Document:

exv10w1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

          THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of
[___], 2010 between CALGON CARBON CORPORATION, a Delaware corporation (the
“Company”), and [name] (“Indemnitee”).

     WITNESSETH THAT:

     A. Indemnitee currently performs or will perform valuable services to the Company in his or
her capacity as a director and/or officer of the Company.

     B. The Company’s By-laws authorize the indemnification of directors, officers, employees and
other agents of the Company.

     C. The Company’s By-laws and the Delaware General Corporation Law (the “DGCL”) permit
contracts between the Company and its directors, officers and other agents with respect to the
indemnification of such persons.

     D. The Company desires to attract and retain the services of highly qualified individuals,
such as Indemnitee, to serve as officers and directors of the Company and to indemnify its officers
and directors so as to provide them with the maximum protection permitted by law.

     E. This Agreement is a supplement to and in furtherance of the By-laws of the Company and any
resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder.

     F. Indemnitee does not regard the protection available under the Company’s By-laws and
insurance as adequate in the present circumstances, and may not be willing to serve as an officer
or director without adequate protection, and the Company desires Indemnitee to serve in such
capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for
or on behalf of the Company on the condition that he or she be so indemnified as set forth herein.

     NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve as an officer and/or
director after the date hereof, and intending to be legally bound hereby, the parties hereto agree
as follows:

1. Definitions.

     (a) A “Change in Control” shall be deemed to occur upon the earliest to occur
after the date of this Agreement of any of the following events:

          (i) the acquisition by any individual, entity or group (a “Person”) (within the
meaning of Section 13(d) (3) or 14(d) (2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 30% or more of either (A) the then outstanding shares of common stock of
the Company or (B) the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors (in both cases,
“Voting Stock”); provided, however, that for purposes of this Section 1(a)(i), the
following acquisitions will not constitute a Change in Control: (A) any issuance of Voting Stock of
the Company directly from the Company that is approved by the Incumbent Board (as defined in

 

 

Section 1(a)(ii), below), (B) any acquisition by the Company of Voting Stock of the Company, (C)
any acquisition of Voting Stock of the Company by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary, (D) any acquisition of Voting Stock of
the Company by an underwriter holding securities of the Company in connection with a public
offering thereof, or (E) any acquisition of Voting Stock of the Company by any Person pursuant to a
Business Combination that complies with clauses (A), (B) and (C) of Section 1(a)(iii) below; or

          (ii) individuals who constitute the Board as of the effective date of this Agreement
(the “Incumbent Board,” as modified by this Section 1(a)(ii)), cease for any reason to
constitute at least a majority of the Board; provided, however, that any individual becoming a
Director subsequent to such date whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least two-thirds of the Directors then comprising the
Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in
which such person is named as a nominee for director, without objection to such nomination) will be
deemed to have then been a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of Directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board; or

          (iii) consummation of a reorganization, merger, statutory share exchange or
consolidation or similar transaction involving the Company or a direct or indirect wholly owned
subsidiary thereof, a sale or other disposition (whether by sale, taxable or nontaxable exchange,
formation of a joint venture or otherwise) of all or substantially all of the assets of the
Company, or the acquisition of assets or stock of another entity by the Company or any of its
subsidiaries (each, a “Business Combination”), unless, in each case, immediately following
such Business Combination, (A) all or substantially all of the individuals and entities who were
the beneficial owners of Voting Stock of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the combined voting power of the then
outstanding shares of Voting Stock of the entity resulting from such Business Combination or any
direct or indirect parent corporation thereof (including, without limitation, an entity which as a
result of such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries), (B) no Person other than the Company
beneficially owns 30% or more of the combined voting power of the then outstanding shares of Voting
Stock of the entity resulting from such Business Combination or any direct or indirect parent
corporation thereof (disregarding all “acquisitions” described in subsections (A) — (C) of Section
1 (a) (i)), and (C) at least two thirds of the members of the Board of Directors of the entity
resulting from such Business Combination or any direct or indirect parent corporation thereof were
members of the Incumbent Board at the time of the execution of the initial agreement or of the
action of the Board providing for such Business Combination; or

          (iv) approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company, except pursuant to a Business Combination that complies with clauses
(A), (B) and (C) of Section 1(a)(iii).

          (v) Other Events. Any other event of a nature that would be required to be reported
in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on
any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended,
whether or not the Company is then subject to such reporting requirement.

          (vi) “Corporate Status” describes the status of a person who is or was a
director, trustee, general partner, managing member, joint venturer, officer, employee, agent or
fiduciary of the Company.

 - 2 - 

 

     (b) “Disinterested Director” means a director of the Company who is not and was
not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

     (c) “Expenses” include all reasonable attorneys’ fees, retainers, court
costs, transcript costs, fees and costs of experts, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in,
or otherwise participating in, a Proceeding. Expenses also include (i) Expenses incurred in
connection with any appeal resulting from any Proceeding, including without limitation the premium,
security for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or
their equivalent, and (ii) for purposes of Section 12(d), Expenses incurred by Indemnitee in
connection with the interpretation, enforcement or defense of Indemnitee’s rights under this
Agreement or under any D&O Insurance policies maintained by the Company. Expenses, however, shall
not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against
Indemnitee.

     (d) “Independent Counsel” means a law firm, or a partner or member of a law
firm, that is experienced in matters of corporation law and neither presently is, nor in the past
five years has been, retained to represent (i) the Company or Indemnitee in any matter material to
either such party (other than as Independent Counsel with respect to matters concerning Indemnitee
under this Agreement or as Independent Counsel with respect to matters concerning other indemnitees
under other indemnification agreements), or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement.

     (e) “Interested Shareholder” means any person (other than the Company or any
subsidiary of the Company and other than any profit sharing, employee stock ownership, or other
employee benefit plan of the Company or any subsidiary of the Company or any trustee of or
fiduciary with respect to any such plan when acting in such capacity) who or which:

          (i) is at such time the beneficial owner, directly or indirectly, of more then
fifteen percent (15%) of the voting power of the outstanding common stock of the Company;

          (ii) was at any time within the two-year period immediately prior to such time the
beneficial owner, directly or indirectly, of more than fifteen percent (15%) of the voting power of
the then outstanding common stock of the Company; or

          (iii) is at such time an assignee of or has otherwise succeeded to the beneficial
ownership of any shares of common stock of the Company which were at any time within the two-year
period immediately prior to such time beneficially owned by any Interested Shareholder, if such
assignment or succession has occurred in the course of a transaction or series of transactions not
involving a public offering within the meaning of the Securities Act of 1933, as amended.

     (f) A “Potential Change of Control” shall occur if:

          (i) the Company enters into an agreement or arrangement the consummation of which
would result in the occurrence of a Change of Control;

          (ii) any Person (including the Company) publicly announces an intention to take or
to consider taking actions which if consummated would constitute a Change in Control; or

 - 3 - 

 

          (iii) the Board of Directors of the Company adopts a resolution to the effect that,
for purposes of this Agreement, a Potential Change of Control has occurred.

     (g) “Proceeding” means any threatened, pending or completed action, suit,
arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or proceeding, whether brought in the right of the Company or otherwise and
whether of a civil, criminal, administrative or investigative nature, including any appeal
therefrom and including without limitation any such Proceeding pending as of the date of this
Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a
non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or
officer of the Company, (ii) any action taken by Indemnitee or any action or inaction on
Indemnitee’s part while acting as a director or officer of the Company, or (iii) the fact that he
or she is or was serving at the request of the Company as a director, trustee, general partner,
managing member, officer, employee, agent or fiduciary of another corporation, partnership, joint
venture, trust, limited liability company or other enterprise, in each case whether or not serving
in such capacity at the time any liability or Expense is incurred for which indemnification or
advancement of expenses can be provided under this Agreement.

     (h) “Unaffiliated Director” means any member of the Board of Directors of
the Company who is unaffiliated with, and not a representative of, an Interested Shareholder and
who was a member of the Board of Directors prior to the time that the Interested Shareholder became
an Interested Shareholder or became a member subsequently to fill a vacancy created by an increase
in the size of the Board of Directors and did receive the favorable vote of two-thirds (2/3) of the
Disinterested Directors in connection with being nominated for election by the shareholders to fill
such vacancy or in being elected by the Board of Directors to fill such vacancy, and any successor
of a Disinterested Director who is unaffiliated with, and not a representative of, the Interested
Shareholder and is recommended or elected to succeed a Disinterested Director by a majority of the
Disinterested Directors then on the Board of Directors.

          Reference to “other enterprises” shall include employee benefit plans and
administrative committees thereof; references to “fines” shall include any excise taxes
assessed on a person with respect to any employee benefit plan; references to “serving at the
request of the Company” shall include any service as a director, officer, employee or agent of
the Company which imposes duties on, or involves services by, such director, officer, employee or
agent with respect to an employee benefit plan, its participants or beneficiaries; a person who
acted in good faith and in a manner he or she reasonably believed to be in the best interests of
the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a
manner “not opposed to the best interests of the Company” as referred to in this Agreement;
references to “to the fullest extent permitted by applicable law” shall include, but not be
limited to: (i) the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL and (ii) the fullest extent authorized or permitted by any
amendments to or replacements of the DGCL adopted after the date of this Agreement that increase
the extent to which a corporation may indemnify its officers and directors.

2. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee
in accordance with the provisions of this Section 2 if Indemnitee is, or is threatened to be made,
a party to or
a participant in any Proceeding, other than a Proceeding by or in the right of the Company to
procure a judgment in its favor. Pursuant to this Section 2, Indemnitee shall be indemnified to the
fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid
in settlement actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good
faith and in a manner he or she reasonably believed to be in or not opposed to the best interests
of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to
believe that his or her conduct was unlawful.

 - 4 - 

 

3. Indemnity in Proceedings by or in the Right of the Company. The Company shall
indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is
threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be
indemnified to the fullest extent permitted by applicable law against all Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or
any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the Company. No
indemnification for Expenses shall be made under this Section 3 in respect of any claim, issue or
matter as to which Indemnitee shall have been adjudged by a court of competent jurisdiction to be
liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any
court in which the Proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly
and reasonably entitled to indemnification for such expenses as the Delaware Court of Chancery or
such other court shall deem proper.

4. Indemnification for Expenses of a Party Who is Wholly or Partly Successful. To
the extent that Indemnitee is a party to or a participant in and is successful (on the merits or
otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith. To the extent permitted by applicable law, if
Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or
otherwise, in defense of one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable
law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection with each successfully resolved claim, issue or matter. For purposes of this Section,
the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

5. Indemnification for Expenses of a Witness. Notwithstanding any other provision
of this Agreement, to the extent that Indemnitee, by reason of his or her Corporate Status, is to
be a witness or to be interviewed in any threatened, pending or completed action, suit,
arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or proceeding to which Indemnitee is not a party, Indemnitee shall be
indemnified to the fullest extent permitted by applicable law against all Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

6. Additional Indemnification. In the event that applicable law permits
indemnification in addition to the indemnification provided in Sections 2, 3 and 4, the Company
shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is, or
is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by
or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments,
fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or
her behalf in connection with the Proceeding or any claim, issue or matter therein. To the extent
that a change in Delaware law, whether by statute or judicial decision, permits greater
indemnification or advancement of Expenses than would be afforded currently under the Company’s
certificate of incorporation and By-laws and this Agreement, it is the intent of the
parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change, subject to the restrictions expressly set forth herein or therein. If the Indemnitee
is entitled under any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless
indemnify the Indemnitee for the portion of such Expenses to which the Indemnitee is entitled.

7. Contribution. To the fullest extent permissible under applicable law, if the
indemnification

 - 5 - 

 

provided for in this Agreement is unavailable to Indemnitee, then in respect of any
actual or threatened proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such proceeding) the Company, in lieu of indemnifying Indemnitee, shall contribute to
the amount incurred by Indemnitee, whether for Expenses, judgments, fines or amounts paid or to be
paid in settlement, in connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances
of such Proceeding in order to reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and transaction(s) giving rise to such Proceeding; and (ii)
the relative fault of Indemnitee and the Company (and its other directors, officers, employees and
agents) in connection with such event(s) and transaction(s).

