Document:

Employment Agreement

 Exhibit 10.01 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of August 20, 2004 by and between CyberGuard Corporation, a Florida
corporation (the “Company”), and Gary Taggart (the “Employee”). 
  
 WHEREAS, the Company, through its Board of Directors, desires to retain the services of Employee, and Employee desires to be retained by the Company, on the terms and conditions set forth in this Agreement;

  
 NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1. Employment. The Company hereby employs Employee, and
Employee hereby accepts employment, as Senior Vice President, WorldWide Sales upon the terms of and subject to this Agreement. 
  
 2. Term. The term (the “Term”) of this Agreement shall commence on August 20, 2004, and shall continue until otherwise terminated
in accordance with the terms of this Agreement. 
  
 3.
Duties. During his employment hereunder, Employee will serve in such capacity and with such duties as shall be assigned from time to time by the Chief Executive Officer of the Company. Employee shall diligently perform his duties as
Senior Vice President, WorldWide Sales and shall devote the substantial portion of his business time and effort to his employment with the Company and his duties hereunder. During the Term, Employee shall not, directly or indirectly, alone or as a
member of a partnership, or as an officer, director, employee or agent of any other person, firm or business organization engage in any other business activities or pursuits requiring his personal service that materially conflict with his duties
hereunder or the diligent performance of such duties. 
  
 4.
Compensation. 
  
 a. Salary.
During his employment hereunder, Employee shall be paid a salary of $165,000 per year, payable in equal installments not less than monthly (“Base Salary”). The Employee’s Base Salary shall be reviewed at least annually by the Board of
Directors or any Committee of the Board delegated the authority to review executive compensation. 
  
 b. Option and Bonus. In addition to salary, Employee shall be entitled to participate in the Company’s Stock Option Plan
(“Stock Option Plan”). In addition, Employee shall participate in a bonus program established by the Company with an initial annual targeted bonus of up to $165,000, subject to certain quarterly targets being met, as specified in a
separate document (hereafter the “Management Bonus Program”). 
  
 c. Insurance. During his employment hereunder, Employee shall be entitled to participate in all such health, life, disability and other insurance programs, if any, that the Company may offer to other key
executive employees of the Company from time to time. 
  
 d. Other Benefits. During his employment hereunder, Employee shall be entitled to all such other benefits, if any, that the Company may offer to other key executive employees of the Company from time to time. 
  

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 e. Vacation. Employee shall be entitled to three weeks’ vacation (in addition
to holidays) and 5 sick days in each calendar year during the Term; however, Employee may take only two weeks’ vacation within any calendar month. Except with respect to vacation time unused as the result of a request by the Company to postpone
the vacation, any unused vacation time from one calendar year shall not carry-over to any subsequent calendar year. 
  
 f. Expense Reimbursement. Employee shall, upon submission of appropriate supporting documentation, be entitled to reimbursement of
reasonable out-of-pocket expenses incurred in the performance of his duties hereunder in accordance with policies established by the Company. Such expenses shall include, without limitation, reasonable entertainment expenses, gasoline and toll
expenses and cellular phone use charges, if such charges are directly related to the business of the Company. 
  
 5. Grounds for Termination. The Board of Directors of the Company may terminate this Agreement for Cause. As used herein, “Cause”
shall mean any of the following: (i) an act of willful misconduct or gross negligence by Employee in the performance of his material duties or obligations to the Company; if such act is capable of cure, Employee shall be given written notice and
such act shall not be deemed a basis for Cause if cured within 60 days after written notice is received by Employee specifying the alleged failure in reasonable detail (and during such 60 day period, Employee shall continue to be employed by the
Company at full pay), or (ii) conviction of Employee of a felony involving moral turpitude or (iii) a material act of dishonesty or breach of trust on the part of Employee resulting or intended to result directly or indirectly in personal gain or
enrichment at the expense of the Company. 
  
 6. Termination
by Employee. Employee may terminate this Agreement with Good Reason. In the event of termination by Employee for Good Reason, Employee shall be entitled to the benefits of Paragraph 7b. of this Agreement. “Good Reason” means:

  
 a. The Company materially breaches the
provisions of this Agreement (except those set forth in Paragraph 4a.) and Employee provides at least 15 days’ prior written notice to the Company of the existence of such breach and his intention to terminate this Agreement (no such
termination shall be effective if such breach is cured during such period); or 
  
 b. The Company fails to comply with the provisions of Paragraph 4a. or to pay any amounts due under the Management Bonus Program
provisions of Paragraph 4b. for an uninterrupted 10 day period; or 
  
 c. The Company requires Employee to work in a non-supervisory or non-management position; or 
  
 d. The Company decreases Employee’s compensation (salary or percentage of bonus opportunity); or 
  
 e. The Company materially reduces Employee’s welfare
benefits, including without limitation: paid vacation; paid sick time; paid legal and float holidays; medical, dental and cancer insurance, hospital indemnity, Flexible Spending, Short- and Long-term Disability insurance, Basic Group Term
Life/Accidental Death & Dismemberment insurance, Supplemental Life/AD&D insurance, Spouse Life/Spouse AD&D insurance, Dependent Life insurance, Vision Plan, 401k plan, Employee Assistance Program; education reimbursement program
(collectively, the “Benefits”); provided, however, that any change in Benefits that is made by the Company that applies to its employees generally, shall not be considered as giving rise to “Good Reason”; or 
  

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 f. The Employee is required, without his prior written consent, to relocate his office
more than fifty miles from the office Employee currently reports to. 
  
 7. Payment and Other Provisions Upon Termination. 
  
 a. In the event Employee’s employment with the Company (including its subsidiaries) is terminated by the Company for Cause as provided in Paragraph 5 then, on or before Employee’s last day of employment with
the Company, the provisions of this Paragraph 7a. shall apply. These same provisions shall apply if Employee terminates his employment without Good Reason as described in Paragraph 6. 
  
 i. Salary, Performance Award, and Bonus Payments. The Company shall pay in a lump sum to Employee at
the time of Employee’s termination such amount of compensation due Employee for services rendered to the Company, as well as compensation for unused vacation time and earned bonus, as has accrued but remains unpaid. Any and all other rights
granted to Employee under this Agreement shall terminate as of the date of termination. 
  
 ii. Non-competition/Non-solicitation Period. The provisions of Paragraphs 14 and 15 shall, at the option of the Company in its sole
discretion, continue to apply with respect to Employee for a period of up to six months following the date of termination, so long as the Company: (x) provides a written notice to Employee within 5 business days after Employee’s termination
that the Company wishes to exercise its right to require that Employee not compete and not solicit in accordance with Paragraphs 14 and 15 hereof; and (y) Company thereafter pays to Employee in periodic installments, without interest, in accordance
with the regular salary payment practices of the Company an amount equal to (.1) the amount of Employee’s annual Base Salary as in effect immediately prior to Employee’s date of termination, multiplied by (.2) the number of months that the
Company is requiring the non-competition and non-solicitation covenants to remain in place, divided by 12. The first such installment of Base Salary and target bonus shall be paid on or before the delivery of the notice described in the prior
sentence of this Paragraph 7a(ii). The non-competition and non-solicitation provisions of this Agreement shall no longer apply to Employee if the Company fails to pay the amounts required under this Section 7a(ii) for an uninterrupted 10-day period
and such failure is not cured with 5 days after written notice of such failure is delivered to the Company. 
  
 b. In the event Employee’s employment with the Company (including its subsidiaries) is terminated by the Company for any reason other
than for Cause as provided in Paragraph 5 and other than as a consequence of Employee’s death, disability, or normal retirement under the Company’s retirement plans and practices, then the following provisions apply. These same provisions
shall apply if Employee terminates his employment with Good Reason as described in Paragraph 6. In addition to the amounts stated below, Employee shall be paid any other amounts by the Company to which he is entitled. 
  
 i. Salary, Performance Award, and Bonus Payments. On
or before Employee’s last day of employment with the Company, the Company shall pay in a lump sum to Employee as compensation for services rendered to the Company a cash amount equal to one-half the amount of Employee’s annual Base Salary
and the greater of (x) one-half the target bonus under the Management Bonus Program as in effect immediately prior to his date of termination or (y) the amount of the bonus under the Management Bonus Program to which he is entitled but which remains
unpaid. At the election of the Company, the cash amount referred to in this Paragraph 7b.i. may be paid to Employee in periodic installments, 
  

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 without interest, in accordance with the regular salary payment practices of the Company, with the first
such installment to be paid on or before Employee’s last day of employment with the Company, and no interest shall be paid with respect to any amount not paid on the Employee’s date of termination. 
  
 ii. Vesting of Options and Rights. Notwithstanding
the vesting period provided for in the Stock Option Plan and any related stock option agreements between the Company and Employee for stock options (“options”) and stock appreciation rights (“rights”) granted Employee by the
Company, all options and stock appreciation rights that were exercisable at the date of termination or within 12 months thereafter shall be immediately exercisable upon termination of employment. In addition, Employee will have the right to exercise
all such options and rights for the shorter of (a) six months following his termination of employment or (b) with respect to each option, the remainder of the period of exercisability under the terms of the appropriate documents that grant such
options. 
  
 iii. Benefit Plan Coverage.
The Company shall maintain in full force and effect for Employee and his dependents for six months after the date of termination, all life, health, accident, and disability benefit plans and other similar employee benefit plans, programs and
arrangements in which Employee or his dependents were entitled to participate immediately prior to the date of termination, in such amounts as were in effect immediately prior to the date of termination, provided that such continued participation is
possible under the general terms and provisions of such benefit plans, programs and arrangements. 
  
 In the event that participation in any benefit plan, program or arrangement described above is barred, or any such benefit plan, program or arrangement is
discontinued or the benefits thereunder materially reduced, the Company shall arrange to provide Employee and his dependents for six months after the date of termination with benefits substantially similar to those that they were entitled to receive
under such benefit plans, programs and arrangements immediately prior to the date of termination. Notwithstanding any time period for continued benefits stated in this Paragraph 7b.iii., all benefits in this Paragraph 7b.iii. will terminate on the
date that Employee becomes an employee of another employer and eligible to participate in the employee benefit plans of such other employer. To the extent that Employee was required to contribute amounts for the benefits described in this Paragraph
7b.iii. prior to his termination, he shall continue to contribute such amounts for such time as these benefits continue in effect after termination. 
  
 iv. Other Compensation. Any awards previously made to Employee under any of the Company’s compensation plans or programs and
not previously paid shall immediately vest on the date of his termination and shall be paid on that date and included as compensation in the year paid. 
  
 v. Savings and Other Plans. Except as otherwise more specifically provided herein or under the terms of the respective plans
relating to termination of employment, Employee’s active participation in any applicable savings, retirement, profit sharing or supplemental employee retirement plans or any deferred compensation or similar plan of the Company or any of its
subsidiaries shall continue only through the last day of his employment. All other provisions, including any distribution and/or vested rights under such plans, shall be governed by the terms of those respective plans. 
  
 vi. Non-competition/Non-solicitation Period. The
provisions of Paragraphs 14 and 15 shall continue, beyond the time periods set forth in such paragraphs, to apply with respect to Employee for six (6) months following the date of termination. The non-competition and non-solicitation provisions of
this Agreement shall no longer apply to Employee if the Company fails to pay the amounts required under the provisions of Paragraph 7b.i. for an uninterrupted 10-day period and such failure is not cured within 5 days after written notice of such
failure is delivered to the Company. 
  

