Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 13

TO

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

OF

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

     This Amendment No. 13 to the Amended and Restated Limited Partnership Agreement of First
Potomac Realty Investment Limited Partnership (this “Amendment”) is made as of January 18, 2011 by
First Potomac Realty Trust, a Maryland real estate investment trust, as sole general partner (the
“Company”) of First Potomac Realty Investment Limited Partnership, a Delaware limited partnership
(the “Partnership”), pursuant to the authority granted to the Company in the Amended and Restated
Limited Partnership Agreement of First Potomac Realty Investment Limited Partnership, dated as of
September 15, 2003 (the “Partnership Agreement”), for the purpose of issuing additional Partnership
Interests to the Company in its capacity as the General Partner in the form of Series A Preferred
Partnership Units (as defined below). Capitalized terms used and not defined herein shall have the
meanings set forth in the Partnership Agreement.

     WHEREAS, a Pricing Committee of the Board of Trustees (the “Board”) of the Company adopted
resolutions on January 12, 2011 classifying and designating 4,600,000 Preferred Shares (as defined
in the First Amended and Restated Declaration of Trust of the Company (the “Declaration of Trust”))
as Series A Preferred Shares (as defined below);

     WHEREAS, the Company filed Articles Supplementary to the Declaration of Trust with the State
Department of Assessments and Taxation of Maryland, effective on January 18, 2011, establishing the
Series A Preferred Shares, with such preferences, rights, powers, restrictions, limitations as to
distributions, qualifications and terms and conditions of redemption as described in the Series A
Articles Supplementary (as defined below);

     WHEREAS, on January 18, 2011, the Company issued 4,000,000 Series A Preferred Shares; as of
the date hereof, the Company is authorized to issue an additional 600,000 Series A Preferred
Shares; and

     WHEREAS, the Company has determined in good faith that (i) in connection with the issuance of
the Series A Preferred Shares, it is necessary and desirable to amend the Partnership Agreement to
issue additional Partnership Interests to the General Partner in the form of Series A Preferred
Partnership Units having designations, preferences and other rights which are substantially the
same as the economic rights of the Series A Preferred Shares, and to make such other amendments to
the Partnership Agreement as are necessary to give proper effect to the issuance of the Series A
Preferred Partnership Units to the General Partner, and (ii) the issuance of the Series A Preferred
Partnership Units to the General Partner is in the best interests of the Company and the
Partnership.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged, the Partnership
Agreement is hereby amended as follows:

1. Article I of the Partnership Agreement is hereby amended as follows:

     (a) The following definitions shall be added to Article I:

 

 

     “Business Day” shall mean any day, other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which banking institutions in New York, New York are authorized or required by
law, regulation or executive order to close.

     “Common Partnership Interest” shall mean an ownership interest in the Partnership, other than
a Preferred Partnership Interest, and includes any and all benefits to which the holder of such an
ownership interest may be entitled as provided in this Agreement, together with all obligations of
such person to comply with the terms and provisions of this Agreement.

     “Common Partnership Unit” shall mean a fractional, undivided share of the Common Partnership
Interests of all Partners issued hereunder. The allocation of the Common Partnership Units among
the Partners shall be as set forth on the books and records of the Partnership, as may be updated
from time to time.

     “NASDAQ” shall mean the NASDAQ Stock Market or any successor thereto.

     “Preferred Partnership Interest” shall mean an ownership interest in the Partnership, other
than a Common Partnership Interest, and includes any and all benefits to which the holder of such
an ownership interest may be entitled as provided in this Agreement, together with all obligations
of such person to comply with the terms and provisions of this Agreement.

     “Preferred Partnership Unit” shall mean a fractional, undivided share of Preferred Partnership
Interests of all Partners in the specified series issued hereunder. The allocation of the Preferred
Partnership Units among the Partners shall be as set forth on the books and records of the
Partnership, as may be amended from time to time.

     “Preferred Share” shall mean one preferred share of beneficial interest of the General
Partner.

     “Share” shall mean a share of beneficial interest (or other comparable equity interest) of the
General Partner, including, without limitation, REIT Shares and Preferred Shares. Shares may be
issued in one or more classes or series in accordance with the terms of the Declaration of Trust
(or, if the General Partner is not First Potomac Realty Trust, the organizational documents of the
successor or substitute General Partner, as applicable). If there is more than one class or series
of Shares, the term “Shares” shall, as the context requires, be deemed to refer to the class or
series of Shares that corresponds to the class or series of Partnership Interests for which the
reference to Shares is made. When used with reference to Common Partnership Units, the term
“Shares” refers to REIT Shares, and when used with reference to Series A Preferred Partnership
Units, the term “Shares” refers to the series of Preferred Shares designated as Series A Preferred
Shares.

     “Series A Articles Supplementary” shall mean the Articles Supplementary Establishing and
Fixing the Rights and Preferences of a Series of Preferred Shares, designating the rights and
preferences of the 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, filed as part
of the Company’s Declaration of Trust with the State Department of Assessments and Taxation of
Maryland, effective on January 18, 2011.

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     “Series A Preferred Partnership Interests” shall mean an ownership interest in the Partnership
evidenced by the Series A Preferred Partnership Units, having a preference in payment of
distributions or on liquidation as set forth in this Amendment.

     “Series A Preferred Partnership Units” shall mean the series of Preferred Partnership Units
established pursuant to this Amendment, representing a fractional, undivided share of the Series A
Preferred Partnership Interests of all Partners issued under the Partnership Agreement.

     “Series A Preferred Shares” shall mean the 7.750% Series A Cumulative Redeemable Perpetual
Preferred Shares of the Company, with such preferences, rights, voting powers, restrictions,
limitations as to distributions, qualifications and terms and conditions of redemption as described
in the Series A Articles Supplementary.

     (b) The definition of “Percentage Interest” shall be deleted and restated as
follows: “Percentage Interest” means, as to a Partner holding a class of Partnership Interests, its
interest in such class, determined by dividing the Partnership Units of such class owned by such
Partner by the total number of Partnership Units of such class then outstanding. The Percentage
Interest of each Partner shall be as set forth on the books and records of the Partnership, as may
be updated from time to time.

