Document:

ex10-1.htm

     

    Exhibit
      10.1

    AMENDED
      AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

    OF

    CONCORD
      DEBT HOLDINGS LLC

    

    

    AMENDED
      AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT, made as of the 21st day of
      September, 2007 by and among WRT REALTY L.P., a Delaware limited partnership
      (“WRT”), THE LEXINGTON MASTER LIMITED PARTNERSHIP, a Delaware limited
      partnership (formerly known as The Newkirk Master Limited Partnership)
      (“Lexington”), and WRP MANAGEMENT LLC, a Delaware limited liability company (the
“Administrative Manager”).

    

    RECITALS:

    

    WHEREAS,
      WRT, Lexington and FUR
      Holdings LLC (“FUR”) are party to that certain Limited Liability Company
      Agreement of 111 Debt Holdings LLC, a Delaware limited liability company (the
      “Company”), dated as of March 31, 2006 (the “Original Agreement”);

    

    WHEREAS,
      WRT and Lexington previously
      appointed the Administrative Manager as the administrative manager of the
      Company;

    

    WHEREAS,
      WRT, Lexington and WRP desire
      to amend and restate the Original Agreement in its entirety;

    

    NOW,
      THEREFORE, In consideration of the covenants and conditions set forth in this
      Agreement, the parties agree as follows.

    

     

    ARTICLE
      I

    CERTAIN
      DEFINITIONS

    

    1.1           General
      Terms.  For purposes of this Agreement, the following terms shall
      have the following respective meanings:

    

    Administrative
      Manager:  WRP Management LLC, a Delaware limited liability
      company.

    

    Affiliate:  With
      respect to a specified Person, (i) a Person who, directly or indirectly through
      one or more intermediaries, controls, is controlled by or is under common
      control with, the specified Person, (ii) any Person who is an officer, director,
      member or trustee of, or serves in a similar capacity with respect to, the
      specified Person or of which the specified Person is an officer, partner, member
      or trustee, or with respect to which the specified Person serves in a similar
      capacity, (iii) any Person who, directly or indirectly, is the beneficial owner
      of 25% or more of any class of equity securities of, or otherwise has a
      substantial beneficial interest in, the specified Person or of which the
      specified Person has a substantial beneficial interest and (iv) the spouse,
      issue, or parent of the specified Person.  An Affiliate does not
      include a Person who is a partner in a

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    partnership
      or joint venture with the Company or any Member if such Person is not otherwise
      an Affiliate of the Company or any Member.

    

    Bankruptcy:  With
      respect to any Member, (i) the filing by that Member of a voluntary petition
      seeking liquidation, reorganization, arrangement or readjustment, in any form,
      of his debts under Title 11 of the United States Code or any other Federal
      or
      state insolvency law, or a Member's filing an answer consenting to or
      acquiescing in any such petition, (ii) the making by that Member of any
      assignment for the benefit of his creditors or (iii) the expiration of 60 days
      after the filing of an involuntary petition under Title 11 of the United States
      Code, an application for the appointment of a receiver, trustee or custodian
      for
      the assets of that Member, or an involuntary petition seeking assets of that
      Member, or an involuntary petition seeking liquidation, reorganization,
      arrangement or readjustment of its debts under any other Federal or state
      insolvency law, provided that the same shall not have been vacated, set aside
      or
      stayed within such 60-day period.

    

    Capital
      Accounts:  The
      capital accounts of the Members, maintained in accordance with Article
      IV.

    

    Capital
      Contributions:  The capital contributions of the Members set forth
      in Section 4.2.

    

    Cause:  Either
      (i) the
      Administrative Manager’s continuous and intentional failure to perform its
      duties under this Agreement; (ii) intentional misconduct by the Administrative
      Manager which is materially injurious to the Company or any member, monetarily
      or otherwise; or (iii) the material breach by the Administrative Manager of
      any
      of the terms or conditions of this Agreement (including, without limitation,
      Section 6.3 hereof) or any agreement relating to a Loan Asset or an Investment
      Entity Loan.

    

    Code:  The
      Internal
      Revenue Code of 1986, as amended from time to time, or any similar Federal
      internal revenue law enacted in substitution for the Code.

    

    Company:  Concord
      Debt
      Holdings LLC

    

    Company
      Interest.  The
      ownership interest of any Member in the Company, including, without limitation,
      all rights to receive Distributions and allocations of Profit and
      Loss.

    

    Company
      Law:  The
      Delaware Limited Liability Company Law, as amended from time to
      time.

    

    Covered
      Person:  Any
      Member, the Administrative Manager, the members of the Investment Committee
      or
      any Affiliate thereof, or any officer, director, shareholder, partner, employee,
      representative or agent of a Member, the Administrative Manager or their
      respective Affiliates, or any employee or agent of the Company or its
      Affiliates.

    

    IC
      Transaction:  As
      defined in Section 3.2(b)(i) hereof.

    
      
        
        

      

      
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    Interest:  A
      Member’s
      share of the Profits and Losses of the Company and a Member’s rights to receive
      distributions in accordance with the provisions of this Agreement and the
      Company Law.

    

    Investment
      Committee:  As defined in Section 3.2 hereof.

    

    Investment
      Entities:  111 Debt Acquisition LLC, a Delaware limited liability
      company, and 111 Debt Acquisition - Two LLC, a Delaware limited liability
      company, each of which will be formed for the sole purpose of acquiring and
      disposing of Loan Assets, and their respective subsidiaries, if
      any.

    

    Investment
      Entity
      Loan:  Shall mean (i) any loan agreement, warehouse line of credit
      or other financing arrangement obtained by an Investment Entity other than
      a
      borrowing under the Warehouse Lines or a borrowing in connection with the
      acquisition of a Loan Asset that is not an IC Transaction.

    

    Lexington
      Change of Control:  Any of

     

    (A)           The
      acquisition by any Person (within the meaning of Section 13(d)(3) or 14(d)(2)
      of
      the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) (“Beneficial Ownership”) of 20% or more of either (i) the then
      outstanding common shares of beneficial interest of LXP (the “Outstanding LXP
      Common Stock”) or (ii) the combined voting power of the then outstanding voting
      securities of LXP entitled to vote generally in the election of trustees (the
      “Outstanding LXP Voting Securities”); provided, however, that for purposes of
      this subsection (A), the following acquisitions shall not constitute a Change
      in
      Control: (1) any acquisition directly from LXP, (2) any acquisition by LXP,
      (3)
      any acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by LXP, or any entity controlled by LXP, or (4) any acquisition
      by
      any entity pursuant to a transaction which complies with clauses (1), (2) and
      (3) of subsection (C) of this definition; or

     

    (B)           Individuals
      who, as of the date hereof, constitute the Board of Trustees of LXP (the “LXP
      Incumbent Board”) cease for any reason to constitute at least a majority of the
      Board of Trustees of LXP; provided, however, that any individual becoming a
      trustee subsequent to the date hereof whose election, or nomination for election
      by the applicable Person’s shareholders, was approved by a vote of at least a
      majority of the trustees then comprising the LXP Incumbent Board shall be
      considered as though such individual were a member of the LXP Incumbent Board,
      but excluding, for this purpose, any such individual whose initial assumption
      of
      office occurs as a result of an actual or threatened election contest with
      respect to the election or removal of directors or other actual or threatened
      solicitation of proxies or consents by or on behalf of a Person other than
      the
      Board of Trustees of LXP; or

     

