Document:

exv10w1

Exhibit 10.1

January 5, 2011

STRICTLY CONFIDENTIAL

Mr. Brian M. Culley

Chief Executive Officer

Adventrx Pharmaceuticals Inc.

6725 Mesa Ridge Road

Suite 100

San Diego, CA 92121

Dear Mr. Culley:

     This letter (this “Agreement”) constitutes the agreement between Adventrx
Pharmaceuticals Inc. (the “Company”) and Rodman & Renshaw, LLC (“Rodman” or the
“Placement Agent”) that Rodman shall serve as the exclusive (i) placement agent for the
Company (“Direct Placement”) on a reasonable best efforts basis or (ii) underwriter for the
Company, on a firm commitment basis (“Underwritten Placement”), in connection with the
proposed reasonable best efforts placement or series of placements to occur during the term of this
Agreement (the “Placement”). The Placement shall consist of registered or unregistered
securities (the “Securities”) of the Company, which Securities may include one or any
combination of the following: shares of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), warrants to purchase shares of Common Stock (“Warrants”) or
securities of the Company convertible into shares of Common Stock of the Company “Convertible
Securities”). The terms of such Placement and the Securities shall be mutually agreed upon by
the Company, Rodman and, if a Direct Placement, the purchasers (each, a “Purchaser” and
collectively, the “Purchasers”) and nothing herein implies that Rodman would have the power
or authority to bind the Company or any Purchaser, and the Company shall not, and nothing herein
implies that the Company shall, have an obligation to issue any Securities or complete a Placement.
This Agreement and the documents executed and delivered by the Company and the Purchasers in
connection with a Placement shall be collectively referred to herein as the “Transaction
Documents.” The date of a closing of a Placement shall be referred to herein as the
“Closing Date.” The Company expressly acknowledges and agrees that the execution of this
Agreement does not constitute a commitment by Rodman or any Purchaser to purchase the Securities
and does not ensure the successful placement of the Securities or any portion thereof or the
success of Rodman with respect to securing any other financing on behalf of the Company. In the
event the Placement will consist of registered securities, the provisions of Annex A will
apply in addition to the provisions set forth herein.

     In the event that a Placement is an Underwritten Placement, prior to the commencement of the
Underwritten Placement, the Company shall negotiate the terms of an underwriting agreement with
Rodman, the starting point of which shall be Rodman’s standard form, modified as appropriate to
reflect the terms of an Underwritten Placement and containing such terms, covenants, conditions,
representations, warranties, and providing for the delivery of legal opinions, comfort letters and
officer’s certificates, all in form and substance satisfactory to Rodman and its counsel and the
Company.

     In the event that a Placement is a Direct Placement, the sale of Securities to any Purchaser
will be evidenced by a purchase agreement (“Purchase Agreement”) between the Company and
such Purchaser in a form reasonably satisfactory to the Company and Rodman. Prior to the signing
of any Purchase

Rodman & Renshaw, LLC o 1251 Avenue of the Americas, 20th Floor, New York, NY 10020

Tel: 212 356 0500 o Fax: 212 581 5690 o www.rodm.com o Member: FINRA, SIPC

 

 

Agreement, officers of the Company with responsibility for financial affairs will be available
to answer inquiries from prospective Purchasers.

     A. Fees. In connection with the Services described above, the Company shall pay to
Rodman the following compensation:

          1. Placement Agent’s Fee. The Company shall pay to Rodman a cash placement fee (the
“Placement Agent’s Fee”) equal to 6.5% of the aggregate purchase price paid by each
purchaser of Securities that are placed in a Placement during the Term. The Placement Agent’s Fee
shall be paid at the closing of the Placement (the “Closing”) from the gross proceeds of
the Securities sold.

          2. Warrants. As additional compensation for the Services, the Company shall issue to
Rodman or its designees at the Closing, warrants (the “Rodman Warrants”) to purchase that
number of shares of common stock of the Company (“Shares”) equal to 5% of the aggregate
number of Shares placed in the Placement, plus any Shares underlying any convertible Securities
sold in the Placement to such purchasers, but excluding shares underlying any warrants issued to
investors in the Placement. The Rodman Warrants shall have the same terms as the warrants issued
to investors (“Investors”) in the Placement, except that the exercise price shall be 125%
of the public offering price per share and they shall have an exercise period of five years from
the effective date of the shelf registration statement referred to in Section 2.A of Annex A,
attached hereto. If no warrants are issued to Investors, the Rodman Warrants shall have an
exercise price equal to 125% of the price at which Shares are issued to Investors, or, if no Shares
are issued, 125% of the current market price of the Shares on the Closing Date and an exercise
period of five years from the effective date of the shelf registration statement referred to in
Section 2.A of Annex A, attached hereto. If required by FINRA Rule 5110, the Rodman Warrants shall
not be transferable for six months from the date of the Placement, and further, the number of
Shares underlying the Rodman Warrants shall be reduced if necessary to comply with FINRA rules or
regulations.

     B. Term and Termination of Engagement. The term (the “Term”) of Rodman’s
engagement will begin on the date hereof and end on the earlier of the consummation of the
Placement or two business days after the receipt by either party hereto of written notice of
termination; provided that no such notice may be given by the Company for a period of 30 days after
the date hereof. Notwithstanding anything to the contrary contained herein, the provisions
concerning confidentiality, indemnification and contribution contained herein and the Company’s
obligations contained in Section H hereof will survive any expiration or termination of this
Agreement, and the Company’s obligation to pay fees actually earned and payable and
to reimburse expenses actually incurred and reimbursable pursuant to Section A hereof, if
any, will survive any expiration or termination of this Agreement, as permitted by FINRA Rule
5110(f)(2)(d). Upon any expiration or termination of this Agreement, the Company’s obligation to
reimburse Rodman for out of pocket accountable expenses actually incurred by Rodman and
reimbursable upon closing of the Placement pursuant to Section A, if any, or otherwise due under
Section A hereof, will survive any expiration or termination of this Agreement, as permitted by
FINRA Rule 5110(f)(2)(d).

     C. [Intentionally Omitted]

     D. Use of Information. The Company will furnish Rodman such written information as
Rodman reasonably requests in connection with the performance of its services hereunder. The
Company understands, acknowledges and agrees that, in performing its services hereunder, Rodman
will use and rely entirely upon such information as well as publicly available information
regarding the Company and other potential parties to an Placement and that Rodman does not assume
responsibility for independent verification of the accuracy or completeness of any information,
whether publicly available or otherwise

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furnished to it, concerning the Company or otherwise relevant to an Placement, including,
without limitation, any financial information, forecasts or projections considered by Rodman in
connection with the provision of its services.

     E. Confidentiality. In the event of the consummation or public announcement of any
Placement, Rodman shall have the right to disclose its participation in such Placement, including,
without limitation, the placement at its cost of “tombstone” advertisements in financial and other
newspapers and journals. Rodman agrees not to use any confidential information concerning the
Company provided to Rodman by the Company for any purposes other than those contemplated under this
Agreement.