2. Article IV of the Partnership Agreement is hereby amended as follows:

     (a) Section 4.02(d) of the Partnership Agreement is hereby amended and restated as follows:

          “(d) The General Partner’s repurchase of Shares. If the General Partner shall repurchase
Shares of any class of the General Partner’s Shares, the purchase price thereof and all costs
incurred in connection with such repurchase shall be reimbursed to the General Partner by the
Partnership pursuant to Section 6.05 hereof and the General Partner shall cause the Partnership to
cancel a number of Partnership Interests of the appropriate class held by the General Partner equal
to the quotient of the number of such Shares divided by the applicable Conversion Factor for such
class of Shares.”

3. Article V of the Partnership Agreement is hereby amended as follows:

     (a) Section 5.02(a) of the Partnership Agreement is hereby amended and restated as follows:

          “(a) Subject to Section 5.02(c) hereof and except with respect to distributions in connection
with a liquidation of the Partnership pursuant to Section 5.06(a), the Partnership shall distribute
cash at such times and in such amounts as are determined by the General Partner in its sole and
absolute discretion, (i) first, to any holders of Partnership Interests that are entitled to any
preference in distribution in accordance with the rights of any such class of Partnership Interests
(and, within such class, pro rata in proportion to the respective Percentage Interests on such
Partnership Record Date), and (ii) second, to the holders of Common Partnership Interests who are
Partners on the Partnership Record Date with respect to such quarter (or other distribution period)
in accordance with their Percentage Interests on the Partnership Record Date. Unless otherwise
expressly provided for herein, or in the terms established for a new class or series of Partnership
Interests created in accordance with Article IV hereof, no Partnership Interest shall be entitled
to a distribution in preference to any other Partnership Interest.”

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     (b) Section 5.06(a) of the Partnership Agreement is hereby amended and restated as follows:

“(a) Upon liquidation of the Partnership, after payment of, or adequate provision for, debts and
obligations of the Partnership, including any Partner loans, any remaining assets of the
Partnership shall be distributed (i) first, to the holders of Partnership Interests that are
entitled to any preference in distribution upon liquidation in accordance with the rights of any
such class or series of Partnership Interests (and, within each such class or series, to each
holder thereof pro rata based on its Percentage Interest in such class), and (ii) second, to all
other Partners with positive Capital Accounts in accordance with their respective positive Capital
Account balances.”

4. Exhibit B of the Partnership Agreement, “Allocation Provisions,” is hereby amended as follows:

	 	(a)	 	Section 2(A) of Exhibit B is hereby amended and restated as follows:
	 
	 	 	 	“PROFITS. After giving effect to the special allocations set forth in Section 2(C)
hereof, Profits in each Fiscal Year shall be allocated in the following order:

	 	(1)	 	first, to the General Partner to the extent that Losses previously allocated
to the General Partner pursuant to Section 2(B)(4) hereof, on a cumulative
basis, exceed Profits previously allocated to the General Partner pursuant to this
clause (1), on a cumulative basis;
	 
	 	(2)	 	second, to the holders of any Partnership Interests that are entitled to any
preference upon liquidation until the cumulative Profits allocated under this clause
(2) equals the cumulative Losses allocated to such Partners under Section
2(B)(3) hereof;
	 
	 	(3)	 	third, to the holders of any Partnership Interests that are entitled to any
preference in distribution in accordance with the rights of any other class of
Partnership Interests until each such Partnership Interest has been allocated, on a
cumulative basis pursuant to this clause (3), Profits equal to the amount of
distributions payable that are attributable to the preference of such class of
Partnership Interests whether or not paid (and, within such class, pro rata in
proportion to the respective Percentage Interests as of the last day of the period for
which such allocation is being made); and
	 
	 	(4)	 	finally, with respect to Partnership Interests that are not entitled to any
preference in distribution or with respect to which distributions are not limited to
any preference in distribution, pro rata to each such class in accordance with the
terms of such class (and, within such class, pro rata in proportion to the respective
Percentage Interests as of the last day of the period for which such allocation is
being made).”

	 	(b)	 	Section 2(B) of Exhibit B is hereby amended and restated as follows:

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	 	 	 	“LOSSES. After giving effect to the special allocations set forth in Section 2(C)
hereof, Losses shall be allocated:

	 	(1)	 	first, to the holders of Partnership Interests, in proportion to, and to the
extent that, their share of the Profits previously allocated pursuant to Section
2(A)(4) exceeds, on a cumulative basis, the sum of (a) distributions with respect
to such Partnership Interests pursuant to Section 5.02(a) and (b) Losses
allocated under this clause (1);
	 
	 	(2)	 	second, with respect to classes of Partnership Interests that are not
entitled to any preference in distribution upon liquidation, pro rata to each such
class in accordance with the terms of such class (and, within such class, pro rata in
proportion to the respective Percentage Interests as of the last day of the period for
which such allocation is being made); provided, however, that Losses
shall not be allocated to any Partner pursuant to this Section 2(B)(2) to the
extent that such allocation would cause such Partner to have an Adjusted Capital
Account Deficit (or increase any existing Adjusted Capital Account Deficit)
(determined in the case of a Partner who also holds classes of Partnership Interests
that are entitled to any preferences in distribution upon liquidation, by subtracting
from such Partners’ Adjusted Capital Account the amount of such preferred distribution
to be made upon liquidation) at the end of such Fiscal Year (or portion thereof);
	 
	 	(3)	 	third, with respect to classes of Partnership Interests that are entitled to
any preference in distribution upon liquidation, in reverse order of the priorities of
each such class (and within each such class, pro rata in proportion to their
respective Percentage Interests as of the last day of the period for which such
allocation is being made); provided, however, that Losses shall not be
allocated to any Partner pursuant to this Section 2(B)(3)to the extent that
such allocation would cause such Partner to have an Adjusted Capital Account Deficit
(or increase any existing Adjusted Capital Account Deficit); and
	 
	 	(4)	 	thereafter, to the General Partner.”

5. The General Partner shall be permitted to include any information required to be set forth on
Exhibit A to the Partnership Agreement on the books and records of the Partnership.

6. In accordance with Section 4.02 of the Partnership Agreement, set forth in Exhibit E hereto are
the terms and conditions of the Series A Preferred Partnership Units hereby established and issued
to the Company in consideration of its contribution to the Partnership of the proceeds of the
issuance and sale of the Series A Preferred Shares by the Company. The Partnership Agreement is
amended to incorporate such Exhibit E as Exhibit E thereto and to revise the books and records of
the Partnership to reflect the issuance of the Series A Preferred Partnership Units.

7. Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in
full force and effect, which terms and conditions the Company hereby ratifies and confirms.

8. This Amendment shall be construed and enforced in accordance with and governed by the laws of
the State of Delaware, without regard to conflicts of law.