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 c. The provisions of this Paragraph 7 shall apply if Employee’s employment is
terminated prior to or more than one year after the occurrence of a Change of Control (as defined in Paragraph 8c.). From the occurrence of any Change of Control until the first anniversary of such Change of Control, the provisions of Paragraph 8
shall apply in place of this Paragraph 7, except that in the event that Employee’s employment is terminated by Employee after a Change of Control without Good Reason, then the provisions of Paragraph 8 shall not apply and the provisions
of Paragraph 7a. shall apply. Termination upon death, disability and retirement are covered by Paragraphs 9, 10, and 11, respectively. 
  
 8. Payment and Other Provisions after Change of Control.  
  
 a. Salary, Performance Award, and Bonus Payments. In the event Employee’s employment with the
Company is terminated within one year following the occurrence of a Change of Control (other than as a consequence of his death or disability, or of his normal retirement under the Company’s retirement plans and practices) either (i) by the
Company for any reason whatsoever or (ii) by Employee with Good Reason as provided in Paragraph 6, then Employee shall be entitled to receive from the Company, the following: 
  
 i. Base Salary. An amount equal to one-half the Employee’s annual Base Salary as in effect at
the date of termination shall be paid on the date of termination; 
  
 ii. Target Bonus. An amount equal to one-half the Employee’s target bonus under the Management Bonus Program for the fiscal year in which the date of termination occurs shall be paid on the date of
termination; and 
  
 iii. Other Benefits.
All benefits under Paragraphs 7b.i, 7.b.ii., 7b.iii. 7b.iv. and 7b.v. shall be extended to Employee as described in such paragraphs except that all options and rights shall be immediately exercisable and the period for exercise of options and rights
described in the last sentence of Paragraph 7b.ii and benefit plan coverage as described in Paragraph 7.b.iii shall be one half year. 
  
 b. Non-competition/Non-solicitation Period. In the event of a termination under the circumstances described in Paragraph 8a., the
provisions of Paragraphs 14 and 15 shall be without force and effect and shall not apply to Employee. 
  
 c. For purposes of this Agreement, the term “Change of Control” shall mean: 
  
 i. The acquisition, other than from the Company, by any
individual, entity or group (within the meaning of § 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) (any of the foregoing described in this Paragraph hereafter a “Person”) of 30% or more of either (a) the then outstanding shares of Capital Stock of the Company (the “Outstanding Capital Stock”) or (b) the combined
voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Voting Securities”), provided, however, that any acquisition by (x) the Company or any of its
subsidiaries, or any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries or (y) any Person that is eligible, pursuant to Rule 13d-1(b) under the Exchange Act, to file a statement on Schedule 13G
with respect to its beneficial ownership of Voting Securities, whether or not such Person shall have filed a statement on Schedule 13G, unless such Person shall have filed a statement on Schedule 13D with respect to beneficial ownership of 30% or
more of the Voting Securities or (z) any corporation with respect to which, following such acquisition, 
  

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 more than 60% of, respectively, the then outstanding shares of common stock of such corporation and the
combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Capital Stock and Voting Securities immediately prior to such acquisition in substantially the same proportion as their ownership, immediately prior to such acquisition, of
the Outstanding Capital Stock and Voting Securities, as the case may be, shall not constitute a Change of Control; or 
  
 ii. Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board, provided that any individual becoming a director subsequent to the date hereof whose election or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual
or threatened election contest relating to the election of the Directors of the Company (as such terms are used in Rule 14a-11 of Regulation 14A, or any successor section, promulgated under the Exchange Act); or 
  
 iii. Approval by the shareholders of the Company of a
reorganization, merger or consolidation (a “Business Combination”), in each case, with respect to which all or substantially all holders of the Outstanding Capital Stock and Voting Securities immediately prior to such Business Combination
do not, following such Business Combination, beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the corporation resulting from Business Combination; or 
  
 iv. (a) a complete liquidation or dissolution of the Company or (b) a sale or other disposition of all or substantially all of the assets
of the Company other than to a corporation with respect to which, following such sale or disposition, more than 60% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors is then owned beneficially, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Capital Stock
and Voting Securities immediately prior to such sale or disposition in substantially the same proportion as their ownership of the Outstanding Capital Stock and Voting Securities, as the case may be, immediately prior to such sale or disposition.

  
 9. Termination by Reason of Death. If Employee
shall die while employed by the Company both prior to termination of employment and during the effective Term of this Agreement, all Employee’s rights under this Agreement shall terminate with the payment of such amounts of annual Base Salary
as have accrued but remain unpaid and a prorated amount of targeted bonus under the Company’s Management Bonus Program through the month in which his death occurs, plus three additional months of the fixed salary and targeted bonus. All
benefits under 7b.ii., 7b.iv and 7b.v. shall be extended to Employee’s estate as described in such paragraphs. In addition, Employee’s eligible dependents shall receive continued benefit plan coverage under Paragraph 7b.iii. for three
months from the date of Employee’s death. 
  
 10.
Termination by Disability. Employee’s employment hereunder may be terminated by the Company for “disability” (as defined below). In such event, all Employee’s rights under this Agreement shall terminate with the
payment of such amounts of annual Base Salary as have accrued but remain unpaid as of thirtieth (30th) day after such notice is given except that all benefits under Paragraphs 7b.ii, 7b.iii, 7b.iv. and 7b.v. shall be extended to Employee as
described in such paragraphs. In addition, the non-competition and non-solicitation provisions of Paragraphs 14 and 15 shall continue to apply to Employee for a period of one year from the date of termination. 
  

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 For purposes of this Agreement, “disability” is defined to mean that, as a result of Employee’s incapacity
due to physical or mental illness: 
  
 a.
Employee shall have been absent from his duties as an officer of the Company on a substantially full-time basis for six (6) consecutive months; and 
  
 b. Within thirty (30) days after the Company notifies Employee in writing that it intends to replace him, Employee shall not have returned
to the performance of his duties as an officer of the Company on a full-time basis. 
  
 11. Retirement. Retirement by Employee, whether occurring as a result of a voluntary termination by Employee or an involuntary termination as the result of reaching the age retirement as set forth in the
Company’s retirement policies, shall be treated as a voluntary termination without Good Reason and the provisions of Paragraph 7a. shall apply. If during the Term or any extension thereof, the Company adopts a retirement plan with respect to
executive officers of the Company, Employee shall have the right to participate in such policy and the provisions of such policy shall supersede the provisions of the preceding sentence. 
  
 12. Indemnification. If litigation shall be brought, in the event of breach or to enforce or interpret any
provision contained herein, the non-prevailing party shall indemnify the prevailing party for reasonable attorney’s fees (including those for negotiations, trial and appeals) and disbursements incurred by the prevailing party in such
litigation, and hereby agrees to pay prejudgment interest on any money judgment obtained by the prevailing party calculated at the generally prevailing NationsBank of Florida, N.A. base rate of interest charged to its commercial customers in effect
from time to time from the date that payment(s) to him should have been made under this Agreement. 
  
 13. (Omitted Intentionally) 
  
 14. Non-competition. 
  
 a. At all times during Employee’s employment hereunder, and for such additional periods as may otherwise be set forth in this
Agreement in reference to this Paragraph 14, Employee shall not, directly or indirectly, engage in any business, enterprise or employment, whether as owner, operator, shareholder, director, partner, creditor, consultant, agent or any capacity
whatsoever that manufactures products designed to compete directly with products of the Company or markets such products anywhere in the world where the Company (i) is engaged in business or (ii) has evidenced an intention of engaging in business.
Employee acknowledges that he has read the foregoing and agrees that the nature of the geographical restrictions are reasonable given the international nature of the Company’s business. 
  
 In the event that these geographical or temporal restrictions are judicially
determined to be unreasonable, the parties agree that these restrictions shall be judicially reformed to the maximum restrictions which are reasonable. 
  
 b. Notwithstanding the provisions of the preceding Paragraph 14a., Employee may accept employment with a company that would be deemed to
be a competitor of the Company as described in the previous sentence (“Competitor”), so long as (i) the Competitor has had annual revenues of at least $1 billion in each of the prior two fiscal years, (ii) the Competitor’s revenues
for products and maintenance in direct competition with the Company does not exceed 50% of its total revenues and (iii) Employee’s responsibilities are solely for divisions or subsidiaries of the Competitor that do not compete with the Company.

  

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 15. Non-solicitation of Employees and Customers. At all times during Employee’s
employment hereunder, or for such additional periods as may otherwise be set forth in this Agreement in reference to this Paragraph 15, Employee shall not, directly or indirectly, for himself or for any other person, firm, corporation, partnership,
association or other entity (a) attempt to employ, employ or enter into any contractual arrangement with any employee or former employee of the Company, its affiliates, subsidiaries or predecessors in interest, unless such employee or former
employee has not been employed by the Company, its affiliates, subsidiaries or predecessors in interest during the twelve months prior to Employee’s attempt to employ him, or (b) call on or solicit any of the actual or targeted prospective
customers of the Company or its affiliates, subsidiaries or predecessors in interest with respect to any matters related to or competitive with the business of the Company. 
  
 16. Confidentiality. 
  

a. Nondisclosure. Employee acknowledges and agrees that the Confidential Information (as defined below) is a valuable, special
and unique asset of the Company’s business. Accordingly, except in connection with the performance of his duties hereunder, Employee shall not at any time during or subsequent to the term of his employment hereunder disclose, directly or
indirectly, to any person, firm, corporation, partnership, association or other entity any proprietary or confidential information relating to the Company or any information concerning the Company’s financial condition or prospects, the
Company’s customers, the design, development, manufacture, marketing or sale of the Company’s products or the Company’s methods of operating its business (collectively “Confidential Information”). Confidential Information
shall not include information which, at the time of disclosure, is known or available to the general public by publication or otherwise through no act or failure to act on the part of Employee. 
  
 b. Return of Confidential Information. Upon
termination of Employee’s employment, for whatever reason and whether voluntary or involuntary, or at any time at the request of the Company, Employee shall promptly return all Confidential Information in the possession or under the control of
Employee to the Company and shall not retain any copies or other reproductions or extracts thereof. Employee shall at any time at the request of the Company destroy or have destroyed all memoranda, notes, reports, and documents, whether in
“hard copy” form or as stored on magnetic or other media, and all copies and other reproductions and extracts thereof, prepared by Employee and shall provide the Company with a certificate that the foregoing materials have in fact been
returned or destroyed. 
  
 c. Books and
Records. All books, records and accounts whether prepared by Employee or otherwise coming into Employee’s possession, shall be the exclusive property of the Company and shall be returned immediately to the Company upon termination of
Employee’s employment hereunder or upon the Company’s request at any time. 
  
 17. Injunction/Specific Performance Setoff. Employee acknowledges that a breach of any of the provisions of Paragraphs 14, 15 or 16 hereof would result in immediate and irreparable injury to the Company
which cannot be adequately or reasonably compensated at law. Therefore, Employee agrees that the Company shall be entitled, if any such breach shall occur or be threatened or attempted, to a decree of specific performance and to a temporary and
permanent injunction, without the posting of a bond, enjoining and restraining such breach by Employee or his agents, either directly or indirectly, and that such right to injunction shall be cumulative to whatever other remedies for actual damages
to which the Company is entitled. Employee further agrees that the Company may set off against or recoup from any amounts due under this Agreement to the extent of any losses incurred by the Company as a result of any breach by Employee of the
provisions of Paragraphs 14, 15 or 16 hereof. 
  