     F. Securities Matters. The Company shall be responsible for any and all compliance
with the securities laws applicable to it, including Regulation D and the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, and unless
otherwise agreed in writing, all state securities (“blue sky”) laws. Rodman agrees to cooperate
with counsel to the Company in that regard.

     G. Company Acknowledgement. The Company acknowledges that the Placement of
convertible Securities may create significant risks, including the risk that the Company may have
insufficient cash resources and/or registered shares to timely meet its payment and conversion
obligations. The Company further acknowledges that, depending on the number and price of new
shares issued, such transaction may result in substantial dilution which could adversely affect the
market price of the Company’s shares.

     H. Indemnity.

          1. In connection with the Company’s engagement of Rodman as placement agent, the Company
hereby agrees to indemnify and hold harmless Rodman and its affiliates, and the respective
controlling persons, directors, officers, members, shareholders, agents and employees of any of the
foregoing (collectively the “Indemnified Persons”), from and against any and all claims, actions,
suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by
any of them (including the reasonable fees and expenses of counsel), as incurred, (collectively a
“Claim”), that are (A) related to or arise out of (i) any actions taken or omitted to be taken
(including any untrue statements made or any statements omitted to be made) by the Company, or (ii)
any actions taken or omitted to be taken by any Indemnified Person in connection with the Company’s
engagement of Rodman, or (B) otherwise relate to or arise out of Rodman’s activities on the
Company’s behalf under Rodman’s engagement, and the Company shall reimburse any Indemnified Person
for all expenses (including the reasonable fees and expenses of counsel) as incurred by such
Indemnified Person in connection with investigating, preparing or defending any such claim, action,
suit or proceeding, whether or not in connection with pending or threatened litigation in which any
Indemnified Person is a party. The Company will not, however, be responsible for any Claim that is
finally judicially determined to have resulted from the gross negligence or willful misconduct of
any person seeking indemnification for such Claim. The Company further agrees that no Indemnified
Person shall have any liability to the Company for or in connection with the Company’s engagement
of Rodman except for any Claim incurred by the Company as a result of such Indemnified Person’s
gross negligence or willful misconduct.

          2. The Company further agrees that it will not, without the prior written consent of Rodman,
settle, compromise or consent to the entry of any judgment in any pending or threatened Claim in
respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is
an actual or potential party to such Claim), unless such settlement, compromise or consent includes
an unconditional, irrevocable release of each Indemnified Person from any and all liability arising
out of such Claim.

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          3. Promptly upon receipt by an Indemnified Person of notice of any complaint or the assertion
or institution of any Claim with respect to which indemnification is being sought hereunder, such
Indemnified Person shall notify the Company in writing of such complaint or of such assertion or
institution but failure to so notify the Company shall not relieve the Company from any obligation
it may have hereunder, except and only to the extent such failure results in the forfeiture by the
Company of substantial rights and defenses. If the Company so elects or is requested by such
Indemnified Person, the Company will assume the defense of such Claim, including the employment of
counsel reasonably satisfactory to such Indemnified Person and the payment of the fees and expenses
of such counsel. In the event, however, that legal counsel to such Indemnified Person reasonably
determines that having common counsel would present such counsel with a conflict of interest or if
the defendant in, or target of, any such Claim, includes an Indemnified Person and the Company, and
legal counsel to such Indemnified Person reasonably concludes that there may be legal defenses
available to it or other Indemnified Persons different from or in addition to those available to
the Company, then such Indemnified Person may employ its own separate counsel to represent or
defend him, her or it in any such Claim and the Company shall pay the reasonable fees and expenses
of such counsel. Notwithstanding anything herein to the contrary, if the Company fails timely or
diligently to defend, contest, or otherwise protect against any Claim, the relevant Indemnified
Party shall have the right, but not the obligation, to defend, contest, compromise, settle, assert
crossclaims, or counterclaims or otherwise protect against the same, and shall be fully indemnified
by the Company therefor, including without limitation, for the reasonable fees and expenses of its
counsel and all amounts paid as a result of such Claim or the compromise or settlement thereof. In
addition, with respect to any Claim in which the Company assumes the defense, the Indemnified
Person shall have the right to participate in such Claim and to retain his, her or its own counsel
therefor at his, her or its own expense.

          4. The Company agrees that if any indemnity sought by an Indemnified Person hereunder is held
by a court to be unavailable for any reason then (whether or not Rodman is the Indemnified Person),
the Company and Rodman shall contribute to the Claim for which such indemnity is held unavailable
in such proportion as is appropriate to reflect the relative benefits to the Company, on the one
hand, and Rodman on the other, in connection with Rodman’s engagement referred to above, subject to
the limitation that in no event shall the amount of Rodman’s contribution to such Claim exceed the
amount of fees actually received by Rodman from the Company pursuant to Rodman’s engagement. The
Company hereby agrees that the relative benefits to the Company, on the one hand, and Rodman on the
other, with respect to Rodman’s engagement shall be deemed to be in the same proportion as (a) the
total value paid or proposed to be paid or received by the Company pursuant to the Placement
(whether or not consummated) for which Rodman is engaged to render services bears to (b) the fee
paid or proposed to be paid to Rodman in connection with such engagement.

          5. The Company’s indemnity, reimbursement and contribution obligations under this Agreement
(a) shall be in addition to, and shall in no way limit or otherwise adversely affect any rights
that any Indemnified Party may have at law or at equity and (b) shall be effective whether or not
the Company is at fault in any way.

     I. Limitation of Engagement to the Company. The Company acknowledges that Rodman has
been retained only by the Company, that Rodman is providing services hereunder as an independent
contractor (and not in any fiduciary or agency capacity) and that the Company’s engagement of
Rodman is not deemed to be on behalf of, and is not intended to confer rights upon, any
shareholder, owner or partner of the Company or any other person not a party hereto as against
Rodman or any of its affiliates, or any of its or their respective officers, directors, controlling
persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise
expressly agreed in writing by Rodman, no one other than the Company is authorized to rely upon
this Agreement or any other statements or conduct of Rodman, and no one other than the Company is
intended to be a beneficiary of this Agreement. The Company

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acknowledges that any recommendation or advice, written or oral, given by Rodman to the
Company in connection with Rodman’s engagement is intended solely for the benefit and use of the
Company’s management and directors in considering a possible Placement, and any such recommendation
or advice is not on behalf of, and shall not confer any rights or remedies upon, any other person
or be used or relied upon for any other purpose. Rodman shall not have the authority to make any
commitment binding on the Company. The Company, in its sole discretion, shall have the right to
reject any investor introduced to it by Rodman. The Company agrees that it will perform and comply
with the covenants and other obligations set forth in the purchase agreement (the “Purchase
Agreement”) and related transaction documents between the Company and the investors in the
Placement (collectively with the Purchase Agreement, the “Transaction Documents”) and that Rodman
will be entitled to rely on the representations, warranties, agreements and covenants of the
Company contained in such Transaction Documents as if such representations, warranties, agreements
and covenants were made directly to Rodman by the Company.

