to Seller thereof, unless such default cannot be
cured by the payment of money and cannot with due diligence be wholly cured
within such ten (10) day period, in which case Seller shall have such longer
period as shall be necessary to cure such default, so long as Seller proceeds
promptly to cure such default within such ten (10) day period, prosecutes such
cure to completion with due diligence within fifteen (15) days and advises
Purchaser of the actions which Seller is taking and the progress being made,
(ii) a material breach of any representation or warranty by Seller expressly
set forth in this Agreement, subject to the provisions of Section 5.2
hereof, or (iii) the failure of Seller to close on a closing date for which
time was of the essence.

9.3           Remedies.

(a)           Of
Seller.  If Seller fulfills its
obligations hereunder but Purchaser defaults under this Agreement beyond any
applicable cure period as provided in Section 9.1, Seller shall, as its
sole and exclusive remedy, have the right to terminate this Agreement and
receive the Deposit, and such payment shall constitute and be liquidated and
agreed damages, whereupon the parties hereto shall be relieved of any further
liability or obligation to each other, it being expressly understood that the
receipt by Seller of such monies shall be the sole and exclusive right and
remedy of Seller, and constitutes a fair and reasonable amount for the damage
sustained by Seller by reason of Purchaser’s breach of this Agreement. Seller
hereby waives and releases any right to seek specific performance against
Purchaser; provided that the foregoing limitation on Seller’s remedies shall
not, in any way, be deemed to limit Seller’s right to indemnification from
Purchaser pursuant to Section 4.2 hereof.

 18
 

(b)           Of Purchaser.  If Purchaser fulfills its obligations
hereunder, but Seller defaults under this Agreement beyond any applicable cure
period as provided in Section 9.2, Purchaser shall be entitled, as its
sole and exclusive remedies, either (i) to specific performance or (ii) to
terminate this Agreement and receive the Deposit.  In addition, only in the event that Purchaser
elects to terminate this Agreement, Seller shall be liable to Purchaser for
Purchaser’s transaction costs up to a maximum amount of $75,000 incurred in
connection with this Agreement and the transaction contemplated hereby.  Except as provided otherwise, Seller shall
not be liable to Purchaser for any damages, whether such damages are direct or
consequential.

9.4           Limitation on Purchaser’s Remedies After Closing.  Notwithstanding any provision of this
Agreement to the contrary or any provision of law or equity, if the Closing
occurs, Purchaser shall have no recourse, claim, remedy or right against Seller,
at law or in equity, to assert or maintain any action for damages, direct,
consequential or otherwise, or any other remedy available at law or in equity,
or to rescind this Agreement, as a result of any of the representations or
warranties of Seller being untrue, inaccurate or misleading if Purchaser knew
or is deemed to know that such representation or warranty was untrue,
inaccurate or misleading at the time of the Closing.  Purchaser shall conclusively be deemed to
have known that such representation or warranty was untrue, inaccurate or
misleading if Purchaser or its directors, officers or employees, had actual
knowledge or if this Agreement, any Exhibit hereto, any document furnished to
Purchaser by Seller, or any third party, or any studies, tests, analysis,
investigations or reports prepared by or for Purchaser, its employees, agents,
attorneys, accountants, investors or other representatives contains information
which is inconsistent with a representation or warranty or if such information
reasonably would be discernable from a review of such information.  In addition, the representations and
warranties of Seller are personal to Purchaser and may not be assigned to or
enforced by any party other than Purchaser, except for an Affiliated Entity as
defined in Section 10.2 below.

9.5           Limitation on Seller’s Damage After Closing.
Subject to Section 9.4,  
Purchaser agrees that, after the Closing, Seller shall be liable only
for direct, but not consequential or punitive, damages resulting from a breach
of any provision of this Agreement that survives the Closing; provided however,
that (a) the total liability of Seller for all breaches shall not, in the
aggregate exceed $200,000.00 and (b) the covenants, representations and
warranties are personal to Purchaser and may not be assigned to or enforced by
any other party, except for an Affiliated Entity as defined in Section 10.2
below..  Purchaser further agrees that no
claim may or shall be made for any alleged breach under or relating to this
Agreement unless the amount of such claims exceeds, individually or in the
aggregate, the sum of $20,000 (at which point, subject to the above provisions,
Seller shall be liable for all such damages caused thereby relating back to the
first dollar of loss).