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 18. Severability. Any provision in this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 19. Successors. This Agreement shall be binding upon Employee and inure to his and his estate’s benefit, and shall be binding upon and
inure to the benefit of the Company and any permitted successor of the Company. Neither this Agreement nor any rights arising hereunder may be assigned or pledged by: Employee or anyone claiming through Employee; or by the Company, except to any
corporation which is the successor in interest to the Company by reason of a merger, consolidation or sale of substantially all of the assets of the Company. 
  
 The foregoing sentence shall not be deemed to have any effect upon the rights of Employee upon a Change of Control. 
  
 20. Controlling Law. This Agreement shall in all respects be
governed by, and construed in accordance with, the laws of the State of Florida. 
  
 21. Notices. Any notice required or permitted to be given hereunder shall be written and sent by registered or certified mail, telecommunicated or hand delivered at the address set forth herein or to any
other address of which notice is given: 
  

			
	 To the Company:
	  	CyberGuard Corporation
	 	  	2000 West Commercial Boulevard
	 	  	Fort Lauderdale, Florida 33309
	 	  	Attention: Chief Executive Officer
		
	 To Employee:
	  	[at such address as appears in the records of the Company as being the last-known address of the Employee]

  
 22. Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto on the subject matter hereof and may not be modified without the written agreement of both parties hereto. 
  
 23. Waiver. A waiver by any party of any of the terms and
conditions hereof shall not be construed as a general waiver by such party. 
  
 24. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which together shall constitute a single agreement. 
  
 25. Interpretation. In the event of a conflict between the
provisions of this Agreement and any other agreement or document defining rights and duties of Employee or the Company upon Employee’s termination, the rights and duties set forth in this Agreement shall control. 
  
 26. Certain Limitations on Remedies. Paragraph 7b. provides
that certain payments and other benefits shall be received by Employee upon the termination of Employee by the Company other than for Cause and states that these same provisions shall apply if Employee terminates his employment for Good Reason. It
is the intention of this Agreement that if the Company terminates Employee other than for Cause (and other than as a consequence of Employee’s death, disability or normal retirement) or if Employee terminates his employment with Good Reason,
then the payments and other benefits set forth in Paragraph 7b. shall constitute the sole and exclusive remedies of Employee with respect to the subject matter hereof. 
  

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 27. Survival. Notwithstanding the provisions of Paragraph 2, the provisions of Paragraphs
14, 15, and 16 shall survive the expiration or early termination of this Agreement. 
  

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 IN WITNESS WHEREOF, this Employment Agreement has been executed by the parties as of the date first above
written. 
  

			
	COMPANY:
	
	CYBERGUARD CORPORATION
		
	By:	 	
 Patrick J. Clawson

	Its:	 	Chief Executive Officer
	
	EMPLOYEE:
	
	
 Gary Taggart

  

 11Purchase and Sale Agreement

 Exhibit 10.2 
  
 434 AND 436 DEVON PARK DRIVE 
 WAYNE, PENNSYLVANIA 
  
 PURCHASE AND SALE AGREEMENT 
  
 BETWEEN

  
 THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE

  
 AS SELLER 
  
 AND 
  
 JOHNSON MATTHEY INC. 
  
 AS PURCHASER 
  
 As of September 13, 2004 

 PURCHASE AND SALE AGREEMENT 
  
 THIS PURCHASE AND SALE AGREEMENT (the “Agreement”) is made as of the 13th day of September, 2004 (the “Effective Date”), by and between THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE (“Seller”),
having an office at c/o Wells Real Estate Funds, 6200 The Corners Parkway, Suite 250, Norcross, Georgia 30092, and JOHNSON MATTHEY INC. (“Purchaser”), having an office at 435 Devon Park Drive, Suite 600, Wayne, Pennsylvania 19087-1998.

  
 RECITALS: 
  
 Seller desires to sell to Purchaser, and Purchaser desires to purchase from
Seller, the Property “as-is, where-is, with all faults” in accordance with the terms and conditions of this Agreement. In connection therewith, Purchaser acknowledges that it is the sole tenant leasing and occupying the Property (as
defined below) under the terms and conditions of the Lease (as defined below) and, as such: (a) is familiar and satisfied with the condition of the Property; (b) will not require any estoppel certificates to be obtained or delivered by Seller; and
(c) will not require any representations or warranties to be made by Seller. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound hereby, covenant and agree as follows: 
  
 COVENANTS: 
  
 ARTICLE I 
  
 PURCHASE AND SALE 
  
 1.1. Agreement of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and convey and Purchaser
agrees to purchase the following: 
  
 (a) that certain tract or
parcel of land situated in Chester County, Pennsylvania, more particularly described on Exhibit A attached hereto and made a part hereof, together with all and singular the rights and appurtenances pertaining to such property, including any
right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way (the property described in clause (a) of this Section 1.1 being herein referred to collectively as the “Land”); 
  
 (b) the buildings, structures, fixtures and other improvements on the Land,
including specifically, without limitation, that certain office/industrial building located thereon having a street address of 434 and 436 Devon Park Drive, Wayne, Pennsylvania (the property described in clause (b) of this Section 1.1 being herein
referred to collectively as the “Improvements”); 
  

 2 

 (c) all of Seller’s right, title and interest in and to all tangible personal property upon the Land
or within the Improvements, including specifically, without limitation, appliances, furniture, carpeting, draperies and curtains, tools and supplies, and other items of personal property (excluding cash) used exclusively in connection with the
operation of the Land and the Improvements and only as specifically described on Exhibit B attached hereto and made a part hereof (the property described in clause (c) of this Section 1.1 being herein referred to collectively as the
“Personal Property”); 
  
 (d) all of Seller’s
right, title and interest in and to that certain Lease Agreement dated February 21, 1973, by and between Matthey Bishop, Inc., the predecessor in interest to Purchaser, as tenant, and LSK Corporation, the predecessor in interest to Seller, as
landlord (as amended, the “Lease”); and 
  
 (e) all of
Seller’s right, title and interest in and to (i) all assignable contracts and agreements (collectively, the “Operating Agreements”) listed and described on Exhibit D (the “Operating Agreements Schedule”) attached
hereto and made a part hereof, relating to the upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the date of Closing (as such term is defined in Section 4.1 hereof), including
specifically, without limitation, all assignable equipment leases, and (ii) all assignable existing warranties and guaranties (expressed or implied) issued to Seller in connection with the Improvements or the Personal Property (the property
described in this Section 1.1(e) being sometimes herein referred to collectively as the “Intangibles”). 
  
 1.2. Property Defined. The Land, the Improvements, the Personal Property, the Lease and the Intangibles are hereinafter sometimes referred to
collectively as the “Property.” 
  
 1.3. Permitted
Exceptions. The Property shall be conveyed subject to the matters which are, or are deemed to be, Permitted Exceptions pursuant to Article II hereof (herein referred to collectively as the “Permitted Exceptions”). 
  
 1.4. Purchase Price. Seller is to sell and Purchaser is to purchase
the Property for a total of TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) (the “Purchase Price”), all cash with no financing requirements. 
  
 1.5. Payment of Purchase Price. The Purchase Price, as increased or decreased by prorations and adjustments as herein provided, shall be payable in
full at Closing in cash by wire transfer of immediately available federal funds to a bank account designated at least five (5) business days prior to Closing by Seller in writing to Purchaser. 
  

 3 

 1.6. Earnest Money. Simultaneously with the execution and delivery of this Agreement, Purchaser is
depositing with Fidelity National Title Insurance Company (the “Escrow Agent”), having its office at 1500 Walnut Street, Suite 400, Philadelphia, Pennsylvania 19102, Attention: Mara Stratt, Esq., Vice President and National Title Officer,
the sum of TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) (the “Earnest Money”) in good funds by federal wire transfer. Purchaser’s federal tax identification number is 23-0411710. The Escrow Agent shall hold the Earnest
Money in an interest-bearing account in accordance with the terms and conditions of this Agreement. All interest accruing on such sum shall become a part of the Earnest Money and shall be distributed as Earnest Money in accordance with the terms of
this Agreement. In the event of termination of this Agreement prior to Closing, the Escrow Agent shall disburse the Earnest Money in accordance with the provisions of this Agreement governing such termination. In the event of any dispute between
Seller and Purchaser regarding the disbursement of the Earnest Money, or in the event the Escrow Agent shall receive conflicting demands or instructions with respect thereto, the Escrow Agent shall withhold disbursement of the Earnest Money until
such dispute is resolved. Alternatively, the Escrow Agent shall be entitled to deposit the Earnest Money into a court of general jurisdiction in Chester County, Pennsylvania, or the United States District Court for the Eastern District of
Pennsylvania, and to interplead Seller and Purchaser in connection therewith. The Escrow Agent shall not be liable for any damage, liability or loss arising out of its services pursuant to this Agreement, except for damage, liability or loss
resulting from the willful or negligent conduct of the Escrow Agent or any of its officers or employees. 
  
 ARTICLE II 
  
 TITLE AND SURVEY 
  
 2.1. Title Examination;
Commitment for Title Insurance. Prior to Closing, Purchaser shall have the right to obtain from a nationally recognized title insurance company (the “Title Company”), at Purchaser’s expense, an ALTA title insurance commitment (the
“Title Commitment”) covering the Property, showing all matters affecting title to the Property and binding the Title Company to issue at Closing an Owner’s Policy of Title Insurance in the full amount of the Purchase Price pursuant to
Section 2.4 hereof. Purchaser shall instruct the Title Company to deliver to Purchaser, Seller and the Surveyor (as defined below) copies of the Title Commitment and copies of all instruments referenced in Schedule B thereof. 
  
 2.2. Survey. Prior to Closing, Purchaser shall have the right to
employ a reputable surveyor or surveying firm, licensed by the state in which the Property is located (the “Surveyor”), at Purchaser’s expense, to survey the Property and prepare and deliver to Purchaser, the Title Company and Seller
an ALTA survey thereof (the “Survey”) reflecting the total area of the Property, the location of all improvements, recorded easements and encroachments, if any, located thereon and all building and set back lines and other matters of
record with respect thereto. 
  

 4 

 2.3. Permitted Exceptions. Except as specifically set forth in the next succeeding sentence, any
item contained in the Title Commitment or any matter shown on the Survey and the Lease each shall be deemed a Permitted Exception; provided, however, that Seller shall, at its sole cost and expense, and at its sole option, either remove or have the
Title Company insure over or otherwise satisfy, by payment or other appropriate measure of satisfaction, any mechanic’s lien, IRS payment lien, judgment lien or deed of trust or other financing lien created prior to Closing by any action or
inaction of Seller (other than any created by any action or inaction of Purchaser or any affiliate of Purchaser), which liens shall be deemed to be excluded from the term “Permitted Exceptions”. 
  
 2.4. Conveyance of Title. At Closing, Seller shall convey and transfer
to Purchaser such title to the Property as will enable the Title Company to issue to Purchaser, at Purchaser’s expense, an ALTA Owner’s Policy of Title Insurance (the “Title Policy”) covering the Property, in the full amount of
the Purchase Price. Notwithstanding anything contained herein to the contrary, the Property shall be conveyed subject to the following matters, which shall be deemed to be Permitted Exceptions: 
  
 (a) the rights of the tenant, under the Lease; 
  
 (b) the lien of all ad valorem real estate taxes and assessments not yet due
and payable as of the date of Closing, subject to adjustment as herein provided; 
  
 (c) local, state and federal laws, ordinances or governmental regulations, including but not limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect relating to the Property; and

  
 (d) items appearing of record or shown on the Survey other
than as specifically set forth in Section 2.3. 
  