     J. Limitation of Rodman’s Liability to the Company. Rodman and the Company further
agree that neither Rodman nor any of its affiliates or any of its their respective officers,
directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act), employees or agents shall have any liability to the Company, its security
holders or creditors, or any person asserting claims on behalf of or in the right of the Company
(whether direct or indirect, in contract, tort, for an act of negligence or otherwise) for any
losses, fees, damages, liabilities, costs, expenses or equitable relief arising out of or relating
to this Agreement or the Services rendered hereunder, except for losses, fees, damages,
liabilities, costs or expenses that arise out of or are based on any action of or failure to act by
Rodman and that are finally judicially determined to have resulted solely from the gross negligence
or willful misconduct of Rodman.

     K. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to agreements made and to be fully performed
therein. Any disputes that arise under this Agreement, even after the termination of this
Agreement, will be heard only in the state or federal courts located in the City of New York, State
of New York. The parties hereto expressly agree to submit themselves to the jurisdiction of the
foregoing courts in the City of New York, State of New York. The parties hereto expressly waive any
rights they may have to contest the jurisdiction, venue or authority of any court sitting in the
City and State of New York. In the event of the bringing of any action, or suit by a party hereto
against the other party hereto, arising out of or relating to this Agreement, the party in whose
favor the final judgment or award shall be entered shall be entitled to have and recover from the
other party the costs and expenses incurred in connection therewith, including its reasonable
attorneys’ fees. Any rights to trial by jury with respect to any such action, proceeding or suit
are hereby waived by Rodman and the Company.

     L. Notices. All notices hereunder will be in writing and sent by certified mail, hand
delivery, overnight delivery or fax, if sent to Rodman, to Rodman & Renshaw, LLC, at the address
set forth on the first page hereof, fax number (646) 841-1640, Attention: General Counsel, and if
sent to the Company, to the address set forth on the first page hereof, fax number (858) 552-0876,
Attention: Chief Executive Officer. Notices sent by certified mail shall be deemed received five
days thereafter, notices sent by hand delivery or overnight delivery shall be deemed received on
the date of the relevant written record of receipt, and notices delivered by fax shall be deemed
received as of the date and time printed thereon by the fax machine.

     M. Miscellaneous. This Agreement shall not be modified or amended except in writing
signed by Rodman and the Company. This Agreement shall be binding upon and inure to the benefit of
both Rodman and the Company and their respective assigns, successors, and legal representatives.
This Agreement constitutes the entire agreement of Rodman and the Company with respect to this
Placement and supersedes any prior agreements with respect to the subject matter hereof. If any
provision of this
Agreement is determined to be invalid or unenforceable in any respect, such determination will
not affect such provision in any other respect, and the remainder of the Agreement shall remain in
full force and effect. This Agreement may be executed in counterparts (including facsimile
counterparts), each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

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     In acknowledgment that the foregoing correctly sets forth the understanding reached by Rodman
and the Company, please sign in the space provided below, whereupon this letter shall constitute a
binding Agreement as of the date indicated above.

	 	 	 	 	 
	 	Very truly yours,

RODMAN & RENSHAW, LLC

 	 
	 	By  	     /s/ John Borer
 	 
	 	 	Name:  	John Borer 	 
	 	 	Title:  	Head of IB, Senior  Managing Director 	 
	 

Accepted and Agreed:

ADVENTRX PHARMACEUTICALS INC.

	 	 	 

	By

	 	/s/ Brian M. Culley
	 

	 	 
	 

	 	Brian M. Culley
	 

	 	Chief Executive Officer

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Annex A

Additional Provisions With Respect to a Registered Placement

			
	SECTION 1.	 	[RESERVED]

			
	SECTION 2.	 	REGISTRATION STATEMENT.

     In the event that a Placement consists of registered Securities (whether a Direct Placement or
Underwritten Placement) off the Company’s registration statement on Form S-3 (Registration File No.
333-165691), the Company represents and warrants to, and agrees with, the Placement Agent that as
of the date of the Placement, as of the date of the Purchase Agreement and as of the closing date
of the Placement (the “Closing Date”):

     (A) The Company has filed with the Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (Registration File No. 333-165691) under
the Securities Act of 1933, as amended (the “Securities Act”), which became effective on
April 1, 2010, for the registration under the Securities Act of the Securities. At the time of such
filing, the Company met the requirements of Form S-3 under the Securities Act. Such registration
statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and
complies with said Rule. The Company will file with the Commission pursuant to Rule 424(b) under
the Securities Act, and the rules and regulations (the “Rules and Regulations”) of the
Commission promulgated thereunder, a supplement to the form of prospectus included in such
registration statement relating to the placement of the Securities and the plan of distribution
thereof and has advised the Placement Agent of all further information (financial and other) with
respect to the Company required to be set forth therein. Such registration statement, including the
exhibits thereto, as amended at the date of this Agreement, is hereinafter called the
“Registration Statement”; such prospectus in the form in which it appears in the
Registration Statement is hereinafter called the “Base Prospectus”; and the supplemented
form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule
424(b) (including the Base Prospectus as so supplemented) is hereinafter called the “Prospectus
Supplement.” Any reference in this Agreement to the Registration Statement, the Base Prospectus
or the Prospectus Supplement shall be deemed to refer to and include the documents incorporated by
reference therein (the “Incorporated Documents”) pursuant to Item 12 of Form S-3 which were
filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or
before the date of this Agreement, or the issue date of the Base Prospectus or the Prospectus
Supplement, as the case may be; and any reference in this Agreement to the terms “amend,”
“amendment” or “supplement” with respect to the Registration Statement, the Base Prospectus or the
Prospectus Supplement shall be deemed to refer to and include the filing of any document under the
Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or the
Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All
references in this Agreement to financial statements and schedules and other information which is
“contained,” “included,” “described,” “referenced,” “set forth” or “stated” in the Registration
Statement, the Base Prospectus or the Prospectus Supplement (and all other references of like
import) shall be deemed to mean and include all such financial statements and schedules and other
information which is or is deemed to be incorporated by reference in the Registration Statement,
the Base Prospectus or the Prospectus Supplement, as the case may be. No stop order suspending the
effectiveness of the Registration Statement or the use of the Base Prospectus or the Prospectus
Supplement has been issued, and no proceeding for any such purpose is pending or has been initiated
or, to the Company’s knowledge, is threatened by the Commission. For purposes of this Agreement,
“free writing prospectus” has the meaning set forth in Rule 405 under the Securities Act and the
“Time of Sale Prospectus” means the preliminary prospectus, if any, together with the free
writing prospectuses, if any, used in connection with the Placement, including any documents
incorporated by reference therein.