 19
 

ARTICLE
10

Miscellaneous

10.1         Brokerage Commission and Finder’s Fee.  The parties agree that they have dealt with
each other and not through any real estate broker, investment banker, person,
firm or entity who would, by reason of such dealings be able to claim a real estate
brokerage, business opportunity brokerage or finder’s fee as the procuring
cause of this transaction, except the Seller’s Broker and the Purchaser’s
Broker.  Each of the parties agrees to
indemnify the other and hold the other harmless of and from any and all loss,
cost, damage, injury or expense arising out of, or in any way related to,
assertions, by any other person, firm or entity, of a claim to real estate
brokerage, business opportunity brokerage or finder’s fee based on alleged
contacts between the claiming party and the indemnifying party which have
resulted in allegedly providing a broker or finder with the right to claim such
commission or finder’s fee.  Seller
agrees to pay the Seller’s Broker a commission if, as and when this transaction
actually closes pursuant to a separate agreement.  Purchaser agrees to pay the Purchaser’s
Broker a commission if, as and when this transaction actually closes pursuant
to a separate agreement.  The provisions
of this Section 10.1 shall survive the Closing.

10.2         Assignment. 
Purchaser shall not assign this Agreement or any rights hereunder
without the prior written consent of Seller, which consent Seller may grant or
withhold in its absolute discretion.  Notwithstanding
the foregoing, such consent shall not be required if Purchaser assigns this
Agreement to an entity controlled by Purchaser or to an entity in which
Purchaser or Purchaser’s affiliates own more than fifty percent (50%) of the
stock or partnership, joint venture, membership or other unincorporated
association interests in such entity (“Affiliated Entity”).  No assignment permitted hereunder shall relieve
Purchaser from any liability under this Agreement.

10.3         Notices.  Any report, demand, notice or other
communication required or permitted to be given hereunder shall be in writing,
and shall be delivered personally, by a recognized overnight national carrier
service (such as Federal Express) for next Business Day delivery, by express
mail, or by certified or registered mail, return receipt requested, first-class
postage prepaid to the parties at the addresses set forth below (or to such
other addresses as the parties may specify by due notice to the other):

To Seller:

Aircast, LLC

c/o
DJO Incorporated

1430
Decision Street

Vista,
California 92081-8553

Attention:  Don
Roberts

 20
 

copy
to:

Riker, Danzig, Scherer, Hyland
& Perretti, LLP

Headquarters
Plaza

One
Speedwell Avenue, P.O. Box 1981

Morristown,
NJ 07962-1981

Attention:  Nicholas Racioppi, Jr., Esq.

To
Purchaser:

The Hampshire Companies

10 DeHart Street

Morristown, NJ  07960

Attention:  Mark S. Rosen

copy to:

Pepper Hamilton LLP

3000 Two Logan Square

18th and Arch Streets

Philadelphia, PA  19103

Attention:  Matthew J. Swett, Esq.

Any notice delivered to a party’s designated
address by (a) personal delivery, (b) recognized overnight national courier
service, or (c) registered or certified mail, return receipt requested, shall
be deemed to have been received by such party at the time the notice is
delivered to such party’s designated address. 
Confirmation by the courier delivering any notice given pursuant to this
Section 10.3 shall be conclusive evidence of receipt of such
notice.  Each party hereby agrees that it
will not refuse or reject delivery of any notice given hereunder, that it will
acknowledge, in writing, receipt of the same upon request by any other party
and that any notice rejected or refused by it shall be deemed for all purposes
of this Agreement to have been received by the rejecting party on the date so
refused or rejected, as conclusively established by the records of the U.S.
Postal Service or the courier service. 
Any notice given by an attorney or a party shall be effective for all
purposes.

10.4         Attorneys’ Fees. 
In the event any action or proceeding is commenced to obtain a declaration
of rights hereunder, to enforce any provision hereof, or to seek rescission of
this Agreement for default contemplated herein, whether legal or equitable, the
prevailing party in such action shall be entitled to recover its reasonable
attorneys’ fees in addition to all other relief to which it may be entitled
therein.  All indemnities provided for
herein shall include, without limitation, the obligation to pay costs of
defense in the form of court costs and reasonable attorneys’ and paralegal fees
and disbursements.

10.5         Successors and Assigns.  Except as otherwise expressly provided in
this Agreement, the terms, covenants, representations and conditions herein
contained shall be binding upon and

 21
 

inure to the benefit of the successors, including
but not limited to DJO, LLC in the event of a merger with Seller, and permitted
assigns of the parties hereto.