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9. If any provision of this Amendment is or becomes invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby.

[Signature Page to Amendment No. 13 to the Amended and Restated Limited Partnership Agreement of

First Potomac Realty Investment Limited Partnership follows]

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     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first set
forth above.

	 	 	 	 	 
	 	FIRST POTOMAC REALTY TRUST

As sole general partner of First Potomac Realty Investment Limited Partnership

 	 
	 	By:  	/s/ Douglas J. Donatelli
 	 
	 	 	Douglas J. Donatelli 	 
	 	 	Chairman of the Board of Trustees and Chief Executive Officer 	 
	 

[Signature Page to Amendment No. 13 to the Amended and Restated Limited Partnership Agreement of

First Potomac Realty Investment Limited Partnership]

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EXHIBIT E

DESIGNATION OF TERMS AND CONDITIONS OF SERIES A

PREFERRED PARTNERSHIP UNITS

A. Designation and Number. A series of Preferred Partnership Units, designated as Series A
Preferred Partnership Units, is hereby established. The number of Series A Preferred Partnership
Units shall be 4,600,000.

B. Rank. The Series A Preferred Partnership Units will, with respect to rights to receive
distributions and to participate in distributions or payments upon liquidation, dissolution or
winding up of the Partnership, rank (a) senior to the Common Partnership Units and any other
Partnership Units of the Company, now or hereafter issued and outstanding, the terms of which
provide that such Partnership Units rank, as to distributions and upon liquidation, dissolution or
winding up of the Partnership, junior to such Series A Preferred Partnership Units (“Junior
Units”), (b) on a parity with any other Partnership Units of the Partnership, now or hereafter
issued and outstanding, other than Partnership Units referred to in clauses (a) and (c) (“Parity
Units”); and (c) junior to all Partnership Units of the Partnership the terms of which specifically
provide that such Partnership Units rank senior to the Series A Preferred Partnership Units.

C. Distributions.

     (i) Subject to the rights of holders of any Preferred Partnership Units ranking senior to the
Series A Preferred Partnership Units as to the payment of distributions, the Company, in its
capacity as the holder of the then outstanding Series A Preferred Partnership Units, shall be
entitled to receive, when, as and if authorized by the Company, out of funds legally available for
payment of distributions, cumulative cash distributions at the rate of 7.750% per annum of the $25
liquidation preference of each Series A Preferred Partnership Unit (equivalent to $1.9375 per annum
per Series A Preferred Partnership Unit).

     (ii) Distributions on each outstanding Series A Preferred Partnership Unit shall be
cumulative from and including the date of original issuance and shall be payable (i) for the period
from January 18, 2011 to February 15, 2011 on February 15, 2011, and (ii) for each quarterly
distribution period thereafter, quarterly in equal amounts in arrears on the 15th day of
each February, May, August and November, commencing on May 15, 2011 (each such day being
hereinafter called a “Series A Distribution Payment Date”) at the then applicable annual rate;
provided, however, that if any Series A Distribution Payment Date falls on any day other than a
Business Day, the distribution which would otherwise have been payable on such Series A
Distribution Payment Date may be paid on the next succeeding Business Day with the same force and
effect as if paid on such Series A Distribution Payment Date, and no interest or other sums shall
accrue on the amount so payable from such Series A Distribution Payment Date to such next
succeeding Business Day. Each distribution is payable to holders of record as they appear on the
books and records of the Partnership at the close of business on the record date, not exceeding 30
days preceding the applicable Series A Distribution Payment Date, as shall be fixed by the Company.
Distributions shall accumulate from the most recent Series A Distribution Payment Date to which
distribution have been paid, whether or not there shall be funds legally available for the payment
of such distributions, whether the Partnership has earnings or whether such distributions are
authorized. No interest, or sum of money in lieu of interest, shall be payable in respect of any
distribution payment or payments on the Series A Preferred Partnership Units that may be in
arrears. Holders of the Series A Preferred Partnership Units shall not be entitled to any
distributions, whether payable in cash, property or shares, in excess of full cumulative
distributions, as herein provided, on the Series A Preferred Partnership Units. Distributions

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payable on the Series A Preferred Partnership Units for any period greater or less than a full
distribution period will be computed on the basis of a 360-day year consisting of twelve 30-day
months. Distributions payable on the Series A Preferred Partnership Units for each full
distribution period will be computed by dividing the applicable annual distribution rate by four.
After full cumulative distributions on the Series A Preferred Partnership Units have been paid or
declared and funds therefor set aside for payment with respect to a distribution period, the
holders of Series A Preferred Partnership Units will not be entitled to any further distributions
with respect to that distribution period.

     (iii) No distributions on the Series A Preferred Partnership Units shall be authorized and
declared by the Partnership or paid or set apart for payment by the Partnership at such time as the
terms and provisions of any agreement of the Partnership, including any agreement relating to its
indebtedness, prohibits such declaration, payment or setting apart for payment or provides that
such declaration, payment or setting apart for payment would constitute a breach thereof, or a
default thereunder, or if such declaration or payment shall be restricted or prohibited by law.

     (iv) So long as any Series A Preferred Partnership Units are outstanding, no distributions,
except as described in the immediately following sentence, shall be authorized and declared or paid
or set apart for payment on any series or class or classes of Parity Units for any period unless
full cumulative distributions have been declared and paid or are contemporaneously declared and
paid or declared and a sum sufficient for the payment thereof set apart for such payment on the
Series A Preferred Partnership Units for all prior distribution periods. When distributions are not
paid in full or a sum sufficient for such payment is not set apart, as aforesaid, all distributions
authorized and declared upon the Series A Preferred Partnership Units and all distributions
authorized and declared upon any other series or class or classes of Parity Units shall be
authorized and declared ratably in proportion to the respective amounts of distributions
accumulated and unpaid on the Series A Preferred Partnership Units and such Parity Units.