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     (B) The Registration Statement (and any further documents to be filed with the Commission)
contains all exhibits and schedules as required by the Securities Act. Each of the Registration
Statement and any post-effective amendment thereto, at the time it became effective, complied in
all material respects with the Securities Act and the Exchange Act and the applicable Rules and
Regulations and did not and, as amended or supplemented, if applicable, will not, contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading. The Base Prospectus, the Time of Sale
Prospectus, if any, and the Prospectus Supplement, each as of its respective date, comply in all
material respects with the Securities Act and the Exchange Act and the applicable Rules and
Regulations. Each of the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus
Supplement, as amended or supplemented, did not and will not contain as of the date thereof any
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. The
Incorporated Documents, when they were filed with the Commission, conformed in all material
respects to the requirements of the Exchange Act and the applicable Rules and Regulations, and none
of such documents, when they were filed with the Commission, contained any untrue statement of a
material fact or omitted to state a material fact necessary to make the statements therein (with
respect to Incorporated Documents incorporated by reference in the Base Prospectus or Prospectus
Supplement), in light of the circumstances under which they were made not misleading; and any
further documents so filed and incorporated by reference in the Base Prospectus, the Time of Sale
Prospectus, if any, or Prospectus Supplement, when such documents are filed with the Commission,
will conform in all material respects to the requirements of the Exchange Act and the applicable
Rules and Regulations, as applicable, and will not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. No post-effective amendment to the
Registration Statement reflecting any facts or events arising after the date thereof which
represent, individually or in the aggregate, a fundamental change in the information set forth
therein is required to be filed with the Commission. There are no documents required to be filed
with the Commission in connection with the transaction contemplated hereby that (x) have not been
filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time
period. There are no contracts or other documents required to be described in the Base Prospectus,
the Time of Sale Prospectus, if any, or Prospectus Supplement, or to be filed as exhibits or
schedules to the Registration Statement, which have not been described or filed as required.

     (C) The Company is eligible to use free writing prospectuses in connection with the Placement
pursuant to Rules 164 and 433 under the Securities Act. Any free writing prospectus that the
Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be,
filed with the Commission in accordance with the requirements of the Securities Act and the
applicable rules and regulations of the Commission thereunder. Each free writing prospectus that
the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or
that was prepared by or behalf of or used by the Company complies or will comply in all material
respects with the requirements of the Securities Act and the applicable rules and regulations of
the Commission thereunder. The Company will not, without the prior consent of the Placement Agent,
prepare, use or refer to, any free writing prospectus.

     (D) The Company has delivered, or will as promptly as practicable deliver, to the Placement
Agent complete conformed copies of the Registration Statement and of each consent and certificate
of experts, as applicable, filed as a part thereof, and conformed copies of the Registration
Statement (without exhibits), the Base Prospectus, the Time of Sale Prospectus, if any, and the
Prospectus Supplement, as amended or supplemented, in such quantities and at such places as the
Placement Agent reasonably requests. Neither the Company nor any of its directors and officers has
distributed and none of them will distribute, prior to the Closing Date, any offering material in
connection with the offering and sale of the Securities other than the Base Prospectus, the Time of
Sale Prospectus, if any, the Prospectus

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Supplement, the Registration Statement, copies of the documents incorporated by reference
therein and any other materials permitted by the Securities Act.

     In the event that a Direct Placement occurs off a registration statement other than the
Registration Statement, prior to the commencement of any such Placement, the Company shall make
written representations, warranties and covenants to Rodman as to such subsequent registration
statement (and other offering documents) that are substantially the same as the representations,
warranties and covenants made under this Section 2, which representations, warranties and covenants
shall be reasonably satisfactory to Rodman.

SECTION 3. REPRESENTATIONS AND WARRANTIES. Except as disclosed in the SEC Reports
(as defined below) or the Registration Statement, the Base Prospectus or the Prospectus Supplement,
the Company hereby makes the representations and warranties set forth below to the Placement Agent
as of the date of the Placement, as of the date of the Purchase Agreement and as of the Closing
Date.

     (A) Organization and Qualification. All of the direct and indirect subsidiaries
(individually, a “Subsidiary”) of the Company are set forth on Exhibit 21.1 to the
Company’s Annual Report on Form 10-K. filed with the Commission on March 18, 2010. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary
free and clear of any “Liens” (which for purposes of this Agreement shall mean a lien,
charge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction), and all the issued and outstanding shares of capital stock of each Subsidiary are
validly issued and are fully paid, non-assessable and free of preemptive and similar rights to
subscribe for or purchase securities. The Company and each of the Subsidiaries is an entity duly
incorporated or otherwise organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the requisite power and
authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any Subsidiary is in violation or default of any of the
provisions of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to
conduct business and is in good standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, could not reasonably be expected to result in (i) a material adverse effect on the
legality, validity or enforceability of any Transaction Document, (ii) a material adverse change in
the results of operations, assets, business, prospects or condition (financial or otherwise) of the
Company and the Subsidiaries, taken as a whole, from that set forth or incorporated by reference in
the Base Prospectus or the Prospectus Supplement, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a timely basis its obligations under any
Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no
“Proceeding” (which for purposes of this Agreement shall mean any action, claim, suit,
investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened) has been instituted in any such
jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and
authority or qualification.

     (B) Authorization; Enforcement. The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each of the Transaction
Documents and otherwise to carry out its obligations thereunder. The execution and delivery of
each of the Transaction Documents by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company, its board of directors or its stockholders in
connection therewith other than in connection with the “Required Approvals” (as defined in
subsection 3(D) below). Each Transaction Document has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the terms hereof and thereof, will
constitute the valid and binding obligation of the Company enforceable against the Company in
accordance with its terms except (i) as limited by general equitable principles and applicable

9

 

bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

     (C) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company, the issuance and sale of the Securities and the consummation by the
Company of the other transactions contemplated hereby and thereby do not and will not (i) conflict
with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a default)
under, result in the creation of any Lien upon any of the properties or assets of the Company or
any Subsidiary, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility,
debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other
understanding to which the Company or any Subsidiary is a party or by which any property or asset
of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals,
conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company or a
Subsidiary is subject (including federal and state securities laws and regulations), or by which
any property or asset of the Company or a Subsidiary is bound or affected; except in the case of
each of clauses (ii) and (iii), such as could not reasonably be expected to result in a Material
Adverse Effect.

     (D) Filings, Consents and Approvals. The Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other
“Person” (defined as an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind, including, without
limitation, any Trading Market) in connection with the execution, delivery and performance by the
Company of the Transaction Documents, other than (i) the filings required by the Purchase
Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) the filling of
application(s) to and approval by the NYSE Amex LLC for the listing of the Common Stock underlying
the Securities for trading thereon in the time and manner required thereby, (iv) the filing with
the Secretary of State of the State of Delaware of the Certificate of Designation with respect to
the Securities, as applicable, and (v) such filings as are required to be made under applicable
state securities laws and the rules and regulations of the Financial Industry Regulatory Authority
(FINRA) (collectively, the “Required Approvals”).