10.6         Recordation. 
This Agreement shall not be recorded and any recording shall be deemed a
material default under this Agreement.

10.7         Governing Law.  This Agreement shall be governed by, construed
and enforced in accordance with the laws of the State of New Jersey.

10.8         Incorporation of Prior Agreements.  This Agreement contains the entire
understanding of the parties hereto with respect to the subject matter hereof,
and no prior or other written or oral agreement or undertaking pertaining to
any such matter shall be effective for any purpose.

10.9         Modification of Agreement.  This Agreement may not be amended or
modified, nor may any obligation hereunder be waived orally, and no such
amendment, modification or waiver shall be effective for any purpose unless it
is in writing and signed by the party against whom enforcement thereof is
sought.

10.10       No Personal Liability. 
No officer, director, partner, shareholder, member, manager, agent or
employee of Seller or Purchaser shall be personally liable for any obligations
of Seller or Purchaser hereunder, and no such party shall be named as a party
in any suit alleging a default or breach of this Agreement.  Without limiting the generality of the
foregoing, the individuals executing this Agreement on behalf of Seller and
Purchaser, and the persons listed in Section 1.1 hereof to whose “Actual
Knowledge” any representations are made hereunder, shall not be personally
liable for any obligation hereunder, and shall not be named as a party in any
lawsuit brought to enforce any provision of this Agreement.

10.11       Invalidity.  If
any provision hereof shall be declared invalid by any court or in any
administrative proceedings, then the provisions of this Agreement shall be
construed in such manner so as to preserve the validity hereof and the
substance of the transaction herein contemplated to the extent possible.  The captions and paragraph headings are
provided for purposes of convenience of reference only and are not intended to
limit, define the scope of, or aid in interpretation of any of the provisions
hereof.

10.12       Counterparts; Fax Signatures.  This Agreement may be executed and delivered
in several counterparts, each of which, when so executed and delivered, shall
constitute an original, fully enforceable counterpart for all purposes.  Counterparts of this Agreement may be
delivered by facsimile, and the delivery of such facsimile counterparts shall
be deemed to be fully binding on the parties.

10.13       Like-Kind Exchanges. 
Seller and Purchaser agree that either party may elect to structure the
purchase of the Property within the meaning of Section 1031 of the Internal
Revenue Code by assigning its rights, but not its obligations, hereunder to
qualified intermediary as provided in Income Tax Regulations Section
1.103(k)-1(g)(4) on or before the Closing Date, and the other 

 22
 

party hereby agrees to cooperate therewith,
provided that (a) the other party will not be required to incur any costs as a
result of such like-kind exchange, (b) the Closing Date shall not be adjourned
by reason thereof and such like kind exchange shall not delay consummation of
this transaction, (c) the other party will incur no expense, liability obligation,
in connection with said structuring, other than acknowledging and consenting to
exchanging party’s assignment in connection with such exchange, (d) the other
party shall have no obligation to take title to any real property in connection
with such exchange, and (e) the other party shall make no representation or
warranty in connection with, and shall have no responsibility for, compliance
by such exchange with the Internal Revenue Code or any regulations thereunder.

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date set
forth above.

	
  

  	
  AIRCAST,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ VICKIE L. CAPPS

  	
   

  
	
   

  	
   

  	
  Name: Vickie L. Capps

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HAMPSHIRE GLOBAL PARTNERS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARK S. ROSEN

  	
   

  
	
   

  	
   

  	
  Name: Mark S. Rosen

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  
	
   

  	
  ACCEPTANCE
  BY ESCROW AGENT

  
									

 

Escrow
Agent agrees to act as the Escrow Agent hereunder and to hold and disburse the
Deposit in the manner provided in Section 3.3 hereof.

	
  

  	
  EDDINGTON TITLE AGENCY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 23

EXHIBIT A

THE LANDS

EXHIBIT B

TITLE EXCEPTIONS

1.                                       Lien for real estate
taxes not yet due and payable.

2.                                       All Legal Requirements,
and any site plan, subdivision, variance and other governmental approvals
relating to the Property.

3.                                       Those matters set forth
in Schedule B, items 2, 3, 4, 5, 6, and 7 of Owner’s Policy of Title Insurance
No. 27-31-92-92221 issued by Fidelity National Title Insurance Company, dated
December 27, 2004.

4.                                       Such state of facts as
would be disclosed by an accurate survey of the Lands and Improvements.