     (v) So long as any Series A Preferred Partnership Units are outstanding, no distributions
(other than distributions paid solely in Junior Units of, or in options, warrants or rights to
subscribe for or purchase, Junior Units) shall be authorized and declared or paid or set apart for
payment or other distribution authorized and declared or made upon Junior Units, nor shall any
Junior Units be redeemed, purchased or otherwise acquired (other than a redemption, purchase or
other acquisition of Partnership Units made for purposes of and in compliance with requirements of
an employee incentive or benefit plan of the Company or any subsidiary, or a conversion into or
exchange for Junior Units or Parity Units or redemptions for the purpose of preserving the
Company’s qualification as a REIT (as defined in the Declaration of Trust), or redemptions of
Partnership Units pursuant to Article 8 of the Partnership Agreement), for any consideration (or
any monies to be paid to or made available for a sinking fund for the redemption of any such units)
by the Company, directly or indirectly (except by conversion into or exchange for Junior Units or
Parity Units), unless in each case full cumulative distributions on all outstanding shares of
Series A Preferred Partnership Units and any Parity Units at the time such distributions are
payable shall have been paid or set apart for payment for all past distribution periods with
respect to the Series A Preferred Partnership Units and all past distribution periods with respect
to such Parity Units.

     (vi) Any distribution payment made on the Series A Preferred Partnership Units shall first be
credited against the earliest accrued but unpaid distribution due with respect to such Series A
Preferred Partnership Units which remains payable.

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     (vii) Except as provided herein, the Series A Preferred Partnership Units shall not be
entitled to participate in the earnings or assets of the Partnership.

     As used herein, the term “distribution” does not include distributions payable solely in units
of Junior Units on Junior Units, or in options, warrants or rights to holders of Junior Units to
subscribe for or purchase any Junior Units.

D. Liquidation Preference.

     (i) In the event of any liquidation, dissolution or winding up of the Partnership, whether
voluntary or involuntary, before any payment or distribution of the assets of the Partnership shall
be made to or set apart for the holders of Junior Units, the holders of the Series A Preferred
Partnership Units shall be entitled to receive $25 per Series A Preferred Partnership Unit (the
“Liquidation Preference”) plus an amount per Series A Preferred Partnership Unit equal to all
distributions (whether or not declared) accumulated and unpaid thereon to, but not including, the
date of final distribution to such holders; but such holders of the Series A Preferred Partnership
Units shall not be entitled to any further payment. If, upon any such liquidation, dissolution or
winding up of the Partnership, the assets of the Partnership, or proceeds thereof, distributable
among the holders of the Series A Preferred Partnership Units shall be insufficient to pay in full
the preferential amount aforesaid and liquidating payments on any other Parity Units, then such
assets, or the proceeds thereof, shall be distributed among the holders of such Series A Preferred
Partnership Units and any such other Parity Units ratably in accordance with the respective amounts
that would be payable on such Series A Preferred Partnership Units and any such other Parity Units
if all amounts payable thereon were paid in full. For the purposes of this Section D, none
of (i) a consolidation or merger of the Partnership with one or more entities, (ii) a statutory
Partnership Unit exchange or (iii) a sale or transfer of all or substantially all of the
Partnership’s assets shall be deemed to be a liquidation, dissolution or winding up, voluntary or
involuntary, of the Partnership.

     (ii) Upon any liquidation, dissolution or winding up of the Partnership, after payment shall
have been made in full to the holders of the Series A Preferred Partnership Units, as provided in
this Section D, the holders of the Series A Preferred Partnership Units shall not be
entitled to share in any remaining assets of the Partnership.

E. Redemption. In connection with the redemption by the Company of any Series A Preferred
Share in accordance with the provisions of the Series A Articles Supplementary, the Partnership
shall redeem a Series A Preferred Partnership Unit by making a payment to the Company for such
purpose which shall be equal to the redemption price (as set forth in the Series A Articles
Supplementary), plus all and any accumulated and unpaid dividends on the Series A Preferred Shares
(whether or not declared), to, but not including, the redemption date. From and after the
applicable redemption date, the Series A Preferred Partnership Units so redeemed shall no longer be
outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series A
Preferred Partnership Units shall cease

F. Voting Rights. Except as required by applicable law or the Partnership Agreement, the
holder of the Series A Preferred Partnership Units, as such, shall have no voting rights.

G. Conversion. The Series A Preferred Partnership Units are not convertible into or
exchangeable for any other property or securities of the Corporation, except as provided herein.

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     (i) In the event of a conversion of any Series A Preferred Shares into REIT Shares in
accordance with the Series A Articles Supplementary, upon conversion of such Series A Preferred
Shares, the Partnership shall convert an equal whole number of the Series A Preferred Partnership
Units into Common Partnership Units as such Series A Preferred Shares are converted into REIT
Shares. In the event the conversion of any Series A Preferred Shares into consideration other than
REIT Shares in accordance with the Series A Articles Supplementary, the Partnership shall retire a
number of Series A Preferred Units equal to the number of Series A Preferred Shares converted into
such other form of consideration. In the event of a conversion of the Series A Preferred Shares
into REIT Shares, to the extent the Company is required to pay cash in lieu of fractional REIT
Shares pursuant to the Series A Articles Supplementary in connection with such conversion, the
Partnership shall distribute an equal amount of cash to the Company.

     (ii) Following any such conversion retirement by the Partnership pursuant to this Section
G, the General Partner shall make such revisions to the Partnership Agreement as it determines
are necessary to reflect such conversion.

H. Allocations. Allocations of the Partnership’s items of income, gain, loss and deduction
shall be allocated among holders of Series A Preferred Partnership Units in accordance with Article
V of the Partnership Agreement and Exhibit B to the Partnership Agreement.

I. Conversion Factor. For all purposes under the Partnership Agreement, “CONVERSION FACTOR”
with respect to the Series A Preferred Units means 1.0, provided that in the event that the General
Partner (i) declares or pays a dividend on its outstanding Series A Preferred Shares
in Series A Preferred Shares or makes a distribution to all holders of its outstanding Series A
Preferred Shares in Series A Preferred Shares, (ii) subdivides its outstanding Series A Preferred
Shares or (iii) combines its outstanding Series A Preferred Shares into a smaller number of Series
A Preferred Shares, the Conversion Factor for the Series A Preferred Units shall be adjusted by
multiplying the Conversion Factor by a fraction, the numerator of which shall be the number of
Series A Preferred Shares issued and outstanding on the record date for such dividend,
distribution, subdivision or combination (assuming for such purposes that such dividend,
distribution, subdivision or combination has occurred as of such time), and the denominator of
which shall be the actual number of Series A Preferred Shares (determined without the above
assumption) issued and outstanding on such date and, provided further, that in the event that an
entity other than an Affiliate of the Company shall become General Partner pursuant to any merger,
consolidation or combination of the Company with or into another entity (the “Successor Entity”),
the Conversion Factor shall be adjusted by multiplying the Conversion Factor by the number of
shares of the Successor Entity into which one Series A Preferred Share is converted pursuant to
such merger, consolidation or combination, determined as of the date of such merger, consolidation
or combination. Any adjustment to the Conversion Factor shall become effective immediately after
the effective date of such event retroactive to the record date, if any, for such event.