8. Notification and Defense of Claim.

     (a) Indemnitee shall notify the Company in writing of any matter with respect to
which Indemnitee intends to seek indemnification or advancement of Expenses as soon as reasonably
practicable following the receipt by Indemnitee of written notice thereof. The written notification
to the Company shall include a description of the nature of the Proceeding and the facts underlying
the Proceeding. The failure by Indemnitee to notify the Company will not relieve the Company from
any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and
any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights.
With respect to any Proceeding as to which the Indemnitee has so notified the Company:

          (i) The Company will be entitled to participate therein at its own expense; and

          (ii) Except as otherwise provided below, the Company may assume the defense thereof,
with counsel reasonably satisfactory to the Indemnitee. After the Company notifies the Indemnitee
of its election to so assume the defense, the Company will not be liable to the Indemnitee under
this Agreement for any legal Expenses subsequently incurred by the Indemnitee in connection with
the defense, other than legal Expenses relating to the reasonable costs of investigation, including
an investigation in connection with determining whether there exists a conflict of interest of the
type described in clause (ii) of this paragraph, or as otherwise provided in this paragraph. The
Indemnitee shall have the right to employ his or her counsel in such action, suit or proceeding but
the fees and expenses of such counsel incurred after the Company notifies the Indemnitee of its
assumption of the defense shall be at the expense of the Indemnitee unless (i) the Company
authorizes the Indemnitee’s employment of counsel, provided, that following a Change of Control,
the Indemnitee shall be entitled to employ his or her own counsel at the Company’s expense after
giving not less than 30 days’ notice to the Company unless the Company has Disinterested Directors
and a majority of the Disinterested Directors determine that the Indemnitee’s interests are
adequately represented by the counsel employed by the Company; (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of the defense or (iii) the Company shall not have employed counsel to
assume the defense of such action, in each of which cases the fees and expenses of counsel shall be
at the expense of the Company. The Company shall not be entitled to assume the defense of any
action, suit or proceeding brought by or on behalf of the Company or as to which the Indemnitee
shall have made the conclusion described in clause (ii) of this paragraph.

          (b) The Company shall not be obligated to indemnify the Indemnitee under this
Agreement for any amounts paid in settlement of any action or claim effected without its written
consent. The Company shall not settle any action or claim in any manner which would impose any
penalty or limitation on the Indemnitee without the Indemnitee’s written consent. Neither the
Company nor the Indemnitee shall unreasonably withhold their consent to any proposed settlement.

 - 6 - 

 

9. Procedure for Indemnification.

     (a) To obtain indemnification, Indemnitee shall submit to the Company a written
request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and as is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification following the final disposition of such Proceeding. The
Company shall, as soon as reasonably practicable after receipt of such a request for
indemnification, advise the board of directors that Indemnitee has requested indemnification.

     (b) Upon written request by Indemnitee for indemnification pursuant to Section 9(a),
a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made in the specific case (i) if a Change in Control shall have occurred, by Independent
Counsel in a written opinion to the Company’s board of directors, a copy of which shall be
delivered to Indemnitee or (ii) if a Change in Control shall not have occurred, (A) by a majority
vote of the Disinterested Directors, even though less than a quorum of the Company’s board of
directors, (B) by a committee of Disinterested Directors designated by a majority vote of the
Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if
there are no such Disinterested Directors or, if such Disinterested Directors so direct, by
Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall
be delivered to Indemnitee or (D) if so directed by the Company’s board of directors, by the
stockholders of the Company. If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.
Indemnitee shall cooperate with the person, persons or entity making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons
or entity upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and
disbursements) reasonably incurred by Indemnitee in so cooperating with the person, persons or
entity making such determination shall be borne by the Company, to the extent permitted by
applicable law.

     (c) In the event the determination of entitlement to indemnification is to be made
by Independent Counsel pursuant to Section 9(b), the Independent Counsel shall be selected as
provided in this Section 9(c). If a Change in Control shall not have occurred, the Independent
Counsel shall be selected by the Company’s board of directors, and the Company shall give written
notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If
a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee
(unless Indemnitee shall request that such selection be made by the Company’s board of directors,
in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the
Company advising it of the identity of the Independent Counsel so selected. In either event,
Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice
of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a
written objection to such selection; provided, however, that such objection may be asserted only on
the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with
particularity the factual basis of such assertion. Absent a proper and timely objection, the person
so selected shall act as Independent Counsel. If such written objection is so made and
substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless
and until such objection is withdrawn or a court has determined that such objection is without
merit. If, within twenty (20) days after the later of (i) submission by Indemnitee of a written
request for indemnification pursuant to Section 9(a) hereof and (ii) the final disposition of the
Proceeding, the parties have not agreed upon an Independent Counsel, either the Company or
Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel
and for the appointment as Independent Counsel of a person selected by the court or by such other
person as the court shall designate, and the person with respect to whom all objections are so
resolved or the person so appointed shall act as Independent Counsel under

 - 7 - 

 

Section 9(b) hereof.
Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of
this Agreement, the Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then
prevailing).

     (d) The Company agrees to pay the reasonable fees and expenses of any Independent
Counsel and to fully indemnify such counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto.

10. Advancement of Expenses; Procedure for Advances. The Company shall advance,
to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any
Proceeding. Advances shall be unsecured and interest free and made without regard to Indemnitee’s
ability to repay such advances. Indemnitee hereby undertakes to repay any advance to the extent
that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.
To obtain advances of Expenses, Indemnitee shall submit from time to time to the Company a written
request requesting such advances and shall provide copies of invoices received by Indemnitee in
connection with such Expenses but, in the case of invoices in connection with legal services, any
references to legal work performed or to expenditure made that Indemnitee’s lawyers believe would
likely cause Indemnitee to waive any privilege accorded by applicable law may be redacted from the
copy of the invoice submitted to the Company (in which case, Indemnitee shall also submit a letter
addressed to the Company from such lawyers to the effect that they believe submission of the
redacted information would likely cause Indemnitee to waive a privilege accorded by applicable
law). Upon receipt of a such a request for an advance of Expenses along with copies of the related
invoices (and, if applicable, a letter from Indemnitee’s lawyers with respect to redactions on the
legal invoice(s)), Company shall advance the Expenses to Indemnitee as soon as reasonably
practicable, but in any event no later than sixty (60) days, after such receipt by the Company.
This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 16 of this Agreement.

11. Maintenance of Insurance; Funding.

     (a) The Company represents that a summary of the terms of the D&O Insurance in
effect as of the date of this Agreement has been made available to the Indemnitee (the
“Insurance Policies”). Subject only to the provisions of Section 11(b) hereof, the Company
agrees that, so long as Indemnitee shall continue to serve as an officer or director of the Company
(or shall continue at the request of the Company to serve as a director, officer, employee, trustee
or representative of another corporation, partnership, joint venture, trust or other enterprise,
including service with respect to an employee benefit plan) and thereafter so long as Indemnitee
shall be subject to any possible claim or threatened, pending or completed action, suit or
proceeding, whether civil, criminal or investigative, by reason of the fact that Indemnitee was a
director or officer of the Company (or served in any of said other capacities), the Company shall
purchase and maintain in effect for the benefit of Indemnitee one or more valid, binding and
enforceable policy or policies of D&O Insurance providing coverage at least comparable to that
provided pursuant to the Insurance Policies.

     (b) The Company shall not be required to maintain said policy or policies of D&O
Insurance in effect if, in the reasonable, good faith business judgment of the then Board of
Directors of the Company (i) the premium cost for such insurance is substantially disproportionate
to the amount of coverage, (ii) the coverage provided by such insurance is so limited by exclusions
that there is insufficient benefit from such insurance or (iii) said insurance is not otherwise
reasonably available; provided, however, that in the event the then Board of Directors makes such a
judgment, the Company shall purchase and maintain in force a policy or policies of D&O Insurance in
the amount and with such coverage as the then Board of Directors determines to be reasonably
available. Notwithstanding the general provisions of this Section 11(b), following a Change of
Control, any decision not to maintain any policy or policies of D&O Insurance or to reduce the
amount or coverage under any such policy or

 - 8 - 

 

policies shall be effective only if there are
Disinterested Directors (as defined in Section 1(c) hereof) and shall require the concurrence of a
majority of the Disinterested Directors.

     (c) If and to the extent the Company, acting under Section 11(b), does not purchase
and maintain in effect the policy or policies of D&O Insurance described in Section 11(a), the
Company shall indemnify and hold harmless the Indemnitee to the full extent of the coverage which
would otherwise have been provided by such policies. The rights of the Indemnitee hereunder shall
be in addition to all other rights of Indemnitee under the remaining provisions of this Agreement.

     (d) In the event of a Potential Change of Control and if and to the extent the
Company is not required to maintain in effect the policy or policies of D&O Insurance described in
Section 11(a) pursuant to the provisions of Section 11(b), the Company shall, upon written request
of Indemnitee, create a “Trust” for the benefit of Indemnitee, and from time to time, upon written
request by Indemnitee, shall fund such Trust in an amount sufficient to pay any and all Expenses
and any and all liability and loss, including judgments, fines, ERISA excise taxes or penalties and
amounts paid or to be paid in settlement actually and reasonably incurred by him or on his behalf
for which the Indemnitee is entitled to indemnification or with respect to which indemnification is
claimed, reasonably anticipated or proposed to be paid in accordance with the terms of this
Agreement or otherwise; provided that in no event shall more than $100,000 be required to be
deposited in any Trust created hereunder in excess of the amounts deposited in respect of
reasonably anticipated Expenses. The amounts to be deposited in the Trust pursuant to the
foregoing funding obligation shall be determined by a majority of the Unaffiliated Directors whose
determination shall be final and conclusive. At all times the Trust shall remain as an asset of
the Company and subject to the claims of the Company’s creditors.

          The terms of the Trust shall provide that upon a Change of Control (i) the Trust shall not be
revoked or the principal thereof invaded, without the written consent of the Indemnitee except as
set forth in the preceding paragraph, (ii) the procedures set forth in Section 10 regarding
advancement of expenses with respect to the Company shall apply to the Trust, (iii) the Trust shall
continue to be funded by the Company in accordance with the funding obligation set forth above (and
in the event that there are no Unaffiliated Directors, the decision regarding the amount to fund
shall be made by Independent Counsel selected as provided in Section 9(c)), (iv) the Trustee shall
promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to
indemnification pursuant to this Agreement or otherwise, and (v) all unexpended funds in such Trust
shall revert to the Company upon a final determination by a majority of the Unaffiliated Directors
or by Independent Counsel or a court of competent jurisdiction, as the case may be, that the
Indemnitee has been fully indemnified under the terms of this Agreement. The Trustee shall be a
bank or trust company or other individual or entity chosen by the Indemnitee and reasonably
acceptable and approved of by the Company.

12. Remedies of Indemnitee.

     (a) Subject to Section 12(d), in the event that (i) a determination is made pursuant
to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii)
advancement of Expenses is not timely made pursuant to Section 10 or 12(d) of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section 9
of this Agreement within ninety (90) days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification pursuant to this Agreement is not made (A) within
ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or
(B) with respect to indemnification pursuant to Sections 4, 5 or 12(d) of this Agreement, within
thirty (30) days after receipt by the Company of a written request therefor, or (v) the Company or
any other person or entity takes or threatens to take any action to declare this Agreement void or
unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to
recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder,
Indemnitee shall be entitled to an adjudication by the Delaware Court of Chancery of Indemnitee’s
right to such indemnification or advancement of Expenses.

 - 9 - 

 

Alternatively, Indemnitee, at his or her
option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the
Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this
Agreement.