    (C)           Consummation
      of a reorganization, merger or consolidation of Lexington or LXP (a “LXP
      Business Combination”), in each case, unless, following such LXP Business
      Combination, (1) all or substantially all of the Persons who had Beneficial
      Ownership, respectively, of the applicable Outstanding LXP Common Stock and
      applicable Outstanding LXP Voting Securities immediately prior to such LXP
      Business Combination, have Beneficial

     

    
      
        
        

      

      
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    Ownership,
      of more than 50%, respectively, of the then outstanding common shares of
      beneficial interest and the combined voting power of the then outstanding voting
      securities entitled to vote generally in the election of trustees, as the case
      may be, of the entity resulting from such LXP Business Combination (including,
      without limitation, an entity which as a result of such transaction owns the
      applicable company or all or substantially all of such company’s assets either
      directly or through one or more subsidiaries) in substantially the same
      proportions as their ownership, immediately prior to such LXP Business
      Combination of the applicable Outstanding LXP Common Stock and Outstanding
      LXP
      Voting Securities, as the case may be, (2) no Person (excluding any entity
      resulting from such Business Combination or any employee benefit plan (or
      related trust) of such company or such entity resulting from such Business
      Combination) acquires Beneficial Ownership of 20% or more of, respectively,
      the
      then outstanding shares of common stock of the entity resulting from such
      Business Combination or the combined voting power of the then outstanding voting
      securities of such entity except to the extent that such ownership existed
      prior
      to the LXP Business Combination and (3) at least a majority of the members
      of
      the board of directors or board of trustees, as the case may be, of the entity
      resulting from such LXP Business Combination were members of the LXP Incumbent
      Board at the time of the execution of the initial agreement with the successor
      or purchasing entity in respect of such LXP Business Combination, or of the
      action of the Board of Trustees of LXP, providing for such LXP Business
      Combination; or

     

    (D)           Approval
      of a complete liquidation or dissolution of Lexington or LXP.

    

    Loan
      Assets:  Loan
      receivables, participation interests and other instruments evidencing
      indebtedness of a third party.

    

    LXP:  Lexington
      Realty Trust, a Maryland real estate investment trust, together with its
      permitted successors and assigns.

     

    Management
      Agreement:  The Management Advisory Agreement, dated as of January
      1, 2007, between the Company and the Administrative Manager, as the same may
      be
      amended, modified and supplemented from time to time.

    

    Maximum
      Capital
      Contribution:  With respect to each Member,
      $137,500,000.

    

    Members:  WRT
      and
      Lexington and such other Persons who become party hereto, together with their
      permitted successors and assigns.

    

    Ownership
      Percentages.  With respect to each Member, each Member's Ownership
      Percentage shall be the percentage determined by dividing such Member's Capital
      Contribution at the date of determination by the sum of all Members' Capital
      Contributions as of such date.

    

    Person:  An
      individual, trust, estate, partnership, joint venture, association, company,
      corporation, limited liability company or other entity.

    

    Profit
      and Loss:  With
      respect to each fiscal year or other period, an amount equal to the Company's
      taxable income or loss for such year or period, determined in accordance with
      Code Section 703(a) (for this purpose, all items of income, gain, loss or
      deduction required to be stated

    
      
        
        

      

      
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    separately
      pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
      with the following adjustments:

    

    (i)           Any
      income of the Company that is exempt from Federal income tax and not otherwise
      taken into account in computing Profits or Losses pursuant to this definition
      of
      Profits and Losses shall be added to such taxable income or loss;
      and

    

    (ii)           Any
      expenditures of the Company described in Code Section 705(a)(2)(B) or treated
      as
      Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section
      1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Profit
      or
      Loss shall be subtracted from such taxable income or loss.

    

    Regulations:  The
      final, temporary and proposed Income Tax Regulations promulgated under the
      Code,
      as such regulations may be amended from time to time (including corresponding
      provisions of succeeding regulations).

    

    Securitized
      Entity:  A collateralized debt obligation entity, collateralized
      mortgage backed securities and similar securitized entities established by
      the
      Company or its subsidiary.

    

    Transfer:  (i) any
      sale, conveyance, transfer or assignment, or the entry into any agreement to
      sell, convey, transfer or assign, whether by law or otherwise, of, on, in or
      affecting (x) all or part of a Member’s Company Interest (including any
      legal or beneficial direct or indirect interest therein), (y) any direct or
      indirect interest in a Member (including any profit interest), or (z) any
      direct or indirect interest in a Member, (ii) any Lexington Change of
      Control, or (iii) any WRT Change of Control.  For purposes hereof, a
      Transfer of an interest in a Member shall be deemed to include (A) if a
      Member or controlling equityholder of a Member is a corporation or trust, the
      voluntary or involuntary sale, conveyance or transfer of such corporation’s
      stock or trust’s beneficial interests (or the stock or beneficial interests of
      any corporation or trust directly or indirectly controlling such corporation
      or
      trust by operation of law or otherwise) and (B) if a Member or controlling
      equityholder of a Member is a limited or general partnership, joint venture
      or
      limited liability company, the change, removal, resignation or addition of
      a
      general partner, managing partner, limited partner, joint venturer or member
      or
      the transfer of the partnership interest of any general partner, managing
      partner or limited partner or the transfer of the interest of any joint venturer
      or member.

    

    Warehouse
      Lines:  Individually and collectively (i) that certain Master
      Repurchase Agreement, dated March 30, 2006, among Column Financial Inc., 111
      Debt Acquisition LLC, 111 Debt Acquisition Mezz LLC and Lexington and (ii)
      that
      certain Master Repurchase Agreement to be entered into between Bear Stearns
      International Limited and 111 Debt Acquisition-Two LLC.

    

    Winthrop:  Winthrop
      Realty Trust, an unincorporated association in the form of an Ohio business
      trust, together with its permitted successors and assigns.

     

    WRT
      Change of Control:  Any of

     

    (A)           The
      acquisition by any Person (within the meaning of Section 13(d)(3) or 14(d)(2)
      of
      the Exchange Act) of Beneficial Ownership of 20% or more of either (i) the
      then

     

    
      
        
        

      

      
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    outstanding
      common shares of beneficial interest of Winthrop (the “Outstanding Winthrop
      Common Stock”) or (ii) the combined voting power of the then outstanding voting
      securities of Winthrop entitled to vote generally in the election of trustees
      (the “Outstanding Winthrop Voting Securities”); provided, however, that for
      purposes of this subsection (A), the following acquisitions shall not constitute
      a Change in Control: (1) any acquisition directly from Winthrop, (2) any
      acquisition by Winthrop, (3) any acquisition by any employee benefit plan (or
      related trust) sponsored or maintained by Winthrop, or any entity controlled
      by
      Winthrop, or (4) any acquisition by any entity pursuant to a transaction which
      complies with clauses (1), (2) and (3) of subsection (C) of this definition;
      or

     

    (B)           Individuals
      who, as of the date hereof, constitute the Board of Trustees of Winthrop (the
      “Winthrop Incumbent Board”) cease for any reason to constitute at least a
      majority of the Board of Trustees of Winthrop; provided, however, that any
      individual becoming a trustee subsequent to the date hereof whose election,
      or
      nomination for election by the applicable Person’s shareholders, was approved by
      a vote of at least a majority of the trustees then comprising the Winthrop
      Incumbent Board shall be considered as though such individual were a member
      of
      the Winthrop Incumbent Board, but excluding, for this purpose, any such
      individual whose initial assumption of office occurs as a result of an actual
      or
      threatened election contest with respect to the election or removal of directors
      or other actual or threatened solicitation of proxies or consents by or on
      behalf of a Person other than the Board of Trustees of Winthrop; or