 ARTICLE III

  
 INSPECTION 
  
 3.1. Right of Inspection. Purchaser acknowledges and agrees that
Seller has made available to Purchaser at such place or places at the Property, in the offices of the property manager or elsewhere as the same may be located, any operating files maintained by Seller or its property manager in connection with the
leasing, current maintenance and/or management of the Property, including, without limitation, records relating to the income and expenses of the Property, surveys, title reports, warranties for services and materials provided to the Property,
environmental audits and similar materials, including, without limitation, the items listed on Exhibit H attached hereto, but excluding materials not directly related to the leasing, current maintenance and/or management of the Property such
as, without limitation, Seller’s internal memoranda, financial projections, budgets, appraisals, accounting and tax records and similar proprietary, elective or confidential information. Purchaser acknowledges and agrees that it, or its
affiliate, as the tenant under the Lease, has had access to and knowledge of the 

  

 5 

 
Property and is familiar with the physical and environmental condition of the Property, including, without limitation, the condition of the roof of the
building that forms a portion of the Improvements, and a sinkhole located at the Property. 
  
 3.2. Right of Termination. Seller agrees that in the event Purchaser determines (such determination to be made in Purchaser’s sole discretion) that the Property is not suitable for its purposes, Purchaser
shall have the right to terminate this Agreement by giving written notice thereof to Seller on or before September 20, 2004, at 5:00 p.m. (the “Termination Deadline”). If Purchaser gives such notice of termination prior to the Termination
Deadline, this Agreement shall terminate and the Earnest Money shall be returned to Purchaser, and Purchaser, upon Seller’s request, shall deliver to Seller true and complete copies of all test results and studies related to the Property which
were obtained or commissioned by or on behalf of Purchaser. Time is of the essence with respect to the provisions of this Section 3.2. If Purchaser fails to give Seller a notice of termination prior to the Termination Deadline, Purchaser shall no
longer have any right to terminate this Agreement under this Section 3.2 and shall be bound to proceed to Closing and consummate the transaction contemplated hereby pursuant to the terms of this Agreement. 
  
 ARTICLE IV 
  
 CLOSING 
  
 4.1. Time and Place. The consummation of the transaction contemplated hereby (“Closing”) shall be held at the offices of Escrow Agent, at
10:00 a.m. on October 5, 2004, or such earlier date as is agreed to in writing by the parties (the “Closing Date”). At Closing, Seller and Purchaser shall perform the obligations set forth in, respectively, Section 4.2 and Section 4.3, the
performance of which obligations shall be concurrent conditions. Notwithstanding anything in this Section 4.1 to the contrary, the parties agree to use commercially reasonable efforts to pre-close the transaction contemplated hereby
(i.e., sign documents into escrow) on the business day immediately preceding the then-scheduled date of Closing. 
  
 4.2. Seller’s Obligations at Closing. At Closing, Seller shall deliver to Escrow Agent or Purchaser, as applicable: 
  
 (a) a duly executed deed in the form attached hereto as Exhibit E (the
“Deed”); 
  
 (b) a duly executed bill of sale and
assignment in the form attached hereto as Exhibit F (“Bill of Sale”); 
  
 (c) a duly executed assignment and assumption agreement in the form attached hereto as Exhibit G (“Assignment Agreement”); 
  

 6 

 (d) evidence as Purchaser’s counsel and/or the Title Company may reasonably require as to the
authority of the person or persons executing documents on behalf of Seller; 
  
 (e) an affidavit duly executed by Seller in the form attached hereto as Exhibit C (“FIRPTA Affidavit”); 
  
 (f) the Lease, Operating Agreements and licenses and permits, if any, in the possession of Seller or Seller’s agents, together with such leasing and
property files and records which are material in connection with the continued operation, leasing and maintenance of the Property. Purchaser shall cooperate with Seller for a period of seven (7) years after Closing in case of Seller’s need in
response to any legal requirement, a tax audit, tax return preparation or litigation threatened or brought against Seller, by allowing Seller and its agents or representatives access, upon reasonable advance notice (which notice shall identify the
nature of the information sought by Seller), at all reasonable times to examine and make copies of any and all instruments, files and records, which right shall survive the Closing; 
  
 (g) possession and occupancy of the Property, subject to the Permitted Exceptions; and 
  
 (h) such additional documents as shall be reasonably required to consummate
the transaction expressly contemplated by this Agreement, which additional documents may include transfer and recordation tax declarations and other tax certificates. 
  
 4.3. Purchaser’s Obligations at Closing. At Closing, Purchaser shall deliver to Escrow Agent or Seller, as
applicable: 
  
 (a) the full amount of the Purchase Price, as
increased or decreased by prorations and adjustments as herein provided, in immediately available wire transferred federal funds pursuant to Section 1.5 above, it being agreed that at Closing the Earnest Money shall be delivered to Seller and
applied towards payment of the Purchase Price, and it being further understood that Seller shall receive such proceeds at its bank account no later than 4:00 p.m. Eastern time on the date of Closing, failing which the pro-rations shall be
redetermined to coincide with the date on which said funds are received prior to 4:00 p.m. Eastern time (time being of the essence with respect to this subparagraph); 
  
 (b) instruments described in Sections 4.2(b) and 4.2(c) duly executed by Purchaser; 
  
 (c) such evidence as Seller’s counsel and/or the Title Company may
reasonably require as to the authority of the person or persons executing documents on behalf of Purchaser; and 
  

 7 

 (d) such additional documents as shall be reasonably required to consummate the transaction contemplated
by this Agreement. 
  
 4.4. Credits and Prorations.

  
 (a) Seller shall prepare a schedule of tentative prorations,
and Purchaser and Seller shall endeavor to finalize such schedule no later than three (3) business days prior to Closing. The following shall be apportioned with respect to the Property as of 12:01 a.m., on the day of Closing, as if Purchaser were
vested with title to the Property during the entire day upon which Closing occurs: 
  
 (i) rents, if any, as and when collected (the term “rents” as used in this Agreement includes all payments due and payable under the Lease); 
  
 (ii) taxes (including personal property taxes on the Personal Property) and assessments levied against the Property;

  
 (iii) payments under the Operating Agreements; 
  
 (iv) gas, electricity and other utility charges for which Seller is liable,
if any, such charges to be apportioned at Closing on the basis of the most recent meter reading occurring prior to Closing; and 
  
 (v) any other operating expenses or other items pertaining to the Property which are customarily prorated between a purchaser and a seller in the area in
which the Property is located. 
  
 (b) Notwithstanding anything
contained in the foregoing provisions: 
  
 (i) At Closing, (A)
Seller shall, at Seller’s option, either deliver to Purchaser any security deposits actually held by Seller pursuant to the Lease or credit to the account of Purchaser the amount of such security deposits (to the extent such security deposits
are not applied against delinquent rents or otherwise as provided in the Lease); (B) if Seller is holding letters of credit as a security deposit or portion thereof, then Seller shall deliver such letters of credit to Purchaser (to the extent such
letters of credit have not been drawn upon or applied against delinquent rents or otherwise as provided in the Lease); and (C) Purchaser shall credit to the account of Seller all refundable cash or other deposits posted with utility companies
serving the Property, or, at Seller’s option, Seller shall be entitled to receive and retain such refundable cash and deposits. 
  
 (ii) Any taxes paid by Seller at or prior to Closing shall be prorated based upon the amounts actually paid. If taxes and assessments for the current
year have not been paid before Closing, Purchaser shall be responsible for the payment of such at Closing. Purchaser acknowledges 

  

 8 

 
and agrees that Purchaser, as tenant under the Lease, is required to pay all taxes and assessments in connection with the Property, including, without
limitation, Tredyffrin Easttown School District Taxes, Tedyffrin Township Assessments for Highway Improvements, Tredyffrin Borough/Township Taxes, Chester County Taxes, and Tredyffrin Township Sewer Fees. 
  
 (iii) Charges referred to in Section 4.4(a) above which are payable by any
tenant to a third party shall not be apportioned hereunder, and Purchaser shall accept title subject to any of such charges unpaid and Purchaser shall look solely to the tenant responsible therefor for the payment of the same. If Seller shall have
paid any of such charges on behalf of any tenant, and shall not have been reimbursed therefor by the time of Closing, Purchaser shall credit to Seller an amount equal to all such charges so paid by Seller. 
  
 (iv) Seller shall receive the entire advantage of any discounts for the
prepayment by it of any taxes, water rates or sewer rents. 
  
 (v) As to gas, electricity and other utility charges referred to in Section 4.4(a)(iv) above, Seller may on notice to Purchaser elect to pay one or more of all of said items accrued to the date hereinabove fixed for apportionment directly
to the person or entity entitled thereto, and to the extent Seller so elects, such item shall not be apportioned hereunder, and Seller’s obligation to pay such item directly in such case shall survive the Closing. 
  
 (vi) Purchaser shall pay to Seller the amount of any and all sales or
similar taxes payable in connection with this transaction and Purchaser shall execute and deliver any tax returns required of it in connection therewith, said obligations of Purchaser to survive Closing. 
  
 (vii) Purchaser represents and warrants that no Tenant Inducement Costs (as
hereinafter defined), leasing commissions and other expenses (including reasonable legal fees) have been incurred by or on behalf of the landlord in connection with any lease transaction (the “Other Expenses”) which will become due and
payable after the date of this Agreement (whether before or after Closing). If, during the period commencing on the date of this Agreement and continuing through Closing, Seller shall have paid any Tenant Inducement Costs, leasing commissions or
Other Expenses, Purchaser shall reimburse Seller therefor at Closing. For purposes hereof, the term “Tenant Inducement Costs” shall mean any out-of-pocket payments required under a lease for any portion of the Property to be paid by the
landlord thereunder to or for the benefit of the tenant thereunder which is in the nature of a tenant inducement, including specifically, without limitation, tenant improvement costs, lease buyout 

  

 9 

 
costs, and moving, design, refurbishment and club membership allowances. The term “Tenant Inducement Costs” shall not include loss of income
resulting from any free rental period, it being agreed that Seller shall bear the loss resulting from any free rental period until the date of Closing and that Purchaser shall bear such loss from and after the date of Closing. 
  
 (viii) Purchaser shall pay to Seller all rent and other amounts due under
the Lease through the date of Closing, or Seller shall credit to Purchaser any overpayment of rent and other amounts due under the Lease from and after the date of Closing. 
  
 (c) The provisions of this Section 4.4 shall survive Closing. 
  
 4.5. Closing Costs. Seller shall pay: (a) the fees of any counsel representing it in connection with this
transaction; (b) one-half of any escrow fee which may be charged by the Escrow Agent or Title Company; and (c) one-half of any transfer tax, recordation tax, grantor’s tax, documentary stamp tax or similar tax which becomes payable by reason of
the transfer of the Property. Purchaser shall pay: (u) the fees of any counsel representing Purchaser in connection with this transaction; (v) the amount of (i) the fee for the title examination, (ii) the cost of the Title Commitment, and (iii) the
premium for the Owner’s Policy of Title Insurance to be issued to Purchaser by the Title Company at Closing; (w) the cost of the Survey; (x) the fees for recording the Deed; (y) one-half of any transfer tax, recordation tax, grantor’s tax,
documentary stamp tax or similar tax which becomes payable by reason of the transfer of the Property; and (z) one-half of any escrow fees charged by the Escrow Agent or Title Company. All other costs and expenses incident to this transaction and the
closing thereof shall be paid by the party incurring such costs and expenses. The provisions of this Section 4.5 shall survive the Closing or any early termination of this Agreement. 
  
