Document:

Amended and Restated Employment Agreement for Michael L. Baur

 Exhibit 10.19 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(“Agreement”) between ScanSource, Inc., a South Carolina corporation (“Company”), and Michael L. Baur (“Executive”) (collectively “the Parties”) is effective as of June 30, 2008 (“Effective
Date”) as an amendment and restatement of the Employment Agreement originally dated as of October 13, 2005, between the Company and Executive. 
 BACKGROUND 
 The Company desires to employ Executive as Chief Executive Officer, and Executive is
willing to serve in such capacity, in accordance with the terms and conditions of this Agreement.
 In consideration of the foregoing and of
the mutual commitments below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 1. Employment. On the Effective Date, Executive will be employed in the capacity stated above with such commensurate responsibilities as are assigned to him by the Board of Directors of the Company
(“Board”). 
 2. Employment Period. Unless earlier terminated in accordance with Section 5, Executive’s
employment will be for a term (the “Employment Period”), beginning on the Effective Date and ending three years after the Effective Date, the Employment Period End Date. Provided, however, that if a Change in Control, as
defined in Exhibit C hereto, occurs during the Employment Period, the ending date of the Employment Period will be extended so that it expires on the later of the Employment Period End Date or the first anniversary of the date on which the Change in
Control initially occurred. 
 3. Extent of Service. During the Employment Period, and excluding any periods of vacation and sick
leave to which Executive is entitled, Executive agrees to devote his business time, attention, skill and efforts exclusively to the faithful performance of his duties hereunder. Provided, however, that it shall not be a violation of this
Agreement for Executive to (i) devote reasonable periods of time to charitable and community activities and, with the approval of the Company, industry or professional activities, and/or (ii) manage personal business interests and
investments, so long as these activities do not interfere with the performance of Executive’s responsibilities under this Agreement.
 4. Compensation and Benefits. 
 (a) Base Salary. During the Employment Period, the Company will
pay to Executive a base salary at the rate specified on Exhibit A (“Base Salary”), less normal withholdings, payable in equal monthly or more frequent installments as are customary under the Company’s payroll practices from time to
time. The Compensation Committee of the Board will review Executive’s Base Salary annually and in their sole discretion 

 
may increase (but not decrease) Executive’s Base Salary from year to year. The target amounts of such increases, if any, will be between 5% to 10% of
Executive’s then-current Base Salary. This annual review of Executive’s Base Salary will consider, among other things, Executive’s performance and the Company’s performance. If Executive becomes eligible during the
Employment Period to receive benefits under the Company’s short-term disability policy, the Company will continue to pay Executive’s Base Salary; provided, however, that Executive’s Base Salary during such period will be reduced by
any amounts Executive receives under the short-term disability policy. 
 (b) Incentive Compensation, Savings and
Retirement Plans. During the Employment Period, Executive will be entitled to participate in all deferred compensation, savings and retirement plans, practices, policies and programs applicable to staff officers of the Company (“Peer
Executives”) pursuant to their terms. The Executive will also be eligible to receive certain incentive compensation (“Incentive Compensation”) based on financial and/or performance criteria established periodically by the Board
Compensation Committee, as specified on Exhibit A. 
 (c) Welfare Benefit Plans. During the Employment Period,
Executive and Executive’s eligible dependents may participate pursuant to their terms in the welfare benefit plans, practices, policies and programs provided by the Company which may include, medical, prescription, dental, disability, employee
life, group life, accidental death and travel accident insurance plans and programs) (“Welfare Plans”) to the extent applicable to Peer Executives. Contributions will be required by the Executive. The Company may, in its sole
discretion, modify, change, or eliminate its Welfare Plans. 
 (d) Expenses. During the Employment Period,
Executive will be entitled to receive reimbursement for all reasonable expenses incurred by Executive in accordance with the policies, practices and procedures of the Company to the extent applicable to Peer Executives, and such reimbursements will
be made no later than the last day of the year immediately following the year in which Executive incurs the reimbursable expense. 
 (e) Fringe Benefits. During the Employment Period, Executive will be entitled to fringe benefits in accordance with the plans, practices, programs and policies of the Company in effect for Peer Executives. In lieu of
reimbursing Executive for expenditures on perquisites and similar items, the Company will also pay to Executive Fifty Thousand Dollars ($50,000), less normal withholdings, in a single lump sum each July during the Employment Period. Executive will
not be required to account for any such expenditures or return any of the payments to the extent Executive’s expenditures are less than such amount, and Executive will not have any right to be reimbursed for any perquisites or other such items.

 (f) Vacation. During each fiscal year during the Employment Period, Executive will be entitled to the number of
days of paid vacation specified on Exhibit A. Executive may take vacation at the times Executive reasonably requests, subject to the prior approval of the person specified on Exhibit A. Unused vacation time will not carry over to the next
fiscal year and will not be paid upon termination of employment. 
  

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 5. Termination of Employment. 
 (a) Death, Retirement or Disability. Executive’s employment terminates automatically upon Executive’s death or
Retirement during the Employment Period. For purposes of this Agreement, “Retirement” means normal retirement as defined in the Company’s retirement plan in effect when Executive retires, or if there is no retirement plan,
“Retirement” will mean the Executive’s voluntary termination of employment after age 55 with fifteen years of service. If the Company determines that the Executive has become disabled during the Employment Period (pursuant to the
definition of Disability set forth below), it may give to Executive written notice of its intention to terminate Executive’s employment. Executive’s employment with the Company will terminate effective on the 30th day after receipt of
such written notice by Executive (“Disability Effective Date”), unless, within the 30 days after such receipt, Executive has returned to full-time performance of Executive’s duties. For purposes of this Agreement,
“Disability” means (i) Executive is unable to engage in any substantial gainful activity due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for at least
twelve (12) months or (ii) Executive is, due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for at least twelve (12) months, receiving income replacement
benefits for at least three (3) months under an accident and health plan covering employees of Executive’s employer. Executive will also be deemed disabled under this Agreement if he is determined to be totally disabled by the United
States Social Security Administration. Executive will also be deemed disabled under this Agreement if determined to be disabled under the Company’s long-term disability plan, if any, provided the definition of disability under such plan
complies with the foregoing definition of disability. At the request of Executive or his personal representative, the Board’s determination that the Disability of Executive has occurred will be certified by two physicians mutually agreed
upon by Executive, or his personal representative, and the Company. If the two physicians are unwilling to certify that the Executive is disabled, Executive’s termination will be deemed a termination by the Company without Cause and not a
termination because of his Disability. 
 (b) Termination by the Company. The Company may terminate
Executive’s employment during the Employment Period with or without Cause. For purposes of this Agreement, “Cause” shall mean: 
 (i) the failure of Executive to satisfactorily perform Executive’s duties with the Company (other than failure resulting from incapacity due to Disability), after a written demand for
satisfactory performance is delivered to Executive by the Board, which specifically identifies the manner in which the Board believes that Executive has not satisfactorily performed Executive’s duties. The decision of whether
Executive has satisfactorily performed his duties with the Company or complied with the demand for satisfactory performance is in the sole discretion of the Board; 
  

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 (ii) Engaging in unethical or illegal conduct or misconduct which includes but is not
limited to violations of the Company’s policies concerning employee conduct; or 
 (iii) The Executive’s breach of
any term of this Agreement. 
 (c) Termination by Executive. Executive’s employment may be terminated by
Executive for Good Reason or no reason. For purposes of this Agreement, “Good Reason” means: 
 (i) without the
consent of Executive, the assignment to Executive of any duties materially inconsistent for a chief executive officer, excluding an isolated, insubstantial, and inadvertent action taken in good faith which is remedied by the Company promptly after
receipt of notice from Executive; 
 (ii) a material reduction by the Company in Executive’s Base Salary or a material
reduction in Executive’s Incentive Compensation opportunity; 
 (iii) the failure by the Company (a) to continue in
effect any compensation plan in which Executive participates as of the Effective Date that is material to Executive’s total base compensation, unless the Company provides a substantially equivalent alternative plan, or (b) to continue
Executive’s participation in the alternative plan on a basis that is substantially equivalent in terms of the value of benefits provided; 
 (iv) the Company’s requiring Executive, without his consent, to be based at any location that increases Executive’s normal work commute by fifty (50) miles or more as compared to Executive’s normal
work commute or otherwise is a material change in the location at which Executive is based; 
 (v) any failure by the Company
to comply with and satisfy Section 12(c) of this Agreement; 
 (vi) the material breach of this Agreement by the Company;
or 
 (vii) if no new employment agreement has been entered into by Executive and the Company or its successor after or in
contemplation of a Change in Control, termination by Executive for any reason or no reason during the 60-day period beginning on the sixth-month anniversary of a Change in Control. 
 Executive must provide written notice to the Company of Executive’s intent to terminate employment for Good Reason within 30 days of the initial existence of the Good Reason. The Company will have an opportunity
to cure any claimed event of Good Reason within 30 days of notice from Executive. The Board’s good faith determination of cure will be binding. The Company will notify Executive in writing of the timely cure of any claimed event of Good
Reason and how the cure was made. Any Notice of Termination delivered 

  