     (b) The failure of the Company, its board of directors, any committee or subgroup of
the board of directors, Independent Counsel or stockholders to have made a determination that
indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct shall not be a defense to the action or create a presumption that Indemnitee has or has
not met the applicable standard of conduct. In the event that a determination shall have been made
pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any
judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all
respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced
by reason of that adverse determination. In any judicial proceeding or arbitration commenced
pursuant to this Section 12, the Company shall, to the fullest extent not prohibited by law, have
the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as
the case may be.

     (c) To the fullest extent not prohibited by law, the Company shall be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement. If a determination shall have been made pursuant to Section 9 of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to this Section 12,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee’s statements not materially misleading, in connection with the request
for indemnification, or (ii) a prohibition of such indemnification under applicable law.

     (d) The Company shall indemnify Indemnitee against any and all Expenses and, if
requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than
sixty (60) days, after receipt by the Company of a written request therefor) advance such Expenses
to Indemnitee, that are incurred by Indemnitee in connection with any action for indemnification or
advancement of Expenses from the Company under this Agreement or under any directors’ and officers’
liability insurance policies maintained by the Company, to the extent Indemnitee is successful in
such action and to the extent not prohibited by law.

     (e) Notwithstanding anything in this Agreement to the contrary, no determination as
to entitlement to indemnification shall be required to be made prior to the final disposition of
the Proceeding.

13. Presumptions and Effect of Certain Proceedings.

     (a) In making a determination with respect to entitlement to indemnification
hereunder, the person, persons or entity making such determination shall, to the fullest extent not
prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if
Indemnitee has submitted a request for indemnification in accordance with Section 9 of this
Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of
proof to overcome that presumption in connection with the making by such person, persons or entity
of any determination contrary to that presumption.

     (b) The termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent,
shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the
right of Indemnitee to

 - 10 - 

 

indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner which he or she reasonably believed to be in or not opposed to the best
interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his or her conduct was unlawful.

     (c) For purposes of any determination of good faith, Indemnitee shall be deemed to
have acted in good faith to the extent Indemnitee relied in good faith on (i) the records or books
of account of the Company, including financial statements, (ii) information supplied to Indemnitee
by the officers of the Company in the course of their duties, (iii) the advice of legal counsel for
the Company or its board of directors or counsel selected by any committee of the board of
directors or (iv) information or records given or reports made to the Company by an independent
certified public accountant, an appraiser, investment banker or other expert selected with
reasonable care by the Company or its board of directors or any committee of the board of
directors. The provisions of this Section 13(c) shall not be deemed to be exclusive or to limit in
any way the other circumstances in which Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.

     (d) Neither the knowledge, actions nor failure to act of any other director,
officer, agent or employee of the Company shall be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.

14. Subrogation; No Duplication of Payments. In the event that the Company pays
any Expenses under this Agreement, the Company shall be subrogated to the extent of such payment to
all of the rights of recovery of the Indemnitee, who shall execute all papers required and shall do
everything that may be necessary to secure such rights, including the execution of such documents
necessary to enable the Company effectively to bring suit to enforce such rights. The Company
shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable
hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has
otherwise actually received payment from a third party for such amounts under any insurance policy,
contract, agreement or otherwise; provided, however, that if the Indemnitee repays any of these
payments to such third party (whether due to a reservation of rights or otherwise), the Company
shall again be obligated to Indemnitee under this Agreement with respect to such payments.

15. Services to Company. Indemnitee agrees to serve as a director or officer of
the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his
or her resignation. This Agreement shall not be deemed an employment contract between the Company
(or any of its subsidiaries) and Indemnitee. Indemnitee specifically acknowledges that any
employment with the Company (or any of its subsidiaries) is at will, and Indemnitee may be
discharged at any time for any reason, with or without cause, with or without notice, except as may
be otherwise expressly provided in any executed, written employment contract between Indemnitee and
the Company (or any of its subsidiaries), any existing formal severance policies adopted by the
Company’s board of directors or, with respect to service as a director or officer of the Company,
the Company’s certificate of incorporation or By-laws or the DGCL.

16. Exclusions. Notwithstanding the foregoing, the Company shall not be liable
under this Agreement to pay any Expenses in connection with any Proceeding:

     (a) for any reimbursement of the Company by Indemnitee of any bonus or other
incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale
of securities of the Company, as required in each case under the Securities Exchange Act of 1934,
as amended (including any such reimbursements that arise from an accounting restatement of the
Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”), or the payment to the Company of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if Indemnitee is
held liable therefor (including pursuant to any settlement arrangements);

 - 11 - 

 

     (b) for a disgorgement of profits made from the purchase and sale by the Indemnitee
of securities pursuant to Section 16(b) of the Securities Exchange Act of 1934 and amendments
thereto or similar provisions of any state statutory law or common law;

     (c) initiated by Indemnitee, including any Proceeding (or any part of any
Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees,
agents or other indemnitees, unless (i) the Company’s board of directors authorized the Proceeding
(or the relevant part of the Proceeding) prior to its initiation, (ii) otherwise authorized in
Section 12(d) or (iii) otherwise required by applicable law; or

     (d) if prohibited by applicable law.

17. Amendments. The entitlement to payment hereunder of an Indemnitee shall not
be affected or diminished by any amendment, termination or repeal of the General Corporation Law of
the State of Delaware or the By-laws of the Company with respect to any Proceeding arising out of or
relating to any actions, transactions or facts occurring prior to the final adoption of any such
amendment, termination or repeal. This Agreement may not be modified or altered except by a formal
writing signed by both parties that specifically refers to this Agreement.

18. Counterparts. This Agreement may be executed in any number of counterparts,
all of which taken together shall constitute one instrument.

19. Indemnification Hereunder Not Exclusive. Nothing herein shall be deemed to
diminish or otherwise restrict the Indemnitee’s right to indemnification under any provision of the
Restated Certificate of Incorporation or the By-laws of the Company and amendments thereto or under
law. Except as expressly set forth herein, no right or remedy herein conferred is intended to be
exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or remedy. It is the
intention of the parties in entering into this Agreement that the insurers under any D&O Insurance
policy shall be obligated ultimately to pay any claims by Indemnitee which are covered by such
policy and not to give such insurers any rights against the Company under or with respect to this
Agreement, including, without limitation, any right to be subrogated to any of Indemnitee’s rights
hereunder, unless otherwise expressly agreed to by the Company in writing, and the obligation of
such insurers to the Company or Indemnitee shall not be deemed reduced or impaired in any respect
by virtue of the provisions of this Agreement.

20. Governing Law. This Agreement shall be governed by and construed in
accordance with Delaware law.

21. Saving Clause. Wherever there is conflict between any provision of this
Agreement and any applicable present or future statute, law or regulation contrary to which the
Company and the Indemnitee have no legal right to contract, the latter shall prevail but (a) the
validity, legality and enforceability of the remaining provisions of this Agreement (including
without limitation, each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest
extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent
necessary to conform to applicable law and to give the maximum effect to the intent of the parties
hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested thereby but in such event the
affected

 - 12 - 

 

provisions of this Agreement shall be curtailed and restricted only to the extent
necessary to bring them within applicable legal requirements.

22. Coverage; Continuation of Indemnity. The provisions of this Agreement shall
apply with respect to the Indemnitee’s service as a Director or officer of the Company prior to the
date of this Agreement (if any) and with respect to all periods of such service after the date of
this Agreement, even though the Indemnitee may have ceased to be a Director or officer of the
Company and shall inure to the benefit of the heirs, executors and administrators of Indemnitee.
All agreements and obligations of the Company contained in this Agreement shall continue during the
period the Indemnitee is a director or officer of the Company (or is or was serving at the request
of the Company as a director, trustee, general partner, managing member, officer, employee, agent
or fiduciary of another corporation, partnership, joint venture, trust, limited liability company
or other enterprise) and shall continue thereafter so long as the Indemnitee shall be subject to
any possible claim or threatened, pending or completed action, suit or proceeding, whether civil,
criminal or investigative, by reason of the fact that the Indemnitee was a director or officer of
the Company or serving in any other capacity referred to herein.

23. Successors. This Agreement shall be binding upon the Company and its
successors and assigns, including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the Company,
and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators.
The Company shall require and cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company,
by written agreement, expressly to assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform if no such succession had
taken place.

 - 13 - 

 

24. Miscellaneous.

     (a) All notices and other communications given or made pursuant to this Agreement
shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party
to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient, and if not so confirmed, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be
sent:

               (i) To Indemnitee at the address set forth below Indemnitee signature hereto.

               (ii) To the Company at:

Calgon Carbon Corporation

400 Calgon Carbon Drive

Pittsburgh, PA 15205

Attention: General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

     (b) No amendment, modification, termination or cancellation of this Agreement shall
be effective unless in writing signed by both of the parties hereto; provided, however, that the
Company may amend this Agreement from time to time without Indemnitee’s consent to the extent
deemed necessary or appropriate, in its sole discretion, to effect compliance with Section 409A of
the Code, including regulations and interpretations thereunder, which amendments may result in a
reduction of benefits provided hereunder and/or other unfavorable changes to Indemnitee.

     (c) This Agreement is intended to provide for the indemnification of, and/or
purchase of insurance policies providing for payments of, expenses and damages incurred with
respect to bona fide claims against the Indemnitee, as a service provider, or the Company, as the
service recipient, in accordance with Treas. Reg. Section 1.409A-1(b)(10), pursuant to which the
Agreement shall not provide for the deferral of compensation. The Agreement shall be construed
consistently, and limited in accordance with, the provisions of such regulation.

[remainder of page intentionally left blank]

 - 14 - 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	CALGON CARBON CORPORATION
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 	 	INDEMNITEE
	 
	 	 	 	 	 	 
	 

	 	Sign:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	 	 	   	 	 
	 
	 	 	 	 	 	 
	 	 	   	 	 

 - 15 -exv10w7

Exhibit 10.7

 

CONTRIBUTION AGREEMENT

DATED AS OF FEBRUARY ___, 2010

BY AND AMONG

THE PARTNERS OR MEMBERS OF

[                                        ]

AND

WELSH PROPERTY TRUST, L.P.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	Page	 
	ARTICLE 1 CONTRIBUTION
	 	 	2	 
	Section 1.01 CONTRIBUTION TRANSACTION
	 	 	2	 
	Section 1.02 CONSIDERATION
	 	 	2	 
	Section 1.03 ISSUANCE OF OP UNITS
	 	 	2	 
	Section 1.04 CONTRIBUTOR’S FORMATION TRANSACTION VALUE ADJUSTMENT
	 	 	2	 
	Section 1.05 FURTHER ACTION
	 	 	4	 
	Section 1.06 TRANSACTION COSTS
	 	 	4	 
	Section 1.07 TAX TREATMENT OF THE FORMATION TRANSACTIONS
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2 CLOSING
	 	 	4	 
	Section 2.01 CONDITIONS PRECEDENT
	 	 	4	 
	Section 2.02 TIME AND PLACE
	 	 	6	 
	Section 2.03 DELIVERY OF OP UNITS; EXECUTION OF OPERATING PARTNERSHIP AGREEMENT
	 	 	6	 
	Section 2.04 CLOSING DELIVERIES
	 	 	6	 
	Section 2.05 CLOSING COSTS
	 	 	7	 
	Section 2.06 TERM OF THE AGREEMENT
	 	 	7	 
	Section 2.07 EFFECT OF TERMINATION
	 	 	7	 
	Section 2.08 TAX WITHHOLDING
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 3 REPRESENTATIONS, WARRANTIES AND INDEMNITIES OF THE OPERATING PARTNERSHIP
	 	 	8	 
	Section 3.01 ORGANIZATION; AUTHORITY
	 	 	8	 
	Section 3.02 DUE AUTHORIZATION
	 	 	8	 
	Section 3.03 CONSENTS AND APPROVALS
	 	 	8	 
	Section 3.04 NO VIOLATION
	 	 	8	 
	Section 3.05 VALIDITY OF OP UNITS
	 	 	9	 
	Section 3.06 LITIGATION
	 	 	9	 
	Section 3.07 LIMITED ACTIVITIES
	 	 	9	 
	Section 3.08 NO OTHER REPRESENTATIONS OR WARRANTIES
	 	 	9	 
	Section 3.09 INDEMNIFICATION
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS
	 	 	11	 
	Section 4.01 AUTHORITY; BINDING OBLIGATION
	 	 	11	 
	Section 4.02 OWNERSHIP OF CONTRIBUTED INTERESTS
	 	 	11	 
	Section 4.03 CONSENTS AND APPROVALS
	 	 	11	 
	Section 4.04 NO VIOLATION
	 	 	12	 
	Section 4.05 NON-FOREIGN PERSON
	 	 	12	 
	Section 4.06 TAXES
	 	 	12	 
	Section 4.07 TAX MATTERS
	 	 	12	 
	Section 4.08 TAX INFORMATION
	 	 	12	 
	Section 4.09 SOLVENCY
	 	 	13	 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 
	 	 	Page	 
	Section 4.10 LITIGATION
	 	 	13	 
	Section 4.11 INVESTMENT
	 	 	13	 
	Section 4.12 NO BROKERS OR FINDERS
	 	 	14	 
	Section 4.13 WAIVER OF RIGHTS UNDER ORGANIZATIONAL AGREEMENT
	 	 	14	 
	Section 4.14 NO OTHER REPRESENTATIONS OR WARRANTIES
	 	 	14	 
	Section 4.15 SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 5 COVENANTS AND OTHER AGREEMENTS
	 	 	15	 
	Section 5.01 COVENANTS OF THE CONTRIBUTORS
	 	 	15	 
	Section 5.02 COMMERCIALLY REASONABLE EFFORTS BY THE OPERATING PARTNERSHIP AND THE