     

    (C)           Consummation
      of a reorganization, merger or consolidation of WRT or Winthrop (a “Winthrop
      Business Combination”), in each case, unless, following such Winthrop Business
      Combination, (1) all or substantially all of the Persons who had Beneficial
      Ownership, respectively, of the applicable Outstanding Winthrop Common Stock
      and
      applicable Outstanding Winthrop Voting Securities immediately prior to such
      Winthrop Business Combination, have Beneficial Ownership, of more than 50%,
      respectively, of the then outstanding common shares of beneficial interest
      and
      the combined voting power of the then outstanding voting securities entitled
      to
      vote generally in the election of trustees, as the case may be, of the entity
      resulting from such Winthrop Business Combination (including, without
      limitation, an entity which as a result of such transaction owns the applicable
      company or all or substantially all of such company’s assets either directly or
      through one or more subsidiaries) in substantially the same proportions as
      their
      ownership, immediately prior to such Winthrop Business Combination of the
      applicable Outstanding Winthrop Common Stock and Outstanding Winthrop Voting
      Securities, as the case may be, (2) no Person (excluding any entity resulting
      from such Business Combination or any employee benefit plan (or related trust)
      of such company or such entity resulting from such Business Combination)
      acquires Beneficial Ownership of 20% or more of, respectively, the then
      outstanding shares of common stock of the entity resulting from such Business
      Combination or the combined voting power of the then outstanding voting
      securities of such entity except to the extent that such ownership existed
      prior
      to the Winthrop Business Combination and (3) at least a majority of the members
      of the board of directors or board of trustees, as the case may be, of the
      entity resulting from such Winthrop Business Combination were members of the
      Winthrop Incumbent Board at the time of the execution of the initial agreement
      with the successor or purchasing entity in respect of such Winthrop Business
      Combination, or of the action of the Board of Trustees of Winthrop, providing
      for such Winthrop Business Combination; or

     

    
      
        
        

      

      
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    (D)           Approval
      of a complete liquidation or dissolution of WRT or Winthrop.

     

    1.2           Other
      Terms.  Unless the context shall require otherwise:

     

    (a)           Words
      importing the singular number or plural number shall include the plural number
      and singular number respectively;

     

    (b)           Words
      importing the masculine gender shall include the feminine and neuter genders
      and
      vice versa;

     

    (c)           Reference
      to “include”, “includes”, and “including” shall be deemed to be followed by the
      phrase “without limitation”; and

     

    (d)           Reference
      in this Agreement to “herein”, “hereof”, “hereby” or “hereunder”, or any similar
      formulation, shall be deemed to refer to this Agreement as a whole, including
      the Exhibits.

    

    

    ARTICLE
      II

    GENERAL
      PROVISIONS

    

    2.1           Continuation
      of the Company.  The Members desire to continue the existence of
      the Company under the Company Law pursuant to this agreement.  The
      provisions of the Company Law shall govern the rights and obligations of, and
      the relationships among, the Members except as modified by the provisions of
      this Agreement.

    

    2.2           Further
      Action.  The Administrative Manager shall take any and all action,
      as may be required, from time to time, under the laws of the State of Delaware,
      to give effect to, and continue in good standing, the Company.

    

    2.3           Name
      of the Company.  The name of the Company shall be Concord Debt
      Holdings LLC, or such other name as the Members may from time to time
      determine.  The Administrative Manager shall have the right to cause
      the Company to operate under one or more assumed names (which shall not include
      the name of any Member or any similar name) where required to comply with the
      laws of any states in which the Company is doing business.  The
      Administrative Manager shall cause to be filed on behalf of the Company such
      company or assumed or fictitious name certificate or certificates or other
      similar documents as may from time to time be required by law for the formation
      and continuation of the Company as a limited liability company under the laws
      of
      Delaware applicable to a limited liability company and the laws of such other
      states in which the Company is doing business regarding the qualification of
      a
      foreign limited liability company.

    

    2.4           Business
      of the Company.  The business of the Company shall be
      to:  (i) acquire, own, hold, sell, transfer, hypothecate and
      ultimately dispose of the Investment Entities; (ii) make, enter into, perform
      and carry out any arrangements, contracts or agreements relating to the
      foregoing, and (iii) do any and all things necessary or incidental to any of
      the
      foregoing to carry out 

    
      
        
        

      

      
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    and
      further the business of the Company as contemplated by this
      Agreement.  The Company shall not engage in any business or activity
      not authorized by this Agreement.

    

    2.5           Place
      of Business; Registered Agent.  The Company's principal place of
      business is 7 Bulfinch Place, Suite 500, P.O. Box 9507, Boston, Massachusetts
      02114 or such other place as the Administrative Manager may, from time to time,
      determine.  The Company’s registered agent in Delaware shall be c/o
      Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
      New
      Castle County, Delaware 19808.  Such office and registered agent may
      be changed from time to time in accordance with the Company Law, as may be
      approved the Administrative Manager.

    

    2.6           Duration
      of the Company.  The Company shall commence upon the filing of a
      Certificate of Formation for the Company in accordance with the Company Law,
      and
      shall continue until dissolved in accordance with Article IX of this
      Agreement.

    

    2.7           Title
      to Company Property.  A Member’s interest in the Company shall for
      all purposes be personal property.  All property owned by the Company,
      whether real or personal, tangible or intangible, shall be owned by the Company
      as an entity, and no Member, individually, shall have any ownership interest
      in
      that property.

    

    ARTICLE
      III

    MANAGEMENT

    

    3.1           Management
      of the Company.  Except as otherwise provided herein, the overall
      management and control of the business and affairs of the Company shall be
      vested in the Members.

    

    3.2           Investment
      Committee.  (a)  The Members hereby establish an
      investment committee (the “Investment Committee”) which Investment Committee
      shall consist of five individuals:  each Member shall appoint two
      members, and the Administrative Manager shall appoint one member.

    

    (b)           Except
      as otherwise expressly provided in this Agreement, all decisions with respect
      to
      any matter set forth in this Agreement or otherwise affecting or arising out
      of
      the conduct of the business of the Company shall be made by the affirmative
      vote
      of at least three members of the Investment Committee appointed by the Members
      including, without limitation:

    

    (i)           all
      acquisitions and dispositions of Loan Assets by an Investment Entity with an
      initial value or purchase price of $20,000,000 or more (a “IC
      Transaction”);

    

    (ii)           the
      entering into of an Investment Entity Loan;

    

    (iii)           the
      payment of any fees to a Member, the Administrative Manager or an Affiliate
      thereof except as contemplated by Section 3.6 hereof;

    
      
        
        

      

      
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    (iv)           the
      retention of accountants or Sarbanes-Oxley consultants on behalf of the Company
      or an Investment Entity.