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by Executive based on a claimed Good Reason which was thereafter cured by the Company will be deemed withdrawn and ineffective to terminate this Agreement.
If the Company fails to cure any claimed event of Good Reason within 30 days of notice from Executive, Executive must terminate employment for such claim of Good Reason within 180 days of the initial existence of the Good Reason, and if Executive
fails to do so, such claimed event of Good Reason will be deemed withdrawn and ineffective to terminate this Agreement. 
 (d)
Notice of Termination. Any termination of Executive’s employment by the Company or by Executive must be communicated by Notice of Termination to the other Party in accordance with Section 14(f) of this Agreement. For
purposes of this Agreement, a “Notice of Termination” means a written notice which (i) states the specific termination provision in this Agreement relied upon, including whether such termination is for Cause or Good Reason,
(ii) if such termination is for Cause or Good Reason, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provisions so indicated, and (iii)
specifies the termination date. The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause will not waive any right of Executive or the
Company, or preclude Executive or the Company from asserting applicable facts or circumstances in enforcing rights under this Agreement. 
 (e) Date of Termination. “Date of Termination” means the date specified in the Notice of Termination or, if Executive’s employment is terminated by reason of death, Retirement or Disability,
the date of death or Retirement or the Disability Effective Date. 
 6. Obligations of the Company upon Termination. 
 (a) Termination by Executive for Good Reason; Termination by the Company Other Than for Cause, Death, Disability, Retirement, or Normal
Expiration of Employment Period. If, during the Employment Period: (i) the Company terminates Executive’s employment other than for Cause, death, Disability, or Retirement, or (ii) Executive terminates employment for Good
Reason following the Company’s failure to cure such Good Reason as set forth in Section 5(c) of this Agreement, the Company will pay Executive the following amounts and provide the following benefits: 
 (i) the sum of Executive’s Base Salary earned through the Date of Termination to the extent not already paid (such amount is
hereinafter referred to as the “Accrued Obligations”) will be paid as soon as practicable after the Date of Termination per the Company’s customary payroll practices; and 
  

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 (ii) to the extent not previously paid or provided and only if earned as of the Date of
Termination, the Company will timely pay or provide to Executive any other amounts or benefits which Executive is eligible to receive under any plan, program, policy, practice, contract or agreement of the Company (“Other Benefits”)
pursuant to the terms of such Other Benefits; and 
 (iii) subject to
Section 14(i) of this Agreement and Executive’s execution of a Release in substantially the form of Exhibit B hereto (the “Release”) within the time set forth in Section 6(g) of this Agreement, on the 30th day after the Date of Termination, the Company will pay to Executive in a lump sum in cash the amount in (A), pay the amount in (B) as set forth below,
and provide the benefits in (C): 
 (A) the amount equal to the greater of (a) two or (b) the number of full months
remaining between the Date of Termination and the Employment Period End Date, divided by 12, times the highest combined annual Base Salary and Incentive Compensation earned by Executive from the Company, including any such amounts earned but
deferred, in the last three fiscal years before the Date of Termination (the “Severance Benefits”), less normal withholdings. Notwithstanding the foregoing, if the Date of Termination occurs within 12 months after or otherwise in
contemplation of a Change in Control, as defined in Exhibit C, Executive will receive Severance Benefits in an amount equal to three times the highest combined annual Base Salary and Incentive Compensation earned by Executive from the Company,
including any such amounts earned but deferred, in the last three fiscal years before the Date of Termination, less normal withholdings. Executive’s entitlement to receive and retain the amounts set forth in this Section 6 are conditioned
on Executive’s compliance with the Restrictions on Conduct described in Section 11; 
 (B) a bonus equal to the pro rata portion (based on the number of days elapsed in the current fiscal year through the Date of Termination) of the current fiscal year annual incentive compensation, if any, that would
otherwise be payable if the Executive had continued employment through the end of the current fiscal year, based on actual performance (the “Pro Rata Bonus”). The Pro Rata Bonus, less normal withholdings will be paid at the normal time for
payment of annual bonuses as if Executive had continued employment through the time of payment of the bonus, which will be no later than the later of March 15 following the end of the calendar year in which Executive’s right to the bonus
vests or the 15th day of the third month following the end of the Company’s fiscal year in which Executive’s right to the bonus vests.

 (C) for the period of time following the Date of Termination indicated on Exhibit A (the “Health Benefits
Continuation Period”), the Company will provide to Executive and/or Executive’s eligible dependents on a monthly basis continued coverage under its group health benefit plans to which Executive and/or Executive’s eligible dependents

  

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would otherwise be entitled to continue under COBRA; provided, however, that such Health Benefits Continuation Period will run concurrently with any period
during which Executive is eligible to elect health coverage under COBRA, and for all months after the initial 18 months of the Health Benefits Continuation Period, the applicable Company-subsidized monthly COBRA premium for such group health
benefits, determined in accordance with Code Section 4980B and its regulations, will be treated as taxable compensation to Executive by including such amount in Executive’s or Executive’s designee’s income for each month such
coverage is provided. No cash payments or other reimbursements will be made in lieu of such continuation coverage during the Health Benefits Continuation Period. 
 (b) Death. If Executive’s employment is terminated because of Executive’s death during the Employment Period, this
Agreement will terminate without further obligations to Executive’s legal representatives under this Agreement, other than (i) the payment of Accrued Obligations as described in Section 6(a)(i), (ii) the payment of the Pro Rata
Bonus as described in Section 6(a)(iii)(B), (iii) the provision of Post-Termination Medical Benefits to Executive’s surviving spouse until the end of the month during which Executive would have reached age 65, and to each of
Executive’s children who remain a tax dependent of Executive’s surviving spouse until the earlier of such child’s attaining age 21, the child ceasing to be a tax dependent of the surviving spouse, or the child becoming eligible to
receive medical benefits under another employer provided plan, as described in Section 6(a)(iii)(C), and (iv) the timely payment or provision of Other Benefits as described in Section 6(a)(ii). The Accrued Obligations and the Pro
Rata Bonus will be paid to Executive’s estate or beneficiary, as applicable. Other Benefits as used in this Section 6(b) will include, without limitation, and Executive’s estate and/or beneficiaries will be entitled to receive,
benefits under such plans, programs, practices and policies relating to death benefits, if any, as are applicable to Executive on the date of his death pursuant to the terms of such Other Benefits. 
 (c) Disability. If Executive’s employment is terminated because of Executive’s Disability during the Employment
Period, this Agreement will terminate without further obligations to Executive, other than for (i) payment of Accrued Obligations as described in Section 6(a)(i), (ii) the payment of the Pro Rata Bonus as described in
Section 6(a)(iii)(B), (iii) provision of Post-Termination Medical Benefits as described in Section 6(a)(iii)(C), (iv) the timely payment or provision of Other Benefits as described in Section 6(a)(ii), and (v) the
payment for the period, if any, following such termination during which Executive continues to receive benefits under the Company’s short-term disability policy, of Executive’s Base Salary payable in equal monthly or more frequent
installments per the Company’s payroll procedures from time to time; provided, however, that Executive’s Base Salary during such period will be reduced by any amounts Executive receives under the Company’s short-term disability
policy. In addition, if Executive’s employment is terminated by reason of Executive’s Disability during the Employment Period, Executive will receive an annual payment of $60,000, less normal withholdings, until Executive is no longer
considered to be Disabled or until 

  

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Executive attains age 65, whichever is earlier, with the first annual installment payable on the 30th
 day after the Date of Termination due to Executive’s Disability and each subsequent installment due on the annual anniversary of the Date of Termination provided that Executive is still considered
to be Disabled or has not attained age 65, whichever is earlier, by the time scheduled for such payment. Such benefit may be funded, at the election of the Company, through an underwritten individual long-term disability policy for the benefit of
Executive or by the Company directly. The term Other Benefits as used in this Section 6(c) includes, without limitation, and Executive will be entitled after the Disability Effective Date to receive, disability and other benefits under
such plans, programs, practices and policies relating to disability, if any, as are applicable to Executive and his family on the Date of Termination pursuant to the terms of such Other Benefits. 
 (d) Retirement. If Executive’s employment is terminated because of Executive’s Retirement during the Employment
Period, this Agreement will terminate without further obligations to Executive, other than for (i) the payment of Accrued Obligations as described in Section 6(a)(i), (ii) the payment of the Pro Rata Bonus as described in
Section 6(a)(iii)(B), (iii) the continuation of Post-Termination Medical Benefits as described in Section 6(a)(iii)(C), and (iv) the timely payment or provision of Other Benefits as described in
Section 6(a)(ii). Accrued Obligations will be paid to Executive in a lump sum in cash within 30 days of the Date of Termination unless a longer period is required for calculation as set forth in Section 6(a)(iii). The term Other
Benefits as used in this Section 6(d) includes, without limitation, and Executive shall be entitled after the Date of Termination to receive, retirement and other benefits under such plans, programs, practices and policies relating to
retirement, if any, as applicable to Executive on the Date of Termination pursuant to the terms of such Other Benefits. 
 (e)
Cause or Voluntary Termination without Good Reason. If Executive’s employment is terminated for Cause during the Employment Period, or if Executive voluntarily terminates employment during the Employment Period without Good Reason,
this Agreement will terminate without further obligations to Executive, other than for (i) the payment of Accrued Obligations as described in Section 6(a)(i), and (ii) the timely payment or provision of Other Benefits as described in
Section 6(a)(ii). 
 (f) Normal Expiration of Employment Period. If Executive’s employment is terminated
due to the normal expiration of the Employment Period or is terminated within 60 days after the Employment Period End Date (for reasons other than Cause, death, Disability or Retirement), this Agreement will terminate without further obligations to
Executive, other than for (i) the payment of Accrued Obligations as described in Section 6(a)(i), (ii) the payment of the Pro Rata Bonus as described in Section 6(a)(iii)(B), (iii) the payment of the Severance Benefits
(subject to the Executive’s execution of the Release) as described in Section 6(a)(iii)(A), the provision of Post-Termination Medical Benefits as described in Section 6(a)(iii)(B), and (v) the timely payment or provision of Other
Benefits as described in Section 6(a)(ii). Notwithstanding anything to the contrary in this Agreement, if the Company provides notice that the Agreement will not be renewed and a new employment agreement is not 

  

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offered and the Executive remains an employee of the Company in any capacity, Executive’s employment will not be governed by this Agreement and
Executive will be an at-will employee. In that instance, Executive remains subject to the Restrictions on Conduct described in Section 11. 
 (g) Execution of Release. Notwithstanding anything to the contrary in this
Section 6, the Release must be executed and provided to the Company, and the period for revoking same must have expired, before the 30th day
following the Date of Termination. 
 7. Non-exclusivity of Rights. Nothing in this Agreement prevents or limits Executive’s
continuing or future participation in any plan, program, policy or practice provided by the Company and for which Executive may qualify, nor, subject to Section 14(d), will anything herein limit or otherwise affect any rights Executive may have
under any contract or agreement with the Company. Amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice, program, contract or agreement with the Company at or subsequent to the
Date of Termination will be payable in accordance with such plan, policy, practice, program, contract or agreement except as explicitly modified by this Agreement. 
 8. Mandatory Reduction of Payments in Certain Events. Any payments made to Executive under this Agreement will be made with the Executive’s best interests in mind related to Code Section 4999.