     (E) Issuance of the Securities; Registration. The Securities are duly authorized and,
when issued and paid for in accordance with the applicable Transaction Documents, will be duly and
validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents. The Company has
reserved from its duly authorized capital stock the maximum number of shares of Common Stock
issuable pursuant to the Transaction Documents on the date the Purchase Agreement is signed and as
of the Closing Date. The issuance by the Company of the Securities has been registered under the
Securities Act and all of the Securities are freely transferable and tradable by the purchasers
thereof without restriction (other than any restrictions arising solely from an act or omission of
such a purchaser). The Securities are being issued pursuant to the Registration Statement and the
issuance of the Securities has been registered by the Company under the Securities Act. The
Registration Statement is effective and available for the issuance of the Securities thereunder and
the Company has not received any notice that the Commission has issued or intends to issue a
stop-order with respect to the Registration Statement or that the Commission otherwise has
suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or
permanently, or intends or has threatened in writing to do so. The “Plan of Distribution” section
under the Registration Statement permits the issuance and sale of the Securities as contemplated by
the Purchase Agreement. Upon receipt of the Securities, such purchasers will have good and
marketable title to such Securities and the Common Stock underlying the Securities will be

10

 

freely tradable on the “Trading Market” (which, for purposes of this Agreement shall
mean means the following markets or exchanges on which the Common Stock is listed or quoted for
trading on the date in question: the Nasdaq Capital Market, the NYSE Amex, the New York Stock
Exchange, the Nasdaq National Market or the OTC Bulletin Board).

     (F) Capitalization. The capitalization of the Company is as set forth in the Base
Prospectus and Prospectus Supplement. The Company has not issued any capital stock since its most
recently filed periodic report under the Exchange Act, other than pursuant to the exercise of
employee stock options under the Company’s stock option plans, the issuance of shares of Common
Stock to employees pursuant to the Company’s employee stock purchase plan and pursuant to the
conversion or exercise of securities exercisable, exchangeable or convertible into Common Stock
(“Common Stock Equivalents”). No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Except (i) as a result of the purchase and sale of the Securities, (ii)
pursuant to the Company’s stock option plans, (iii) pursuant to agreements or instruments
(including that certain Rights Agreement, dated July 27, 2005, as amended (the “Rights
Agreement”)) filed as exhibits to SEC Reports incorporated by reference into the Prospectus
Supplement, there are no outstanding options, warrants, script rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe
for or acquire, any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to issue additional
shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will
not obligate the Company to issue shares of Common Stock or other securities to any Person (other
than the purchasers a party to the Purchase Agreement) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under such
securities. All of the outstanding shares of capital stock of the Company are validly issued, fully
paid and nonassessable, have been issued in compliance with all federal and state securities laws,
and none of such outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. Except for the Required Approvals, no further
approval or authorization of any stockholder, the Board of Directors of the Company or others is
required for the issuance and sale of the Securities. Other than the Rights Agreement, there are
no stockholders agreements, voting agreements or other similar agreements with respect to the
Company’s capital stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s stockholders.

     (G) SEC Reports; Financial Statements. The Company has complied in all material
respects with requirements to file all reports, schedules, forms, statements and other documents
required to be filed by it under the Securities Act and the Exchange Act, including pursuant to
Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period
as the Company was required by law to file such material) (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being collectively referred to
herein as the “SEC Reports”) on a timely basis or has received a valid extension of such
time of filing and has filed any such SEC Reports prior to the expiration of any such extension.
As of their respective dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and regulations of the
Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The financial statements of the Company included in the SEC
Reports comply in all material respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the time of filing or as amended
or corrected in a subsequent SEC Report. Such financial statements have been prepared in
accordance with United States generally accepted accounting principles applied on a consistent
basis during the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial statements may not
contain all footnotes required by GAAP, and fairly present in all material respects the financial
position of the Company and its

11

 

consolidated subsidiaries as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

     (H) Material Changes; Undisclosed Events, Liabilities or Developments. Since the date
of the latest audited financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event,
occurrence or development that has had or that could reasonably be expected to result in a Material
Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other
than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii)
the Company has not altered its method of accounting, (iv) except in connection with the Company’s
5% Series B Convertible Preferred Stock, 5% Series C Convertible Preferred Stock, 4.25660% Series D
Convertible Preferred Stock, 3.73344597664961% Series E Convertible Preferred Stock and
2.19446320054018% Series F Convertible Preferred Stock, the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or purchased, redeemed or
made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has
not issued any equity securities to any officer, director or “Affiliate” (defined as any
Person that, directly or indirectly through one or more intermediaries, controls or is controlled
by or is under common control with a Person, as such terms are used in and construed under Rule 144
under the Securities Act), except pursuant to existing Company stock option plans. The Company
does not have pending before the Commission any request for confidential treatment of information.
Except for the issuance of the Securities contemplated by the Purchase Agreement, no event,
liability or development has occurred or exists with respect to the Company or its Subsidiaries or
their respective business, properties, operations or financial condition, that would be required to
be disclosed by the Company under applicable securities laws at the time this representation is
deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this
representation is deemed made.

     (I) Litigation. There is no action, suit, inquiry, notice of violation, Proceeding or
investigation pending or, to the knowledge of the Company, threatened against or affecting the
Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or
foreign) (collectively, an “Action”) which (i) adversely affects or challenges the
legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii)
could, if there were an unfavorable decision, reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any Subsidiary, nor, to the knowledge of the Company, any
director or officer thereof, is or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the knowledge of the Company, there is not pending or
contemplated, any investigation by the Commission involving the Company or any current or former
director or officer of the Company. The Commission has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company or any Subsidiary
under the Exchange Act or the Securities Act. None of the Company’s or its Subsidiaries’ employees
is a member of a union that relates to such employee’s relationship with the Company, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their employees are good. No
executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of
any material term of any employment contract, confidentiality, disclosure or proprietary
information agreement or non-competition agreement, or any other contract or agreement or any
restrictive covenant, and the continued employment of each such executive officer does not subject
the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local
and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in

12

 

compliance could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     (J) Labor Relations. No material labor dispute exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company which could reasonably be
expected to result in a Material Adverse Effect.

     (K) Compliance. Neither the Company nor any Subsidiary (i) is in default under or in
violation of (and no event has occurred that has not been waived that, with notice or lapse of time
or both, would result in a default by the Company or any Subsidiary under), nor has the Company or
any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body,
or (iii) is or has been in violation of any statute, rule or regulation of any governmental
authority, including without limitation all foreign, federal, state and local laws relating to
taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as could not reasonably be expected to result in
a Material Adverse Effect.