    

    3.3           Limitation
      on the Investment Committee’s Authority.  Notwithstanding anything
      herein to the contrary, the Investment Committee shall not have the authority
      to
      do any of the following acts, except with the approval of all
      Members:

     

    (i)           permit
      the merger or consolidation of the Company or an Investment Entity with or
      an
      investment by it in any other Person;

    

    (ii)           admit
      any Person as a Member except as provided in Article 7 or require any Capital
      Contribution except as provided in Article 4;

    

    (iii)           enter
      into any transactions, agreements or other arrangements on behalf of the Company
      with the Administrative Manager, a Member or their respective
      Affiliates;

    

    (iv)           enter
      into any agreement which would cause any Member to become personally liable
      on,
      in respect of, or to guaranty, any indebtedness of the Company without such
      Member’s consent;

     

    (v)           cause
      the Company or an Investment Entity to make any Bankruptcy filing;

     

    (vi)           take
      any action that, if taken directly by WRT, would require the approval of the
      Conflicts Committee or, if taken directly by Lexington, would be subject to
      the
      provisions of Article XIV of Lexington’s bylaws; or

     

    (vi)           amend
      this Agreement.

     

    3.4           Authority
      of the Administrative Manager.  In addition to all other rights
      granted to, and the obligations of, the Administrative Manager hereunder and
      under the Management Agreement, the Administrative Manager shall have the right
      to cause an Investment Entity to (i) acquire or dispose of a Loan Asset with
      an
      initial value or purchase price of less than $20,000,000, (ii) modify the terms
      of a document underlying a Loan Asset unless the economic terms of such Loan
      Asset, the security for such Loan Asset or the maturity date of such Loan Asset
      are modified, and (iii) take all actions on behalf of the Company that are
      “ministerial” or “administrative” in nature.

    

    3.5           Services
      of the Members.  The Members, the Investment Committee and the
      Administrative Manager shall devote such time and effort to the business of
      the
      Company as shall reasonably be necessary to promote adequately the interests
      of
      the Company and the mutual interests of the Members, and shall perform its
      duties with the same degree of care it exercises with respect to loans where
      it
      is the sole participant; however, it is specifically understood and agreed
      that
      the Members and their respective Affiliates shall not be required to devote
      full
      time to the business of the Company and that, except as otherwise provided
      in
      this Section 3.5 the Members or in such other agreements in effect from time
      to
      time among the two or more of the parties hereto,

    
      
        
        

      

      
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    the
      Investment Committee the Administrative Manager and their respective Affiliates
      may at any time and from time to time engage in and possess interests in other
      business ventures of any and every type and description, and neither the
      Company, the Members nor the Administrative Manager shall by virtue of this
      Agreement or otherwise have any right, title or interest in or to such
      independent ventures.

    

    3.6           Reimbursement
      of Expenses; Fees.  Notwithstanding anything else herein but subject to
      Article X hereof, neither the Members nor the Administrative Manager shall
      be
      entitled to reimbursement or payment for their expenses associated with Company
      activities.  Without the consent of any Member, the Administrative
      Manager shall have the right to cause the Company to enter into the Management
      Agreement and cause the Company to consent to the entering into by a Securitized
      Entity of a Collateral Management Agreement with an affiliate of the Company
      on
      terms and conditions consistent with the terms and conditions for collateral
      management agreements entered into between entities similar to such Securitized
      Entity and third party collateral managers of comparable experience and
      expertise.

    

     

    ARTICLE
      IV

    CAPITAL
      CONTRIBUTIONS

    

    4.1           Capital.  The
      capital of the Company shall consist of the amounts contributed to the Company
      pursuant to this Article IV.

    

    4.2           Capital
      Contributions.  Each of the Members s have previously made Capital
      Contribution to the Company in the amounts set forth on the books and records
      of
      the Company.

    

    (b)           At
      such time or times as the Investment Committee or the Administrative Manager,
      as
      applicable, shall have authorized the acquisition by an Investment Entity of
      a
      Loan Asset, the Administrative Member shall deliver notice thereof to each
      Member (the “Capital Call”) setting forth the total amount required for the
      acquisition of the Loan Asset (the “Capital Call Amount”).  Within
      five days of receipt of the Capital Call, each Member shall, make an Additional
      Capital Contribution to the Company in an amount equal to the product of (1)
      the
      Ownership Percentage of such Member and (2) the Capital Call Amount; provided,
      however, in no event shall a Member be required or permitted to make an
      Additional Capital Contribution if, when added to all Capital Contributions
      previously made to the Company by such Member, such amount exceeds the Maximum
      Capital Contribution for such Member.  If a Member shall fail to
      timely make a required Additional Capital Contribution pursuant to this
      paragraph (b), the other Members shall have the right, but not the obligation,
      to satisfy such Member’s Additional Capital Contribution by making a loan (the
“Default Loan”) to the Company equal to the product of (i) the amount of the
      defaulting Member’s Additional Capital Contribution and (ii) a fraction, the
      numerator of which is such Member’s Ownership Percentage and the denominator of
      which shall be the aggregate Ownership Percentages of all Members electing
      to
      make a loan to the Company.  All Default Loans shall bear interest at
      a rate of 15% per annum and shall be payable from the assets of the
      Company.

    

    (c)           Except
      as set forth in this Section 4.2, no additional Capital Contributions shall
      be
      required or permitted of any Member without the consent of all
      members.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    4.3           Capital
      Accounts.  (a) The Administrative Manager shall cause to be kept
      for each Member a capital account ("Capital Account") which shall be computed
      from the date hereof and which shall initially be equal to the capital
      contribution of each Member on the date hereof and shall be determined and
      maintained in accordance with Regulations Section 1.704-1(b)(2)(iv), and shall
      be interpreted and applied, and Capital Accounts shall be maintained, in a
      manner consistent with such Regulations.

    

    (b)           No
      interest shall be paid by the Company on any Capital Contribution.  A
      Member shall not be entitled to demand the return of, or to withdraw, any part
      of his Capital Contribution or any balance in his Capital Account, or to receive
      any distribution, except as provided for in this Agreement.  Neither
      the Administrative Manager nor any Member shall be liable for the return of
      the
      Capital Contributions of any other Member and no Member shall have any
      obligation to restore the amount of any deficit in its Capital Account to the
      Company.

    

    ARTICLE
      V

    DISTRIBUTIONS;
      ALLOCATION INCOME AND LOSSES

    

    5.1           Distributions.  Distributions
      pursuant to this Section 5.1 shall be made at such time or times, and in such
      amounts, as the Investment Committee shall determine.  Distributions
      shall made to the Members in accordance with their Ownership Percentages and
      in
      the form of cash only.

    

    5.2           Allocations
      of Profit and Loss.  Profit and Loss for any fiscal year of the
      Company shall be allocated among the Members in accordance with their Ownership
      Percentages from time to time.

    

    5.3           Tax
      Elections.  The Investment Committee shall determine whether the
      Company shall make any applicable tax elections, including an election in
      accordance with Section 754 of the Code to adjust the basis of the assets of
      the
      Company for Federal income tax purposes in the event of a distribution of
      Company property as described in Section 734 of the Code or a transfer by any
      Member of its Company Interest as described in Section 734 of the
      Code.

    

    ARTICLE
      VI

    BOOKS
      AND RECORDS; ACCOUNTS

    

    6.1           Books
      and Records.  True and correct books of account with respect to
      the operations of the Company shall be kept at the principal place of business
      of the Company.  The Administrative Manager shall be responsible for
      keeping the books of account.  The Company shall also maintain at its
      principal place of business the following records:  (a) a current list
      of the full name and last known business or residence address of each Member
      set
      forth in alphabetical order, (b) a copy of the Certificate of Formation of
      the
      Company and all certificates of amendment thereto, together with executed copies
      of any powers of attorney pursuant to which any certificate has been executed,
      (c) copies of the Company's Federal, state and local income tax returns and
      reports, if any, for the three most recent years and (d) copies of this
      Agreement and any amendments hereto and of any financial statements of the
      Company for the three most recent years.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Any
      Member shall have the right, at its
      own expense, to examine, or have its duly authorized representative examine,
      the
      books of account of the Company and such other information reasonably related
      to
      such Member's interest in the Company, and the Company shall make them available
      at the office at which those books are maintained.