 (a) Anything in this Agreement to the contrary notwithstanding, if it is determined that any benefit, payment or
distribution by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would be subject to the excise tax imposed by Code
Section 4999 (the “Excise Tax”), then, before making the Payment to Executive, a calculation will be made comparing (i) the net benefit to Executive of all Payments after payment of the Excise Tax, to (ii) the net benefit to
Executive if the Payment had been limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payments will be
limited to the extent necessary to avoid being subject to the Excise Tax (the “Reduced Amount”). In that event, Executive will direct which Payments are to be reduced and any such reduction will be made so as not to violate Code
Section 409A. 
 (b) The determination of whether an Excise Tax would be imposed, the amount of such Excise Tax, and the
calculation of the amounts referred to in Section 8(a)(i) and (ii) above will be made by the Company’s regular independent accounting firm at the expense of the Company or, at the election and expense of Executive, another nationally
recognized independent accounting firm (the “Accounting Firm”) which will provide detailed supporting calculations. Any determination by the Accounting Firm will be binding upon the Company and Executive. As a result of the
uncertainty in the application of Code Section 4999 at the time of the initial determination by the Accounting Firm hereunder, it is possible that Payments to which Executive was entitled, but did not receive pursuant to Section 8(a),
could have been 

  

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made without the imposition of the Excise Tax (“Underpayment”). In such event, the Accounting Firm will determine the amount of the
Underpayment that has occurred and any such Underpayment will be promptly paid by the Company to or for the benefit of Executive.
 (c) If the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 8 will be of no further force or effect. 
 9. Costs of Enforcement. Subject to Section 8(b), each Party will pay its own costs and expenses incurred in enforcing or establishing
its rights under this Agreement, including, without limitation, attorneys’ fees, whether a suit is brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. 
 10. Representations and Warranties. Executive represents and warrants to the Company that Executive is not a party to, or otherwise subject
to, any restrictive covenant not to compete, not to solicit or not to disclose or use confidential information, with any person or entity, and Executive’s execution of this Agreement and performance of his obligations will not violate the terms
or conditions of any contract or obligation, written or oral, between Executive and any other person or entity.
 11. Restrictions on
Conduct of Executive. 
 (a) General. Executive agrees that as part of the services he will perform for the Company
he will be exposed to, and help create and maintain, competitive advantages over other “Competitive Businesses,” as well as good will with the Company’s customers and suppliers. By virtue of the position Executive will hold, Executive
is receiving, will receive, or will be provided access to the Company’s: (1) customers, suppliers, advertisers, and vendors as well as pricing information, distribution channels, and other terms of those relationships;
(2) “Confidential Information” and “Trade Secrets;” (3) the relationships and other elements that together comprise good will; and/or (4) institutional knowledge regarding product development, its engineering,
product specification, material suppliers, material specifications, product suppliers, manufacturing knowledge, customer feedback, surveys, design-around information, research and development information, internal quality control tests, other
quality control information, and other similar information. Executive agrees that the competitive advantage and good will the Company has created, and which Executive will assist in furthering and maintaining, is an important and legitimate business
asset of the Company. Should Executive compete against the Company, having intimate knowledge of the information that gives the Company its competitive advantage and good will would give Executive, or those “Competitive Businesses” he is
assisting, an unfair advantage over the Company. 
 (b) Definitions. The following capitalized terms used in this
Section 11 will have the meanings assigned to them below, which definitions will apply to both the singular and the plural forms of these terms: 
  

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 “Competitive Business” – means any entity that manufactures, markets, sells, or
distributes (or is planning to do any of the foregoing) any goods or services in or to the point of sale, automatic identification, data capture, security, business telephony, communication products and peripherals markets if such entity
manufactures, markets, sells, or distributes (or is attempting to do any of the foregoing) any product that is the same or similar to any good or service offered by the Company, including reasonable alternatives, within the final two (2) years
of Executive’s employment with the Company. Competitive Business also includes any supplier to any manufacturer of a product that is the same as, or similar to, or considered a reasonable alternative to a Company product that was manufactured,
sold, offered or distributed by the Company within the final two (2) years of Executive’s employment with the Company. Executive agrees that Competitive Businesses include, but are not limited to, the following entities: Ingram Micro, Tech
Data, Avnet, BlueStar, Westcon, Voda One, Arrow, Agilysis, Azerty, PC POS, Jarltech, Jenne, Securematics, Synnex, Alliance (NEI), NETXUSA, ADI, Tri-Ed, Northern Video, and Anixter. 
 “Confidential Information” means any and all information of the Company that has value and is not generally known to the Company’s
competitors. This includes, but is not limited to, any information or documents about: the Company’s accounting practices; financial data; financial plans and practices; the Company’s operations; its future plans (including new products,
improved products, and products under development); its methods of doing business; internal forms, checklists, or quality assurance testing; programs; customer and supplier lists or other such related information as pricing or terms of business
dealings; supply chains; shipping chains and prices; packaging technology or pricing; sourcing information for components, materials, supplies, and other goods; employees; pay scales; bonus structures; contractor information and lists; marketing
strategies and information; product plans; distribution plans and distribution channel relationships; business plans; manufacturing, operation, sales and distribution processes; costs; margins for products; prices, sales, orders and quotes for the
Company’s business that is not readily attainable by the general public; existing and future services; testing information (including methods and results) related to materials used in the development of the Company’s products or materials
that could be used with the Company’s products; development information (including methods and results) related to computer programs that design or test products or that track information from a central database; and the computer or electronic
passwords of all employees and/or firewalls of the Company. Notwithstanding the definitions stated above, the term Confidential Information does not include any information which (i) at the time of disclosure to Executive, was in the public
domain; (ii) after disclosure to Executive, is published or otherwise becomes part of the public domain through no fault of Executive; (iii) without a breach of duty owed to the Company, was already in Executive’s possession at the
time of disclosure; (iv) was received after disclosure to Executive from a third party who had a lawful right to the information other 

  

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than through a relationship of trust and confidence with the Company, and without a breach of duty to the Company, disclosed the information to Executive; or
(v) where Executive can show it was independently developed by Executive on non-Company time without reference to, or reliance upon, other Confidential Information or Trade Secrets. 
 “Prohibited Duties” means supervising, consulting, advising, coaching, providing any information related to, or directly or indirectly
performing any task for a Competitive Business that is similar or related to one or more duties Executive performed or supervised for the Company. Prohibited duties include owning greater than 10% of any Competitive Business. Prohibited duties
includes supervising, consulting, advising, coaching, providing any information related to, or directly or indirectly performing any task for any material, product or service provider of any Competitive Business, if Executive’s work for such
material, product or service provider is associated with a Competitive Business. 
 “Restricted Territory” means any place
where the Company or its affiliates is (or is attempting to) actively manufacturing, marketing, selling, or distributing its products within the final two (2) years of Executive’s employment, or places where the Company made affirmative
steps to market or sell its products within the final six (6) months of Executive’s employment. If Executive was assigned only a portion of the territory in which the Company operates or sells, then the Restricted Territory shall be
narrowly construed to include only the limited territory of the Executive. 
 “Trade Secrets” means information related to
the business or services of the Company which (1) derives independent actual or potential commercial value from not being generally known or readily ascertainable through independent development or reasonable reverse engineering processes by
persons who can obtain economic value from its disclosure or use; and (2) is the subject of efforts by the Company and affiliated third parties that are reasonable under the circumstances to maintain its secrecy. Assuming the foregoing criteria
in clauses (1) and (2) are met, Trade Secret encompasses business and technical information including, without limitation, know-how, designs, formulas, patterns, compilations, programs, devices, inventions, methods, techniques, drawings
processes, finances, actual or potential customers and suppliers, and existing and future products and services of the Company. Notwithstanding the definitions stated above, the term Confidential Information does not include any information which
(i) at the time of disclosure to Executive, was in the public domain; (ii) after disclosure to Executive, is published or otherwise becomes part of the public domain through no fault of Executive; (iii) without a breach of duty owed
to the Company, was already in Executive’s possession at the time of disclosure; (iv) was received after disclosure to Executive from a third party who had a lawful right to the information through some avenue other than through a
relationship of trust and confidence with the Company, and without a breach of duty to the Company, disclosed the information to Executive; or (v) where Executive can 

  

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show it was independently developed by Executive on non-Company time without reference to, or reliance upon, other Confidential Information or Trade Secrets.