     (L) Regulatory Permits. The Company and the Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate federal, state, local or foreign regulatory
authorities necessary to conduct their respective businesses as described in the SEC Reports, the
Registration Statement, the Base Prospectus and the Prospectus Supplement, except where the failure
to possess such permits could not reasonably be expected to result in a Material Adverse Effect
(“Material Permits”), and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material Permit. For clarity, the
Company has not received the approval of any regulatory agency to market any of its product
candidates.

     (M) Title to Assets. The Company and the Subsidiaries have good and marketable title
in fee simple to all real property owned by them that is material to the business of the Company
and the Subsidiaries and good and marketable title in all personal property owned by them that is
material to the business of the Company and the Subsidiaries, in each case free and clear of all
Liens, except for Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and
the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which
is neither delinquent nor subject to penalties. Any real property and facilities held under lease
by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases
of which the Company and the Subsidiaries are in compliance, except where such non-compliance would
not reasonably be expected to have a Material Adverse Effect.

     (N) Patents and Trademarks. The Company and the Subsidiaries have, or have rights to
use, all patents, patent applications, trademarks, trademark applications, service marks, trade
names, trade secrets, inventions, copyrights, licenses and other similar intellectual property
rights necessary or material for use in connection with their respective businesses as described in
the SEC Reports, the Registration Statement, the Base Prospectus and the Prospectus Supplement and
which the failure to so have could reasonably be expected to have a Material Adverse Effect
(collectively, the “Intellectual Property Rights”). Neither the Company nor any Subsidiary
has received, since the date of the latest audited financial statements included within the SEC
Reports, a notice (written or otherwise) that the Intellectual Property Rights violate or infringe
upon the rights of any Person, except as would not have a Material Adverse Effect. To the
knowledge of the Company, all such Intellectual Property Rights are enforceable (other than patent
and trademark applications) and there is no existing infringement by another Person of any of the
Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

13

 

     (O) Insurance. The Company and the Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent and
customary for companies of similar size as the Company in the businesses in which the Company and
the Subsidiaries are engaged, including, but not limited to, directors and officers insurance
coverage. To the knowledge of the Company, such insurance contracts and policies are accurate and
complete. Neither the Company nor any Subsidiary has any reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business without a
significant increase in cost.

     (P) Transactions With Affiliates and Employees. Except as set forth in the SEC
Reports, the Registration Statement, the Base Prospectus or the Prospectus Supplement, none of the
officers or directors of the Company and, to the knowledge of the Company, none of the employees of
the Company is presently a party to any transaction with the Company or any Subsidiary (other than
for services as employees, officers and directors), including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or
such employee or, to the knowledge of the Company, any entity in which any officer, director, or
any such employee has a substantial interest or is an officer, director, trustee or partner, in
each case in excess of $120,000, other than (i) for payment of salary or consulting fees for
services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) for
other employee benefits, including stock option agreements under any stock option plan of the
Company.

     (Q) Sarbanes-Oxley. Except as disclosed in the SEC Reports, the Registration
Statement, the Base Prospectus or the Prospectus Supplement, the Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the date the
Purchase Agreement is signed and of the Closing Date.

     (R) Certain Fees. Except as otherwise provided in this Agreement, no brokerage or
finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents. The investors in the Placement shall have
no obligation with respect to any fees or with respect to any claims made by or on behalf of other
Persons for fees of a type contemplated in this Section that may be due in connection with the
transactions contemplated by the Transaction Documents.

     (S) Trading Market Rules. The issuance and sale of the Securities under the Purchase
Agreement does not contravene the rules and regulations of the Trading Market.

     (T) Investment Company. The Company is not, and is not an Affiliate of, and
immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an
“investment company” within the meaning of the Investment Company Act of 1940, as amended. The
Company currently intends to conduct its business in a manner so that it will not become subject to
the Investment Company Act.

     (U) Registration Rights. No Person has any right to cause the Company to effect the
registration under the Securities Act of any securities of the Company.

     (V) Listing and Maintenance Requirements. The Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or
which to its knowledge is likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has the Company received any notification that the Commission is
contemplating terminating such registration. Except as disclosed in the SEC Reports, the
Registration Statement, the Base Prospectus or the Prospectus Supplement, the Company has not, in
the 12 months preceding the date hereof, received notice from any Trading Market on which the
Common Stock is or has been listed or quoted to the
effect that the Company is not in compliance with the listing or maintenance requirements of
such Trading Market.

14

 

     (W) Application of Takeover Protections. Except as set forth in the Registration
Statement, the Base Prospectus or the Prospectus Supplement, the Company and its Board of Directors
have taken all necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under a rights
agreement) or other similar anti-takeover provision under the Company’s Certificate of
Incorporation (or similar charter documents) or the laws of its state of incorporation that is or
could become applicable to the purchasers in the Placement as a result such purchasers and the
Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Securities and such
purchasers’ ownership of the Securities.

     (X) Solvency. Based on the financial condition of the Company as of the Closing Date
after giving effect to the receipt by the Company of the proceeds from the sale of the Securities
pursuant to the Purchase Agreement, (i) the Company’s fair saleable value of its assets exceeds the
amount that will be required to be paid on or in respect of the Company’s existing debts and other
liabilities (including known contingent liabilities) as they mature and (ii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to liquidate all of
its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay
all amounts on or in respect of its debt when such amounts are required to be paid. Within one
year of the Closing Date, the Company does not intend to incur debts beyond its ability to pay such
debts as they mature (taking into account the timing and amounts of cash to be payable on or in
respect of its debt). The SEC Reports set forth as of the dates thereof all outstanding secured
and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any
Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” shall mean
(a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than accrued
liabilities and trade accounts payable incurred in the ordinary course of business), (b) all
guaranties, endorsements and other contingent obligations in respect of indebtedness of others,
whether or not the same are or should be reflected in the Company’s balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; and (c) the present value of any lease
payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP.
Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

     (Y) Tax Status. Except for matters that would not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect, the Company and each
Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and
has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax
deficiency which has been asserted or threatened against the Company or any Subsidiary.

     (Z) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly,
used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related
to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political parties or campaigns from
corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by
any person acting on its behalf of which the Company is aware) which is in violation of law, or
(iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977,
as amended.

     (AA) Accountants. The Company’s accountants are J.H. Cohn LLP. To the knowledge of
the Company, such accountants, who the Company expects will express their opinion with respect to
the financial statements to be included in the Company’s next Annual Report on Form 10-K, which
opinion may include a “going concern” qualification,” are a registered public accounting firm as
required by the Securities Act.

     (BB) Regulation M Compliance. The Company has not, and to its knowledge no one acting
on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in
the stabilization or

15

 

manipulation of the price of any security of the Company to facilitate the sale or resale of
any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting
purchases of, any of the Securities or (iii) paid or agreed to pay to any person any compensation
for soliciting another to purchase any other securities of the Company, other than, in the case of
clauses (ii) and (iii), compensation paid to the Placement Agent in connection with the placement
of the Securities.