    

    6.2           Accounting
      Basis and Fiscal Year.  The Company's books shall be kept on the
      cash method of accounting.  The fiscal year of the Company shall be
      the calendar year.

    

    6.3           Tax
      Returns.  (a)  The Administrative Manager shall cause
      the Company to prepare or cause to be prepared and shall file on or before
      the
      due date (or any extension thereof) any Federal, state or local tax returns
      required to be filed by the Company.  The Company shall furnish each
      Member within 60 days of the end of each fiscal year or as soon thereafter
      as
      such information is available to the Company, with such information as may
      be
      needed to enable such Member to file his or its Federal income tax return and
      any required state income tax return.  The Administrative Manager
      shall cause the Company to pay, out of available cash flow and other assets
      of
      the Company, any taxes payable by the Company.  Except as otherwise
      set forth in this Agreement, all decisions regarding tax elections shall be
      made
      by the Administrative Manager.

    

    (b)           Each
      Member agrees to report, on his or its own income tax returns each year, each
      item of income, gain, loss, deduction and credit as reported by the Company
      to
      such Member on the Schedule K-1 (or other similar tax report) issued by the
      Company to such Member for such year.  Except as otherwise required by
      law, no Member shall take any tax reporting position that is inconsistent in
      any
      respect with any tax reporting positions taken by the Company or any entity
      in
      which the Company owns any equity interest, and, in the event of a breach by
      such Member of the provisions of this Section 6.3(b), such Member shall be
      liable to the Company and the other Members for any costs, liabilities and
      damages (including, without limitation, consequential damages) incurred by
      any
      of them on account of such breach.

    

    6.4           Tax
      Matters Member.  Lexington is hereby designated the "Tax Matters
      Partner" pursuant to Section 6231 of the Code (and any comparable provision
      of
      applicable state and local tax laws).  The Members hereby consent to
      such designation and agree to take any further action as may be required to
      effectuate and maintain such designation and Lexington is authorized to take
      such actions as may be required to effectuate and maintain such
      designation.

    

    6.5           Reports
      to Members.  The Administrative Manager shall cause all reports
      and other documents received by it with respect to the Loan Participation or
      the
      Loan to be delivered to the Members within five business days of receipt thereof
      including, without limitation, all notices regarding the issuance of dividends
      and all copies of all proxy material.  The Administrative Manager
      shall promptly give notice to the Members any development of which the
      Administrative Manager is aware that in its reasonable judgment will result
      in a
      material adverse effect to the Company or that would result in action requiring
      a consent of the Members hereunder.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    ARTICLE
      VII

    ASSIGNABILITY
      OF INTERESTS; ADDITIONAL MEMBERS

    

    7.1           General
      Conditions.  Whether or not otherwise permitted by this Agreement,
      no Member shall Transfer all or any portion of its Company Interest, or any
      rights to receive any Distributions under this Agreement if, in the opinion
      of
      counsel to the Company or, in the opinion of counsel to the non-transferring
      Members, which counsel is satisfactory to the transferring Member, in its
      reasonable discretion, the Transfer would (a) cause the termination or
      dissolution of the Company under the Company Law; (b) require registration
      under
      the Securities Act of 1933, as amended, or under any other securities law or
      result in the violation of any applicable state securities laws; (c) cause
      the
      Company or any Member to be subject to any additional regulatory requirements;
      (d) cause the Company to be taxed as a corporation under the Code; or (e) cause
      a default under any agreement to which the Company is a party.

    

    7.2           Transfer
      by Members.  No Member may Transfer all or any portion of its
      Company Interest without the consent of all Members other than to an Affiliate
      of such Member.  Notwithstanding the preceding sentence, each Member
      agrees that its consent will not be unreasonably withheld if such purported
      Transfer is to a Person that has provided evidence sufficient to the consenting
      Member that such Person has the financial capability to make capital
      contributions to the Company equal to not less than 12.5% of the Company’s total
      net asset value.

    

    7.3           Additional
      Member.  A transferee of all or part of the Company Interest of a
      Member permitted under this Agreement shall be admitted to the Company as an
      Additional Member and be listed as a Member on the books and records of the
      Company only if (a) the transferring Member gives such right to the transferee,
      (b) except for transfers to an Affiliate, the Members consent to the admission
      of the transferee, which consent may be withheld in the Members' sole
      discretion, (c) the transferee shall execute and deliver an agreement reasonably
      satisfactory to and approved by the Members, agreeing to assume and to be bound
      by and to comply with all of the terms and conditions of this Agreement
      applicable to the Members, (d) the transferee shall execute, and deliver all
      necessary certificates or other documents and perform such other acts as may
      be
      required under the Company Law or other applicable laws and regulations to
      effectuate the admission of the Additional Member and to preserve the status
      and
      legal compliance of the Company as reasonably satisfactory to and approved
      by
      the Members and (e) the transferee shall pay all reasonable expenses of the
      Company and the Members connected with the admission including, but not limited
      to, reasonable legal and accounting fees and disbursements.

    

    7.4           Treatment.  Until
      compliance with the provisions of Section 7.3, the Company shall be entitled
      to
      treat the record owner of any Company Interest as the absolute owner of such
      Company Interest in all respects and shall incur no liability for Distributions
      made to such owner.

    

    7.5           Other
      Transfers Void.  Any Transfer made in violation of the provisions
      of this Article VII or of Article VIII shall be null and void and shall not
      bind
      the Company or any Member.

    

    7.6           No
      Release.  In the event of any such transfer by a Member in
      compliance with the provisions of this Article VII, the transferor shall
      continue to be obligated under this Agreement for

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    any
      failure of the transferee to perform any duty or obligation under this Agreement
      or otherwise to violate the terms of this Agreement.

    

    ARTICLE
      VIII

    REPRESENTATIONS
      AND WARRANTIES

    

    8.1           Representations
      of the Members.  Each Member severally represents and warrants
      that it (i) is an Accredited Investor (as such term is defined in Rule 501
      promulgated under the Securities Act of 1933, as amended), (ii) is acquiring
      its
      Company Interest for investment purposes only (iii) has complied with all
      applicable Federal and state securities laws in connection with the issuance
      of
      its equity interests, except to the extent that such failure does not have
      a
      material adverse effect on such Member; (iv) has received copies of all such
      documents as it deems advisable in making his decision to invest in the Company
      and has reviewed and understands such agreements and (v) has had a reasonable
      opportunity to ask questions of and receive answers from a person or persons
      acting on behalf of the Company, and all such questions have been answered
      to
      the reasonable satisfaction of the Member.

    

    8.2           Tax
      Identification Number.  Each Member’s true and correct social
      security or tax identification number, as the case may be, is set forth below
      such Member’s name on Schedule 1 hereto.

    

    ARTICLE
      IX

    DISSOLUTION,
      LIQUIDATION AND TERMINATION

    

    9.1           Events
      of Dissolution.  The Company shall be dissolved upon the happening
      of any of the following events:

    

    (a)           The
      disposition of all or substantially all of the assets of the
      Company;

    

    (b)           The
      unanimous vote of the Members to dissolve the Company;

    

    (c)           The
      occurrence of any event under the Company Law that terminates the continued
      membership of a Member in the Company;

    

    (d)           The
      entry of a decree of judicial dissolution under Section 702 of the Company
      Law.