 (c) Restrictions. Executive understands and agrees that the compensation the Company has agreed to provide pursuant
to this Agreement would not be as lucrative if the restrictions set forth in this section were not included in this Agreement. Therefore, in consideration of the compensation provided in this Agreement, and the other terms agreed to by the Company,
along with the disclosure (and continued disclosure of Confidential Information and Trade Secrets) a portion of which is being paid to compensate Executive for these covenants, Executive covenants and agrees as follows: 
 (i) for the term of Executive’s employment, and for a period of twenty-four (24) months following the Date of Termination,
Executive agrees he will not engage in any Prohibited Duties for a Competitive Business in the Restricted Territory; 
 (ii)
for the term of Executive’s employment, and for a period of twenty-four (24) months following the Date of Termination, Executive agrees he will not solicit any of the Company’s customers or suppliers with whom Executive had contact
during the course of Executive’s employment with the Company for any Competitive Business; 
 (iii) for the term of
Executive’s employment, and for a period of twenty-four (24) months following the Date of Termination, Executive agrees he will not solicit any of the Company’s prospective customers or prospective suppliers with whom Executive had
contact during the course of Executive’s employment with the Company for any Competitive Business; 
 (iv) for the term
of Executive’s employment, and for a period of twenty-four (24) months following the Termination Date, Executive agrees he will not solicit any of the Company’s employees whom Executive supervised during the course of his employment
with the Company, any employees with whom he had contact during his employment, any employees who had contacts of employment with the Company at the time solicited, or any employees who had restrictive covenants at the time solicited, to leave the
Company for any purpose; 
 (v) for the term of Executive’s employment, and for a period of no less than twenty-four
(24) months (for Confidential Information) or for so long as the information remains protected under this Agreement or applicable statute (for Trade Secrets) thereafter, Executive agrees that he will not, either directly or indirectly, publish,
disseminate, provide, or otherwise disclose any Confidential Information or Trade Secrets to any third party, unless required to do so by legal process or other law, without the Company’s prior written consent. Executive agrees that if he
believes he is compelled to reveal Confidential Information or Trade Secrets pursuant to the limited exception provided herein, Executive will 

  

 13 

 
provide the Company at least 7 days advance notice before doing so, and will explain the specifics under which such Confidential Information or Trade Secrets
are to be disclosed. 
 (vi) For the term of Executive’s employment, and for a period of no less than twenty-four
(24) months (for Confidential Information) or for so long as the information remains protected under this Agreement or applicable statute (for Trade Secrets) thereafter, Executive agrees that he will not, either directly or indirectly, for his
own behalf or otherwise, use in any manner the Company’s Confidential Information or Trade Secrets. 
 (d)
Non-Disparagement. The Company and Executive agree that for the term of Employee’s employment, and for a period of five (5) years thereafter, they will not disparage each other to any non-governmental third parties. Nothing in this
subsection should be interpreted as any restriction on either Party’s compliance with any laws requiring or compelling disclosure, or any disclosures that are considered absolutely privileged, such as legal proceedings. 
 (e) Blue Pencil. The Company and Executive agree that the provisions of Section 11, including all subparts, are intended to
strike the balance between Executive earning a livelihood and the Company protecting its important competitive advantages and good will. The Parties have drafted the provisions of Section 11, including all subparts, to allow for enforcement.
The Parties agree that should a court determine that any word, phrase, clause, sentence, or paragraph is unreasonably broad in time, territory, or scope so as to render any remaining provisions unenforceable, the Parties desire the court to strike
the offending language in the narrowest way possible and enforce the remainder as if the offending language was not there, so that only reasonable restrictions are enforced. 
 (f) Elective Right of the Company. If Executive challenges the enforceability of the Restrictive Covenants (or asserts an
affirmative defense to an action seeking to enforce the Restrictive Covenants) based on an argument that the Restrictive Covenants are (i) not enforceable as a matter of law, (ii) unreasonable in geographical scope or duration or
(iii) void as against public policy, the Company will have the right (1) to cease making the payments required under Section 6 above and, upon demand, to have Executive repay, within 10 business days of any such demand, any payments
already made. Any right afforded to, or exercised by, the Company under this Agreement will not affect the enforceability of the Restrictive Covenants or any other right of the Company under this Agreement. 
  

 14 

 12. Assignment and Successors. 
 (a) This Agreement is personal to Executive and without the prior written consent of the Company will not be assignable by Executive
otherwise than by will or the laws of descent and distribution. This Agreement will inure to the benefit of and be enforceable by Executive’s legal representatives. 
 (b) This Agreement will inure to the benefit of and be binding upon the Company and its successors and assigns. 
 (c) The Company will require any successor (whether direct or indirect, by 
 purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly
and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” will mean the Company as herein
before defined and any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
 13. Arbitration. Any claim or dispute arising under this Agreement will be subject to arbitration, and before commencing any court action, the Parties agree that they will arbitrate all controversies and such
arbitration will occur in Greenville, South Carolina according to the Employment Dispute Rules of the American Arbitration Association and the Federal Arbitration Act, 9 U.S.C. §1, et seq. The arbitrators will be authorized to award both
liquidated and actual damages as well as injunctive relief, but no punitive damages. The arbitrator’s award will be binding and conclusive upon the Parties, subject to 9 U.S.C. §10. Each party has the right to have the award made the
judgment of a court of competent jurisdiction. 
 14. Miscellaneous. 
 (a) Waiver. Failure of either Party to insist, in one or more instances, on performance by the other in strict accordance with
the terms and conditions of this Agreement will not be deemed a waiver or relinquishment of any right granted in this Agreement or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless
the waiver is in a writing signed by the Party making the waiver. 
 (b) Severability. If any provision or
covenant, or any part thereof, of this Agreement should be held by any court to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability will not affect the validity, legality or
enforceability of the remaining provisions or covenants, or any part thereof, of this Agreement, all of which will remain in full force and effect. 
 (c) Other Agents. Nothing in this Agreement is to be interpreted as limiting the Company from employing other personnel on such terms and conditions as may be satisfactory to it. 
  

 15 

 (d) Entire Agreement. Except as provided herein, this Agreement contains the
entire agreement between the Parties on the subject matter hereof. From and after the Effective Date, this Agreement will supersede any other agreement between the Parties on the subject matter hereof, including without limitation, any prior
Agreement. 
 (e) Governing Law and Jurisdiction. Without regard to conflict of laws principles, the laws of the
State of South Carolina will govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise. This Agreement may only be enforced in a court of competent jurisdiction in Greenville County, South
Carolina and Executive agrees to submit to the exclusive jurisdiction of a court of competent jurisdiction in Greenville, South Carolina. 
 (f) Notices. All notices, requests, demands and other communications required or permitted in this Agreement must be in writing and will be deemed to have been duly given if delivered or three days after
mailing if mailed, first class, certified mail, postage prepaid: 
  

			
	 To Company:
	  	 ScanSource, Inc.
 6 Logue Court
 Greenville, SC 29615
 Attn: General Counsel

		
	 To Executive:
	  	To the address specified on Exhibit A

 Any Party may change the address to which notices, requests, demands and other communications will be delivered or
mailed by giving notice thereof to the other Party in the same manner provided herein. 
 (g) Amendments and
Modifications. This Agreement may be amended or modified only by a writing signed by both Parties, which makes specific reference to this Agreement. 
 (h) Construction. Each Party and his or its counsel have been provided the opportunity to review and revise this Agreement and accordingly, the normal rule of construction to the effect that any ambiguities are
to be resolved against the drafting party will not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement will be construed as a whole, and according to its fair meaning, and not strictly for
or against either party. 
 (i) Deferred Compensation Provision. Notwithstanding any other provision of this Agreement,
it is intended that any payment or benefit provided under this Agreement that is considered to be “deferred compensation” subject to Code Section 409A will be provided in such manner and at such time, including without limitation in
connection with a permissible payment event under Code Section 409A, as is exempt from or complies with the requirements of Code Section 409A. All rights to payments 

  

 16 

 
and benefits under this Agreement are to be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Code
Section 409A. Termination of employment under this Agreement, to the extent required by Code Section 409A, will be construed to mean a “separation from service” under Code Section 409A where it is anticipated that no further
services will be performed after such date or that the level of services Executive would perform after that date (whether as an employee or independent contractor) would permanently decrease to no more than twenty percent (20%) of the average
level of services Executive performed over the prior thirty-six (36)-month period. The terms of this Agreement are intended to, and will be construed and administered to the fullest extent possible, to permit compensation to be paid under this
Agreement to be exempt from or comply with Code Section 409A. Regardless, the Company will not be liable to Executive or anyone else if the Internal Revenue Service or any court or other authority determines that any payments or benefits to be
provided under this Agreement are subject to taxes, penalties or interest as a result of failing to comply with or be exempt from Code Section 409A. 
 Notwithstanding anything in this Agreement to the contrary, if any payment or benefit that constitutes non-exempt “deferred compensation” under Code Section 409A would otherwise be provided under this
Agreement due to Executive’s separation from service during a period in which he is a “specified employee” (as defined in Code Section 409A and the associated final regulations), then, to the extent required by Code
Section 409A, such payments or benefits will be delayed, to the extent applicable, until six months after Executive’s separation from service or, if earlier, Executive’s death (the “409A Deferral Period”). If such payments
are otherwise due to be made in installments during the 409A Deferral Period, the payments that would otherwise have been made in the 409A Deferral Period will be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends, and the
balance of the payments will be made as otherwise scheduled. In the event benefits are required to be deferred, any such benefit may be provided during the 409A Deferral Period at Executive’s expense, with Executive having the right to
reimbursement from the Company once the 409A Deferral Period ends, and the balance of the benefits will be provided as otherwise scheduled. 
 IN WITNESS
WHEREOF, the parties hereto have duly executed and delivered this Employment Agreement as of the dates indicated below. 
  