* * *

11exv10w1

Exhibit 10.1

VOTING AGREEMENT

     This Voting Agreement (“Agreement”) is entered into as of January 18, 2011, by
and between Ray Holding Corporation, a Delaware corporation (“Parent”), and
_____________ (“Stockholder”).

Recitals

     A. Stockholder is a holder of record and the “beneficial owner” (within the meaning of Rule
13d-3 under the Securities Exchange Act of 1934) of certain shares of common stock of Rae Systems,
Inc., a Delaware corporation (the “Company”).

     B. Parent, Ray Merger Sub Corporation, a Delaware corporation and a wholly owned subsidiary of
Parent (“Merger Sub”), and the Company are entering into an Agreement and Plan of Merger of even
date herewith (as it may be amended from time to time, the “Merger Agreement”) which provides
(subject to the conditions set forth therein) for the merger of Merger Sub into the Company (the
“Merger”). Capitalized terms used herein, unless otherwise defined herein, shall have the meanings
ascribed to them in the Merger Agreement.

     C. In the Merger, the outstanding shares of common stock of the Company (other than the
Rollover Shares) are to be converted into the right to receive the Merger Consideration.

     D. In order to induce Parent to enter into the Merger Agreement, Stockholder is entering into
this Agreement.

Agreement

     The parties to this Agreement, intending to be legally bound, agree as follows:

SECTION 1. Certain Definitions. For purposes of this Agreement:

     1.1 “Company Common Stock” shall mean the common stock, par value $0.001 per share, of the
Company.

     1.2 Stockholder shall be deemed to “Own” or to have acquired “Ownership” of a security if
Stockholder: (a) is the record owner of such security; or (b) is the “beneficial owner” (within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934) of such security.

     1.3 “Person” shall mean any (a) individual, (b) corporation, limited liability company,
partnership or other entity, or (c) governmental authority.

     1.4 “Rollover Agreement” shall mean that certain Rollover Agreement dated as of the date
hereof between the Stockholder and Parent.

     1.5 “Subject Securities” shall mean: (a) all securities of the Company (including all shares
of Company Common Stock and all options, warrants and other rights to acquire shares of Company
Common Stock) Owned by Stockholder as of the date of this Agreement; and (b) all

1.

 

additional securities of the Company (including all additional shares of Company Common Stock
and all additional options, warrants and other rights to acquire shares of Company Common Stock) of
which Stockholder acquires Ownership during the period from the date of this Agreement through the
Voting Covenant Expiration Date.

     1.6 A Person shall be deemed to have effected a “Transfer” of a security if such Person
directly or indirectly: (a) sells, pledges, encumbers, grants an option with respect to, transfers
or disposes of such security or any interest in such security to any Person other than Parent; (b)
enters into an agreement or commitment for the sale of, pledge of, encumbrance of, grant of an
option with respect to, transfer of or disposition of such security or any interest therein to any
Person other than Parent; (c) enters into a swap or similar transaction that transfers the
economic consequences of ownership of such security; or (d) reduces such Person’s beneficial
ownership of, interest in or risk relating to such security.

     1.7 “Voting Covenant Expiration Date” shall mean the earlier to occur of an amendment to the
Merger Agreement providing for a decrease in the Merger Consideration, the date upon which the
Merger Agreement is validly terminated, or the date upon which the Merger is consummated.

SECTION 2. Transfer of Subject Securities and Voting Rights

     2.1 Restriction on Transfer of Subject Securities. Subject to Section 2.3, Stockholder shall
not, directly or indirectly, cause or permit any Transfer of any of the Subject Securities to be
effected.

     2.2 Restriction on Transfer of Voting Rights. Stockholder shall ensure that: (a) none of
the Subject Securities is deposited into a voting trust; and (b) no proxy is granted, and no voting
agreement or similar agreement is entered into, with respect to any of the Subject Securities.

     2.3 Permitted Transfers. Section 2.1 shall not prohibit a transfer of Company Common Stock by
Stockholder (a) to any member of his or her immediate family, or to a trust for the benefit of
Stockholder or any member of his or her immediate family, (b) upon the death of Stockholder, (c) if
Stockholder is a partnership or limited liability company, to one or more partners or members of
Stockholder or to an affiliated corporation under common control with Stockholder, or (d) the
consummation by Stockholder of the Rollover (as defined in the Rollover Agreement) pursuant to, and
in accordance with, Section 1(a) of the Rollover Agreement; provided, however, that a transfer
referred to clauses (a) through (c) of this sentence shall be permitted only if, as a precondition
to such transfer, the transferee agrees in a writing, reasonably satisfactory in form and substance
to Parent, to be bound by the terms of this Agreement. Furthermore, nothing herein will be deemed
to restrict the ability of Stockholder to exercise any Company Options held by the Stockholder.

SECTION 3. Voting of Shares

     3.1 Voting Covenant. Stockholder hereby agrees that, at any meeting of the stockholders of
the Company, however called, and in any written action by consent of

2.

 

stockholders of the Company, unless otherwise directed in writing by Parent, Stockholder shall
cause the Subject Securities to be voted:

     (a) in favor of the Merger, the execution and delivery by the Company of the Merger
Agreement and the adoption and approval of the Merger Agreement and the terms thereof; and

     (b) against any Acquisition Proposal; and

     (c) against any other action which would reasonably be expected to impede, interfere
with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement.

Stockholder shall not enter into any agreement or understanding with any Person to vote or give
instructions in any manner inconsistent with clause “(a)”, “(b)”, or “(c)” of the preceding
sentence.

     3.2 Proxy; Further Assurances.

     (a) Contemporaneously with the execution of this Agreement: (i) Stockholder shall
deliver to Parent a proxy in the form attached to this Agreement as Exhibit A,
which shall be irrevocable to the fullest extent permitted by law (at all times prior to the
Voting Covenant Expiration Date) with respect to the shares referred to therein (the
“Proxy”); and (ii) Stockholder shall cause to be delivered to Parent an additional proxy (in
the form attached hereto as Exhibit A) executed on behalf of the record owner of
any outstanding shares of Company Common Stock that are owned beneficially (within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934), but not of record, by
Stockholder.