CONTRIBUTORS
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 6 CHANGES TO FORM AGREEMENTS
	 	 	15	 
	Section 6.01 CHANGES TO FORM AGREEMENT
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 7 POWER OF ATTORNEY
	 	 	16	 
	Section 7.01 POWER OF ATTORNEY
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 8 GENERAL PROVISIONS
	 	 	16	 
	Section 8.01 NOTICES
	 	 	16	 
	Section 8.02 DEFINITIONS
	 	 	16	 
	Section 8.03 COUNTERPARTS
	 	 	20	 
	Section 8.04 ENTIRE AGREEMENT; THIRD-PARTY BENEFICIARIES
	 	 	20	 
	Section 8.05 GOVERNING LAW
	 	 	20	 
	Section 8.06 ASSIGNMENT
	 	 	20	 
	Section 8.07 JURISDICTION
	 	 	21	 
	Section 8.08 SEVERABILITY
	 	 	21	 
	Section 8.09 RULES OF CONSTRUCTION
	 	 	21	 
	Section 8.10 EQUITABLE REMEDIES
	 	 	22	 
	Section 8.11 TIME OF THE ESSENCE
	 	 	22	 
	Section 8.12 DESCRIPTIVE HEADINGS
	 	 	22	 
	Section 8.13 NO PERSONAL LIABILITY CONFERRED
	 	 	22	 
	Section 8.14 AMENDMENTS
	 	 	22	 
	 
	 	 	 	 
	EXHIBITS
	 	 	24	 

-ii-

 

CONTRIBUTION AGREEMENT

     THIS CONTRIBUTION AGREEMENT (this “Agreement”) is made and entered into by and among Welsh
Property Trust, L.P., a Delaware limited partnership and subsidiary of the REIT (defined below)
(the “Operating Partnership”), and those parties listed on the signature page hereto (each such
party a “Contributor” and, collectively, the “Contributors”), and shall be effective as of the date
accepted by the Operating Partnership, as set forth on the signature page hereto (the “Effective
Date”).

RECITALS

     WHEREAS, in connection with an initial public offering (“IPO”) of its common stock, par value
$.01 per share (“REIT Common Stock”), Welsh Property Trust, Inc., a Maryland corporation (the
“REIT”), desires to (i) consolidate the ownership of a portfolio of properties (the “Properties”)
currently owned, directly or indirectly, by various entities and individuals through certain
entities managed by Affiliates of Welsh (the “Existing Entities”), as described in the Confidential
Offering Memorandum dated December 23, 2009, as supplemented by that certain Supplement dated
February 16, 2010 (the “PPM”); and (ii) own and operate such Properties as a self-administered and
self-managed REIT within the meaning of Section 856 of the Code; and

     WHEREAS, the consolidation of the Existing Entities (hereinafter referred to as the “Formation
Transactions”) will be accomplished by a series of contributions by the owners of equity interests
in such Existing Entities to the Operating Partnership in exchange for units of limited partner
interest in the Operating Partnership (“OP Units”) pursuant to one or more contribution agreements
(including this Agreement) substantially in the form of contribution agreement accompanying the PPM
(collectively, the “Formation Transactions Documentation”); and

     WHEREAS, upon the closing of its IPO, the REIT shall contribute the net proceeds of such IPO
to the Operating Partnership in exchange for that number of OP Units necessary to provide to the
REIT an aggregate total value in OP Units equal to the net proceeds contributed, with a value per
OP Unit equal to the initial public offering price of a share of REIT Common Stock (the “IPO
Price”); and

     WHEREAS, the Contributors own all of the issued and outstanding ownership interests (the
“Contributed Interests”) in                                         , one of the Existing Entities (the “Contributed
Entity”); and

     WHEREAS, as part of the Formation Transactions and subject to (a) the terms and conditions set
forth herein; and (b) the completion of the IPO, each Contributor desires to contribute to the
Operating Partnership, and the Operating Partnership desires to acquire from each Contributor, all
of such Contributor’s right, title and interests in the Contributed Interests, in exchange for OP
Units; and

     WHEREAS, all necessary approvals have been obtained by the parties to this Agreement to
consummate the transactions contemplated herein.

 

 

     NOW, THEREFORE, in consideration of the foregoing and the representations, warranties,
covenants and other terms contained in this Agreement, the parties hereto, intending to be legally
bound hereby, agree as follows:

ARTICLE 1

CONTRIBUTION

     Section 1.01 CONTRIBUTION TRANSACTION. At the Closing and subject to the terms and
conditions contained in this Agreement, each Contributor hereby agrees to assign, set over, and
transfer to the Operating Partnership, absolutely and unconditionally and free and clear of all
Liens, all of its right, title and interest in and to the Contributed Interests owned by such
Contributor as set forth on Exhibit A hereto, in exchange for the consideration set forth
in Section 1.02, and the Operating Partnership hereby agrees to accept such assignment by
such Contributor and to agree to be bound by the terms of the Organizational Agreement governing
such Contributor’s Contributed Interest and to undertake, assume and agree to punctually and
faithfully perform, pay or discharge when due and otherwise in accordance with its terms all
agreements, covenants, conditions, obligations and liabilities of such Contributor in the
Contributed Entity with respect to such Contributor’s Contributed Interest on or after the Closing
Date.

     Section 1.02 CONSIDERATION. At the Closing and subject to the terms and conditions
contained in this Agreement, each Contributor hereby irrevocably agrees to accept, in exchange for
its Contributed Interests, a number of OP Units equal to such Contributor’s aggregate total value
set forth on Exhibit A hereto, as the same may be adjusted in accordance with Section 1.04
below (the “Contributor’s Formation Transaction Value”), divided by the IPO Price.

     Section 1.03 ISSUANCE OF OP UNITS. At the Closing and subject to the terms and
conditions contained in this Agreement, the Operating Partnership shall, in exchange for the
Contributed Interests contributed by each Contributor, issue to such Contributor a number of OP
Units equal to such Contributor’s Formation Transaction Value, divided by the IPO Price. No
fractional OP Units shall be issued pursuant to this Agreement. If aggregating all OP Units that a
Contributor would otherwise be entitled to receive as a result of any of the Formation Transactions
would require the issuance of a fractional OP Unit, the number of OP Units which such Contributor
shall be entitled to receive shall be rounded to the nearest whole number.

     Section 1.04 CONTRIBUTOR’S FORMATION TRANSACTION VALUE ADJUSTMENT. The Contributor’s
Formation Transaction Value of each Contributor shall be adjusted on the Closing Date as follows:

     (a) the Contributor’s Formation Transaction Value shall be increased by an amount equal to
such Contributor’s Ratable Share of:

     (i) all Amortizing Principal Payments made by the Property Owner on or after April 1,
2010 and prior to the Cut-Off Date in respect of Debt of the Property Owner;

2

 

     (ii) all Extraordinary Principal Payments made by the Property Owner after the
Effective Date and prior to the Cut-Off Date in respect of Debt of the Property Owner;

     (iii) all additions to Non-Operating Expense Reserves of the Property Owner made on or
after April 1, 2010 and prior to the Cut-Off Date; and

     (iv) all Extraordinary Expense Prepayments made by the Property Owner after the
Effective Date and outstanding as of the Cut-Off Date, other than that portion of each such
Extraordinary Expense Prepayment relating to the period ending thirty (30) calendar days
after the Cut-Off Date;

in each case to the extent such amounts were paid in cash from operating income of the Property
Owner and in any event not from loan proceeds, casualty insurance proceeds or proceeds from
condemnation or eminent domain proceedings, or proceeds from the sale or other disposition of the
Related Property or any interest therein, or that are otherwise derived from a source other than
the operation, leasing, management or occupancy of the Related Property;

     (b) the Contributor’s Formation Transaction Value shall be decreased by an amount equal to
such Contributor’s Ratable Share of:

     (i) all Extraordinary Rent Prepayments received by the Property Owner after the
Effective Date, other than that portion of each such Extraordinary Rent Prepayment relating
to the period ending thirty (30) calendar days after the Cut-Off Date;

     (ii) all Past Due Payables of the Property Owner outstanding as of the Cut-Off Date;

     (iii) all withdrawals from Non-Operating Expense Reserves of the Property Owner made on
or after the Effective Date and prior to the Cut-Off Date;

     (iv) all distributions made by the Property Owner of funds consisting of loan proceeds,
casualty insurance proceeds, proceeds from condemnation or eminent domain proceedings, or
proceeds from the sale or other disposition of the Related Property or any interest therein,
or that are otherwise derived from a source other than the operation, leasing, management or
occupancy of the Related Property; and

     (v) all liens, judgments and other monetary encumbrances against the Related Property
other than those permitted in connection with the Formation Transactions.

     (c) the Contributor’s Formation Transaction Value shall be increased or decreased by an amount
equal to such Contributor’s Ratable Share of the amount, if any, by which the Cut-Off Date Cash
Balance is greater than (in which case such value shall be increased) or less than (in which case
such value shall be decreased) the Target Cash Balance.

     Any adjustment to the Contributor’s Formation Transaction Value shall be determined as of the
Cut-Off Date, and no further adjustment shall be made thereafter. Each Contributor agrees to
provide, and to use such Contributor’s reasonable efforts to cause the Contributed Entity and

3

 

the Property Owner to provide, such information as the Operating Partnership may reasonably
require to make the adjustments to the Contributor’s Formation Transaction Value as provided in
this Section 1.04. The parties acknowledge and agree that in determining the Contributor’s
Formation Transaction Value the parties assumed, among other things, that the Contributor’s
Formation Transaction Value would not be subject to any pro ration or adjustment other than as
specifically provided in this Section 1.04.

     Section 1.05 FURTHER ACTION. If, at any time after the Closing, the Operating
Partnership shall determine or be advised that any deeds, bills of sale, assignments, assurances or
other actions or things are necessary or desirable to vest, perfect or confirm of record or
otherwise in the Operating Partnership the right, title or interest in or to the Contributed
Interests contributed by a Contributor and the admission and substitution of the Operating
Partnership for such Contributor as a limited or general partner or member, as applicable, of the
Contributed Entity, each Contributor shall execute and deliver all such deeds, bills of sale,
assignments and assurances and take and do all such other actions and things as may be necessary or
desirable to vest, perfect or confirm any and all right, title and interest in the Contributed
Interests or otherwise to carry out this Agreement.