			
	EXECTIVE:
		
	Name:	 	/s/ Michael L. Baur
	Date:	 	5/22/08
	
	SCANSOURCE, INC.:
		
	By:	 	/s/ James G. Foody
	Name:	 	James G. Foody
	Title:	 	Chairman of the Board
	Date:	 	5/27/08

  

 17 

 EXHIBIT A TO EMPLOYMENT AGREEMENT 
 Executive: Michael L. Baur 
 Base Salary: $750,000 annually

 Incentive Compensation: Incentive compensation will be paid with respect to the Company’s Operating Income determined at the end of each fiscal
year calculated by using the table below. 
 For purposes of this Agreement, “Operating Income” means the amount reflected for the
line item identified as Operating Income on the Company’s audited consolidated financial statements for each respective fiscal year ending during the term of this Agreement and “Return on Invested Capital” means an amount expressed as
a percentage of: the Company’s annual (or annualized) EBITDA (net income plus interest, taxes, depreciation and amortization) divided by average shareholder’s equity and interest bearing debt (defined as the sum of shareholder’s
equity at the beginning of the period added to the sum of shareholder’s equity at the end of the period, divided by 2, plus the average daily interest bearing debt for the period). The Company reserves the right to make adjustments to the
calculation of Return on Invested Capital to account for any extraordinary or unusual items that did not exist or were not in effect as of the Effective Date and to the extent permitted to qualify for the Code Section 162(m) Exemption (as
defined below), including, but not limited to, newly pronounced accounting standards and similar laws and regulations and significant non-recurring events that impact the Company. The Company’s calculation of Operating Income, Return on
Invested Capital, and the incentive compensation amount shall be conclusive and binding absent fraud or manifest and material error. 
 For
the initial year of the Employment Period, the incentive compensation will be paid to Executive in quarterly installments with each quarterly installment being equal to seventy percent (70%) of the incentive bonus computed using the Operating
Income determined by the financial statement prepared for each quarter during the term of this Agreement. The balance of the incentive compensation will be paid with respect to each fiscal year immediately following the auditor’s approval of
the release of the Company’s year-end earnings. The Company has no right of reimbursement in the event the amount advanced in quarterly installments exceeds the incentive bonus as finally computed. Following the initial year of the Employment
Period, the incentive compensation will be paid to Executive annually. Such annual incentive compensation payments will be made immediately following the auditor’s approval of the release of the Company’s year-end earnings. 
 The amount of the incentive compensation will be calculated as follows: 
  

	 	•	 	 Bonus of 1.65% of Operating Income if Return on Invested Capital exceeds 30% 

  

	 	•	 	 Bonus of 1.55% of Operating Income if Return on Invested Capital is 30% or less and greater than 25% 

  

 18 

	 	•	 	 Bonus of 1.5% of Operating Income if Return on Invested Capital is 25% or less and greater than 20% 

  

	 	•	 	 Bonus of 1.4% of Operating Income if Return on Invested Capital is 20% or less and greater than 10% 

 Notwithstanding any other provision of this Agreement or this Exhibit A, any incentive compensation to be paid
under this Agreement will be paid to Executive by the later of (i) March 15th following the end of the calendar year in which Executive
right to such incentive compensation vests or (ii) the 15th day of the third month following the end of the Company’s fiscal year in which
Executive’s right to such incentive compensation vests. 
 Given Executive may be a “covered employee” under Code Section 162(m), the
foregoing incentive compensation is intended to be a Performance Unit granted under the terms of the Company’s 2002 Long-Term Incentive Plan and has been designated as a “Qualified Performance-Based Award.” The incentive compensation
is intended to qualify for the Code Section 162(m) Exemption within the meaning of the Company’s 2002 Long-Term Incentive Plan. In no event may Executive’s incentive compensation under this Agreement for any year exceed the maximum
amount allowed by the terms of the 2002 Long-Term Incentive Plan currently in effect, which is $3,000,000 as of the Effective Date. Executive’s right to receive and retain any payment of incentive compensation is subject to the written
certification of the Board Compensation Committee that the relevant performance goals have been achieved. To the extent appropriate, the Board Compensation Committee may provide for the payment of incentive compensation under the terms of another
Company incentive plan that permits Qualified Performance-Based Awards, in which case the limits and terms of such other incentive plan will apply. 
  

 19 

			
	Days of Paid Vacation per Fiscal Year:	  	Approving Person:
		
	25	  	Chairman of the Board of Directors

 Period of Time for Post-Termination Medical Benefits: 
 To age 65, or longer as described below for MediGap coverage. 
 Extended
Coverage under Post-Termination Medical Benefits: 
 MediGap coverage to the extent available, until Executive reaches age 80, consisting of ongoing
coverage under one or more insured policies that cover medical expenses for Executive and his dependents in excess of that covered by Medicare. 
 Executive Notice Address: 
 6 Logue Court 
 Greenville, SC 29615 
 Attn: Michael L. Baur 
  

							
				
	Initials:	 	/S/ MLB	 	/	 	/S/ JGF

  

 20 

 EXHIBIT B TO EMPLOYMENT AGREEMENT 
 Form of Release 
 THIS RELEASE (“Release”) is granted effective as of
the             day of             ,
            , by
                             (“Executive”) in favor of ScanSource, Inc. (the
“Company”). This is the Release referred to that certain Employment Agreement dated as of             ,
            by and between the Company and Executive (the “Employment Agreement”). Executive gives this Release in consideration of the Company’s promises and
covenants as recited in the Employment Agreement, with respect to which this Release is an integral part. 
 1. Release of the
Company. Executive, for himself, his successors, assigns, executors, administrators, insureds, attorneys, and all those entitled to assert his rights, now and forever hereby releases and discharges the Company and its respective officers,
directors, shareholders, stockholders, trustees, partners, joint ventures, board members, employees, agents, parent corporations, divisions, wholly or partially owned subsidiaries, affiliates, estates, predecessors, successors, heirs, executors,
administrators, assigns, representatives, and attorneys (the “Released Parties”), from any and all legal, administrative, and equitable claims, actions, causes of action, sums of money due, suits, debts, liens, covenants, contracts,
obligations, costs, expenses, damages, judgments, agreements, promises, demands, claims for attorneys’ fees and costs, or liabilities of any nature whatsoever, in law or in equity, which Executive ever had or now has against the Released
Parties, including any claims arising by reason of or in any way connected with any employment relationship which existed between the Company or any of its parents, subsidiaries, affiliates, or predecessors, and Executive. It is understood and
agreed that this Release is intended to cover all actions, causes of action, claims or demands for any damage, loss or injury, which may be traced either directly or indirectly to the aforesaid employment relationship, or the termination of that
relationship, that Executive has, had or purports to have, from the beginning of time to the date of this Release, whether known or unknown, that now exists, no matter how remotely they may be related to the aforesaid employment relationship
including but not limited to claims for employment discrimination under federal, state or local statutes, except as provided in Paragraph 2. without limiting the broadness of the foregoing language, Executive agrees to release Company from any and
all claims under: 
  

	 	(1)	local, state or federal common law, statute, regulation, ordinance or treaty; 

	 	(2)	Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000(e), et seq. 

	 	(3)	42 U.S.C. §§ 1981, 1981A, 1983 and 1985; 

	 	(4)	the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq.; 

	 	(5)	the Federal Rehabilitation Act of 1973; 

	 	(6)	the Older Worker Benefit Protection Act, 29 U.S.C. §§ 621, et seq.; 

	 	(7)	the Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601, et seq.; 

	 	(8)	Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 301, et seq.; 

	 	(9)	the Health Insurance Portability Act; 

	 	(10)	the Occupational and Safety Health Act; 

	 	(11)	the Equal Pay Act; 

	 	(12)	the Worker Adjustment and Retraining Notification Act; 

  

 21 

	 	(13)	the Sarbanes-Oxley Corporate Reform Act of 2002, 15 U.S.C. 7201, et seq.; 

	 	(14)	Executive Orders 11246 and 11141; 

	 	(15)	South Carolina Human Affairs Law; 

	 	(16)	the South Carolina Payment of Wages Act; 

	 	(17)	the South Carolina Bill of Rights for Handicapped Persons; 

	 	(18)	the state workers’ compensation law, including S.C. Code Ann. § 41-1-80; 

	 	(19)	tort claims including, but not limited to, claims of wrongful termination, constructive discharge, defamation, invasion of privacy, interference with contract, interference with
prospective economic advantage and intentional or negligent infliction of emotional distress and outrage; 

	 	(20)	contract claims, whether express or implied; 

	 	(21)	claims for unpaid wages, benefits or entitlements asserted under the Fair Labor Standards Act, 29 U.S.C. § 201, et seq., or under South Carolina wages and
hours laws, including, but not limited to, the South Carolina Payment of Wages Act; 

	 	(22)	claims for unpaid benefits or entitlements asserted under any Company plan, policy, benefits offering or program except as otherwise required by law; 

	 	(23)	claims for attorneys’ fees, interest, expenses and costs, injunctive relief or reinstatement to which he is, claims to be or may be entitled; and 

	 	(24)	the Age Discrimination in Employment Act, 29 U.S.C. §§ 621, et seq.; 

 each as amended, and all other such similar statutes, city or county ordinances or resolutions and laws of the State of South Carolina, provided, however, that nothing herein shall release the Company of its
obligations to Executive under the Employment Agreement or any other contractual obligations between the Company or its affiliates and Executive, or any indemnification obligations to Executive under the Company’s bylaws, certificate of
incorporation, South Carolina law, or otherwise. 
 Without waiving any prospective or retrospective rights under the Family and Medical
Leave Act (“FMLA”) or the Fair Labor Standards Act (“FLSA”), Executive admits that he has received from the Company all rights and benefits, if any, potentially due to him pursuant to the FMLA or FLSA. It is the parties’
intent to release all claims, which can legally be released, but no more than that. 
 Executive specifically agrees not to attempt to
institute any proceedings or pursue any action pursuant to any laws (state, local, or federal) with any agency or in any jurisdiction (state, local, or federal) based on employment with or termination from the Company except as required or protected
by law. Executive covenants that he will in not way encourage or assist any person or entity (including, but not limited to, any past, present or future employee(s) of Company) to take part or participate in any legal or administrative action
against Company, except as otherwise required or protected by law. Nothing in the Agreement shall be interpreted or applied in a manner that affects or limits Executive’s otherwise lawful ability to bring an administrative charge with the Equal
Employment Opportunity Commission or other appropriate state or local comparable administrative agency; however, the parties agree that Executive has released Company from all liability arising from the laws, statutes, and common law listed in
paragraph 1 (except as set forth in this paragraph below, with respect to the Age Discrimination in Employment Act (“ADEA”)) and, as such, Executive is not and will not be entitled to any 