    

    Dissolution
      of the Company shall be
      effective on the day the event occurs giving rise to the dissolution, but the
      Company shall not terminate until the Certificate of Formation of the Company
      have been canceled and the assets of the Company have been distributed as
      provided herein.

    

    9.2           Limited
      Return of Capital Contributions Upon Dissolution.  Each Member
      shall look solely to the assets of the Company for all distributions with
      respect to the Company and its Capital Contribution, and shall have no recourse
      therefor (upon dissolution or otherwise) against any
      Member.  Notwithstanding the dissolution of the Company, the business
      of the Company and the affairs of the Members, as such, shall continue to be
      governed by this Agreement until

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    termination
      of the Company, as provided in this Agreement.  Upon dissolution of
      the Company, the Administrative Manager, or a liquidator (who may be a Member)
      appointed by the Administrative Manager shall liquidate the assets of the
      Company, apply and distribute the proceeds thereof as contemplated by this
      agreement and cause the cancellation of the Company's Certificate of
      Formation.

    

    9.3           Distributions
      Upon Liquidation.  (a)  Upon dissolution of the Company,
      the Administrative Manager or a liquidator appointed pursuant to Section 9.2,
      shall liquidate the assets of the Company as promptly as is consistent with
      obtaining the fair value thereof, and apply and distribute the proceeds
      thereof:

    

    (i)           First,
      to creditors in the order of priority provided by law;

    

    (ii)           Second,
      to the establishment of any reserves for contingencies which the Administrative
      Manager (or liquidator) may consider necessary; and

    

    (iii)           The
      balance, if any, to the Members in the manner provided in Section 5.1 hereof,
      provided that no Member shall be distributed any amount in excess of such
      Member’s positive Capital Account balance, and any excess shall instead be
      distributed to the Members with positive Capital Account balances, in proportion
      to such positive Capital Account balances.

    

    (b)           Notwithstanding
      the foregoing, in the event the Administrative Manager (or liquidator) shall
      determine that an immediate sale of part or all of the Company assets would
      cause undue loss to the Members, the Administrative Manager (or liquidator),
      in
      order to avoid such loss, may, after giving notice to all the Members, to the
      extent not then prohibited by the laws, including the Company Law, of any
      jurisdiction in which the Company is then formed or qualified and applicable
      in
      the circumstances, defer liquidation of and withhold from distribution for
      a
      reasonable time any assets of the Company except those necessary to satisfy
      the
      Company's debts and obligations.

    

    (c)           After
      the proceeds of the liquidation of the assets of the Company have been
      distributed (which shall occur as soon as practical), the Administrative Manager
      (or liquidator) shall cause the Certificate of Formation of the Company to
      be
      canceled.

    

    9.4           Final
      Accounting.  Upon the dissolution of the Company a proper
      accounting shall be made by the Company's independent public accountants from
      the date of the last previous accounting to the date of
      dissolution.

    

    

    ARTICLE
      X

    LIABILITY,
      EXCULPATION

    AND
      INDEMNIFICATION

    

    10.1           Liability.  (a)
      Except as otherwise provided by the Company Law, the debts, obligations and
      liabilities of the Company, whether arising in contract, tort or otherwise,
      shall be

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    solely
      the debts, obligations and liabilities of the Company, and no liabilities of
      the
      Company, and no Covered Person shall be obligated personally for any such debt,
      obligation or liability of the Company solely by reason of being a Covered
      Person.

    

    (b)           Except
      as otherwise expressly required by law, a Member, in its capacity as Member,
      shall have no liability in excess of (i) the amount of its Capital
      Contributions, (ii) its share of any assets and undistributed Profit of the
      Company, (iii) its obligation to make other payments expressly provided for
      in
      this Agreement, and (iv) the amount of any distributions wrongfully distributed
      to it.

    

    10.2           Indemnification.  To
      the fullest extent permitted by applicable law, a Covered Person shall be
      entitled to indemnification from the Company for any loss, damage or claim
      incurred by such Covered Person by reason of any act or omission performed
      or
      omitted by such Covered Person in good faith on behalf of the Company and in
      a
      manner reasonably believed to be within the scope of authority conferred on
      such
      Covered Person by this Agreement, except that no Covered Person shall be
      entitled to be indemnified in respect of any loss, damage or claim incurred
      by
      such Covered Person by reason of a breach of this Agreement or the gross
      negligence or willful misconduct by such Covered Person with respect to such
      acts or omissions; provided, however, that any indemnity under
      this Section 10.2 shall be provided out of and to the extent of Company assets
      only, and no Covered Person shall have any personal liability on account
      thereof.  No Covered Person may settle a third party claim without the
      consent of all Members.

    

    10.3           Expenses.  To
      the fullest extent permitted by applicable law, expenses (including legal fees)
      incurred by a Covered Person in defending any claim, demand, action, suit or
      proceeding shall, from time to time, be advanced by the Company prior to the
      final disposition of such claim, demand, suit or proceeding upon receipt by
      the
      Company of an undertaking by or on behalf of the Covered Person to repay such
      amount if it shall be determined that the Covered Person is not entitled to
      be
      indemnified as authorized in Section 10.2 hereof.

    

    ARTICLE
      XI

    MISCELLANEOUS

    

    11.1           Notices.  Any
      notices, elections or demands permitted or required to be made under this
      Agreement shall be in writing, signed by the Member giving such notice, election
      or demand and shall be deemed to have been given (i) when personally delivered
      with signed delivery receipt obtained, (ii) when transmitted by facsimile
      machine with printed confirmation of successful transmission to the appropriate
      facsimile number of the address listed below being obtained by the sender from
      the sender's facsimile machine, or (iii) three business days after such notice
      has been deposited in the United States first class mail if sent postage prepaid
      by registered or certified mail, return receipt requested, in each case
      addressed to such Member at the address set forth on the books and records
      of
      the Company.  A Member may change the address to which notices shall
      be sent by written notice to all Members (said change of addresses to be
      effective upon receipt by all Members).

    

    11.2           Successors
      and Assigns.  Subject to the restrictions on transfer set forth in
      this Agreement, this Agreement, and each provision of this Agreement, shall
      be
      binding upon and shall

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    inure
      to
      the benefit of the Members, their respective successors, successors-in-title,
      heirs and permitted assigns, and each successor-in-interest to any Member,
      whether such successor acquires such interest by way of gift, purchase,
      foreclosure or by any other method, shall hold such interest subject to all
      of
      the terms and provisions of this Agreement.

    

    11.3           Amendments.  This
      Agreement may be amended only by a written document approved by and duly
      executed by all of the Members.

    

    11.4           Partition.  No
      Member or any successor-in-interest to any Member shall have the right while
      this Agreement remains in effect to have any Company assets partitioned, and
      each Member, on behalf of itself, its successors, representatives, heirs and
      assigns, hereby waives any such right.  It is the intention of the
      Members that during the term of this Agreement the rights of the Members and
      their successors-in-interest, as among themselves, shall be governed by the
      terms of this Agreement, and that the rights of any Member or
      successor-in-interest to assign, transfer, sell or otherwise dispose of any
      interest in the Company shall be subject to the limitations and restrictions
      of
      this Agreement.