     (CC) Approvals. The issuance and listing on the NYSE Amex of the Common Stock
underlying the Securities requires no further approvals, including but not limited to, the approval
of shareholders, other than the filling of application(s) to and approval by the NYSE Amex for the
listing of the Common Stock underlying the Securities for trading thereon in the time and manner
required thereby.

     (DD) FINRA Affiliations. There are no affiliations with any FINRA member firm
among the Company’s officers, directors or, to the knowledge of the Company, any five percent (5%)
or greater stockholder of the Company, except as set forth in the Registration Statement, the Base
Prospectus or the Prospectus Supplement.

SECTION 4. CLOSING. The obligations of the Placement Agent and the purchasers in
the Placement, and the closing of the sale of the Securities pursuant to the Purchase Agreement are
subject to the accuracy, when made and on the Closing Date, of the representations and warranties
on the part of the Company and its Subsidiaries contained herein, to the accuracy of the statements
of the Company and its Subsidiaries made in any certificates pursuant to the provisions hereof, to
the performance by the Company and its Subsidiaries of their obligations hereunder, and to each of
the following additional terms and conditions:

     (A) No stop order suspending the effectiveness of the Registration Statement shall have been
issued and no proceedings for that purpose shall have been initiated or threatened by the
Commission, and any request for additional information on the part of the Commission (to be
included in the Registration Statement, the Base Prospectus or the Prospectus Supplement or
otherwise) shall have been complied with to the reasonable satisfaction of the Placement Agent.

     (B) The Placement Agent shall not have discovered and disclosed to the Company on or prior to
the Closing Date that the Registration Statement, the Base Prospectus or the Prospectus Supplement
or any amendment or supplement thereto contains an untrue statement of a fact which, in the opinion
of counsel for the Placement Agent, is material or omits to state any fact which, in the opinion of
such counsel, is material and is required to be stated therein or is necessary to make the
statements therein not misleading.

     (C) All corporate proceedings and other legal matters incident to the authorization, form,
execution, delivery and validity of each of the Purchase Agreement, the Securities, the
Registration Statement, the Base Prospectus and the Prospectus Supplement and all other legal
matters relating to the Purchase Agreement and the transactions contemplated thereby shall be
reasonably satisfactory in all material respects to counsel for the Placement Agent, and the
Company shall have furnished to such counsel all documents and information that they may reasonably
request to enable them to pass upon such matters.

     (D) The Placement Agent shall have received from outside counsel to the Company such counsel’s
written opinion, addressed to the Placement Agent and the purchasers in the Placement dated as of
the Closing Date, in form and substance reasonably satisfactory to the Placement Agent, which
opinion shall include a “10b-5” representation from such counsel.

     (E) Neither the Company nor any of its Subsidiaries shall have sustained since the date of the
latest audited financial statements included or incorporated by reference in the Base Prospectus,
any loss

16

 

or interference with its business from fire, explosion, flood, terrorist act or other
calamity, whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth in or contemplated by the Base Prospectus and
(ii) since such date, other than in connection with the conversion or exercise of securities
outstanding as of such date and a reverse stock split, which was effective as of April 23, 2010,
there shall not have been any change in the capital stock or long-term debt of the Company or any
of its Subsidiaries or any change, or any development involving a prospective change, in or
affecting the business, general affairs, management, financial position, stockholders’ equity,
results of operations or prospects of the Company and its Subsidiaries, otherwise than as set forth
in or contemplated by the Base Prospectus, the effect of which, in any such case described in
clause (i) or (ii), is, in the judgment of the Placement Agent, so material and adverse as to make
it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms
and in the manner contemplated by the Base Prospectus, the Time of Sale Prospectus, if any, and the
Prospectus Supplement.

     (F) The Common Stock is registered under the Exchange Act and, as of the Closing Date, the
Common Stock underlying the Securities shall be listed and admitted and authorized for trading on
the NYSE Amex, and, upon request, satisfactory evidence of such actions shall have been provided to
the Placement Agent. The Company shall have taken no action designed to, or likely to have the
effect of terminating the registration of the Common Stock under the Exchange Act or delisting or
suspending from trading the Common Stock from the NYSE Amex, nor has the Company received any
information suggesting that the Commission or the NYSE Amex is contemplating terminating such
registration or listing.

     (G) Subsequent to the execution and delivery of the Purchase Agreement, there shall not have
occurred any of the following: (i) trading in securities generally on the New York Stock Exchange,
the Nasdaq National Market or the NYSE Amex or in the over-the-counter market, or trading in any
securities of the Company on any exchange or in the over-the-counter market, shall have been
suspended or minimum or maximum prices or maximum ranges for prices shall have been established on
any such exchange or such market by the Commission, by such exchange or by any other regulatory
body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been
declared by federal or state authorities or a material disruption has occurred in commercial
banking or securities settlement or clearance services in the United States, (iii) the United
States shall have become engaged in hostilities in which it is not currently engaged, the subject
of an act of terrorism, there shall have been an escalation in hostilities involving the United
States, or there shall have been a declaration of a national emergency or war by the United States,
or (iv) there shall have occurred any other calamity or crisis or any change in general economic,
political or financial conditions in the United States or elsewhere, if the effect of any such
event in clause (iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable
or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the
manner contemplated by the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus
Supplement.

     (H) No action shall have been taken and no statute, rule, regulation or order shall have been
enacted, adopted or issued by any governmental agency or body which would, as of the Closing Date,
prevent the issuance or sale of the Securities or materially and adversely affect or potentially
and adversely affect the business or operations of the Company; and no injunction, restraining
order or order of any other nature by any federal or state court of competent jurisdiction shall
have been issued as of the Closing Date which would prevent the issuance or sale of the Securities
or materially and adversely affect or potentially and adversely affect the business or operations
of the Company.

     (I) The Company shall have prepared and filed with the Commission a Current Report on Form 8-K
with respect to the Placement, including as an exhibit thereto this Agreement.

17

 

     (J) The Company shall have entered into a Purchase Agreement with each of the purchasers in
the Placement and such agreements shall be in full force and effect and shall contain
representations and warranties of the Company as agreed between the Company and such purchasers.

     (K) FINRA shall have raised no objection to the fairness and reasonableness of the terms and
arrangements of this Agreement. In addition, the Company shall, if requested by the Placement
Agent, make or authorize Placement Agent’s counsel to make on the Company’s behalf, an Issuer
Filing with FINRA pursuant to FINRA Rule 5110 with respect to the Registration Statement and pay
all filing fees required in connection therewith.

     (L) Prior to the Closing Date, the Company shall have furnished to the Placement Agent
such further information, certificates and documents as the Placement Agent may reasonably request.

     All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Placement Agent.