  

 22 

 
monetary or other comparable relief on his own behalf. Nothing in this Agreement shall be interpreted or applied in a manner that affects or limits
Executive’s ability to challenge (with a lawsuit or administrative charge) the validity of Executive’s release of Company in this Agreement for age claims under the ADEA (which release is provided for in paragraph 2 of this Agreement).
Other than a challenge to the validity of the release of ADEA claims under this Agreement, Executive has released Company from all liability with respect to the laws, statutes, and common law listed in paragraph 2, including the ADEA 
 2. Release of Claims Under Age Discrimination in Employment Act. Without limiting the generality of the foregoing, Executive agrees that
by executing this Release, he has released and waived any and all claims he has or may have as of the date of this Release for age discrimination under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. It
is understood that Executive is advised to consult with an attorney prior to executing this Release; that he in fact has consulted a knowledgeable, competent attorney regarding this Release; that he may, before executing this Release, consider this
Release for a period of twenty-one (21) calendar days; and that the consideration he receives for this Release is in addition to amounts to which he was already entitled. It is further understood that this Release is not effective until
seven (7) calendar days after the execution of this Release and that Executive may revoke this Release within seven (7) calendar days from the date of execution hereof. 
 3. Executive acknowledges and represents that as an employee of the Company he has been obligated to, and has been given the full and unfettered
opportunity to, report timely to the Company any conduct that would give rise to an allegation that the Company or any affiliate of the Company has violated any laws applicable to its businesses or has engaged in conduct which could otherwise be
construed as inappropriate or unethical in any way, even if such conduct is not, or does not appear to be, a violation of any law. Executive acknowledges that a condition of the payment of any consideration provided by the Company to the Executive
hereunder is his truthful and complete representation to the Company regarding any such conduct, including but not limited to conduct regarding compliance with the Company’s Code of Ethics, polices, and procedures, and with all laws and
standards governing the Company’s business. 
 Executive’s truthful and complete representation, based on his thorough search of
his knowledge and memory, is as follows: Executive has not been directly or indirectly involved in any such conduct; no one has asked or directed him to participate in any such conduct; and Executive has no specific knowledge of any conduct by any
other person(s) that would give rise to an allegation that the Company or any affiliate of the Company has violated any laws applicable to its businesses or has engaged in conduct which could otherwise be construed as inappropriate or unethical in
any way. 
 Executive agrees that he has carefully read this Release and is signing it voluntarily. Executive acknowledges that he has
had twenty one (21) days from receipt of this Release to review it prior to signing or that, if Executive is signing this Release prior to the expiration of such 21-day period, Executive is waiving his right to review the Release for such full
21-day period prior to signing it. Executive has the right to revoke this release within seven (7) days following the date of its execution by him, and must deliver written notice of revocation in 

  

 23 

 
person to             at the following address:
                            , and such revocation shall not be effective unless actually received by
            , within seven (7) days following the date the release was signed by Executive. If Executive revokes this Release within such seven (7) day period, no severance
benefit will be payable to him under the Employment Agreement and he shall return to the Company any such payment received prior to that date. 
 EXECUTIVE HAS CAREFULLY READ THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT, AND ANY AND ALL OTHER STATE AND FEDERAL
LAWS, WHETHER STATUTORY OR COMMON LAW. EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD A FULL OPPORTUNITY TO CONSULT WITH AN ATTORNEY OR OTHER ADVISOR OF HIS CHOOSING CONCERNING HIS EXECUTION OF THIS RELEASE AND THAT HE IS SIGNING THIS RELEASE
VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM ALL SUCH CLAIMS. 
  

			
	
	 
	Executive
		
	        Date:	 	 

  

 24 

 EXHIBIT C to EMPLOYMENT AGREEMENT 
 Definition of Change in Control: 
 For the purposes of
this Agreement, a “Change in Control” shall mean the occurrence of any of the following events: 
 (i) individuals
who, on the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the Effective
Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or
nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by
or on behalf of any “person” (such term for purposes of this definition being as defined in Section 3(a)(9) of the Exchange Act and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Board (“Proxy
Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or 
 (ii) any person is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
either (A) 35% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities of the Company representing 35% or more of the combined voting power of the Company’s then
outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions shall not constitute a Change
in Control: (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary of the Company, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or
any Subsidiary of the Company, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or 
 (iii) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a “Reorganization”), or the sale or
other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation (an “Acquisition”), unless immediately following such Reorganization, Sale or
Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization,
Sale or Acquisition beneficially own, directly or indirectly, more than 55% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such Reorganization, Sale or Acquisition (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of
the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Corporation”) in substantially the same proportions as their ownership, immediately prior to such 

  

 25 

 
Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and
(B) no person (other than (x) the Company or any Subsidiary of the Company, (y) the Surviving Corporation or its ultimate parent corporation, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of
the foregoing is the beneficial owner, directly or indirectly, of 35% or more of the total common stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Corporation, and
(C) at least a majority of the members of the board of directors of the Surviving Corporation were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or
Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 
 (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  

 26Purchase and Sale Agreement dated December 13, 2007

 Exhibit 10.31 
 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE AGREEMENT (this
“Agreement”) is made by and between the following parties (individually a “Party” and collectively the “Parties”) and will become effective immediately upon the date upon which authorized
representatives of both Parties have executed this Agreement (the “Effective Date”): 
  

			
	 Purchaser:
	 	 KANSAS CITY LIFE INSURANCE COMPANY

		 	 3520 Broadway

		 	 Kansas City, Missouri 64111-2565

		 	 Attention: Gregory M. Galvin

		
	 Seller:
	 	 4100 QUEST, LLC

		 	 6 Logue Court

		 	 Greenville, SC 29615

		 	 Attn: General Counsel

 BACKGROUND 
 WHEREAS, Seller is the owner of the Property (as hereinafter defined); and 
 WHEREAS, Seller wishes to sell, and Purchaser wishes to purchase, the Property on the terms and conditions set forth herein. 
 AGREEMENT 
 NOW, THEREFORE, for and in consideration of the promises, covenants, representations and
warranties hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto, the Parties hereto hereby agree as follows: 
 1. Definitions. The following terms, wherever used in this Agreement with an initial capital letter or letters, shall have the
meanings specified: 
 “Business Day” means Monday through Friday excluding holidays recognized by the federal government
and/or the State of Tennessee. 
 “Escrow Agent” means the Title Company, acting in the capacity of escrow agent hereunder.

 “Existing Environmental Report” means that certain letter (together with the materials referenced
therein) entitled “Update of Phase I Environmental Site Assessment of the Building D Site, Memphis Distribution Center, Memphis, Tennessee”, prepared by Environmental Resources Management and addressed jointly to Kurt A. Nelson and the
Industrial Development Board of the City of Memphis and County of Shelby, Tennessee, dated December 1, 1999 (a copy of which is attached hereto as Exhibit D). 

 “Existing Exceptions” means those certain exceptions to title to the
Property set forth on Exhibit B attached hereto. 
 “Governmental Requirements” means all present and
future laws, ordinances, orders, rules, regulations or requirements of all federal, state and municipal governments and appropriate departments, commissions, boards and officers thereof relating to all or any part of the Property or the use thereof.

 “Improvements” means, collectively, the building, parking areas and all other improvements of any nature
at any time and from time to time hereafter located on the Property. 
 “Inspections” means inspections and
review by Purchaser respecting the Property and the Improvements, which may include, without limitation, the following matters: (a) title and survey, (b) access to a public right of way, (c) environmental, (d) wetlands and jurisdictional waters
impacting the Improvements, (e) the physical attributes and condition of the Property and the Improvements, including, without limitation, drainage/floodplain issues, structural components, roof, paving, HVAC and electrical, mechanical, plumbing and
fire protection systems, (f) compliance with Governmental Requirements (including, without limitation zoning matters), and (g) utility availability. 
 “Permitted Title Exceptions” means (a) the standard or printed exclusions in the form of Title Policy, (b) all real estate taxes not yet due and payable as of the Closing Date, (c) the Existing
Exceptions, and (d) any other matters not objected to in writing by Purchaser prior to the end of the Inspection Period. 
 “Property” means that certain real property in Shelby County, Tennessee, as more particularly described on Exhibit A attached hereto and made a part hereof by this reference, together with all improvements
constructed thereon, including, without limitation the Improvements and all rights running with such land; provided, however, that Seller shall be entitled to remove from such land prior to Closing any and all property of Seller
located thereon as listed on Exhibit C hereto (which, if so removed, shall not constitute part of the Property). 
 “Seller’s Knowledge” means the actual current knowledge through the Closing Date of personnel of Seller responsible for the management of the Property and the handling of potential or actual environmental liabilities
of Seller. 
 “Title Commitment” shall mean the commitment of the Title Company to issue the Title Policy.

 “Title Company” shall mean First American Title Insurance Company. 
 “Title Policy” shall mean the standard form of ALTA Owner’s Policy of Title Insurance dated the date of Closing
issued by the Title Company in the amount of the Purchase Price for the Property, and containing, unless prohibited by applicable statutes or regulations, such endorsements as are reasonably required by Purchaser. 
  