    

    11.5           No
      Waiver.  The failure of any Member to insist upon strict
      performance of a covenant under this Agreement or of any obligation under this
      Agreement, irrespective of the length of time for which such failure continues,
      shall not be a waiver of that Member's right to demand strict compliance in
      the
      future.  No consent or waiver, express or implied, to or of any breach
      or default in the performance of any obligation under this Agreement shall
      constitute a consent or waiver to or of any other breach or default in the
      performance of the same or any other obligation under this
      Agreement.  No waiver or consent shall be effective unless in
      writing.

    

    11.6           Entire
      Agreement.  This Agreement constitutes the full and complete
      agreement of the parties to this Agreement with respect to the subject matter
      of
      this Agreement.

    

    11.7           Captions.  The
      titles or captions of Articles or Sections contained in this Agreement are
      inserted only as a matter of convenience and for reference, are not a part
      of
      this Agreement, and in no way define, limit, extend or describe the scope of
      this Agreement or the intent of any provision of this Agreement.

    

    11.8           Counterparts.  This
      Agreement may be executed in any number of counterparts, all of which together
      shall for all purposes constitute one agreement, binding on all the Members,
      notwithstanding that all Members have not signed the same
      counterpart.

    

    11.9           Separability.  In
      case any of the provisions contained in this Agreement or any application of
      any
      of those provisions shall be invalid, illegal or unenforceable in any respect,
      the validity, legality and enforceability of the remaining provisions contained
      in this Agreement and other applications of those provisions shall not in any
      way be affected or impaired thereby.

    

    11.10        
      Applicable Law.  This Agreement and the rights and obligations
      of the parties under this Agreement shall be governed by and interpreted,
      construed and enforced in accordance with the law of the State of Delaware
      applicable to agreements made and to be performed in the State of
      Delaware.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      first written.

     

     

      
        	 	 	
                WRT
                  REALTY L.P.

              
	 	 	 	 
	 	 	
                By:

              	
                Winthrop
                  Realty Trust

              
	 	 	 	
                General
                  Partner

              
	 	 	 	 
	 	 	 	 
	 	 	 	
                By:

              	 
                /s/ Peter
                Braverman                                  
                
	 	 	 	 	
                Peter
                  Braverman

              
	
                 

              	 	 	 	
                President

              

      

    

     

     

    
      	
            	 	
              
                THE
                  LEXINGTON MASTER LIMITED PARTNERSHIP

              

            
	 	 	 	 
	 	 	
              By:

            	
              
                Lex
                  GP-1 Trust

              

            
	 	 	 	
              
                General
                  Partner

              

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:

            	 
              /s/  T.
              Wilson
              Eglin                                  
              
	 	 	 	 	
              
                T.
                  Wilson Eglin

              

            
	
               

            	 	 	 	
              President

            

    

     

     

    
      	 	 	
              
                WRP
                  MANAGEMENT LLC

              

            
	 	 	 	 
	 	 	
              By:

            	
              
                FUR
                  Holdings LLC

              

            
	 	 	 	
              
                Administrative
                  Manager

              

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:

            	
              WEM-FUR
                Investors LLC

            
	 	 	 	 	
              
                
                  Managing
                    Member

                

              

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	
              By:

            	/s/
              Michael
              L.
              Ashner                                  
              
	 	 	 	 	 	
              Michael
                L. Ashner

            
	 	 	 	 	 	
              President

            

       

    

     

     

    18Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT 

     

    THIS
      AGREEMENT
      is made
      as of September __, 2007, by and between Zagg Incorporated, a Nevada corporation
      (the “Company”),
      the
      stockholder signatory hereto (the “Stockholder”).
      

     

    WHEREAS,
      on
      August 9, 2007, the Company filed a registration statement on Form SB-2 (the
      “Initial Registration”) on behalf of certain shareholders of the Company;
      and

     

    WHEREAS,
      the
      Stockholder desires to waive any legal rights available to Stockholder that
      may
      exist to participate in the Initial Registration in exchange for the
      registration rights as contained in this Agreement;

     

    NOW
      THEREFORE,
      in
      consideration of the mutual covenants contained herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows: 

     

    1.
      Registration
      Rights.
      

     

    (a)
      Grant
      of Registration Rights.
      As soon
      as practicable after effectiveness of the Initial Registration, but in no event
      earlier than legally permissible, the Company agrees to register under the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      all
      of the shares of the Company’s common stock issued to the Stockholder by the
      Company as of the date hereof (the “Registrable
      Securities”)
      on an
      applicable Securities and Exchange Commission (the “SEC”)
      form.

     

    (b)
      Additional
      Registration Statements.
      In the
      event the Company is unable for any reason to register all of the Registrable
      Securities, including but not limited to an SEC interpretation of Rule 415
      as to
      the amount of securities eligible in any one offering, the Company agrees to
      file a subsequent registration statement within a reasonable time frame and
      delay, and as many registration statements as are necessary to fulfill and
      accomplish the registration rights granted to Stockholder as contained in
      section 1(a). Moreover, it is contemplated that Stockholder will be receiving
      a
      warrant to purchase additional shares of the company and at such time, the
      Company will also grant Shareholder piggy back registration rights which will
      allow the Shareholder to be included in any subsequent registration statements
      that may be filed by the Company.

     

    (c)
      Waiver
      of Rights in the Initial Registration.
      In
      exchange for the rights conferred in section 1(a) and (b), the Stockholder
      hereby irrevocably and unconditionally releases the Company from any and all
      liabilities, actions, contracts, agreements, promises, claims and demands of
      any
      kind whatsoever, in law or equity, that relate in any way to rights available
      to
      the Stockholder to participate in the Initial Registration.

     

    2.
      Registration
      Procedures.
      The
      Company shall use its best efforts to effect the registration and the sale
      of
      such Registrable Securities, and pursuant thereto the Company shall as
      expeditiously as possible: 

     

    (a)
      prepare and file with the SEC a registration statement with respect to such
      Registrable Securities and use all commercially reasonable efforts to cause
      such
      registration statement to become effective;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (b)
      notify the Stockholder of the effectiveness of the registration statement filed
      hereunder and prepare and file with the SEC such amendments and supplements
      to
      such registration statement and the prospectus used in connection therewith
      as
      may be necessary to keep such registration statement effective for a period
      of
      not less than 180 days; 

     

    (c)
      furnish to the Stockholder such number of copies of the registration statement,
      each amendment and supplement thereto, the prospectus included in the
      registration statement (including each preliminary prospectus) and such other
      documents as the Stockholder may reasonably request in order to facilitate
      the
      disposition of the Registrable Securities owned by the Stockholder;

     

    (d)
      notify the Stockholder, at any time when a prospectus relating thereto is
      required to be delivered under the Securities Act, of the happening of any
      event
      as a result of which the prospectus included in such registration statement
      contains an untrue statement of a material fact or omits any fact necessary
      to
      make the statements therein not misleading, and, at the request of the
      Stockholder, the Company shall prepare a supplement or amendment to such
      prospectus so that, as thereafter delivered to the purchasers of such
      Registrable Securities, such prospectus shall not contain an untrue statement
      of
      a material fact or omit to state any fact necessary to make the statements
      therein not misleading; 

     

    (e)
      in
      the event of the issuance of any stop order suspending the effectiveness of
      a
      registration statement, or of any order suspending or preventing the use of
      any
      related prospectus or suspending the qualification of any common stock included
      in such registration statement for sale in any jurisdiction, the Company shall
      use its best efforts promptly to obtain the withdrawal of such order;

    

    3.
      Registration
      Expenses.
      All
      expenses incident to the Company’s performance of or compliance with this
      Agreement, including without limitation all registration and filing fees, fees
      and expenses of compliance with securities or blue sky laws, printing expenses,
      messenger and delivery expenses, fees and disbursements of custodians, fees
      and
      disbursements of counsel for the Company and all independent certified public
      accountants (all such expenses being herein called “Registration
      Expenses”)
      shall
      be borne by the Company. The Stockholder will pay any commissions or other
      fees
      payable to brokers or dealers in connection with any sale of the Registrable
      Securities. 