     Section 1.06 TRANSACTION COSTS. If the Closing occurs, the REIT and the Operating
Partnership shall be solely responsible for all transaction costs and expenses of the REIT, the
Operating Partnership and the Existing Entities in connection with the Formation Transactions and
the IPO, which include, but are not limited to, the underwriting discounts and commissions;
provided that the REIT and the Operating Partnership shall not be responsible for any transaction
costs or expenses incurred by the Contributors.

     Section 1.07 TAX TREATMENT OF THE FORMATION TRANSACTIONS. The parties hereto intend
and agree, that for U.S. federal income tax purposes, to the extent the Operating Partnership
receives 100% of the Contributed Entity, the contribution of the Contributed Interests effectuated
pursuant to this Agreement shall be treated as a transaction in “assets-over” partnership merger
pursuant to Treasury Regulation Section 1.708-1(c)(3).

ARTICLE 2

CLOSING

     Section 2.01 CONDITIONS PRECEDENT.

     (a) Condition to Each Party’s Obligations. The respective obligations of each party to effect
the contribution of the Contributed Interests and the issuance of the OP Units contemplated by this
Agreement, and to consummate the other transactions contemplated hereby, is subject to the
satisfaction or, if applicable, waiver, on or prior to the effective time, of the following
conditions:

     (i) Registration Statement. The Registration Statement (defined below) shall have
become effective under the Securities Act of 1933, as amended (the “Securities Act”), and
shall not be the subject of any stop order or proceedings by the Securities and

4

 

Exchange Commission (the “SEC”) seeking a stop order. This condition may not be waived
by any party.

     (ii) IPO Proceeds. The REIT shall have received the proceeds from the IPO not later
than concurrently herewith. This condition may not be waived by any party.

     (iii) No Injunction. No party to this Agreement or any of the other Formation
Transactions Documentation shall be subject to any statute, rule, regulation, executive
order, decree, judgment, injunction or other order (whether temporary, preliminary or
permanent) of any Governmental Authority that prevents or prohibits consummation of any of
the transactions contemplated in this Agreement.

     (b) Conditions to Obligations of the Operating Partnership. The obligations of the Operating
Partnership are further subject to satisfaction of the following conditions (any of which may be
waived by the Operating Partnership in whole or in part):

     (i) Representations and Warranty Agreement. The Principals shall have entered into the
Representations and Warranty Agreement.

     (ii) Representations and Warranties. Except as would not have a material adverse
effect on the financial condition or results of operations of the Contributed Entity or the
Operating Partnership, the representations and warranties of each Contributor contained in
this Agreement, as well as those of the Principals contained in the Representations and
Warranty Agreement, shall be true and correct at the Closing as if made again at that time
(except to the extent that any representation or warranty speaks as of an earlier date, in
which case it must be true and correct only as of that earlier date).

     (iii) Performance by the Contributors. Each Contributor shall have performed in all
material respects all agreements and covenants required by this Agreement to be performed or
complied with by it on or prior to the Closing Date.

     (iv) Consents, Etc. All necessary consents and approvals of Governmental Authorities
or third parties (including lenders) for each Contributor to consummate the transactions
contemplated hereby (except for those the absence of which would not have a material adverse
effect on the ability of such Contributor to consummate the transactions contemplated by
this Agreement) shall have been obtained.

     (v) No Material Adverse Change. There shall have not occurred between the date hereof
and the Closing Date any material adverse change in any of the assets, business, financial
condition, results of operation or prospects of the Contributed Entity or the Property
Owner.

     (vi) Formation Transactions. The other Formation Transactions shall have been
consummated not later than concurrently herewith.

     (vii) Lock-Up Agreement. Each Contributor shall have executed and delivered a lock-up
agreement substantially in the form attached as Exhibit B hereto (the “Lock-Up
Agreement”).

5

 

     (c) Conditions to Obligations of the Contributors. The obligation of each Contributor to
effect the contribution contemplated by this Agreement and to consummate the other transactions
contemplated hereby to occur on the Closing Date are further subject to satisfaction of the
following conditions:

     (i) Representations and Warranties. Except as would not have a material adverse effect
on the financial condition or results of operations of the Operating Partnership, the
representations and warranties of the Operating Partnership contained in this Agreement
shall be true and correct at the Closing as if made again at that time (except to the extent
that any representation or warranty speaks as of an earlier date, in which case it must be
true and correct only as of that earlier date).

     (ii) Performance by the Operating Partnership. The Operating Partnership shall have
performed in all material respects all agreements and covenants required by this Agreement
to be performed or complied with by it on or prior to the Closing Date.

     (iii) Registration Rights Agreement. The REIT shall have executed and delivered a
registration rights agreement substantially in the form attached as Exhibit C hereto
(the “Registration Rights Agreement”).

     Section 2.02 TIME AND PLACE. Unless this Agreement shall have been terminated
pursuant to Section 2.06 hereof, and subject to satisfaction or waiver of the conditions in
Section 2.01 hereof, the closing of the contribution contemplated by Section 1.01
and the other transactions contemplated hereby shall occur on the day on which the REIT receives
the proceeds from the IPO from the underwriter(s) (the “Closing” or the “Closing Date”). The
Closing shall take place at the offices of Briggs and Morgan, P.A., 2200 IDS Center, 80 South
8th Street, Minneapolis, MN 55402, or such other place as determined by the Operating
Partnership in its sole discretion. The contribution described in Section 1.01 hereof and
all closing deliveries shall be deemed concurrent for all purposes.

     Section 2.03 DELIVERY OF OP UNITS; EXECUTION OF OPERATING PARTNERSHIP AGREEMENT. The
issuance of the OP Units pursuant to this Agreement shall be reflected in the Amended and Restated
Agreement of Limited Partnership of the Operating Partnership (the “Operating Partnership
Agreement”) substantially in the form of Exhibit D hereto. The OP Units will be governed
by the terms and conditions of the Operating Partnership Agreement, a copy of which Contributor has
received and reviewed and which Contributor accepts and agrees to execute and by which Contributor
agrees to be legally bound. At the Closing (or as soon as reasonably practicable thereafter), the
Operating Partnership shall deliver or cause to be delivered to each Contributor an executed copy
of such Operating Partnership Agreement.

     Section 2.04 CLOSING DELIVERIES. At the Closing, the parties shall make, execute,
acknowledge and deliver, or cause to be made, executed, acknowledged and delivered any other
documents reasonably requested by the Operating Partnership or reasonably necessary or desirable to
assign, transfer, convey, contribute and deliver the Contributed Interests, free and clear of all
Liens, to admit and substitute the Operating Partnership for each Contributor as a

6

 

limited or general partner or member, as applicable, of the Contributed Entity and to
effectuate the transactions contemplated hereby, including, without limitation:

     (a) The Operating Partnership Agreement;

     (b) The Registration Rights Agreement;

     (c) The Lock-Up Agreement;

     (d) An Assignment and Assumption;

     (e) A FIRPTA Affidavit in the form attached hereto as Exhibit H; and

     (f) An IRS Form W-9.

     Section 2.05 CLOSING COSTS. The Operating Partnership shall pay any documentary
transfer Taxes, escrow charges, title charges and recording Taxes or fees incurred in connection
with the transactions contemplated hereby.

     Section 2.06 TERM OF THE AGREEMENT. This Agreement shall terminate automatically if
(i) the initial registration statement of the REIT for the IPO (the “Registration Statement”) has
not been filed with the SEC by March 31, 2010, or (ii) the Formation Transactions shall not have
been consummated on or prior to June 30, 2010 (such date is hereinafter referred to as the “Outside
Date”).

     Section 2.07 EFFECT OF TERMINATION. In the event of termination of this Agreement for
any reason, all obligations on the part of the Operating Partnership and the Contributors under
this Agreement shall terminate, except that the obligations set forth in Article 8 shall survive;
it being understood and agreed, however, for the avoidance of doubt, that if this Agreement is
terminated because one or more of the conditions to a non-breaching party’s obligations under this
Agreement is not satisfied by the Outside Date as a result of another party’s material breach of a
covenant, representation, warranty or other obligation under this Agreement or any other Formation
Transactions Documentation, the non-breaching party’s right to pursue all legal remedies with
respect to such breach will survive such termination unimpaired. If this Agreement shall terminate
for any reason prior to completion of the Formation Transactions, each Contributor shall pay his,
her or its own costs and expenses and a proportionate share of the transaction costs and expenses
of the REIT, the Operating Partnership and the Existing Entities relating to the Formation
Transactions, as determined by the Operating Partnership in its reasonable discretion.

     Section 2.08 TAX WITHHOLDING. The Operating Partnership shall be entitled to deduct
and withhold, from the consideration payable pursuant to this Agreement to any Contributor, such
amounts as the Operating Partnership is required to deduct and withhold with respect to the making
of such payment under the Code or any provision of state, local or foreign tax law (e.g. backup
withholding or FIRPTA withholding). To the extent that amounts are so withheld by the Operating
Partnership, such withheld amounts shall be treated for all purposes of this Agreement as having
been paid to the Contributor in respect of which such deduction and withholding was made by the
Operating Partnership.

7

 

ARTICLE 3

REPRESENTATIONS, WARRANTIES AND

INDEMNITIES OF THE OPERATING PARTNERSHIP

     The Operating Partnership hereby represents and warrants to and covenants with each
Contributor as follows:

     Section 3.01 ORGANIZATION; AUTHORITY.

     (a) The Operating Partnership is a limited partnership duly organized, validly existing and in
good standing under the Laws of the State of Delaware. The Operating Partnership has all requisite
power and authority to enter this Agreement and the other Formation Transactions Documentation and
to carry out the transactions contemplated hereby and thereby, and to own, lease or operate its
property and to carry on its business as presently conducted and, to the extent required under
applicable Law, is qualified to do business and is in good standing in each jurisdiction in which
the nature of its business or the character of its property make such qualification necessary,
other than in such jurisdictions where the failure to be so qualified would not have a material
adverse effect on the financial condition or results of operations of the Operating Partnership.

     Section 3.02 DUE AUTHORIZATION. The execution, delivery and performance of this
Agreement and the other Formation Transactions Documentation by the Operating Partnership have been
duly and validly authorized by all necessary action of the Operating Partnership. This Agreement,
the other Formation Transactions Documentation and each agreement, document and instrument executed
and delivered by or on behalf of the Operating Partnership pursuant to this Agreement or the other
Formation Transactions Documentation constitute, or when executed and delivered will constitute,
the legal, valid and binding obligation of the Operating Partnership, each enforceable against the
Operating Partnership in accordance with its terms, subject to applicable bankruptcy, insolvency,
moratorium or other similar Laws relating to creditors’ rights and general principles of equity and
except to the extent that enforceability of the indemnification and contribution provisions set
forth in the Formation Transactions Documentation may be limited by the federal or state securities
Laws or the public policy underlying such Laws.

     Section 3.03 CONSENTS AND APPROVALS. Except in connection with the IPO and the
consummation of the Formation Transactions, no consent, waiver, approval or authorization of, or
filing with, any Person or Governmental Authority or under any applicable Laws is required to be
obtained by the Operating Partnership in connection with the execution, delivery and performance of
this Agreement and the transactions contemplated hereby.

     Section 3.04 NO VIOLATION. None of the execution, delivery or performance of this
Agreement, the other Formation Transactions Documentation, any agreement contemplated hereby
between the parties to this Agreement and the transactions contemplated hereby between the parties
to this Agreement does or will, with or without the giving of notice, lapse of time, or both,
violate, conflict with, result in a breach of, or constitute a default under (a) the organizational
documents of the Operating Partnership, (b) any term or provision of any

8

 

judgment, order, writ, injunction, or decree binding on the Operating Partnership, or (c) any
other material agreement to which the Operating Partnership is a party.

     Section 3.05 VALIDITY OF OP UNITS. The issuance of the OP Units to each Contributor
pursuant to this Agreement will have been duly authorized by the Operating Partnership and, when
issued against the consideration therefor, will be validly issued by the Operating Partnership,
free and clear of all Liens created by the Operating Partnership (other than Liens created by the
Operating Partnership Agreement).