 4.6. Conditions Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the transaction
hereunder shall be subject to the fulfillment on or before the date of Closing of all of the following conditions, any or all of which may be waived by Purchaser in its sole discretion: 
  
 (a) Seller shall have delivered to Escrow Agent or Purchaser, as applicable, all of the items required to be delivered to
Purchaser pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.2. 
  
 (b) Seller shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by
Seller as of the date of Closing. 
  
 4.7. Conditions Precedent
to Obligation of Seller. The obligation of Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the 
  

 10 

 
date of Closing of all of the following conditions, any or all of which may be waived by Seller in its sole discretion: 
  
 (a) Seller shall have received the Purchase Price as adjusted pursuant to and
payable in the manner provided for in this Agreement. 
  
 (b)
Purchaser shall have delivered to Escrow Agent or Seller, as applicable, all of the items required to be delivered to Seller pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.3. 
  
 (c) Purchaser shall have performed and observed, in all material respects,
all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the date of Closing. 
  
 ARTICLE V 
  
 COVENANTS 
  
 5.1. Covenants of Seller. From the
Effective Date hereof until the Closing or earlier termination of this Agreement, Seller shall use reasonable efforts to operate and maintain the Property in a manner generally consistent with the manner in which Seller has operated and maintained
the Property prior to the date hereof. 
  
 5.2. Covenants of
Purchaser. Purchaser hereby covenants with Seller as follows: 
  
 (a) Purchaser shall perform all of its obligations as tenant under the Lease that are required to be performed through the Closing. 
  
 (b) Purchaser shall, at Seller’s expense, cooperate reasonably with Seller and shall provide to Seller copies of, or provide Seller access to, such
factual information as may be reasonably requested by Seller, and in the possession or control of Purchaser or its accountants, agents, employees or advisors, to enable Seller (or an affiliate of Seller) to file its or their Form 8-K or other
filings, if, as and when such filings may be required by the Securities and Exchange Commission. 
  
 5.3. Representation and Warranty of Seller. Seller hereby represents and warrants to Purchaser that except as disclosed to Purchaser (including,
without limitation, as set forth in the documents listed in Exhibit H), to Seller’s knowledge, Seller has not received any written notification from any governmental or public authority (a) that the Property is in violation of any
applicable fire, health, building, use, occupancy or zoning laws where such violation remains outstanding and, if unaddressed, would have a material adverse effect on the use of the Property as currently owned and operated or (b) that any work is
required to be done upon or in connection with the Property, where such work remains outstanding and, if unaddressed, would have a material adverse effect on the use of the Property as currently owned and operated. 
  

 11 

 5.4. Knowledge Defined. References to the “knowledge” of Seller shall refer only to the
actual knowledge of the Designated Employee (as hereinafter defined) of Wells Real Estate Funds, and shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller, to any property manager, or to
any other officer, agent, manager, representative or employee of Seller or any affiliate thereof or to impose upon such Designated Employee any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains. As used
herein, the term “Designated Employee” shall refer to Mark Preston, East Regional Asset Manager. 
  
 5.5. Survival of Seller’s Representations and Warranties. The representation and warranty of Seller set forth in Section 5.3 hereof shall
survive Closing for a period of one hundred eighty (180) days. No claim for a breach of any representation or warranty of Seller shall be actionable or payable (a) if the breach in question results from or is based on a condition, state of facts or
other matter which was known to Purchaser prior to Closing, (b) unless the valid claims for all such breaches collectively aggregate more than Twenty-Five Thousand Dollars ($25,000), in which event the full amount of such claims shall be actionable,
and (c) unless written notice containing a description of the specific nature of such breach shall have been given by Purchaser to Seller prior to the expiration of said one hundred eighty (180) day period and an action shall have been commenced by
Purchaser against Seller within thirty (30) days after the termination of the survival period provided for above in this Section. Purchaser agrees to first seek recovery under any insurance policies, service contracts and Leases prior to
seeking recovery from Seller, and Seller shall not be liable to Purchaser if Purchaser’s claim is satisfied from such insurance policies, service contracts or the Leases. As used herein, the term “Cap” shall mean the total aggregate
amount of Five Hundred Thousand and No/100 Dollars ($500,000). In no event shall Seller’s aggregate liability to Purchaser under this Agreement for breach of any representation or warranty of Seller in this Agreement or for any other breach by
Seller under this Agreement for any exceed the amount of the Cap. 
  
 ARTICLE VI 
  
 DEFAULT 
  
 6.1. Default by Purchaser. In the event that Purchaser fails to
consummate this Agreement for any reason other than Seller’s default or the permitted termination of this Agreement by either Seller or Purchaser as herein expressly provided, or if Purchaser otherwise defaults under this Agreement, Seller
shall be entitled, as its sole remedy, to terminate this Agreement and receive the Earnest Money as liquidated damages for the breach of this Agreement, it being agreed between the parties hereto that the actual damages to Seller in the event of
such breach are impractical to ascertain and the amount of the Earnest Money is a reasonable estimate thereof. If the Earnest Money is not timely delivered pursuant to Section 1.6, Seller shall have the option to immediately terminate this Agreement
upon written notice to Purchaser. 
  

 12 

 6.2. Default by Seller. In the event that Seller fails to consummate this Agreement for any reason
other than Purchaser’s default or the permitted termination of this Agreement by either Seller or Purchaser as herein expressly provided, Purchaser shall be entitled, as its sole remedy, either (a) to receive the return of the Earnest Money,
which return shall operate to terminate this Agreement and release Seller from any and all liability hereunder (except that, if Seller’s failure was within the reasonable control of Seller to prevent, then Purchaser shall be entitled to recover
from Seller Purchaser’s actual out-of-pocket costs and expenses (with supporting documentation) paid to third parties (including, without limitation, consultants, experts, lenders, and attorneys) in connection with the transaction contemplated
by this Agreement (such recovery not to exceed ten thousand dollars ($10,000) in the aggregate (the “Cost Recovery Cap”)), or (b) to enforce specific performance of Seller’s obligation to execute the documents required to convey the
Property to Purchaser, it being understood and agreed that the remedy of specific performance shall not be available to enforce any other obligation of Seller hereunder. Purchaser expressly waives its rights to seek damages in the event of
Seller’s default hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and receive back the Earnest Money if Purchaser fails to file suit for specific performance against Seller in a court having jurisdiction in the
county and state in which the Property is located, on or before fifteen (15) days following the date upon which Closing was to have occurred. 
  
 ARTICLE VII 
  
 RISK OF LOSS 
  
 7.1. Minor Damage. In the event of loss or damage to the Property or any portion thereof which is not “major” (as hereinafter defined), this Agreement shall remain in full force and effect provided Seller performs any
necessary repairs or, at Seller’s option, assigns to Purchaser all of Seller’s right, title and interest to the proceeds Seller actually receives with respect to any casualty insurance policies or condemnation awards relating to the
premises in question. In the event that Seller elects to perform repairs upon the Property, Seller shall use all reasonable and diligent efforts to complete such repairs promptly and the date of Closing shall be extended a reasonable time in order
to allow for the completion of such repairs. If Seller elects to assign its insurance proceeds to Purchaser, such right to assign being subject to Seller actually receiving proceeds from its insurance claim, the date of Closing shall be extended to
allow for Seller to obtain such proceeds and the Purchase Price shall be reduced by an amount equal to the deductible amount under Seller’s insurance policy. Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser.

  
 7.2. Major Damage. In the event of a “major”
loss or damage, either Seller or Purchaser may terminate this Agreement by written notice to the other party, in which event the Earnest Money shall be returned to Purchaser. If neither Seller nor Purchaser elects to terminate this Agreement within
ten (10) business days after Seller sends Purchaser written notice of the occurrence of major loss or damage, then Seller and 

  

 13 

 
Purchaser shall be deemed to have elected to proceed with Closing, in which event Seller shall, at Seller’s option, either (a) perform any necessary
repairs, or (b) assign to Purchaser all of Seller’s right, title and interest to the proceeds actually received by Seller with respect to any casualty insurance policies or condemnation awards relating to the premises in question. In the event
that Seller elects to perform repairs upon the Property, Seller shall use all reasonable and diligent efforts to complete such repairs promptly and the date of Closing shall be extended a reasonable time in order to allow for the completion of such
repairs. If Seller elects to assign the proceeds actually received from a casualty claim to Purchaser, the date of Closing shall be extended to allow for Seller to obtain such proceeds and the Purchase Price shall be reduced by an amount equal to
the deductible amount under Seller’s insurance policy. For the avoidance of doubt, subpart (b) of this Section 7.2 shall apply only in the event Seller’s insurance provides coverage for the involved casualty and Seller actually receives
proceeds in settlement of its casualty claim under its insurance policy. Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser. 
  

7.3. Definition of “Major” Loss or Damage. For purposes of Sections 7.1 and 7.2, “major” loss or damage refers to the
following: (a) loss or damage to the Property or any portion thereof such that Purchaser, as the tenant under the Lease, has the right terminate the Lease pursuant to Section 9(b) or Section 9(c) of the Lease, and (b) any loss due to a condemnation
which permanently and materially impairs the current use of the Property. 
  
 ARTICLE VIII 
  
 COMMISSIONS

  
 8.1. Brokerage Commissions. Each party represents to
the other that there has been no broker or finder engaged in connection with the sale of the Property, other than GVA Smith Mack & Company, as Purchaser’s representative (the “Broker”). In the event the transaction contemplated by
this Agreement is consummated, but not otherwise, Seller agrees to pay to the Broker at Closing a brokerage commission in the amount of One Hundred Seventy-Five Thousand Dollars ($175,000.00). The Broker shall not be entitled to any other
commission, brokerage fee, or other compensation in connection with this transaction. The foregoing commission shall be earned, due and payable only upon consummation of Closing (including recordation of the Deed and receipt of Seller’s funds)
and not otherwise. In the event Closing (including recordation of the Deed and receipt of Seller’s funds) does not occur, for whatever reason, whether by default of Purchaser or Seller, or otherwise, the Broker hereby waives any right to any
fee or commission and any claim or right of claim to any fee or commission, including, without limitation, a claim of frustration of commission. Each party agrees that should any claim be made for brokerage commissions or finder’s fees by any
broker or finder other than the Broker by, through or on account of any acts of said party or its representatives, said party will indemnify and hold the other party free and harmless from and against any and all loss, liability, cost, damage and
expense in connection therewith. The provisions of this paragraph shall survive Closing or earlier termination of this Agreement. 
  

 14 

 ARTICLE IX 
  
 DISCLAIMERS AND WAIVERS 
  
 9.1. No Reliance on Documents. Seller makes no representation or warranty as to the truth, accuracy or completeness of any materials, data or
information delivered by Seller to Purchaser in connection with the transaction contemplated hereby. Purchaser acknowledges and agrees that all materials, data and information delivered by Seller to Purchaser in connection with the transaction
contemplated hereby are provided to Purchaser as a convenience only and that any reliance on or use of such materials, data or information by Purchaser shall be at the sole risk of Purchaser, except as otherwise expressly stated herein. Without
limiting the generality of the foregoing provisions, Purchaser acknowledges and agrees that (a) any environmental or other report with respect to the Property which is delivered by Seller to Purchaser (excluding any report that was commissioned by
Purchaser) shall be for general informational purposes only, (b) Purchaser shall not have any right to rely on any such report delivered by Seller to Purchaser, but rather will rely on its own inspections and investigations of the Property and any
reports commissioned by Purchaser with respect thereto, and (c) neither Seller, any affiliate of Seller nor the person or entity which prepared any such report delivered by Seller to Purchaser shall have any liability to Purchaser for any inaccuracy
in or omission from any such report. 
  