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 2. Sale. Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from
Seller, the Property subject to the terms and conditions of this Agreement (including, without limitation, those set forth in Paragraph 5 below). 
 3. Purchase Price. The purchase price (“Purchase Price”) to be paid by Purchaser to Seller for the Property at Closing shall be Six Million Three Hundred Thousand Dollars ($6,300,000.00).
Within four Business Days after the Effective Date, Purchaser shall deliver to Escrow Agent the amount of $100,000 (the “Earnest Money”). The balance of the Purchase Price shall be paid at Closing in immediately available funds.

 4. Closing; Closing Costs; Prorations; Credits. 
 4.1 The closing or settlement of the sale of the Property (the “Closing”) shall be held on or before the later to occur
of (a) 15 days after the end of the Inspection Period or (b) 10 days after Seller vacates the Property (the “Closing Date”). At the written request of either Seller or Purchaser. Closing may be accomplished through an escrow with
Escrow Agent in which event Purchaser and Seller shall each execute and deliver to Escrow Agent such written escrow instructions as may be reasonably necessary or desirable to carry out such escrow. 
 4.2 Purchaser shall pay the cost of (a) any title examination of the Property, the title insurance premium for the Title Policy to be
issued to Purchaser, any title endorsements to the Title Policy, and any updating of the Survey (hereinafter defined), (b) any transfer, grantor, documentary stamp or similar tax or assessment applicable to the Property, and (c) applicable recording
fees. Seller shall pay (a) any overdue property taxes and the costs (including recording costs) of any cure of title defects required of Seller hereunder, (b) the cost of issuance of the Title Commitment, and (c) the cost of preparing the Deed. Each
Party shall pay its own attorney fees and expenses. Any escrow fees of the Title Company shall be shared equally. 
 4.3
Private assessments affecting the Property and utility charges, if any shall be prorated as of midnight of the day preceding the Closing. The state, county, city or other ad valorem property taxes and assessments assessed against the Property for
the year in which the Closing occurs (the “Taxes”) shall be prorated, on an accrual basis, as of midnight of the day preceding the day of Closing. If the proration is not based on the actual tax bill for the applicable year, the
proration shall, at the request of either Seller or Purchaser, be adjusted when the actual tax bill is available. If the Property is taxed as a portion of a larger parcel, the Parties agree to pay their pro rata share of the Taxes covering the tax
period of the Closing (and any previous periods) for the entire parcel to taxing authorities at the Closing, or, if the tax bill is not available, pay into escrow the estimated amount of said bill for payment by the Escrow Agent directly to the
taxing authorities when the tax bill becomes available and shall execute and deliver such documentation before and after the Closing as may be necessary to cause the Property to be assessed as a separate parcel. If any special assessments or other
similar governmental assessments or charges on the Property have been billed and are pending prior to Closing, Seller shall pay only those installments as shall become due and payable prior to Closing. If the Parties 
  

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make any errors or omissions in the closing prorations or if they subsequently determine any dollar amount prorated to be incorrect, each agrees, upon notice
from the other after Closing, to make any adjustment necessary to correct the error, including payment of any amount to the other then determined to be owing. This Paragraph 4.3 shall survive Closing. 
 5. Inspection. 
 5.1 Provided Purchaser first gives to Seller evidence reasonably acceptable to Seller of proper insurance coverage, Purchaser and Purchaser’s agents, employees and independent contractors shall have the right and
privilege to enter upon the Property for a period of 40 days after the Effective Date (the “Inspection Period”) to undertake the Inspections, all at Purchaser’s sole cost and expense. After conducting any soil boring or other
test which affects the physical condition of the Property, Purchaser will return the Property to as nearly as practicable its condition prior to such test. Purchaser hereby covenants and agrees to indemnify and hold harmless Seller from any and all
loss, liability, costs, claims, demands, damages, actions, causes of actions, and suits arising out of liens, damages to property (including the Property) or personal injury or death caused by the Purchaser’s entry upon the Property pursuant to
its rights under this Agreement. 
 5.2 Within five days after the Effective Date, Seller shall provide to Purchaser (a) any
and all engineering, soils, environmental and property inspection reports in its possession or control, and (b) copies of operating expenses for 2005, 2006, and 2007 and copies of the most recent real estate tax bill and assessment notice with
regard to the Property. 
 5.3 If, on or before the end of the Inspection Period, Purchaser determines that the results of
its Inspections demonstrate that the Property is not in a condition acceptable to Purchaser, Purchaser reserves, in its sole discretion, the right to terminate this Agreement by providing written notice to Seller on or before the end of the
Inspection Period. If Purchaser properly terminates this Agreement in accordance with this section, the Parties shall have no further rights or obligations hereunder, except for those which explicitly survive such a termination by their terms, and
the Earnest Money shall be returned to Purchaser. 
 5.4 In the event Purchaser cannot obtain approval for the Closing from
its Investment Committee and its Executive Committee prior to the end of the Inspection Period, this Agreement shall terminate, along with any obligation of Purchaser to purchase the Property, and the Parties shall have no further rights or
obligations hereunder, except for those which explicitly survive such a termination by their terms, and the Earnest Money shall be returned to Purchaser. 
 5.5 In the event that Purchaser does not terminate this Agreement within the time periods set forth in Paragraphs 5.3 or 5.4 and in accordance with the terms of this Agreement, the Earnest Money shall be earned by
Seller and become non-refundable to Purchaser, subject to performance by Seller of its closing obligations. 
  

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 6. Title/Survey. 
 6.1 Seller shall not, at any time during the Term, alter or encumber title to the Property or otherwise suffer or permit any further
encumbrances or liens to attach to the Property (other than the Permitted Title Exceptions). Seller shall convey marketable and insurable title to the Property to Purchaser by a special warranty deed, which shall be subject only to the Permitted
Title Exceptions (the “Deed”). In no event shall the Property be subject to any (i) mortgage, deed to secure debt, deed of trust, security agreement, judgment, lien or claim of lien, or any other title exception or defect that is
monetary in nature, Seller hereby agreeing to pay and satisfy of record any such title defects or exceptions prior to or at Closing at Seller’s expense or terminate this Agreement by the deadline for Closing hereunder, or (ii) any leases,
rental agreements or other rights of occupancy of any kind, whether written or oral (the items described in (i) and (ii) are referred to herein collectively as the “Seller Defects”). For purposes of this Paragraph 6.1.
“insurable title” means title insurable at standard rates by the Title Company with a Title Policy. 
 6.2
Seller shall obtain, at its expense, a title insurance commitment for the Property (the “Title Commitment”), issued by the Title Company and naming Purchaser as the proposed insured within 20 days after the Effective Date. In the
event the Title Commitment discloses any Seller Defects or any exceptions to title other than the Permitted Title Exceptions, Seller Shall, at its expense, either (A) cause the same to be removed as encumbrances to the Property prior to Closing or
(B) terminate this Agreement, and the Earnest Money shall be returned to Purchaser. The obligation of Purchaser to proceed with Closing shall be subject to the condition precedent that the Title Company must issue to Purchaser at the Closing a Title
Policy, subject to payment by Purchaser of the premium for such policy, and Seller shall reasonably cooperate with Purchaser’s efforts to cause the Title Company to issue such Title Policy. 
 6.3 Seller shall deliver to Purchaser, within five days after the Effective Date, a copy of the most recent survey of the Property in its
possession (the “Survey”). Purchaser may at its expense cause the Property to be re-surveyed (or the Survey updated) by a reputable registered land surveyor prior to Closing. In the event Purchaser does cause the Property to be so
re-surveyed or the Survey updated, the property description to be included in the Deed shall be prepared from the Survey (to the extent consistent with the deed into Seller, and then only if such Survey is certified to Seller). 
 7. Broker. The Parties each warrant and represent to the other that each such Party has not employed or dealt with a real estate
broker or agent in connection with the Property, other than Commercial Advisors, LLC (“Broker”) employed by Seller. Seller shall be responsible for any brokerage commission payable to Broker. The Parties covenant and agree, each to
the other, to indemnify the other against any loss, liability, costs (including reasonable attorney fees and expenses actually incurred), claims, demands, damages, actions, causes of action, and suits arising out of or in any manner related to the
alleged employment or use by the indemnifying Party of any real estate broker or agent other than Broker. The provisions of this Paragraph 7 shall survive Closing. 
 8. Eminent Domain. If, after the Effective Date, Seller receives notice of the commencement of threatened commencement of eminent domain or other like proceedings against any portion of
the Property not theretofore acquired by Purchaser, Seller shall promptly 
  

 - 5 - 

 
give Notice thereof to Purchaser (any of the foregoing, a “Taking”). In the event of a Taking, Purchaser may terminate this Agreement, along
with any obligation to purchase the Property, and the Parties shall have no further rights or obligations hereunder, except for those which explicitly survive such a termination by their terms, and the Earnest Money shall be returned to Purchaser.
If Purchaser does not elect to terminate this Agreement, Seller shall assign to Purchaser all rights under the Taking and the Closing shall occur with no adjustment to the Purchase Price. 
 9. Casualty. If any part of the Property is physically damaged after the Effective Date, Seller shall give Notice to Purchaser of
such damage and of Seller’s insurance coverage (and whether Seller is willing to allow the proceeds of such insurance to be used to restore the Property or to afford a reduction to the Purchase Price in the amount of such proceeds) ( a
“Casualty”). In the event of a Casualty, Purchaser may terminate this Agreement, along with any obligation to purchase the Property and the Parties shall have no further rights or obligations hereunder, except for those which
explicitly survive such a termination by their terms, and the Earnest Money shall be returned to Purchaser. If Purchaser does not elect to terminate this Agreement, the Closing shall occur with no adjustment to the Purchase Price (other than for any
insurance proceeds Seller elects to credit). 
 10. Documents. For and in consideration of, and as a condition
precedent to Purchaser’s delivery to Seller of the Purchase Price at Closing. Seller shall obtain and deliver to Purchaser at Closing the following documents (all of which shall be duly executed and witnessed, which documents Purchaser agrees
to execute where required): 
 10.1 The Deed, subject only to the Permitted Title Exceptions; 
 10.2 An affidavit of title or customary indemnification regarding actions of Seller that may not be reflected in the public records in
form reasonably satisfactory to the Title Company for the purpose of issuing its extended coverage owner’s policy of title insurance without exception for mechanic’s, materialmen’s or other statutory liens, for unrecorded easements,
or for the rights of parties in possession: 
 10.3 Evidence that Seller is not a foreign person against whom withholding is
required under the Internal Revenue Code, or applicable state law, without which Purchaser shall withhold as required; 
 10.4 Each Party shall deliver to the other Party appropriate evidence to establish the authority of such Party to perform its obligations hereunder at Closing; 
 10.5 The Parties shall also deliver a closing statement, any escrow instructions, transfer tax declarations and other documents reasonably necessary to complete and evidence the transaction
contemplated hereby; and 
 10.6 Such estoppel certificates as may be necessary to evidence to Purchaser’s reasonable
satisfaction that, with regard to any restrictive covenants or agreements affecting the Property (if any), no material default exists as of the Closing Date. 
  