     Section 3.06 LITIGATION. There is no action, suit or proceeding pending or, to the
Operating Partnership’s knowledge, threatened against the Operating Partnership that, if adversely
determined, would have a material adverse effect on the financial condition or results of
operations of the Operating Partnership or which challenges or impairs the ability of the Operating
Partnership to execute or deliver, or perform its obligations under, this Agreement and the
documents executed by it pursuant to this Agreement or to consummate the transactions contemplated
hereby or thereby.

     Section 3.07 LIMITED ACTIVITIES. Except for activities in connection with the IPO or
the Formation Transactions, the Operating Partnership has not engaged in any material business or
incurred any material obligations.

     Section 3.08 NO OTHER REPRESENTATIONS OR WARRANTIES. Other than the representations
and warranties expressly set forth in this Article III, the Operating Partnership shall not be
deemed to have made any other representation or warranty in connection with this Agreement or the
transactions contemplated hereby.

     Section 3.09 INDEMNIFICATION.

     (a) From and after the Closing Date, the Operating Partnership shall indemnify and hold
harmless each Contributor and its Affiliates (each, a “Contributor Indemnified Party”) from and
against any and all charges, complaints, claims, actions, causes of action, losses, damages,
liabilities and expenses of any nature whatsoever, including without limitation, amounts paid in
settlement, reasonable attorneys’ fees, costs of investigation, costs of investigative judicial or
administrative proceedings or appeals therefrom and costs of attachment or similar bonds
(collectively, “Losses”) arising out of or relating to, asserted against, imposed upon or incurred
by any Contributor Indemnified Party in connection with or as a result of any breach of a
representation, warranty or covenant of the Operating Partnership contained in this Agreement or in
any schedule, exhibit, certificate or affidavit or any other document delivered by the Operating
Partnership pursuant to this Agreement; provided, however, that the Operating Partnership shall not
have any obligation under this Section to indemnify any Contributor Indemnified Party against any
Losses to the extent that such Losses arise by virtue of (i) any diminution in value of OP Units;
or (ii) a Contributor’s breach of this Agreement, gross negligence, willful misconduct or fraud.

     (b) At the time when any Contributor Indemnified Party learns of any potential claim under
this Section 3.09 (a “Claim”) against the Operating Partnership, it will promptly give
written notice (a “Claim Notice”) to the Operating Partnership; provided that failure to do so

9

 

shall not prevent recovery under this Agreement, except to the extent that the Operating
Partnership shall have been materially prejudiced by such failure. Each Claim Notice shall describe
in reasonable detail the facts known to such Contributor Indemnified Party giving rise to such
Claim, and the amount or good faith estimate of the amount of Losses arising therefrom. Unless
prohibited by Law, such Contributor Indemnified Party shall deliver to the Operating Partnership,
promptly after such Contributor Indemnified Party’s receipt thereof, copies of all notices and
documents (including court papers) received by such Contributor Indemnified Party relating to a
Third Party Claim (defined below). Any Contributor Indemnified Party may, at its option, demand
indemnity under this Section 3.09 as soon as a Claim has been threatened by a third party,
regardless of whether an actual Loss has been suffered, so long as such Contributor Indemnified
Party shall in good faith determine that such claim is not frivolous and that such Contributor
Indemnified Party may be liable for, or otherwise incur, a Loss as a result thereof.

     (c) The Operating Partnership shall be entitled, at its own expense, to assume and control the
defense of any Claims based on claims asserted by third parties (“Third Party Claims”), through
counsel chosen by the Operating Partnership, if it gives notice of its intention to do so to such
Contributor Indemnified Party within thirty (30) days of the receipt of the applicable Claim
Notice; provided, however, that such Contributor Indemnified Party may at all times participate in
such defense at its own expense. Without limiting the foregoing, in the event that the Operating
Partnership exercises the right to undertake any such defense against a Third Party Claim, such
Contributor Indemnified Party shall cooperate with the Operating Partnership in such defense and
make available to the Operating Partnership (unless prohibited by Law), at the Operating
Partnership’s expense, all witnesses, pertinent records, materials and information in such
Contributor Indemnified Party’s possession or under such Contributor Indemnified Party’s control
relating thereto as is reasonably required by the Operating Partnership. No compromise or
settlement of such Third Party Claim may be effected by either such Contributor Indemnified Party,
on the one hand, or the Operating Partnership, on the other hand, without the other’s consent
(which shall not be unreasonably withheld or delayed) unless (i) there is no finding or admission
of any violation of Law and no effect on any other claims that may be made against such other party
and (ii) each Contributor Indemnified Party that is party to such claim is released from all
liability with respect to such claim.

     (d) All representations, warranties and covenants of the Operating Partnership contained in
this Agreement shall survive until the first anniversary of the Closing Date (the “Expiration
Date”). If written notice of a claim in accordance with the provisions of this Section 3.09
has been given prior to the Expiration Date, then the relevant representation, warranty and
covenant shall survive, but only with respect to such specific claim, until such claim has been
finally resolved. Any claim for indemnification not so asserted in writing by the Expiration Date
may not thereafter be asserted and shall forever be waived. In furtherance of the foregoing, each
Contributor hereby waives, as of the Closing, to the fullest extent permitted under applicable Law,
any and all rights, claims and causes of action (other than claims of, or causes of action arising
from, fraud) it may have against the other parties hereto arising under or based upon any federal,
state, local or foreign Law, other than the right to seek indemnity pursuant to this Section
3.09. The foregoing sentence shall not limit a Contributor’s right to specific performance or
injunctive relief in connection with the breach by the Operating Partnership of its covenants in
this Agreement.

10

 

     (e) All indemnity payments made hereunder shall be treated as adjustments to the consideration
paid hereunder for United States federal income tax purposes.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS

     Each Contributor, severally and not jointly, hereby represents, warrants and agrees that as of
the Closing Date:

     Section 4.01 AUTHORITY; BINDING OBLIGATION. The signature of such Contributor on this
Agreement is genuine. If such Contributor is an individual, such Contributor has the legal
capacity and authority to execute, deliver and perform its obligations under this Agreement and the
agreements contemplated hereby, and no other Person has any community property rights, by virtue of
marriage or otherwise, with respect to such Contributor’s Contributed Interests. If such
Contributor is an entity, such Contributor (i) is duly organized, validly existing and in good
standing under the Laws of the state of its organization; (ii) has all requisite power and
authority to enter this Agreement and each agreement contemplated hereby, to carry out the
transactions contemplated hereby and thereby, to own, lease or operate its property and to carry on
its business as presently conducted; and (iii) the execution, delivery and performance of this
Agreement and each agreement contemplated hereby by such Contributor have been duly and validly
authorized by all necessary action of the Contributor. This Agreement and each agreement, document
and instrument executed and delivered by or on behalf of such Contributor pursuant to this
Agreement constitutes, or when executed and delivered will constitute, the legal, valid and binding
obligation of such Contributor, each enforceable against such Contributor in accordance with its
terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to
creditors’ rights and general principles of equity.

     Section 4.02 OWNERSHIP OF CONTRIBUTED INTERESTS. Such Contributor is the record owner
of the Contributed Interests owned by he, she or it and has the power and authority to transfer,
sell, assign and convey to the Operating Partnership such Contributed Interests free and clear of
any Liens and, upon delivery of the consideration for such Contributed Interests as provided
herein, the Operating Partnership will acquire good and valid title thereto, free and clear of any
Liens. Except as provided for or contemplated by this Agreement or the other applicable Formation
Transactions Documentation, there are no rights, subscriptions, warrants, options, conversion
rights, preemptive rights, agreements, instruments or understandings of any kind outstanding (i)
relating to the Contributed Interests owned by such Contributor or (ii) to purchase, transfer or
otherwise acquire, or in any way encumber, any of the interests which comprise such Contributed
Interests or any securities or obligations of any kind convertible into any of the interests which
comprise such Contributed Interests or other equity interests or profit participation of any kind
in the Existing Entities. All of the issued and outstanding Contributed Interests have been duly
authorized and are validly issued, fully paid and non-assessable.

     Section 4.03 CONSENTS AND APPROVALS. Except as shall have been satisfied on or prior
to the Closing Date, no consent, waiver, approval or authorization of, or filing with, any

11

 

Person or Governmental Authority or under any applicable Laws is required to be obtained by
such Contributor in connection with the execution, delivery and performance of this Agreement and
the transactions contemplated hereby, except for those consents, waivers, approvals, authorizations
or filings, the failure of which to obtain or to file would not have a material adverse effect on
the financial condition or results of operations of the Contributed Entity.

     Section 4.04 NO VIOLATION. None of the execution, delivery or performance of this
Agreement, any agreement contemplated hereby between the parties to this Agreement and the
transactions contemplated hereby or thereby does or will, with or without the giving of notice,
lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default
under or give to others any right of termination, acceleration, cancellation or other right under,
(A) any agreement, document or instrument to which such Contributor is a party or by which such
Contributor or its Contributed Interest is bound, (B) any term or provision of any judgment, order,
writ, injunction, or decree binding on such Contributor (or its assets or properties), or (C) if
such Contributor is an entity, any provisions of the organizational or other formation or governing
documents or agreements of such Contributor, except any such breaches or defaults that would not
have a material adverse effect on the financial condition or results of operations of the
Contributed Entity.

     Section 4.05 NON-FOREIGN PERSON. Such Contributor is a United States person (as
defined in the Code) and is, therefore, not subject to the provisions of the Code relating to the
withholding of sales or exchange proceeds to foreign persons.

     Section 4.06 TAXES. Except as would not have a material adverse effect on the
financial condition or results of operations of the Contributed Entity, (i) such Contributor has
timely filed all Tax returns and reports required to be filed by it (after giving effect to any
filing extension properly granted by a Governmental Authority having authority to do so) and all
such returns and reports are accurate and complete in all material respects, and has paid (or had
paid on its behalf) all Taxes as required to be paid by it, and (ii) (x) no written deficiencies
for any Taxes have been proposed, asserted or assessed against it and (y) to the Contributor’s
knowledge, no deficiencies for any Taxes will be proposed, asserted or assessed against it, and (z)
no requests for waivers of the time to assess any such Taxes are pending.

     Section 4.07 TAX MATTERS. Contributor represents and warrants that it has (or, if
Contributor is not a natural person, the beneficial owners of Contributor have) obtained from its
or their own counsel advice regarding the tax consequences of (i) the transfer of Contributor’s
Contributed Interests to the Operating Partnership and the receipt of OP Units as consideration
therefor, (ii) Contributor’s admission as a limited partner of the Operating Partnership and (iii)
any other transaction contemplated by this Agreement. Contributor further represents and warrants
that it has (or, if such Contributor is not a natural person, the beneficial owners of Contributor
have) not relied on the Operating Partnership, the REIT, any Principal, or such Person’s
Affiliates, representatives or counsel for any tax advice.

     Section 4.08 TAX INFORMATION. From the date hereof and subsequent to the Closing,
Contributor agrees to provide the Operating Partnership with such tax information relating to the
Contributed Interests that is in Contributor’s possession or control (including such tax
information the Contributor could obtain using reasonable efforts) and that is reasonably

12

 

requested by the Operating Partnership and not otherwise in the Operating Partnership’s
possession or control and to cooperate with the Operating Partnership with respect to the filing of
tax returns by the Operating Partnership.

     Section 4.09 SOLVENCY. Such Contributor has been and will be solvent at all times
prior to and for the ninety (90) day period following the transfer of its Contributed Interests to
the Operating Partnership.

     Section 4.10 LITIGATION. There is no action, suit or proceeding pending or, to such
Contributor’s knowledge, threatened against such Contributor affecting all or any portion of the
Contributed Interests owned by it or such Contributor’s ability to consummate the transactions
contemplated hereby which, if adversely determined, would adversely affect the Contributor’s
ability to so consummate the transactions contemplated hereby. Such Contributor knows of no
outstanding order, writ, injunction or decree of any Governmental Authority against or affecting
all or any portion of the Contributed Interests owned by it, which in any such case would impair
the Contributors’ ability to enter into and perform all of its obligations under this Agreement.