     

    4.
      Indemnification.
      

     

    (a)
      The
      Company agrees to indemnify, to the extent permitted by law, the Stockholder,
      its Shareholders, members, managers, officers and directors and each person
      who
      controls the Stockholder (within the meaning of the Securities Act) against
      all
      losses, claims, damages, liabilities and expenses caused by any untrue or
      alleged untrue statement of material fact contained in any registration
      statement, prospectus or preliminary prospectus or any amendment thereof or
      supplement thereto or any omission or alleged omission of a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading, except insofar as the same are caused by or contained in any
      information furnished in writing to the Company by the Stockholder.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (b)
      In
      connection with any registration statement in which the Stockholder is
      participating, the Stockholder shall furnish to the Company in writing such
      information and affidavits as the Company reasonably requests for use in
      connection with any such registration statement or prospectus and, to the extent
      permitted by law, shall indemnify the Company, its directors and officers and
      each person who controls the Company (within the meaning of the Securities
      Act)
      against any losses, claims, damages, liabilities and expenses resulting from
      any
      untrue or alleged untrue statement of material fact contained in the
      registration statement, prospectus or preliminary prospectus or any amendment
      thereof or supplement thereto or any omission or alleged omission of a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading, but only to the extent that such untrue statement or omission
      is
      contained in any information or affidavit so furnished in writing by the
      Stockholder. 

     

    (c)
      Any
      person entitled to indemnification hereunder shall (i) give prompt written
      notice to the indemnifying party of any claim with respect to which it seeks
      indemnification (provided that the failure to give prompt notice shall not
      impair any person’s right to indemnification hereunder to the extent such
      failure has not prejudiced the indemnifying party) and (ii) unless in such
      indemnified party’s reasonable judgment a conflict of interest between such
      indemnified and indemnifying parties may exist with respect to such claim,
      permit such indemnifying party to assume the defense of such claim with counsel
      reasonably satisfactory to the indemnified party. If such defense is assumed,
      the indemnifying party shall not be subject to any liability for any settlement
      made by the indemnified party without its consent (but such consent shall not
      be
      unreasonably withheld, conditioned or delayed). An indemnifying party who is
      not
      entitled to, or elects not to, assume the defense of a claim shall not be
      obligated to pay the fees and expenses of more than one counsel for all parties
      indemnified by such indemnifying party with respect to such claim, unless in
      the
      reasonable judgment of any indemnified party a conflict of interest may exist
      between such indemnified party and any other of such indemnified parties with
      respect to such claim. 

     

    (d)
      The
      indemnification provided for under this Agreement shall remain in full force
      and
      effect regardless of any investigation made by or on behalf of the indemnified
      party or any officer, director or controlling person of such indemnified party
      and shall survive the transfer of securities. The Company also agrees to make
      such provisions, as are reasonably requested by any indemnified party, for
      contribution to such party in the event the Company’s indemnification is
      unavailable for any reason. 

     

    5.
      Miscellaneous.
      

     

    (a)
      This
      Agreement and the letter agreement of even date submitted herewith between
      the
      Company and Stockholder embody the complete agreement and understanding among
      the parties and supersede and preempt any prior understandings, agreements
      or
      representations by or among the parties, written or oral, which may have related
      to the subject matter hereof in any way. 

     

    (b)
      Any
      person having rights under any provision of this Agreement shall be entitled
      to
      enforce such rights specifically to recover damages caused by reason of any
      breach of any provision of this Agreement and to exercise all other rights
      granted by law. The parties hereto agree and acknowledge that money damages
      may
      not be an adequate remedy for any breach of the provisions of this Agreement
      and
      that any party may in its sole discretion apply to any court of law or equity
      of
      competent jurisdiction (without posting any bond or other security) for specific
      performance and for other injunctive relief in order to enforce or prevent
      violation of the provisions of this Agreement. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (c)
      The
      provisions of this Agreement may be amended or waived only upon the prior
      written consent of the Company and the Stockholder. 

     

    (d)
      All
      covenants and agreements in this Agreement by or on behalf of any of the parties
      hereto shall bind and inure to the benefit of the respective successors and
      assigns of the parties hereto whether so expressed or not. Notwithstanding
      the
      foregoing, however, this Agreement is not assignable without the prior written
      consent of both parties hereto. 

     

    (e)
      Whenever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement is held to be prohibited by or invalid under applicable law,
      such provision shall be ineffective only to the extent of such prohibition
      or
      invalidity, without invalidating the remainder of this Agreement. 

     

    (f)
      This
      Agreement may be executed simultaneously in two or more counterparts, any one
      of
      which need not contain the signatures of more than one party, but all such
      counterparts taken together shall constitute one and the same Agreement.

     

    (g)
      The
      descriptive headings of this Agreement are inserted for convenience only and
      do
      not constitute a part of this Agreement. 

     

    (h)
      The
      corporate law of Nevada shall govern all issues and questions concerning the
      relative rights of the Company and its shareholders. All other issues and
      questions concerning the construction, validity, interpretation and enforcement
      of this Agreement shall be governed by, and construed in accordance with, the
      laws of the Nevada, without giving effect to any choice of law or conflict
      of
      law rules or provisions (whether of Nevada law or any other jurisdiction) that
      would cause the application of the laws of any jurisdiction other than the
      Nevada. 

     

    (i)
      All
      notices, demands or other communications to be given or delivered under or
      by
      reason of the provisions of this Agreement shall be in writing and shall be
      deemed to have been given when delivered personally to the recipient, sent
      to
      the recipient by reputable overnight courier service (charges prepaid) or mailed
      to the recipient by certified or registered mail, return receipt requested
      and
      postage prepaid. Such notices, demands and other communications shall be sent
      to
      the following addresses: 

     

    Zagg
      Incorporated: 

    3855
      South 500 West, Suite J

    Salt
      Lake
      City, Utah 84115 

    Attention:
      Brandon O’Brien (CFO) 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    With
      copies to: 

    

    Cane
      Clark LLP

    3273
      E.
      Warm Springs, Rd.

    Las
      Vegas, NV

    Attention:
      Scott Doney

    

    Stockholder:

    At
      the
      address provided below

     

    or
      to
      such other address or to the attention of such other person as the recipient
      party has specified by prior written notice to the sending party. 

     

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

     

    
      
        	 	 	 
	 	ZAGG
                INCORPORATED.
	 	 	 
	 	 	 
	 	
                By:

                
                  Name:

                

              	
                

                Robert
                  G. Pedersen II

              
	 	
                
                  Title:

                

              	
                
                  CEO

                

              

      

    

     

    
      
        
          	 	 	 
	 	
                  STOCKHOLDER

                
	 	 	 
	 	 	 
	 	
                  By:

                  
                    Name:

                  

                	
                  

                
	 	
                  
                    Title:

                  

                	
                  
                     

                  

                
	 	 	 
	 	
                  Address:

                	 

        

      

    

     

    
      
         

      

      
        5

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