     (b) Stockholder shall, at his, her or its own expense, perform such further acts and
execute such further proxies and other documents and instruments as may reasonably be
required to vest in Parent the power to carry out and give effect to the provisions of this
Agreement.

SECTION 4. Waiver of Appraisal Rights

     Stockholder hereby irrevocably and unconditionally waives, and agrees to cause to be waived
and to prevent the exercise of, any rights of appraisal, any dissenters’ rights and any similar
rights relating to the Merger or any related transaction that Stockholder or any other Person may
have by virtue of any outstanding shares of Company Common Stock Owned by Stockholder.

SECTION 5. Representations and Warranties of Stockholder

     Stockholder hereby represents and warrants to Parent as follows:

     5.1 Authorization, etc. Stockholder has the absolute and unrestricted right, power, authority
and capacity to execute and deliver this Agreement and the Proxy and to perform his,

3.

 

her or its obligations hereunder and thereunder. This Agreement and the Proxy have been duly
executed and delivered by Stockholder and constitute legal, valid and binding obligations of
Stockholder, enforceable against Stockholder in accordance with their terms, subject to (a) laws of
general application relating to bankruptcy, insolvency and the relief of debtors, and (b) rules of
law governing specific performance, injunctive relief and other equitable remedies. If Stockholder
is a general or limited partnership, then Stockholder is a partnership duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it was organized. If
Stockholder is a limited liability company, then Stockholder is a limited liability company duly
organized, validly existing and in good standing under the laws of the jurisdiction in which it was
organized.

     5.2 No Conflicts or Consents.

     (a) The execution and delivery of this Agreement and the Proxy by Stockholder do not,
and the performance of this Agreement and the Proxy by Stockholder will not: (i) conflict
with or violate any law, rule, regulation, order, decree or judgment applicable to
Stockholder or by which he, she or it or any of his, her or its properties is or may be
bound or affected; or (ii) result in or constitute (with or without notice or lapse of time)
any breach of or default under, or give to any other Person (with or without notice or lapse
of time) any right of termination, amendment, acceleration or cancellation of, or result
(with or without notice or lapse of time) in the creation of any encumbrance or restriction
on any of the Subject Securities pursuant to, any contract to which Stockholder is a party
or by which Stockholder or any of his, her or its affiliates or properties is or may be
bound or affected, except, in the case of each of (i) and (ii) above, for such conflicts,
violations, breaches, defaults, terminations, amendments, accelerations, cancellations or
encumbrances or restrictions which would not, individually or in the aggregate, adversely
affect the ability of the Stockholder to fully perform its covenants and obligations under
this Agreement and the Proxy.

     (b) The execution and delivery of this Agreement and the Proxy by Stockholder do not,
and the performance of this Agreement and the Proxy by Stockholder will not, require any
consent or approval of any Person.

     5.3 Title to Securities. As of the date of this Agreement, Stockholder: (a) holds of record
(free and clear of any encumbrances or restrictions) the number of outstanding shares of Company
Common Stock set forth under the heading “Shares Held of Record” on the signature page hereof; (b)
holds (free and clear of any encumbrances or restrictions) the options, warrants and other rights
to acquire shares of Company Common Stock set forth under the heading “Options and Other Rights” on
the signature page hereof; (c) Owns the additional securities of the Company set forth under the
heading “Additional Securities Beneficially Owned” on the signature page hereof; and (d) does not
directly or indirectly Own any shares of capital stock or other securities of the Company, or any
option, warrant or other right to acquire (by purchase, conversion or otherwise) any shares of
capital stock or other securities of the Company, other than the shares and options, warrants and
other rights set forth on the signature page hereof.

     5.4 Accuracy of Representations. The representations and warranties contained in this
Agreement are accurate in all respects as of the date of this Agreement, and, with the

4.

 

exception of the representations and warranties given in Section 5.3 hereof which are given
only as of the date hereof, will be accurate in all respects at all times through the Voting
Covenant Expiration Date (except with respect to the exercise of Company Options between the date
hereof and the Voting Covenant Expiration Date).

SECTION 6. Additional Covenants of Stockholder

     6.1 Further Assurances. From time to time and without additional consideration, Stockholder
shall (at Stockholder’s sole expense) execute and deliver, or cause to be executed and delivered,
such additional transfers, assignments, endorsements, proxies, consents and other instruments, and
shall (at Stockholder’s sole expense) take such further actions, as Parent may request for the
purpose of carrying out and furthering the intent of this Agreement.

     6.2 Legends. If requested by Parent, immediately after the execution of this Agreement (and
from time to time upon the acquisition by Stockholder of Ownership of any shares of Company Common
Stock prior to the Voting Covenant Expiration Date), Stockholder shall cause each certificate
evidencing any outstanding shares of Company Common Stock or other securities of the Company Owned
by Stockholder to be surrendered so that the transfer agent for such securities may affix thereto a
legend in the following form:

THE SECURITY OR SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, EXCHANGED OR
OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF A
VOTING AGREEMENT DATED AS OF JANUARY 18, 2011, AS IT MAY BE AMENDED, A COPY OF WHICH IS ON
FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER.

SECTION 7. Termination 

     The obligations of Stockholder under this Agreement shall terminate on the Voting Covenant
Expiration Date.

SECTION 8. Miscellaneous

     8.1 Survival of Representations, Warranties and Agreements. All representations, warranties,
covenants and agreements made by Stockholder in this Agreement shall terminate on the Voting
Covenant Expiration Date.

     8.2 Expenses. All costs and expenses incurred in connection with the transactions
contemplated by this Agreement shall be paid by the party incurring such costs and expenses.

     8.3 Notices. Any notice or other communication required or permitted to be delivered to
either party under this Agreement shall be in writing and shall be deemed properly delivered, given
and received when delivered (by hand, by registered mail, by courier or express delivery service or
by facsimile) to the address or facsimile telephone number set forth beneath the name of such party
below (or to such other address or facsimile telephone number as such party shall have specified in
a written notice given to the other party):

5.

 

          if to Stockholder:

at the address set forth on the signature page hereof; and

          if to Parent:

Ray Holding Corporation

c/o Vector Capital Corporation

One Market Street

Steuart Tower, 23rd Floor

San Francisco, CA 94105

Attention: Chief Operating Officer

Facsimile: (415) 293-5100

          with a copy (which shall not constitute notice) to:

Shearman & Sterling LLP

525 Market Street, Suite 1500

San Francisco, CA 94105

Attention: Steve L. Camahort

Facsimile: (415) 616-1199

     8.4 Severability. Any term or provision of this Agreement that is invalid or unenforceable in
any situation in any jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties
hereto agree that the court making such determination shall have the power to limit the term or
provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or
provision with a term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified. In the event such court does not exercise the power granted
to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term
or provision with a valid and enforceable term or provision that will achieve, to the extent
possible, the economic, business and other purposes of such invalid or unenforceable term.