EXHIBIT C

DEED

	
  Record and Return to:

  	
  Prepared by:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nicholas Racioppi, Jr., Esq

  

 

DEED

This
Deed is made on                    ,
2007, effective as of                   ,
2007

BETWEEN
AIRCAST, LLC, formerly
known as AI Asset Acquisition Company LLC, a
Delaware limited liability company, 
having an address c/o DJO Incorporated,
1430 Decision Street, Vista, California 92081-8553,

referred to as the Grantor.

[                                                                           ], a [                                                     ],  having an address at [                                                                   ],

referred to as the Grantee.

The word “Grantee” shall mean all
Grantees listed above.

Transfer of Ownership.  The Grantor grants and conveys (transfers
ownership of) the property described below to the Grantee free and clear of any
tenancies or tenancy rights of third parties in possession.  This transfer is made for the sum of Three Million Seven Hundred and Fifty Thousand
and 00/100 Dollars ($3,750,000.00).

The Grantor acknowledges receipt
of this money.

Tax Map Reference.  (N.J.S.A. 46:15-1.1)  Municipality of Borough of New Providence, Block 220, Lot 26.  Account
No.                         .

	
  o

  	
  No property tax identification number is available
  on the date of this Deed.

  
	
   

  	
  (Check box if applicable.)

  

 

Property.  The property consists of the land and all the
buildings and structures on the land in the Borough of New Providence, County
of Union and State of New Jersey.  The
legal description is:

See description on Schedule A
attached hereto and made a part hereof.

Promises by Grantor.  The Grantor promises that the Grantor has
done no act to encumber the property, subject to easements and restrictions of
record and such state of facts as an accurate survey of the property would
reveal.  This promise is called a “covenant
as to grantor’s acts” (N.J.S.A. 46:4-6). 
This promise means that the Grantor has not allowed anyone else to
obtain any legal rights which affect the property (such as by making a mortgage
or allowing a judgment to be entered against the Grantor).

Signatures.  This Deed is signed and attested to by the
Grantor’s proper corporate officers as of the date at the top of the first
page.

	
  

  	
  AIRCAST, LLC, formerly known as

  
	
   

  	
  AI Asset Acquisition Company LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 2
 

 

	
  STATE OF

  	
  :

  
	
   

  	
  :

  	
  SS.

  
	
  COUNTY OF

  	
  :

  

 

Be it
remembered that on                        ,
2007,                        
personally appeared before me, and this
person acknowledged under oath, to my satisfaction that:

(a)                                  this person is the                         
of Aircast, LLC, formerly known as AI Asset Acquisition Company LLC, the
Grantor named in the attached document;

(b)                                 this person signed and
delivered the attached document on behalf of such Grantor, with the full
authority to do so by virtue of all requisite corporate authority;

(c)                                  this document was signed
and made by the Grantor as its duly authorized and voluntary act and deed; and

(d)                                 the full and actual
consideration paid, or to be paid for the within instrument, as such
consideration is defined in P.L. 1968, c. 49, Sec. 1(c) is $3,750,000.

               

	
  

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 3

EXHIBIT D

ASSIGNMENT AND ASSUMPTION OF
INTANGIBLE PROPERTY

THIS ASSIGNMENT AND ASSUMPTION
AGREEMENT (this “Assignment”), made as of this         
day of [                   ],
2007, between AIRCAST, LLC, a Delaware limited liability company (“Seller”),
and [                          ],
a [                     ]  (“Purchaser”).

W I T N E S S E T H:

WHEREAS, by Agreement of Sale
(the “Agreement”) dated as of [      ]     ,
2007, between Seller and Purchaser, Seller agreed to sell to Purchaser Seller’s
interest in and to certain real property and the buildings and other
improvements thereon, described on Exhibit A annexed hereto (the “Property”);
and

WHEREAS, the Agreement
provides, inter  alia, that on the Closing Date Seller shall
assign to Purchaser all right, title and interest of Assignor, if and to the
extent assignable, in and to licenses, permits, plans, specifications,
operating manuals, guarantees and warranties relating to the Property, but
excluding any of the foregoing relating to the business conducted by Seller or
its affiliates within the Property (the “Intangible Property”).

NOW, THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the
parties hereto hereby agree as follows:

1.             Assignment. 
Seller hereby assigns, sets over and transfers to Purchaser all of its
right, title and interest in and to the Intangible Property, to the extent
assignable, without representation, warranty or covenant of any kind.

2.             Assumption. 
Purchaser hereby assumes the obligations of Seller relating to the
Intangible Property arising or accruing from and after the date hereof.