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 11. Default and Remedies. In the event of any default by any Party in its
obligations hereunder, the other Party shall have the right to proceed with all remedies available at law or in equity including, without limitation, specific performance (and the Parties hereby stipulate and agree that specific performance is an
appropriate remedy hereunder). 
 12. Condition of Property. Purchaser agrees that it accepts the Property on the
Closing Date on an “as-is,” “where is,” and “with all faults” basis and condition. Purchaser acknowledges that Seller has no obligation whatsoever to remediate or improve the Property, including but not limited to the
environmental condition of the Property, or any existing improvements located thereon. Purchaser expressly acknowledges and agrees that Seller has not and does not make any representation, covenant, or warranty, express or implied, regarding the
condition of the Property or the fitness of the Property for any intended or particular use, any and all such representations, covenants, and warranties, express or implied, being hereby expressly denied by Seller and waived by Purchaser. Purchaser
agrees that, by acquiring title to the Property, Purchaser thereby forever remises, releases, waives, and discharges all claims, causes of action, and demands against Seller from the date of Closing forward, under any federal, state or local
environmental laws, rules, regulations, ordinances, and orders, at law or in equity, which Purchaser has or shall , can, or may have or acquire, including but not limited to cross-claims, arising from or relating to any and all conditions of the
Property, including but not limited to its environmental condition. 
 13. Possession. Seller shall deliver actual and
exclusive possession of the Property at Closing. 
 14. Representations and Warranties. 
 14.1 Seller represents and warrants to Purchaser that, to Seller’s Knowledge: (a) Seller has not received any written notice of any
present legal proceeding or pending condemnation against the Property; (b) during Seller’s ownership of the Property, Seller has not brought on, or generated, used or stored, or disposed of upon the Property any hazardous materials in material
violation of any laws, rules or regulations relating to the same; (c) Seller has not received any written notice (i) from any federal, state, county or municipal authority alleging any fire, health, safety, building, pollution, environmental, zoning
or other violation of law with respect to the Property or any part thereof, including, without limitation, the occupancy or operation thereof, which has not been corrected in all material respects; (ii) by way of any written claims or adverse
written reports of a material nature concerning the physical condition of the Property or of major defects or impairments of normal operating conditions in any component of the Property which have not been cured, nor has Seller received any written
notification or written reports from any general contractor, engineer, architect or inspector or consultant that any work is required to be done in connection with the Property which remains outstanding and, if not addressed, would have a material
adverse effect on the continued use and operation of the Property; and (iii) of any pending property insurance claims relating to the Property; and (d) Seller is not a party to any existing contract with third parties related to the maintenance,
remediation or operation of the Property other than any that it will terminate prior to Closing. 
  

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 14.2 Each party hereto warrants and represents that: (a) such party has full and complete
authority to enter into this Agreement and each person executing this Agreement on behalf of a party warrants and represents that he has been fully authorized to execute this Agreement on behalf of such party and that such party is bound by the
signature of such representative; and (b) each party has been afforded the opportunity to be represented by counsel of its choice in connection with the execution of this Agreement and has had ample opportunity to read, review, and understand the
provisions of this Agreement. 
 15. Miscellaneous 
 15.1 Notice. Wherever any notice or other communication is required or permitted hereunder (“Notice”), such Notice
shall be in writing and shall be delivered by hand, by nationally-recognized overnight express delivery service, by U. S. registered or certified mail, return receipt requested, postage prepaid, to the addresses set forth on the first page of this
Agreement and set out below or at such other addresses as are specified by written notice delivered in accordance herewith: 
 Notice to
Purchaser: 
 Kansas City Life Insurance Company 
 3520 Broadway 
 Kansas City, Missouri 64111-2565 
 Attention: Gregory M. Galvin 
 816.753.7000 
 ggalvin@kclife.com 
 Notice to Seller: 
 4100 Quest, LLC

 6 Logue Court 
 Greenville, South Carolina 29615 
 Attention: General Counsel 
 With a Copy to: 
 Nelson
Mullins Riley & Scarborough LLP 
 100 North Tryon Street 
 Suite 4200 
 Charlotte, North Carolina 28202 
 Attention: Francis C. Pray, Jr. 
 Any notice or other communication mailed as hereinabove provided shall be deemed effectively given and received (a) on the date of delivery, if delivered
by hand or overnight express delivery service; or (b) on the date indicated on the return receipt if mailed (or, if not accepted, three Business Days after depositing in the mail). If any notice mailed is properly addressed but returned for any
reason, such notice shall be deemed to be effective notice and to be given on the date of mailing. 
  

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 15.2 Time of Essence. Time is of the essence of this Agreement. 
 15.3 Entire Agreement. This Agreement constitutes the entire agreement of the Parties and may not be amended except by written
instrument executed by Purchaser and Seller. 
 15.4 Interpretation. The paragraph headings are inserted for
convenience only and are in no way intended to interpret, define, or limit the scope or content of this Agreement or any provision hereof. If any Party is made up of more than one person or entity, then all such persons and entities shall be
included jointly and severally, even though the defined term for such Party is used in the singular in this Agreement. If any right of approval or consent by a Party is provided for in this Agreement, the Party shall exercise the right promptly, in
good faith and reasonably, unless this Agreement expressly gives such Party the right to use its sole discretion. If any time period under this Agreement ends on a day other than a Business Day, then the time period shall be extended until the next
Business Day. 
 15.5 Survival and Termination. The provisions of this Agreement shall survive the Closing and shall
remain in full force and effect only with respect to those rights, duties and obligations of Seller and Purchaser which are expressly stated herein to survive and be performed after the Closing. “Terminate” or
Termination” shall mean the termination of this Agreement pursuant to any provision of this Agreement expressly providing for such termination. 
 15.6 Applicable Law. This Agreement shall be construed and interpreted in accordance with the substantive laws of the State of Tennessee. 
 15.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns. Any assignment hereof by Purchaser shall be subject to the prior written consent of Seller in its sole discretion. Any permitted assignment shall be in writing, and the assignee shall assume and agree to observe and
perform all of the obligations and duties of Purchaser under this Agreement. 
 15.8 Exhibits. The exhibits referred
to in and attached to this Agreement are incorporated herein in full by reference. 
 15.9 Counterpart Execution;
Electronic Delivery. This Agreement may be executed in separate counterparts. It shall be fully executed when each Party whose signature is required has signed at least one counterpart even though no one counterpart contains the signatures of
all the Parties. Executed counterparts of this Agreement may be delivered by facsimile, email or other electronics transmission with the same force and effect as if originals had been delivered to the Parties. At the request of any Party, all
Parties shall promptly execute and deliver to the Parties multiple originals sufficient for each Party to possess two fully executed originals of this Agreement. 
  

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 15.10 Severability. This Agreement is intended to be performed in accordance with,
and only to the extent permitted by, all applicable laws, ordinances, rules and regulations, and is intended, and shall for all purposes be deemed to be a single, integrated document setting forth all of the agreements and understandings of the
Parties, and superseding all prior negotiations, understandings and agreements of such Parties with respect to the sale of the Property. If any term or provision of this Agreement or the application thereof to any person or circumstance shall for
any reason and to any extent be held to be invalid or unenforceable, then such term or provision shall be ignored, and to the maximum extent possible, this Agreement shall continue in full force and effect, but without giving effect to such term or
provision. 
 15.11 No Partnership. Seller and Purchaser acknowledge and agree that the existence of this Agreement
does not in any way whatsoever create or constitute any kind of partnership or joint venture of any nature between Seller and Purchaser. The sole and exclusive legal relationship created by this Agreement is a relationship as seller and purchaser
only. 
 15.12 Confidentiality. This Agreement and the contents hereof are confidential and, except for disclosure
hereof on a confidential basis to any accountants, attorneys and other professional advisors retained by any Party in connection with the transactions contemplated hereby or as otherwise required by law or regulation (including, without limitation,
any filings with the U.S. Securities and Exchange Commission) may not be disclosed in whole or in part to any person or entity without the prior written consent of the non-disclosing Party. 
 IN WITNESS WHEREOF, the Parties have set their hands and seals hereto as of the day and year first above written. 
  

			
	 PURCHASER:

	
	 KANSAS CITY LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/ Tracy W. Knapp

	 Name:
	 	 Tracy W. Knapp

	 Date:
	 	 12/12/07

	 Title:
	 	 Senior Vice President

	
	 SELLER:

	
	 4100 QUEST, LLC

		
	 By:
	 	 /s/ Andrea D. Meade

	 Name:
	 	 Andrea D. Meade

	 Date:
	 	 12/13/07

	 Title:
	 	 Executive VP Operations & Corp. Dev.

  

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