     8.5 Entire Agreement. This Agreement, the Proxy and any other documents delivered by the
parties in connection herewith constitute the entire agreement between the parties with respect to
the subject matter hereof and thereof and supersede all prior agreements and understandings between
the parties with respect thereto. No addition to or modification of any provision of this
Agreement shall be binding upon either party unless made in writing and signed by both parties.

     8.6 Confidentiality. Stockholder shall hold any information regarding this Agreement and the
Merger in strict confidence and shall not divulge any such information to any third person until
the Parent has publicly disclosed the Merger and this Agreement. Neither the Stockholder, nor any
of its affiliates shall issue or cause the publication of any press release or

6.

 

other public announcement with respect to this Agreement, the Merger, the Merger Agreement or
the other transactions contemplated thereby without the prior written consent of the Parent, except
as may be required by law or by any listing agreement with, or the policies of, The New York Stock
Exchange Amex in which circumstance such announcing party shall make reasonable efforts to consult
with the Parent to the extent practicable.

     8.7 Assignment; Binding Effect. Except as provided herein, neither this Agreement nor any of
the interests or obligations hereunder may be assigned or delegated by Stockholder, and any
attempted or purported assignment or delegation of any of such interests or obligations shall be
void. Subject to the preceding sentence, this Agreement shall be binding upon Stockholder and his
or her heirs, estate, executors and personal representatives and his, her or its successors and
assigns, and shall inure to the benefit of Parent and its successors and assigns. Without limiting
any of the restrictions set forth in Section 2 or Section 6.1 or elsewhere in this Agreement, this
Agreement shall be binding upon any Person to whom any Subject Securities are transferred. Nothing
in this Agreement is intended to confer on any Person (other than Parent and its successors and
assigns) any rights or remedies of any nature.

     8.8 Indemnification. Stockholder shall hold harmless and indemnify Parent and Parent’s
affiliates from and against, and shall compensate and reimburse Parent and Parent’s affiliates for,
any loss, damage, claim, liability, fee (including attorneys’ fees), demand, cost or expense
(regardless of whether or not such loss, damage, claim, liability, fee, demand, cost or expense
relates to a third-party claim) that is directly or indirectly suffered or incurred by Parent or
any of Parent’s affiliates, or to which Parent or any of Parent’s affiliates otherwise becomes
subject, and that arises directly or indirectly from, or relates directly or indirectly to, (a) any
inaccuracy in or breach of any representation or warranty contained in this Agreement, or (b) any
failure on the part of Stockholder to observe, perform or abide by, or any other breach of, any
restriction, covenant, obligation or other provision contained in this Agreement or in the Proxy.

     8.9 Specific Performance. The parties agree that irreparable damage would occur in the event
that any of the provisions of this Agreement or the Proxy were not performed in accordance with
their specific terms or were otherwise breached. Stockholder agrees that, in the event of any
breach or threatened breach by Stockholder of any covenant or obligation contained in this
Agreement or in the Proxy, Parent shall be entitled (in addition to any other remedy that may be
available to it, including monetary damages) to seek and obtain (a) a decree or order of specific
performance to enforce the observance and performance of such covenant or obligation, and (b) an
injunction restraining such breach or threatened breach. Stockholder further agrees that neither
Parent nor any other Person shall be required to obtain, furnish or post any bond or similar
instrument in connection with or as a condition to obtaining any remedy referred to in this Section
8.9, and Stockholder irrevocably waives any right he, she or it may have to require the obtaining,
furnishing or posting of any such bond or similar instrument.

     8.10 Non-Exclusivity. The rights and remedies of Parent under this Agreement are not
exclusive of or limited by any other rights or remedies which it may have, whether at law, in
equity, by contract or otherwise, all of which shall be cumulative (and not alternative). Without
limiting the generality of the foregoing, the rights and remedies of Parent under this Agreement,
and the obligations and liabilities of Stockholder under this Agreement, are in addition to their

7.

 

respective rights, remedies, obligations and liabilities under common law requirements and
under all applicable statutes, rules and regulations.

     8.11 Governing Law; Venue.

     (a) This Agreement and the Proxy shall be construed in accordance with, and governed in
all respects by, the laws of the State of Delaware (without giving effect to principles of
conflicts of laws).

     (b) Any legal action or other legal proceeding relating to this Agreement or the Proxy
or the enforcement of any provision of this Agreement or the Proxy may be brought or
otherwise commenced in any state or federal court located in the State of Delaware.
Stockholder:

     (i) expressly and irrevocably consents and submits to the jurisdiction of each
state and federal court located in the State of Delaware in connection with any such
legal proceeding;

     (ii) agrees that service of any process, summons, notice or document by U.S.
mail addressed to him, her or it at the address set forth on the signature page
hereof shall constitute effective service of such process, summons, notice or
document for purposes of any such legal proceeding;

     (iii) agrees that each state and federal court located in the State of Delaware
shall be deemed to be a convenient forum; and

     (iv) agrees not to assert (by way of motion, as a defense or otherwise), in any
such legal proceeding commenced in any state or federal court located in the State
of Delaware, any claim that Stockholder is not subject personally to the
jurisdiction of such court, that such legal proceeding has been brought in an
inconvenient forum, that the venue of such proceeding is improper or that this
Agreement or the subject matter of this Agreement may not be enforced in or by such
court.

Nothing contained in this Section 8.11 shall be deemed to limit or otherwise affect the
right of Parent to commence any legal proceeding or otherwise proceed against Stockholder in
any other forum or jurisdiction.

     (c) STOCKHOLDER IRREVOCABLY WAIVES THE RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY
LEGAL PROCEEDING RELATING TO THIS AGREEMENT OR THE PROXY OR THE ENFORCEMENT OF ANY PROVISION
OF THIS AGREEMENT OR THE PROXY.

     8.12 Counterparts. This Agreement may be executed in separate counterparts, each of which
when so executed and delivered shall be an original, but all such counterparts shall together
constitute one and the same instrument.

8.

 

     8.13 Captions. The captions contained in this Agreement are for convenience of reference
only, shall not be deemed to be a part of this Agreement and shall not be referred to in connection
with the construction or interpretation of this Agreement.