 9.2. Disclaimers.
It is understood and agreed that Seller is not making and has not at any time made any warranties or representations of any kind or character, expressed or implied, with respect to the Property, including, but not limited to, any warranties
or representations as to habitability, merchantability, fitness for a particular purpose, title (other than Seller’s limited warranty of title to be set forth in the Deed), zoning, tax consequences, latent or patent physical or environmental
condition, utilities, operating history or projections, valuation, governmental approvals, the compliance of the Property with governmental laws, the truth, accuracy or completeness of any documents related to the Property or any other information
provided by or on behalf of Seller to Purchaser, or any other matter or thing regarding the Property. Purchaser acknowledges and agrees that upon Closing Seller shall sell and convey to Purchaser and Purchaser shall accept the Property “as is,
where is, with all faults”. Purchaser has not relied and will not rely on, and Seller is not liable for or bound by, any expressed or implied warranties, guaranties, statements, representations or information pertaining to the Property or
relating thereto (including specifically, without limitation, any property information packages distributed with respect to the Property) made or furnished by Seller, the manager of the Property, or any real estate broker or agent representing or
purporting to represent Seller, to whomever made or given, directly or indirectly, orally or in writing. Purchaser represents to Seller that Purchaser has conducted such investigations of the Property, including but not limited to, the physical and
environmental conditions thereof, as Purchaser deems necessary to satisfy itself as to the condition of the Property and the existence or nonexistence or curative action to be taken with respect to any hazardous or toxic substances on or discharged
from the Property, and will rely solely upon same and not 

  

 15 

 
upon any information provided by or on behalf of Seller or its agents or employees with respect thereto. Upon Closing, Purchaser shall assume the risk that
adverse matters, including but not limited to, construction defects and adverse physical and environmental conditions, may not have been revealed by Purchaser’s investigations, and Purchaser, upon Closing, shall be deemed to have waived,
relinquished and released Seller (and Seller’s officers, directors, shareholders, employees and agents) from and against any and all claims, demands, causes of action (including causes of action in tort), losses, damages, liabilities, costs and
expenses (including attorneys’ fees and court costs) of any and every kind or character, known or unknown, which Purchaser might have asserted or alleged against Seller (and Seller’s officers, directors, shareholders, employees and agents)
at any time by reason of or arising out of any latent or patent construction defects or physical conditions, violations of any applicable laws (including, without limitation, any environmental laws) and any and all other acts, omissions, events,
circumstances or matters regarding the Property. Purchaser agrees that should any cleanup, remediation or removal of hazardous substances or other environmental conditions on the Property be required after the date of Closing, such clean-up, removal
or remediation shall be the responsibility of and shall be performed at the sole cost and expense of Purchaser. 
  
 9.3. Effect and Survival of Disclaimers. Seller and Purchaser acknowledge that the compensation to be paid to Seller for the Property takes into
account that the Property is being sold subject to the provisions of this Article IX. Seller and Purchaser agree that the provisions of this Article IX shall survive Closing. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1. Confidentiality. Seller and Purchaser, and each of its respective representatives, shall hold in strictest confidence all data and
information obtained with respect to Seller or its business, or Purchaser or its business, whether obtained before or after the execution and delivery of this Agreement (other than information which is (a) publicly known at the time or becomes
disclosed (other than by a party bound to keep the information confidential) to the public, (b) rightfully received from a third party without restrictions, (c) independently developed, (d) furnished (other than by a party bound to keep the
information confidential) to a third party without restriction, (e) approved for release by written authorization from Seller or Purchaser, as applicable, or (f) already rightfully in the possession of Seller or Purchaser without restriction), and
shall not disclose the same to others; provided, however, that it is understood and agreed that Seller or Purchaser may disclose such data and information to the employees, consultants, accountants and attorneys of Seller or Purchaser provided that
such persons agree in writing to treat such data and information confidentially. In the event this Agreement is terminated or Seller or Purchaser fails to perform hereunder, each of Seller and Purchaser shall promptly return to the other any
statements, documents, schedules, exhibits or other written information obtained from the other in connection with this Agreement or the transaction contemplated herein. It is understood and agreed that, with respect to any 

  

 16 

 
provision of this Agreement which refers to the termination of this Agreement and the return of the Earnest Money to Purchaser, such Earnest Money shall not
be returned to Purchaser unless and until Purchaser has fulfilled its obligation to return to Seller the materials described in the preceding sentence. In the event of a breach or threatened breach by Seller or Purchaser, or any of its respective
agents or representatives, of this Section 10.1, the non-breaching party shall be entitled to an injunction restraining the breaching party or its agents or representatives from disclosing, in whole or in part, such confidential information. Nothing
herein shall be construed as prohibiting Seller or Purchaser from pursuing any other available remedy at law or in equity for such breach or threatened breach. The provisions of this Section 10.1 shall survive Closing or any early termination of
this Agreement. 
  
 10.2. Public Disclosure. Prior to
Closing, any release to the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement will be made only in the form approved by Purchaser and Seller and their respective counsel. The provisions of
this Section shall survive Closing or any early termination of this Agreement. 
  
 10.3. Discharge of Obligations. The acceptance of the Deed by Purchaser shall be deemed to be a full performance and discharge of every representation and warranty made by Seller herein and every agreement and
obligation on the part of Seller to be performed pursuant to the provisions of this Agreement, except those which are herein specifically stated to survive Closing. 
  
 10.4. Assignment. Purchaser may not assign its rights or obligations under this Agreement. 
  
 10.5. Notices. Any notice pursuant to this Agreement shall be given in
writing by (a) personal delivery, or (b) reputable overnight delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d) legible facsimile transmission sent to
the intended addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee shall have designated by written notice sent in accordance herewith, and shall be deemed to have been given
either at the time of personal delivery, or, in the case of expedited delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the case of facsimile transmission, as of the date of
the facsimile transmission provided that an original of such facsimile is also sent to the intended addressee by means described in clauses (a), (b) or (c) above. Unless changed in accordance with the preceding sentence, the addresses for notices
given pursuant to this Agreement shall be as follows: 
  

			
	 If to Seller:
	 	 c/o Wells Real Estate Funds

	 	 	 6200 The Corners Parkway

	 	 	 Norcross, Georgia 30092

	 	 	 Attention: Parker Hudson

	 	 	 Phone: (770) 243-8692

	 	 	 Telecopy: (770) 243-4684

  

 17 

			
	 with a copy to:
	 	 Piper Rudnick LLP

	 	 	 1200 19th Street, N.W.

	 	 	 Washington, D.C. 20036

	 	 	 Attention: Jeffrey R. Keitelman, Esq.

	 	 	 Phone: (202) 861-6950

	 	 	 Telecopy: (202) 689-7460

		
	 If to Purchaser:
	 	 435 Devon Park Drive

	 	 	 Suite 600

	 	 	 Wayne, Pennsylvania 19087-1998

	 	 	 Attention: Robert M. Talley, Esq.

	 	 	 Phone: (610) 971-3131

	 	 	 Telecopy: (610) 971-3022

		
	 If To Escrow Agent:
	 	 Fidelity National Title Insurance Company

	 	 	 1500 Walnut Street, Suite 400

	 	 	 Philadelphia, Pennsylvania 19102

	 	 	 Attention: Mara Stratt, Esq.,

	 	 	       Vice President & National Title Officer

	 	 	 Phone: (215) 875-4139

	 	 	 Telecopy: (215) 732-6726

  
 10.6. [Reserved]

  
 10.7. Modifications. This Agreement cannot be changed
orally, and no executory agreement shall be effective to waive, change, modify or discharge it in whole or in part, unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change,
modification or discharge is sought. 
  
 10.8. Time of the
Essence. Time is of the essence for all provisions of this Agreement (including, without limitation, the date set for Closing). 
  
 10.9. Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or
event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the Commonwealth of
Pennsylvania, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday. Unless otherwise set forth herein, the final day of any such period shall be deemed to end at 5 p.m., local time.

  
 10.10. Successors and Assigns. The terms and provisions
of this Agreement are binding upon the parties hereto and are to apply to and bind the permitted successors and assigns of the parties hereto. 
  

 18 

 10.11. Entire Agreement. This Agreement, including the Exhibits, contains the entire agreement
between the parties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter. 
  
 10.12. Further Assurances. Each party agrees that it will without
further consideration execute and deliver such other documents and take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of
this Agreement. Without limiting the generality of the foregoing, Purchaser shall, if requested by Seller, execute acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with respect to the Property. The provisions
of this Section 10.12 shall survive Closing. 
  
 10.13.
Counterparts. This Agreement may be executed in counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. 
  
 10.14. Severability. If any provision of this Agreement is determined
by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. 
  
 10.15. Applicable Law. This Agreement is performable in the Commonwealth of Pennsylvania and shall in all respects be governed by, and construed in
accordance with, the substantive federal laws of the United States and the laws of the Commonwealth of Pennsylvania. Seller and Purchaser hereby irrevocably submit to the jurisdiction of any state or federal court sitting in the Commonwealth of
Pennsylvania in any action or proceeding arising out of or relating to this agreement and hereby irrevocably agree that all claims in respect of such action or proceeding shall be heard and determined in a state or federal court sitting in the
Commonwealth of Pennsylvania. Purchaser and Seller agree that the provisions of this Section 10.15 shall survive the Closing of the transaction contemplated by or the early termination of this Agreement. 
  
 10.16. No Third Party Beneficiary. The provisions of this Agreement
(other than Section 8.1, which is in part for the benefit of the Broker) and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party, and
accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 
  
 10.17. Exhibits and Schedules. The following schedules or exhibits attached hereto shall be deemed to be an integral part of this Agreement:

  

					
	 (a)
	  	 Exhibit A-
	  	 Legal Description of the Land

			
	 (b)
	  	 Exhibit B-
	  	 Personal Property

  

 19 

					
	 (c)
	  	Exhibit C-	  	 Form of FIRPTA Certificate

			
	 (d)
	  	Exhibit D-	  	 Operating Agreements Schedule

			
	 (e)
	  	Exhibit E-	  	 Form of Deed

			
	 (f)
	  	Exhibit F-	  	 Form of Bill of Sale

			
	 (g)
	  	Exhibit G-	  	 Form of Assignment of Contracts

			
	 (h)
	  	Exhibit H-	  	 List of Reports and Studies

  
 10.18.
Captions. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. 
  
 10.19. Construction. The parties acknowledge that the parties and
their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any
exhibits or amendments hereto. 
  
 10.20. Termination of
Agreement. It is understood and agreed that if either Purchaser or Seller terminates this Agreement pursuant to a right of termination granted hereunder, such termination shall operate to relieve Seller and Purchaser from all obligations under
this Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement. 
  
 10.21. Survival. The provisions of the following Sections of this Agreement shall survive Closing and shall not be merged into the execution and
delivery of the Deed: 3.1; 4.2(e); 4.4; 4.5; 5.2; 8.1; 9.3; 10.1; 10.2; 10.8; 10.12; and 10.15. The foregoing is in addition to and not in exclusion of any survival provisions that may elsewhere be set forth in this Agreement. 
  