3.             Miscellaneous. 
This Assignment and the obligations of the parties hereunder shall
survive the Closing of the transactions referred to in the Agreement, shall be
binding upon and inure to the benefit of the parties hereto, their respective
successors and assigns, shall be governed by and construed in accordance with
the laws of the State of New Jersey, and may not be modified or amended in any
manner other than by a written agreement signed by the party to be charged
therewith.

IN WITNESS WHEREOF, the
parties hereto have duly executed this Assignment as of the day and year first
above written.

 

	
   

  

  	
  AIRCAST,
  LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [

  	
  ]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 2

EXHIBIT E

AFFIDAVIT OF TITLE

	
  STATE OF

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF

  	
  )

  

 

[                                                   ]
(hereinafter “I”) says under oath:

1.             Title.  I am the [                   ]
of AIRCAST, LLC, a Delaware limited liability company (the “Company”).  I am fully familiar with the business of the
Company. I am a citizen of the United States and at least eighteen (18) years
old.  The statements contained in this
Affidavit of Title are true to the best of my knowledge, information and
belief.

2.             Authority.  The Company is the only owner of the property
known and designated as  Block 220, Lot
26 on the Borough of New Providence, Union County, New Jersey Tax Map (this “Property”).
The Property is today being conveyed by the Company to [                   ]
(“Purchaser”).  This action, and the
making of this Affidavit of Title, have been duly authorized by the Company by
the written consent of those partners whose consent is required.  The Company is a duly organized and existing
limited liability company of the State of Delaware authorized to do business in
the State of New Jersey. The Company has not been dissolved.  The Company is not restrained from doing
business nor has any legal action been taken for that purpose.  The Company has not used any other name
except AI Asset Acquisition Company LLC.

3.             Ownership
and Possession.  The Company has sole
possession of the Property.  There are no
tenants or other occupants on the Property. 
The Company has owned the Property since December 27, 2004.  Since then no one has questioned its
ownership or right to possession.  Except
for its agreement with the Purchaser, it has not signed any contracts to sell
the Property to any third party which remain in full force and effect, nor has
it given anyone else any rights concerning the purchase or lease of the
Property which remain in full force and effect.

4.             Encumbrances.  The Company is not aware that anyone has
filed or intends to file a lien claim relating to the Property.  No construction work has been performed on
the Property for at least the past four (4) months.  To the knowledge of the undersigned, there
are no judgments against the Company, and those judgments shown on the attached
judgment search, if any, are against entities with similar names to the
Company.  No bankruptcy or insolvency
proceedings have been started by or to the knowledge of the undersigned,
against the Company, nor has the Company ever been declared bankrupt.

5.             Exceptions.  The only exceptions to the statements
contained in this Affidavit of Title are as follows:

(i)            Any matters disclosed by that certain survey of the
Property entitled, “                                    ”,
prepared by                   ,
and dated                           ;
and

(ii)
          Any matters shown on schedule
B-2 of that certain Commercial Commitment for Title Insurance No.                    
issued by                       
dated                
and revised as of the date hereof.

6.             Reliance.  The Partnership makes this Affidavit of Title
in order to induce the Purchaser to accept a deed to the Property.  It is aware that the Purchaser relies upon
the statements made in this Affidavit of title and their truthfulness.

	
  Sworn and subscribed

  	
  AIRCAST, LLC

  
	
  before me this

  	
   

  
	
  day of                             ,
  2007

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
  Notary Public

  	
   

  
						

 

 2

EXHIBIT F

FIRPTA AFFIDAVIT

Section 1445 of the Internal
Revenue Code provides that a transferee of a United States real property
interest must withhold tax if the transferor is a foreign person.  To inform [                                      ]
(“Transferee”) that withholding of tax is not required upon the disposition of
a United States real property interest by AIRCAST, LLC (“Transferor”), I hereby
certify the following:

1.             Transferor
is not a “foreign person”, as such term is defined in the Internal Revenue Code
and Income Tax Regulations.

2.             Transferor’s
tax identification number is                                    .

3.             Transferor’s
address is c/o DJO Incorporated, 2985 Decision Street, Vista, California
92081-8553.

4.             Transferor is not a
disregarded entity as defined in Section 1.1445(b)(2)(iii) of the Income Tax
Regulations issued pursuant to the IRC.

Transferor 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.

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.

Date: 
[          ], 2007

	
  

  	
  AIRCAST, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

EXHIBIT G

ACCESS AGREEMENT

See Attached

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]