     8.14 Attorneys’ Fees. If any legal action or other legal proceeding relating to this
Agreement or the enforcement of any provision of this Agreement is brought against Stockholder, the
prevailing party shall be entitled to recover reasonable attorneys’ fees, costs and disbursements
(in addition to any other relief to which the prevailing party may be entitled).

     8.15 Waiver. No failure on the part of Parent to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of Parent in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege
or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.
Parent shall not be deemed to have waived any claim available to Parent arising out of this
Agreement, or any power, right, privilege or remedy of Parent under this Agreement, unless the
waiver of such claim, power, right, privilege or remedy is expressly set forth in a written
instrument duly executed and delivered on behalf of Parent; and any such waiver shall not be
applicable or have any effect except in the specific instance in which it is given.

     8.16 Fiduciary Duties. Notwithstanding anything in this Agreement to the contrary: (a)
Stockholder makes no agreement or understanding herein in any capacity other than in Stockholder’s
capacity as a record holder and beneficial owner of the Subject Securities, and not in such
Stockholder’s capacity as a director, officer or employee of the Company or any of the Company’s
Subsidiaries or in such Stockholder’s capacity as a trustee or fiduciary of any Company Benefit
Plan, and (b) nothing herein will be construed to limit or affect any action or inaction by
Stockholder or any representative of Stockholder, as applicable, serving on the Board of Directors
or on the board of directors of any Subsidiary of the Company or as an officer or fiduciary of the
Company or any Subsidiary of the Company, acting in such person’s capacity as a director, officer,
employee or fiduciary of the Company or any Subsidiary of the Company.

     8.17 Construction.

     (a) For purposes of this Agreement, whenever the context requires: the singular number
shall include the plural, and vice versa; the masculine gender shall include the feminine
and neuter genders; the feminine gender shall include the masculine and neuter genders; and
the neuter gender shall include masculine and feminine genders.

     (b) The parties agree that any rule of construction to the effect that ambiguities are
to be resolved against the drafting party shall not be applied in the construction or
interpretation of this Agreement.

     (c) As used in this Agreement, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be
followed by the words “without limitation.”

9.

 

     (d) Except as otherwise indicated, all references in this Agreement to “Sections” and
“Exhibits” are intended to refer to Sections of this Agreement and Exhibits to this
Agreement.

10.

 

     In Witness Whereof, Parent and Stockholder have caused this Agreement to be executed
as of the date first written above.

	 	 	 	 	 
	 	Ray Holding Corporation

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 

 

 

     In Witness Whereof, Parent and Stockholder have caused this Agreement to be executed
as of the date first written above.

	 	 	 	 	 
	 	Stockholder

 	 
	 	
 	 
	 	Address: 	 
	 	Facsimile: 	 
	 

 

 

	 	 	 	 	 
	 	 	 	 	Additional
	 	 	 	 	Securities
	Shares Held Of Record	 	Options And Other Rights	 	Beneficially Owned

 

 

Exhibit A

Form Of Irrevocable Proxy

     The undersigned stockholder (the “Stockholder”) of Rae Systems, Inc., a Delaware
corporation (the “Company”), hereby irrevocably (to the fullest extent permitted by law) appoints
and constitutes Vector Capital IV, L.P., Vector Capital III, L.P. and Ray Holding
Corporation, a Delaware corporation (“Parent”), and each of them, the attorneys and proxies of
the Stockholder with full power of substitution and resubstitution, to the full extent of the
Stockholder’s rights with respect to (i) the outstanding shares of capital stock of the Company
owned of record by the Stockholder as of the date of this proxy, which shares are specified on the
final page of this proxy, and (ii) any and all other shares of capital stock of the Company which
the Stockholder may acquire on or after the date hereof. (The shares of the capital stock of the
Company referred to in clauses “(i)” and “(ii)” of the immediately preceding sentence are
collectively referred to as the “Shares.”) Upon the execution hereof, all prior proxies given by
the Stockholder with respect to any of the Shares are hereby revoked, and the Stockholder agrees
that no subsequent proxies will be given with respect to any of the Shares.

     This proxy is irrevocable, is coupled with an interest and is granted in connection with the
Voting Agreement, dated as of the date hereof, between Parent and the Stockholder (the “Voting
Agreement”), and is granted in consideration of Parent entering into the Agreement and Plan of
Merger, dated as of the date hereof, among Parent, Ray Merger Sub Corporation, a Delaware
corporation and the wholly owned subsidiary of Parent (“Merger Sub”) and the Company (the “Merger
Agreement”). This proxy will terminate on the Voting Covenant Expiration Date (as defined in the
Voting Agreement).

     The attorneys and proxies named above will be empowered, and may exercise this proxy, to vote
the Shares at any time until the Voting Covenant Expiration Date at any meeting of the stockholders
of the Company, however called, and in connection with any written action by consent of
stockholders of the Company:

     (i) in favor of the merger contemplated by the Merger Agreement (the “Merger”), the
execution and delivery by the Company of the Merger Agreement and the adoption and approval
of the Merger Agreement and the terms thereof; and

     (ii) against any Acquisition Proposal; and

     (iii) against any other action which would reasonably be expected to impede, interfere
with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement.

     The Stockholder may vote the Shares on all other matters not referred to in this proxy, and
the attorneys and proxies named above may not exercise this proxy with respect to such other
matters.

     This proxy shall be binding upon the heirs, estate, executors, personal representatives,
successors and assigns of the Stockholder (including any transferee of any of the Shares).

A-1

 

     Any term or provision of this proxy that is invalid or unenforceable in any situation in any
jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in any other situation
or in any other jurisdiction. If the final judgment of a court of competent jurisdiction declares
that any term or provision hereof is invalid or unenforceable, the Stockholder agrees that the
court making such determination shall have the power to limit the term or provision, to delete
specific words or phrases, or to replace any invalid or unenforceable term or provision with a term
or provision that is valid and enforceable and that comes closest to expressing the intention of
the invalid or unenforceable term or provision, and this proxy shall be enforceable as so modified.
In the event such court does not exercise the power granted to it in the prior sentence, the
Stockholder agrees to replace such invalid or unenforceable term or provision with a valid and
enforceable term or provision that will achieve, to the extent possible, the economic, business and
other purposes of such invalid or unenforceable term.

Dated: ____________, 2011

 

Number of shares of common stock of the

Company owned of record as of the date of this

proxy:

 

A-2

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