 10.22. Right of First Offer. Seller and Purchaser acknowledge and
agree that each is entering into this Agreement pursuant to the terms and conditions of the Right of First Offer set forth in Section 27 of the Lease; provided, however, that to the extent the terms and conditions of this Agreement are different
than the terms and conditions set forth in Section 27 of the Lease, the terms and conditions of this Agreement shall control. 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

  

			
	 SELLER:

	
	 THE WELLS FUND XI—FUND XII—REIT
 JOINT VENTURE

		
	 By:
	 	 Wells Operating Partnership, L.P.,

	 	 	 a Delaware limited partnership,
 its Administrative
Joint Venturer

		
	 By:
	 	 Wells Real Estate Investment Trust, Inc.,

	 	 	 its general partner

		
	 By:
  
	 	

	 Name:
  
	 	

	 Title:
  
	 	

  
 [signatures
continue on following pages] 
  

 21 

			
	 PURCHASER:

	
	 JOHNSON MATTHEY INC.

		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

  
 [signatures
continue on following pages] 
  

 22 

 The undersigned agrees to serve as the Escrow Agent and to be bound by the provisions of Sections 1.6 and
10.5 of this Agreement. 
  

			
	 FIDELITY NATIONAL TITLE INSURANCE
 COMPANY

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 [signatures
continue on following page] 
  

 23 

 The Broker joins herein to agree to the provisions of Section 8.1 above. 
  

			
	 GVA SMITH MACK & COMPANY

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 24 

 Exhibit A 
  

LEGAL DESCRIPTION OF THE LAND 
  
 ALL THAT CERTAIN LOT, PIECE OR PARCEL OF LAND, with the buildings and improvements thereon erected, SITUATE in the Township of Tredyffrin, County of
Chester, Commonwealth of Pennsylvania bounded and described according to an As-Built Survey, Lot No. 9 Devon Park Drive made by SMC—Martin, Engineering, Planning and Surveying, dated January 13, 1984, and last revised 9/13/1993 as follows, to
wit: 
  
 BEGINNING at a point on the Northerly right of way line
of the Penn Central Railroad Right of Way (Trenton Branch, 140 feet wide), being a corner of the premises and Lot No. 10 on the Plan, said point being a distance of Nine hundred thirty-three and forty one-hundredths feet measured North sixty-nine
degrees, twenty-nine minutes East along the Northerly Right of Way line of the Penn Central Railroad Right of Way from the point of intersection of said Northerly Right of Way line with the Easterly side of West Valley Road (proposed Sixty feet
wide); thence from said beginning point leaving said Penn Central Railroad Right of Way along the common title line of the premises and said Lot No. 10 North twenty-two degrees, forty-eight minutes West, Four hundred ninety-two and eighty-seven
one-hundredths feet to a point on the Southerly side of Devon Park Drive (Sixty feet wide); thence along said Southerly side of Devon Park North sixty-seven degrees, twelve minutes East, Eight hundred fifty-four and twenty-nine one-hundredths feet
to a point; thence leaving said Southerly side of Devon Park Drive and continuing along lands now or formerly of Aner, Inc. South twenty-two degrees, forty-eight minutes East, Five hundred twenty-six and ninety-three one-hundredths feet to a point
on the Northerly Right of Way line of the Penn Central Railroad Right of Way; thence along said Northerly Right of Way line of the Penn Central Railroad Right of Way South sixty-nine degrees, twenty-nine minutes West, Eight hundred fifty-four and
ninety-seven one-hundredths feet to the first mentioned point and place of beginning. 
  
 BEING known as Lot No. 9, Devon Industrial Park, on the Plan, and as Chester County Tax Parcel No. 43-6J-18.1. 
  

 A-1 

 Exhibit B 
  

LIST OF PERSONAL PROPERTY 
  
 NONE 
  

 B-1 

 Exhibit C 
  

[FORM OF] 
 FIRPTA AFFIDAVIT

  
 Section 1445 of the Internal Revenue Code of 1986, as
amended (the “Code”), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445 of the Code), the owner of a disregarded entity
(which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real
property interest by THE WELLS FUND XI – FUND XII – REIT JOINT VENTURE (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor: 
  

	 	1.	 	Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Code and Income Tax Regulations);

  

	 	2.	 	Transferor is not a disregarded entity as defined in §1.1445-2(b)(2)(iii) of the Income Tax Regulations; 

  

	 	3.	 	Transferor’s U.S. employer identification number is 58-2476946; and 

  

	 	4.	 	Transferor’s office address is c/o Wells Real Estate Funds, 6200 The Corners Parkway, Suite 250, Norcross, Georgia 30092. 

  
 Transferor understands that this certification may be disclosed to the
Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. 
  
 Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete,
and I further declare that I have authority to sign this document on behalf of Transferor. 
  
 Dated:                     , 2004 

			
	 THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE

		
	 By:
	 	 Wells Operating Partnership, L.P., a Delaware limited partnership, its Administrative Joint Venturer

		
	 By:
	 	 Wells Real Estate Investment Trust, Inc., its general partner

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 C-1 

					
	 STATE OF                                    
             
	  	:	  	 
	 
	  	:	  	 SS.

	 COUNTY OF
                                        
   
	  	:	  	 

  
 On [date], before me,
the subscriber, a Notary Public in and for the State and County aforesaid, personally appeared [name of officer] who acknowledged himself/herself to be the [title of officer] of Wells Real Estate Investment Trust, Inc.,
as general partner of Wells Operating Partnership, L.P., as Administrative Joint Venturer of THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE, and that he/she executed the foregoing instrument for the purposes therein contained. 

 
 WITNESS my hand and seal the day and year aforesaid. 
  

	
	

	 Notary Public

  
 My Commission Expires:

  

 C-2 

 Exhibit D 
  

OPERATING AGREEMENTS SCHEDULE 
  
 NONE 
  

 D-1 

 Exhibit E 
  

[FORM OF] 
 SPECIAL WARRANTY DEED

  
 DEED 
  
 from 
  
 THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE, as grantor, 
  
 to 
  
 JOHNSON MATTHEY INC., as grantee. 
  
 434 AND 436 DEVON PARK DRIVE 
 WAYNE,
PENNSYLVANIA 
  
 I hereby certify that the address of the
above-named Grantee is: 
  
 435 Devon Park Drive 
 Suite 600 
 Wayne, Pennsylvania 19087-1998

  

	 	

 Robert M. Talley, Esquire 
  

 E-1 

 DEED 
  
 THIS INDENTURE is made as of September         , 2004, between THE WELLS FUND XI—FUND XII—REIT
JOINT VENTURE, a Georgia Joint Venture Partnership (hereinafter called the Grantor), of the first part, and JOHNSON MATTHEY INC., a Pennsylvania corporation (hereinafter called the Grantee), of the second part, 
  
 WITNESSETH, that the said Grantor for and in consideration of the sum of One
Dollar ($1.00) lawful money of the United States of America and other good and valuable consideration unto them well and truly paid by the said Grantee, at or before the sealing and delivery hereof, the receipt whereof is hereby acknowledged, has
granted, conveyed, bargained and sold, aliened, enfeoffed, released and confirmed, and by these presents does grant, convey, bargain and sell, alien, enfeoff, release and confirm unto the paid Grantee, and successors and assigns, 
  
 ALL THAT CERTAIN parcel or tract of land with the buildings and improvements
thereon erected, located at 434 and 436 Devon Park Drive, Wayne, Pennsylvania, as more fully described on Schedule “A” hereto, subject to all matters of record. 
  
 TOGETHER with all and singular the buildings and improvements, ways, streets, driveways, alleys, passages, waters,
watercourses, rights, liberties, privileges, hereditaments and appurtenances, whatsoever thereunto belonging, or in any wise appertaining, and the reversions and remainders, rents, issues and profits thereof; and all the estate, right, title,
interest, property, claim, and demand whatsoever of it, the said Grantor, in law or in equity, or otherwise howsoever, of, in, and to the same and every part thereof. 
  
 TO HAVE AND TO HOLD the said lots or pieces of ground above described, with the buildings and improvements thereon erected,
hereditaments and premises hereby granted, or mentioned, and intended so to be, with the appurtenances, unto the Grantee, its successors and assigns, to and for the only proper use and behoof of the said Grantee, its successors and assigns forever.

  
 AND the said Grantor, for itself and its successors and
assigns do covenant, promise, and agree, to and with the said Grantee, its successors and assigns, by these presents, that it, the said Grantor, its successors and assigns, all and singular the hereditaments and premises hereby granted or mentioned
and intended so to be, with the appurtenances, unto the said Grantee, its successors and assigns, against it, the said Grantor and its successors and assigns, and against all and every person and persons whomsoever lawfully claiming or to claim the
same or any part thereof, by, from, or under it, them, or any of them, shall and will, SUBJECT as aforesaid, SPECIALLY WARRANT and forever DEFEND. 
  

 E-2 

 IN WITNESS WHEREOF, the party of the first part has hereunto set its hand and seal. Dated the day and
year first alone written. 
  
 Sealed and
Delivered 
 In the Presence of Us: 
  

							
	 	 	 	 	THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE,
	 	 	 	 	a Georgia Joint Venture Partnership
				
	 	 	 	 	 By:
	 	Wells Operating Partnership, L.P., a Delaware limited partnership, its Administrative Joint Venturer
				
	 	 	 	 	 By:
	 	Wells Real Estate Investment Trust, Inc., its general partner
				
	  

	 	 	 	 By:
	 	  

	 	 	 	 	Name:	 	  

	 	 	 	 	Title:	 	  

  
 Record and Return To: 
  

	
	  

	  

	  

	  

  

 E-3 

	
	 STATE OF

	 COUNTY OF

  
 On this, the
             day of                     , 2004, before me,
the undersigned, personally appeared
                                       
              who acknowledged him/herself to be the of
                    Wells Real Estate Investment Trust, Inc., the general partner of Wells Operating Partnership, L.P., the Administrative
Joint Venturer of THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE, the Georgia Joint Venture Partnership named in the foregoing instrument and that he/she as such
                            , being authorized to do so, executed the foregoing instrument for
the purposes therein contained by signing the name of the                      by himself/herself as such
                    . 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and official seal. 
  

	
	  

	 Notary Public

	
	 My commission expires:

  

 E-4 

 SCHEDULE A TO DEED 
  
 LEGAL DESCRIPTION 
  
 ALL THAT CERTAIN LOT, PIECE OR PARCEL OF LAND, with the buildings and improvements thereon erected, SITUATE in the Township of Tredyffrin, County of
Chester, Commonwealth of Pennsylvania bounded and described according to an As-Built Survey, Lot No. 9 Devon Park Drive made by SMC—Martin, Engineering, Planning and Surveying, dated January 13, 1984, and last revised 9/13/1993 as follows, to
wit: 
  
 BEGINNING at a point on the Northerly right of way line
of the Penn Central Railroad Right of Way (Trenton Branch, 140 feet wide), being a corner of the premises and Lot No. 10 on the Plan, said point being a distance of Nine hundred thirty-three and forty one-hundredths feet measured North sixty-nine
degrees, twenty-nine minutes East along the Northerly Right of Way line of the Penn Central Railroad Right of Way from the point of intersection of said Northerly Right of Way line with the Easterly side of West Valley Road (proposed Sixty feet
wide); thence from said beginning point leaving said Penn Central Railroad Right of Way along the common title line of the premises and said Lot No. 10 North twenty-two degrees, forty-eight minutes West, Four hundred ninety-two and eighty-seven
one-hundredths feet to a point on the Southerly side of Devon Park Drive (Sixty feet wide); thence along said Southerly side of Devon Park North sixty-seven degrees, twelve minutes East, Eight hundred fifty-four and twenty-nine one-hundredths feet
to a point; thence leaving said Southerly side of Devon Park Drive and continuing along lands now or formerly of Aner, Inc. South twenty-two degrees, forty-eight minutes East, Five hundred twenty-six and ninety-three one-hundredths feet to a point
on the Northerly Right of Way line of the Penn Central Railroad Right of Way; thence along said Northerly Right of Way line of the Penn Central Railroad Right of Way South sixty-nine degrees, twenty-nine minutes West, Eight hundred fifty-four and
ninety-seven one-hundredths feet to the first mentioned point and place of beginning. 
  