     Section 4.11 INVESTMENT. Such Contributor acknowledges that the offering and issuance
of the OP Units to be acquired pursuant to this Agreement are intended to be exempt from
registration under the Securities Act and that the Operating Partnership’s reliance on such
exemptions is predicated in part on the accuracy and completeness of the representations and
warranties of the Contributors contained herein. In furtherance thereof, such Contributor
represents and warrants to the Operating Partnership as follows:

     (a) Such Contributor is an “accredited investor” (as such term is defined in Rule 501(a) of
Regulation D promulgated under the Securities Act). Such Contributor has accurately completed the
Accredited Investor Questionnaire attached hereto as Exhibit E indicating the basis for
such Contributor’s accredited investor status. Such Contributor will, upon request, execute and/or
deliver any additional documents deemed by the Operating Partnership to be necessary or desirable
to confirm such Contributor’s accredited investor status.

     (b) Such Contributor is acquiring the OP Units solely for its own account for the purpose of
investment and not as a nominee or agent for any other Person and not with a view to, or for offer
or sale in connection with, any distribution thereof in violation of the securities Laws.

     (c) Such Contributor is knowledgeable, sophisticated and experienced in business and financial
matters and such Contributor fully understands the limitations on transfer imposed by the federal
securities Laws. Such Contributor is able to bear the economic risk of holding the OP Units for an
indefinite period and is able to afford the complete loss of its investment in the OP Units; such
Contributor has received and reviewed all information and documents about or pertaining to the
Operating Partnership and the business and prospects of the Operating Partnership and the issuance
of the OP Units as such Contributor deems necessary or desirable, and has been given the
opportunity to obtain any additional information or documents and to ask questions and receive
answers about such information and documents, the Operating Partnership and the business and
prospects of the Operating Partnership which such Contributor deem necessary or desirable to
evaluate the merits and risks related to its investment in the OP Units; and such Contributor
understands and has taken cognizance of all risk factors related to the

13

 

purchase of the OP Units. Such Contributor is relying upon its own independent analysis and
assessment (including with respect to Taxes), and the advice of such Contributor’s advisors
(including tax advisors), and not upon that of the Operating Partnership or any of the Operating
Partnership’s Affiliates, for purposes of evaluating, entering into, and consummating the
transactions contemplated hereby. Such Contributor has not been furnished with and has not relied
on any oral or written representation in connection with the offering of the OP Units that is not
contained in this Agreement or the PPM.

     (d) Such Contributor acknowledges that the OP Units have not been registered under the
Securities Act and, therefore, may not be sold unless registered under the Securities Act or an
exemption from registration is available. Such Contributor acknowledges that his, her or its
ability to sell or otherwise transfer the OP Units is further restricted by certain provisions of
the Operating Partnership Agreement and the Lock-Up Agreement and may be further restricted by
other applicable securities laws.

     (e) Such Contributor is, for purposes of the application of state securities laws, a resident
of the state set forth on the signature page hereto below such Contributor’s signature.

     Section 4.12 NO BROKERS OR FINDERS. Such Contributor has not entered into any
agreement and is not otherwise liable or responsible to pay any brokers’ or finders’ fees or
expenses to any person or entity with respect to this Agreement or the purchase and issuance of the
OP Units contemplated hereby, except for any such person or entity the fees and expenses for which
such Contributor shall be solely responsible and pay.

     Section 4.13 WAIVER OF RIGHTS UNDER ORGANIZATIONAL AGREEMENT. Each Contributor hereby
waives any rights or claims it may have under any Organizational Agreement of the Contributed
Entity related to the transfer of Contributed Interests to the Operating Partnership by the members
or partners, as applicable, of such Contributed Entity, including but not limited to any notice
requirements, rights of first refusal, rights of first offer, drag-along rights and tag-along
rights, and further waives compliance with any terms or conditions under any such Organizational
Agreement with respect to such transfer.

     Section 4.14 NO OTHER REPRESENTATIONS OR WARRANTIES. Other than the representations
and warranties expressly set forth in this Article IV, the Contributors shall not be deemed to have
made any other representation or warranty in connection with this Agreement or the transactions
contemplated hereby.

     Section 4.15 SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS. The
parties hereto agree and acknowledge that the representations and warranties set forth in this
Article IV (other than Sections 4.02, 4.05 and 4.11) shall not survive the
Closing.

14

 

ARTICLE 5

COVENANTS AND OTHER AGREEMENTS

     Section 5.01 COVENANTS OF THE CONTRIBUTORS. From the date hereof through the Closing,
except as otherwise provided for or as contemplated by this Agreement, each Contributor shall not:

     (a) sell, transfer or otherwise dispose of all or any portion of such Contributor’s
Contributed Interests or any interests therein;

     (b) mortgage, pledge, hypothecate, encumber (or permit to become encumbered) all or any
portion of such Contributor’s Contributed Interests;

     (c) authorize or consent to, or cause the Contributed Entity to sell, assign, transfer or
dispose of any of its assets;

     (d) authorize or consent to, or cause the Contributed Entity to mortgage, pledge, hypothecate,
encumber (or permit to become encumbered) all or any portion of its assets;

     (e) amend the certificate of limited partnership or formation, as applicable, Organizational
Agreements or other governing documents of the Contributed Entity without the consent of the
Operating Partnership; or

     (f) adopt a plan of liquidation, dissolution, merger, consolidation, restructuring,
recapitalization or reorganization with respect to the Contributed Entity.

     Section 5.02 COMMERCIALLY REASONABLE EFFORTS BY THE OPERATING PARTNERSHIP AND THE
CONTRIBUTORS. Each of the Operating Partnership and each Contributor shall use commercially
reasonable efforts and cooperate with each other in (i) promptly determining whether any filings
are required to be made or consents, approvals, waivers, permits or authorizations are required to
be obtained (under any applicable Law or regulation or from any Governmental Authority or third
party) in connection with the transactions contemplated by this Agreement, and (ii) promptly making
any such filings, in furnishing information required in connection therewith and in timely seeking
to obtain any such consents, approvals, waivers, permits or authorizations.

ARTICLE 6

CHANGES TO FORM AGREEMENTS

     Section 6.01 CHANGES TO FORM AGREEMENT. Each Contributor agrees and confirms that the
terms of the OP Units described in the PPM and the Exhibits thereto are not final and may be
modified depending on the prevailing market conditions at the time of the IPO. By executing this
Agreement such Contributor hereby authorizes the Operating Partnership and the REIT to, and
understands and agrees that the Operating Partnership and the REIT may, make changes (including
changes that may be deemed material) to the Operating Partnership Agreement, the Registration
Rights Agreement, the Lock-Up Agreement, the Assignment and

15

 

Assumption and the Representations and Warranty Agreement, and such Contributor agrees to
receive the OP Units with such final terms and conditions as the Operating Partnership and/or the
REIT determines, in their reasonable discretion.

ARTICLE 7

POWER OF ATTORNEY

     Section 7.01 POWER OF ATTORNEY. By executing this Agreement, each undersigned
Contributor hereby irrevocably constitutes and appoints the Operating Partnership (or a substitute
appointed by the Operating Partnership) as his, her or its attorney-in-fact and agent with full
power of substitution to take any and all actions and execute any of the following agreements on
such Contributor’s behalf and in such Contributor’s name: the Operating Partnership Agreement, the
Registration Rights Agreement, the Lock-Up Agreement, the Assignment and Assumption and any other
documents related to the consummation of the Formation Transactions, or any of the other
transactions contemplated by this Agreement on such Contributor’s behalf and in such Contributor’s
name, as may be deemed by the Operating Partnership as necessary or desirable to effectuate the
Formation Transactions, the IPO, and the other transactions described herein or in the PPM. Each
Contributor hereby grants to each attorney-in-fact full power and authority to do and perform each
and every act and thing which may be necessary, or convenient, in connection with the foregoing, as
fully, to all intents and purposes, as the undersigned might or could do if personally present,
hereby ratifying and confirming all that such attorney-in-fact shall lawfully do or cause to be
done by authority hereof. Such power-of-attorney shall be deemed to be coupled with an interest
and shall be irrevocable and shall survive the death, disability or dissolution of the Contributor.

ARTICLE 8

GENERAL PROVISIONS

     Section 8.01 NOTICES. All notices and other communications under this Agreement shall
be in writing and shall be deemed given when (a) delivered personally, (b) five (5) Business Days
after being mailed by certified mail, return receipt requested and postage prepaid, (c) one (1)
Business Day after being sent by a nationally recognized overnight courier or (d) transmitted by
facsimile if confirmed within 24 hours thereafter by a signed original sent in the manner provided
in clause (a), (b) or (c) to the parties at the addresses set forth on the signature page hereto
(or at such other address for a party as shall be specified by notice from such party)

     Section 8.02 DEFINITIONS. For purposes of this Agreement, the following terms shall
have the following meanings.

     (a) “Affiliate” means, with respect to any Person, a Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under common control with the
specified Person. For the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlled by” and “under common control with”) as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the

16

 

direction of the management or policies of such Person, whether through the ownership of
voting securities, by agreement or otherwise.

     (b) “Amortizing Principal Payment” means the principal component of any regularly scheduled
installment of principal and interest in respect of Debt. The term “Amortizing Principal Payment”
does not include the principal component of (i) any voluntary prepayment of Debt, or (ii) any
payment made in respect of any Debt that has become due by reason of acceleration or the occurrence
or nonoccurrence of any event requiring a mandatory prepayment.

     (c) “Assignment and Assumption” means an Assignment and Assumption of Ownership Interests
substantially in the form attached as Exhibit F hereto.

     (d) “Business Day” means any day that is not a Saturday, Sunday or legal holiday in the State
of Minnesota or Delaware.

     (e) “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and
regulations promulgated or issued thereunder.

     (f) “Cut-Off Date” means a date to be established by the Operating Partnership for purposes of
determining adjustments to the Contributor’s Formation Transaction Value pursuant to Section 1.04
hereof, which date shall be no earlier than ten (10) calendar days prior to the Closing Date and no
later than the calendar day prior to the Closing Date.

     (g) “Cut-Off Date Cash Balance” means all cash and cash equivalents that would be shown on a
balance sheet of the Operating Entity prepared on the Cut-Off Date in a manner consistent with
historical accounting practices applicable to the Operating Entity to the extent the same derive
from operating income of the Operating Entity and in any event excluding (i) cash and cash
equivalents consisting of loan proceeds, casualty insurance proceeds, proceeds from condemnation or
eminent domain proceedings, or proceeds from the sale or other disposition of the Related Property
or any interest therein, or that are otherwise derived from a source other than the operation,
leasing, management or occupancy of the Related Property, and (ii) cash and cash equivalents
consisting of Non-Operating Expense Reserves made on or after April 1, 2010.

     (h) “Debt” means, with respect to any Person, without duplication, (a) its liabilities for
borrowed money, (b) its liabilities for the deferred purchase price of property acquired by such
Person (excluding accounts payable arising in the ordinary course of business but including,
without limitation, all liabilities created or arising under any conditional sale or other title
retention agreement with respect to any such property), (c) its capital lease obligations, and (d)
all liabilities for borrowed money secured by any Lien with respect to any property owned by such
Person (whether or not it has assumed or otherwise become liable for such liabilities).

     (i) “Extraordinary Expense Prepayments” means, as of any date of determination, all prepaid
expenses of the Property Owner to the extent such expenses relate to a date more than thirty (30)
days after such date of determination.

     (j) “Extraordinary Principal Payment” means any payment of principal in respect of Debt other
than an Amortizing Principal Payment. The term “Extraordinary Principal

17

 

Payment” includes the principal component of (i) any voluntary prepayment of Debt, or (ii) any
payment made in respect of any Debt that has become due by reason of acceleration or the occurrence
or nonoccurrence of any event requiring a mandatory prepayment.

     (k) “Extraordinary Rent Prepayments” means any prepayment of rent and other fees and charges
due or to become due to the Property Owner pursuant to any lease or other occupancy agreement more
than thirty (30) days in advance to the extent the same is received by the Property Owner.

     (l) “Governmental Authority” means any government or agency, bureau, board, commission, court,
department, official, political subdivision, tribunal or other instrumentality of any government,
whether federal, state or local, domestic or foreign.

     (m) “IPO Price” means the initial public offering price of a share of REIT Common Stock in the
IPO.

     (n) “Laws” means laws, statutes, rules, regulations, codes, orders, ordinances, judgments,
injunctions, decrees and policies of any Governmental Authority.

     (o) “Liens” means all pledges, claims, liens, charges, restrictions, controls, easements,
rights of way, exceptions, reservations, leases, licenses, grants, covenants and conditions,
encumbrances and security interests of any kind or nature whatsoever.

     (p) “Non-Operating Expense Reserves” means any escrow, deposit or reserve required by the
terms of any agreement to which the Property Owner is a party or by which the Property Owner or its
assets are bound, other than Restricted Deposits.

     (q) “Operating Entity” means the Contributed Entity or, if the Contributed Entity does not own
or hold the Related Property or co-tenancy interest in the Related Property, the entity that owns
such Property or co-tenancy interest.

     (r) “Operating Entity’s Share” means the Operating Entity’s undivided ownership interest in
the Related Property stated as a percentage.

     (s) “Operating Expenses” means all normal and reasonable expenses of owning, operating,
leasing, managing, maintaining and occupying all real and personal property owned by the Property
Owner, including but not limited to: (i) payments to, for the benefit of or required in connection
with personnel employed to manage, operate and maintain the Property Owner or its properties; (ii)
utility charges; (iii) costs of heating, lighting, ventilating and air conditioning; (iv) premiums
for hazard, casualty, rent loss and liability insurance; (v) ad valorem real estate and personal
property taxes, installments of special assessments and sales tax payments; (vi) expenses for
maintenance and repair of buildings, grounds, driveways and parking areas; (vii) costs of
janitorial services, tools, equipment and supplies; (viii) management fees, including without
limitation fees paid or payable to Welsh or one or more of its Affiliates; (ix) landscaping, lawn,
shrub and tree trimming, fertilizing and care expenses; (x) equipment lease payments; (xi) snow and
ice removal expenses; (xii) advertising and promotion expenses; (xiii) expenses related to the
delivery of cable television, internet access, telephone and similar services to tenants of the
Property Owner for a fee; (xiv) all security expenses; (xv) costs of

18

 

printing, stationery and office supplies; (xvi) attorneys’ fees and accountants’ fees, (xvii)
capital improvement and expenditures; (xviii) costs of warranty repairs; (xix) fees of consultants;
(xx) costs in connection with or in contemplation of sale or refinancing, such as costs of
appraisals, environmental or engineering studies; and (xxi) income, franchise and other taxes.

     (t) “Organizational Agreement” means the partnership, limited liability company, operating or
similar agreement of the Contributed Entity.

     (u) “Past Due Payables” means, as of any date of determination, all liabilities and other
obligations of the Property Owner that (i) are due and remain unpaid as of such date of
determination, and (ii) all expenses incurred by the Property Owner that remain unpaid as of such
date of determination to the extent such expenses relate to a date more than thirty (30) days prior
to the date of determination.

     (v) “Person” means an individual, partnership, corporation, limited liability company, joint
venture, association, trust, unincorporated organization or other entity, or a government or agency
or political subdivision thereof.

     (w) “Principals” means Dennis J. Doyle, Scott T. Frederiksen and Jean V. Kane.

     (x) “Property Owner” means (i) if the interest of the Operating Entity in the Related Property
is as a co-tenant with one or more other Persons, the Operating Entity and each other such
co-tenant, collectively, and (ii) otherwise, the Operating Entity.

     (y) “Ratable Share” means the direct or indirect equity interest of a Contributor in the
Operating Entity stated as a percentage of all direct and indirect equity interests in the
Operating Entity; provided, that if the interest of the Operating Entity in the Related Property is
as a co-tenant with one or more other Persons, then the Ratable Share shall be the percentage
determined as provided above multiplied by the percentage ownership interest of the Operating
Entity as a co-tenant in the Related Property. For example, if the Contributor owns 50% of all
direct and indirect equity interests in an Operating Entity, and the Operating Entity owns an
undivided 50% interest in the Related Property as a co-tenant with one or more other Persons, then
the Ratable Share shall equal 25%.

     (z) “Related Property” means the Property owned, in whole or in part, by the Operating Entity
and used to establish the Contributor’s Formation Transaction Value for purposes of this Agreement.

     (aa) “Representations and Warranty Agreement” means that Representations and Warranty
Agreement by and among the REIT, the Operating Partnership and the Principals substantially in the
form attached as Exhibit G hereto.

     (bb) “Restricted Deposit” means any escrow, deposit or reserve required by the terms of any
agreement to which the Property Owner is a party or by which the Property Owner or its assets are
bound and established or maintained to pay or provide for payment of any Operating Expense of the
Property Owner, including without limitation escrows for taxes, insurance and other charges, and
deposits and reserves for repairs, replacements, capital expenditures, leasing commissions and
tenant improvements.

19

 

     (cc) “Target Cash Balance” means, as of any date of determination, an amount, determined by
the Operating Partnership in its reasonable discretion, equal to the sum of the following:

     (i) the Operating Entity’s Share of the aggregate amount of all security deposits and
similar deposits due or that may become due to tenants of the Related Property or other
third parties in connection with the Related Property;

     (ii) the Operating Entity’s Share of the aggregate amount of all Restricted Deposits
and other escrow, deposits and reserves that are otherwise historically or customarily
maintained by the Property Owner, including without limitation escrows for taxes, insurance
and other charges, and deposits and reserves for repairs, replacements, capital
expenditures, leasing commissions and tenant improvements, whether or not so required, but
excluding Non-Operating Expense Reserves;

     (iii) the Operating Entity’s Share of the aggregate amount of all payments of
principal, interest and/or late fees on Debt that are due on such date or scheduled to
become due during the period of thirty (30) days following such date; and

     (iv) the Operating Entity’s Share of that portion of all Operating Expenses incurred or
to be incurred by the Operating Entity that are due on such date or scheduled to become due
during the period of thirty (30) days following such date.

     (dd) “Tax” means all federal, state, local and foreign income, property, withholding, sales,
franchise, employment, excise and other Taxes, tariffs or governmental charges of any nature
whatsoever, including (i) estimated Taxes, together with penalties, interest or additions to Tax
with respect thereto and (ii) any Taxes of another person or entity as a result of any transfer,
succession or assignment, by contract, or otherwise.

     (ee) “Welsh” means Welsh Companies, LLC.

     Section 8.03 COUNTERPARTS. This Agreement may be executed in counterparts, all of
which shall be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each party and delivered to each other party.

     Section 8.04 ENTIRE AGREEMENT; THIRD-PARTY BENEFICIARIES. This Agreement, including,
without limitation, the exhibits and schedules hereto, constitute the entire agreement and
supersede each prior agreement and understanding, whether written or oral, among the parties
regarding the subject matter of this Agreement. This Agreement is not intended to confer any rights
or remedies on any Person other than the parties hereto.

     Section 8.05 GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, the Laws of the State of Delaware, regardless of any Laws that might otherwise
govern under applicable principles of conflicts of laws thereof.

     Section 8.06 ASSIGNMENT. This Agreement shall be binding upon, and shall be
enforceable by and inure to the benefit of, the parties hereto and their respective heirs, legal
representatives, successors and assigns; provided, however, that this Agreement may not be

20

 

assigned (including by operation of law) by any Contributor without the prior written consent
of the Operating Partnership and by the Operating Partnership without the prior written consent of
a majority in interest of the Contributors, and any attempted assignment without such consent shall
be null and void and of no force and effect, except that the Operating Partnership may assign its
rights and obligations hereunder to an Affiliate.

     Section 8.07 JURISDICTION. The parties hereto hereby (a) submit to the exclusive
jurisdiction of any state or federal court sitting in Hennepin County, Minnesota, with respect to
any dispute arising out of this Agreement or any transaction contemplated hereby to the extent such
courts would have subject matter jurisdiction with respect to such dispute, and (b) irrevocably
waive, and agree not to assert by way of motion, defense, or otherwise, in any such action, any
claim that it is not subject personally to the jurisdiction of the above-named courts, that its
property is exempt or immune from attachment or execution, that the action is brought in an
inconvenient forum, or that the venue of the action is improper.

     Section 8.08 SEVERABILITY. Each provision of this Agreement will be interpreted so as
to be effective and valid under applicable Law, but if any provision is held invalid, illegal or
unenforceable under applicable Law in any jurisdiction, then such invalidity, illegality or
unenforceability will not affect any other provision, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been included herein.

     Section 8.09 RULES OF CONSTRUCTION.

     (a) The parties hereto agree that they have been represented by counsel during the
negotiation, preparation and execution of this Agreement and, therefore, waive the application of
any Law, regulation, holding or rule of construction providing that ambiguities in an agreement or
other document will be construed against the party drafting such agreement or document.

     (b) The words “hereof,” “herein” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement, and article, section, paragraph, exhibit and schedule references are
to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise
specified. Whenever the words “include,” “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation.” All terms defined in this
Agreement shall have the defined meanings contained herein when used in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such terms. Unless
explicitly stated otherwise herein, any agreement, instrument or statute defined or referred to
herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time, amended, qualified or supplemented, including (in the
case of agreements and instruments) by waiver or consent and (in the case of statutes) by
succession of comparable successor statutes and all attachments thereto and instruments
incorporated therein. References to a Person are also to its permitted successors and assigns.

21

 

     Section 8.10 EQUITABLE REMEDIES. The parties agree that irreparable damage would
occur to the Operating Partnership in the event that any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the Operating Partnership shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement by a Contributor and to enforce specifically the terms and provisions
hereof, this being in addition to any other remedy to which the Operating Partnership is entitled
under this Agreement or otherwise at law or in equity. Notwithstanding the foregoing, this
Agreement shall not bar any equitable remedies otherwise available to the Contributor pursuant to
the terms and provisions contained in Section 3.09.

     Section 8.11 TIME OF THE ESSENCE. Time is of the essence with respect to all
obligations under this Agreement.

     Section 8.12 DESCRIPTIVE HEADINGS. The descriptive headings herein are inserted for
convenience only and are not intended to be part of or to affect the meaning or interpretation of
this Agreement.

     Section 8.13 NO PERSONAL LIABILITY CONFERRED. This Agreement shall not create or
permit any personal liability or obligation on the part of any officer, director, partner, employee
or shareholder of the Operating Partnership or any of the Contributors.

     Section 8.14 AMENDMENTS. This Agreement may be amended by appropriate instrument,
without the consent of any Contributor, at any time prior to the Closing Date; provided, that no
such amendment, modification or supplement shall be made that alters the amount or changes the form
of the consideration to be delivered to the Contributors. For the avoidance of doubt, any
adjustment to the Contributor’s Formation Transaction Value of any Contributor that is made
pursuant to, and in accordance with, Section 1.04 shall not require the consent of such
Contributor.

[SIGNATURE PAGES FOLLOW]

22

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their
respective duly authorized officers or representatives, all as of the Effective Date.

	 	 	 	 	 	 	 
	Effective Date:                                         , 20___	 	WELSH PROPERTY TRUST, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	WELSH PROPERTY TRUST, LLC

Its General Partner	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CONTRIBUTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	Residence:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	Residence:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	Residence:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	Residence:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	Residence:	 	 	 	 

Signature Page to Contribution Agreement

 

 

EXHIBITS

Exhibit A: Contributor’s Formation Transaction Value

Exhibit B: Form of Lock-Up Agreement

Exhibit C: Form of Registration Rights Agreement

Exhibit D: Form of Operating Partnership Agreement

Exhibit E: Accredited Investor Questionnaire

Exhibit F: Form of Assignment and Assumption

Exhibit G: Form of Representations and Warranty Agreement

Exhibit H: FIRPTA Affidavit

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]