 BEING known as Lot No. 9, Devon Industrial Park, on the Plan, and as Chester County Tax Parcel No. 43-6J-18.1. 
  

 E-5 

 Exhibit F 
  

[FORM OF] 
 BILL OF SALE AND
ASSIGNMENT 
  
 THIS BILL OF SALE AND ASSIGNMENT (this
“Bill of Sale”) is made as of                     , 2004, from THE WELLS FUND XI—FUND XII—REIT JOINT VENTURE
(“Assignor”), to JOHNSON MATTHEY INC. (“Assignee”). 
  
 RECITALS 
  
 A. Concurrently with the execution and
delivery of this Bill of Sale, Assignor is conveying to Assignee, by Special Warranty Deed (the “Deed”), that certain tract of land (the “Land”) more particularly described on Attachment A attached hereto and made a part
hereof for all purposes, together with all of the improvements located thereon (the “Improvements”). 
  
 B. Assignor desires to sell, assign, transfer and convey to Assignee, and Assignee desires to accept and obtain, the Assigned Properties (as hereafter
defined), subject to the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the receipt of Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid by Assignee to Assignor, the receipt and sufficiency of which are hereby acknowledged by Assignor,
Assignor does hereby SELL, ASSIGN, CONVEY, TRANSFER, SET OVER, and DELIVER to Assignee, without warranty, expressed or implied, with respect to Assignor’s interest therein or condition, merchantability or fitness for any purpose thereof, all of
Assignor’s right, title and interest in and to the following (collectively, the “Assigned Properties”): 
  
 (a) The tangible personal property owned by Assignor upon the Land or within or upon the Improvements, including, specifically, without limitation, those
items set forth in Section 1.1(c) of the Purchase and Sale Agreement between Assignor and Assignee, dated as of                     , 2004,
(together with all amendments and addenda thereto, if any, the “Purchase Agreement”) and only as specifically described in Attachment B attached hereto and made a part hereof (the “Personal Property”); and 
  
 (b) All assignable existing warranties and guaranties (express or implied)
issued in connection with the Improvements or the Personal Property (collectively, the “Warranties”) (it being understood that Assignor makes no representation or warranty with respect to the existence, availability or assignability of any
Warranties). 
  
 Assignee acknowledges that Assignor makes no
representation or warranty with respect to the Assigned Properties and that Assignor’s interest in the Assigned Properties is being transferred in its “as is” “where is” condition, with all faults. Assignor confirms that
Assignee is relying solely upon its own investigation of the Assigned Properties. 
  

 F-1 

 This Bill of Sale is subject to all of the provisions in the Purchase Agreement, including without
limitation Section 9.2 thereof. 
  
 This Bill of Sale may be
executed in two or more counterpart copies, all of which counterparts shall have the same force and effect as if all parties hereto had executed a single copy of this Bill of Sale. 
  
 EXECUTED to be effective as of date set forth above. 
  

			
	ASSIGNOR:
	
	 THE WELLS FUND XI—FUND XII—REIT
 JOINT VENTURE

		
	By:	 	 Wells Operating Partnership, L.P.,
 a Delaware limited
partnership,
 its Administrative Joint Venturer

		
	By:	 	 Wells Real Estate Investment Trust, Inc.,
 its general
partner

		
	 By:
  
	 	  

	 Name:
  
	 	  

	 Title:
  
	 	  

	
	ASSIGNEE:
	
	JOHNSON MATTHEY INC.
		
	 By:
  
	 	  

	 Name:
  
	 	  

	 Title:
  
	 	  

  
 List of Attachments: 

 
 Attachment A—Property Description 
 Attachment B—List of Personal Property 
  

 F-2 

 Exhibit G 
  

[FORM OF] 
 ASSIGNMENT AND
ASSUMPTION OF CONTRACTS 
  
 THIS ASSIGNMENT AND ASSUMPTION OF
CONTRACTS (this “Assignment”) is made as of                     , 2004, by and between THE WELLS FUND XI—FUND XII—REIT
JOINT VENTURE (“Assignor”), and JOHNSON MATTHEY INC. (“Assignee”). 
  
 RECITALS 
  
 A. Concurrently with
the execution and delivery of this Assignment, Assignor is conveying to Assignee, by Special Warranty Deed (the “Deed”), that certain tract of land (collectively, the “Land”) more specifically described in Attachment A
attached hereto and made a part hereof for all purposes, together with the improvements located thereon (the “Improvements”), and by Bill of Sale and Assignment (the “Bill of Sale”), certain personal property owned by Assignor
upon the Land or within or upon the Improvements (the “Personal Property”). 
  
 B. Assignor desires to assign, transfer and convey to Assignee, and Assignee desires to accept and obtain, all of Assignor’s right, title and interest in and to the Assigned Properties (as hereinafter defined),
subject to the terms and conditions set forth herein. 
  
 NOW,
THEREFORE, for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid by Assignee to Assignor, and the mutual covenants set forth herein, the receipt and sufficiency of which are
hereby acknowledged, Assignor does hereby SELL, ASSIGN, CONVEY, TRANSFER, SET OVER and DELIVER unto Assignee all of Assignor’s right, title and interest in and to the following (collectively, the “Assigned Properties”): 
  
 (a) the leases (and any and all amendments, modifications and supplements
thereto, and all guarantees executed in connection therewith)] described in Attachment B attached hereto and made a part hereof (collectively, the “Leases”); and 
  
 (b) the assignable contracts and agreements described in Attachment C attached hereto and made a part hereof
(collectively, the “Operating Agreements”), together with (i) all assignable existing warranties and guaranties (expressed or implied) issued to Assignor in connection with the Improvements or the Personal Property and (ii) all
transferable consents, authorizations, variances or waivers, licenses, permits and approvals, if any; provided, however, that Assignor makes no representation or warranty with respect to the assignability of or any other matter relating to any of
the foregoing. 
  
 TO HAVE AND TO HOLD the foregoing described
Assigned Properties unto Assignee, its successors and assigns, forever. 
  

 G-1 

 This Assignment is made by Assignor and accepted by Assignee subject to the provisions set forth in the
Purchase and Sale Agreement, dated as of [                    , 2004], between Assignor and Assignee (together with all
amendments and addenda thereto, if any, the “Purchase Agreement”). 
  
 By execution of this Assignment, Assignee assumes and agrees to perform all of the covenants, agreements and obligations under the Assigned Properties binding on Assignor or the Land, Improvements, or Personal
Property (such covenants, agreements and obligations being herein collectively referred to as the “Contractual Obligations”), as such Contractual Obligations shall arise or accrue from and after the date of this Assignment. Without
limiting the generality of the immediately preceding sentence, Assignee acknowledges the receipt of all security deposits required by the Leases described in Attachment B and agrees to apply such security deposits in accordance with the terms
of the Leases. 
  
 Assignor hereby agrees to indemnify, hold
harmless and defend Assignee from and against any and all obligations, liabilities, costs and claims (including reasonable attorney’s fees) arising as a result of or with respect to any of the Contractual Obligations that are attributable to
the period of time prior to the date of this Assignment. Assignee hereby agrees to indemnify, hold harmless and defend Assignor from and against any and all obligations, liabilities, costs and claims (including reasonable attorney’s fees)
arising as a result of or with respect to any of the Contractual Obligations that are attributable to the period of time from and after the date of this Assignment. 
  
 ASSIGNEE ACKNOWLEDGES THAT IT HAS INSPECTED OR HAS HAD THE OPPORTUNITY TO INSPECT THE ASSIGNED PROPERTIES AND THAT THIS
ASSIGNMENT IS MADE BY ASSIGNOR AND ACCEPTED BY ASSIGNEE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, AND WITHOUT RECOURSE AGAINST ASSIGNOR, EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN THE PURCHASE AGREEMENT.

  
 This Assignment may be executed in multiple counterparts, and
all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Assignment. 
  

 G-2 

 EXECUTED to be effective as of the date set forth above. 
  
  

			
	ASSIGNOR:
	
	 THE WELLS FUND XI—FUND XII—REIT
 JOINT VENTURE

		
	By:	 	Wells Operating Partnership, L.P.,
a Delaware limited partnership,
its Administrative Joint Venturer
		
	By:	 	 Wells Real Estate Investment Trust, Inc.,
 its general
partner

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ASSIGNEE:
	
	JOHNSON MATTHEY INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 List of Attachments: 

 
 Attachment A—Property Description 
 Attachment B—Lease Schedule 
 Attachment C—Operating
Agreements Schedule 
  

 G-3 

 Exhibit H 
  

LIST OF REPORTS AND STUDIES 
  

					
	 Prepared By

	  	 Name of Document

	  	 Date

			
	 Environmental Data
 Resources Inc.
	  	Sanborn® Map Report	  	May 25, 2004
			
	 Dames & Moore
	  	Letter Re: Second Well Installation, Sampling, and Analysis	  	August 11, 1999
			
	 Dames & Moore
	  	Letter Re: MW-1 and MW-2 Groundwater Samples	  	August 13, 1999
			
	 Dames & Moore
	  	Letter Re: Limited Subsurface Investigations	  	September 24, 1999
			
	 Environmental Data
 Resources Inc.
	  	Radius Map Report	  	May 24, 2004
			
	 Dames & Moore
	  	Phase I Environmental Site Assessment	  	December 8, 1988
			
	 Dames & Moore
	  	Phase I Environmental Site Assessment	  	August 14, 1996
			
	 Dames & Moore
	  	Phase I Environmental Site Assessment and Limited Subsurface Investigation	  	June 11, 1999
			
	 Certified Engineering
 & Testing Co., Inc.
	  	Phase I Environmental Site Assessment	  	August 2, 1993
			
	 Law Environmental
 Consultants, Inc.
	  	Draft Report of Phase I Environmental Site Assessment	  	July 13, 1999
			
	 Law Environmental
 Consultants, Inc.
	  	Report of Phase I Environmental Site Assessment	  	August 27, 1999
			
	 Dames & Moore
	  	Phase II Sample Results	  	April 23, 1999
			
	 Environmental Resources
 Management
	  	Limited Phase II Environmental Site Assessment Report	  	January 22, 1998
			
	 Gorski
	  	Proposal Letter Re: Trench Drain Repair Doc #3—436	  	April 26, 2001
			
	 National Assessment
 Corporation
	  	Property Condition Report	  	February 23, 2004
			
	 Carlisle SynTec
 Incorporated
	  	Roofing System Warranty Serial No. TS17003	  	 Effective
 July 8, 1998

			
	 Allied—Trent Roofing
 Systems, Inc.
	  	Material/ Workmanship Warranty Number C1136W	  	 Effective
 August 12, 1991

			
	 Joseph Dugan Inc.
	  	Letter Re: Water Infiltration	  	September 21, 1999

  

 H-1

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