18exv10w1

EXHIBIT 10.1

CHANGE IN CONTROL SEVERANCE AGREEMENT

     THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”) is made and entered into as of
the ___ day of ________________, 20__, by and between COUSINS PROPERTIES INCORPORATED, a Georgia
corporation (the “Company”), and [________________________] (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive is the [________________________] of the Company;

     [WHEREAS, Executive and the Company entered into a Change in Control Severance Agreement dated
____________________, as amended on ____________________, (“Prior Severance Agreement”) and
Executive and the Company desire to amend and restate the Prior Severance Agreement with this
Agreement;]

     WHEREAS, the Company wishes to provide to Executive certain benefits under certain
circumstances following a Change in Control (as defined herein) of the Company as set forth in this
Agreement; and

     WHEREAS, the parties to this Agreement wish to provide for certain other matters as set forth
herein;

     NOW, THEREFORE, in consideration of the mutual agreements of the parties set forth in this
Agreement and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

     1.1 “Annual Base Salary” shall mean Executive’s annual base salary in effect on
the day before Executive’s employment with the Company terminates in accordance with the
provisions of Section 2.1 or 2.4 hereof; provided, that “Annual Base Salary” shall
not include the value of any stock option, restricted stock or restricted stock unit grants
made by the Company to Executive, or any dividends, or dividend equivalents, paid with
respect thereto, in any calendar year, any income realized by Executive in any calendar year
as a result of the exercise of any such stock options or the lapse of any restrictions on
such restricted stock or restricted stock unit grants, or any payments made to Executive in
any calendar year pursuant to any long term cash based bonus program.

     1.2 “Average Bonus” shall mean (i) the sum of the annual bonuses that were paid
by the Company to Executive during the three (3) years immediately prior to the date
Executive’s employment with the Company terminates in accordance with the provisions of
Section 2.1 or 2.4 hereof; divided by (ii) the number of bonuses Executive was eligible to
receive during such period; provided, that “Average Bonus” shall not include the
value of

 

 

any stock option, restricted stock or restricted stock unit grants made by the Company to
Executive, or any dividends, or dividend equivalents, paid with respect thereto, in any
calendar year, or any income realized by Executive in any calendar year as a result of the
exercise of any such stock options or the lapse of any restrictions on such restricted stock
or restricted stock unit grants, or any payments made to Executive in any calendar year
pursuant to any long term cash based bonus program.

     1.3 “Board” shall mean the board of directors of the Company.

     1.4 “Cause” shall mean the occurrence of any of the following:

     (i) Executive is convicted of, or pleads guilty to, any felony or any
misdemeanor involving fraud, misappropriation or embezzlement, or Executive
confesses or otherwise admits to the Company, any of its subsidiaries or affiliates,
any officer, agent, representative or employee of the Company or one of its
subsidiaries or affiliates, or to a prosecutor, or otherwise publicly admits, to
committing any action that constitutes a felony or any act of fraud,
misappropriation, or embezzlement; or

     (ii) There is any material act or omission by Executive involving malfeasance
or gross negligence in the performance of Executive’s duties to the Company or any
of its subsidiaries or affiliates to the material detriment of the Company or any of
its subsidiaries or affiliates; or

     (iii) Executive breaches in any material respect any other agreement or
understanding between Executive and the Company in effect as of the time of such
termination;

provided, however, that no such act or omission or event shall be treated as “Cause”
under this Agreement unless:

     (a) Executive has been provided a detailed, written statement of the
basis for Company’s belief that such act or omission or event constitutes
“Cause” and an opportunity to meet with the Compensation Committee (together
with Executive’s counsel if Executive chooses to have counsel present at
such meeting) after Executive has had a reasonable period in which to review
such statement; and

     (b) The Compensation Committee after meeting with Executive (unless
Executive refuses the opportunity for such meeting) determines reasonably
and in good faith and by the affirmative vote of at least a majority of the
members of the Compensation Committee then in office at a meeting called and
held for such purpose that “Cause” does exist under this Agreement.

2

 

     1.5 “Change in Control” shall mean any one of the following events or
transactions:

     (i) any “person” (as that term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (“1934 Act”)) after May 12, 2009 becomes
the beneficial owner (as defined in Rule 13d-3 under the 1934 Act) directly or
indirectly, of securities representing 30% or more of the combined voting power for
election of directors of the then outstanding securities of the Company or any
successor to the Company; provided, however, the following transactions shall not
constitute a Change of Control under this § 1.5(i):

     (A) any acquisition of such securities by any employee benefit plan (or
a related trust) sponsored or maintained by the Company or any corporation
controlled by the Company,

     (B) an acquisition of voting securities by the Company or by any person
owned, directly or indirectly, by the holders of at least 50% of the voting
power of the Company’s then outstanding securities in substantially the same
proportions as their ownership in Company shares,

     (C) any acquisition of voting securities in a transaction which
satisfies the requirements of § 1.5(v)(A), §1.5(v)(B) and § 1.5(v)(C), or

     (D) any acquisition directly from the Company;

     (ii) during any period of two consecutive years or less, individuals who at the
beginning of such period constitute the Board cease for any reason after May 12,
2009 to constitute at least a majority of the Board, unless the election or
nomination for election of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning
of the period;

     (iii) the shareholders of the Company after May 12, 2009 approve any
dissolution or liquidation of the Company;

     (iv) the consummation of a sale or other disposition of all or substantially
all of the assets of the Company, other than a transaction (A) in which the
Company’s voting securities outstanding before the consummation of the transaction
continue to represent, either directly or indirectly, at least 51% of the voting
power of the surviving entity immediately after the transaction, (B) where at least
50% of the directors of the surviving entity were Company directors at the time the
Board approved the transaction (or whose nominations or elections were approved by
at least two-thirds of the Company directors who were on the Board at that time),
and (C) after which no person or group owns 20% or more of the voting power of the
surviving entity, unless such voting power is

3

 

solely as a result of voting power held in the Company prior to the
consummation of the transaction; or

     (v) consummation by the Company of (1) any consolidation, merger,
reorganization or business combination, or (2) the acquisition of assets or stock in
another entity, in each case, other than a transaction (A) in which the Company’s
voting securities outstanding before the consummation of the transaction continue to
represent, either directly or indirectly, at least 51% of the voting power of the
surviving entity immediately after the transaction, (B) where at least 50% of the
directors of the surviving entity were Company directors at the time the Board
approved the transaction (or whose nominations or elections were approved by at
least two-thirds of the Company directors who were on the Board at that time), and
(C) after which no person or group owns 20% or more of the voting power of the
surviving entity, unless such voting power is solely as a result of voting power
held in the Company prior to the consummation of the transaction.

     1.6 “Code” shall mean the Internal Revenue Code of 1986, as amended.

     1.7 “Company’s Business” shall mean the business of the development,
acquisition, financing, management, leasing and sale of real estate properties, including
office, multi-family, retail, industrial and land development.

     1.8 “Compensation Committee” shall mean the Compensation, Succession,
Nominating and Governance Committee of the Company’s Board.

     1.9 “Disability” shall mean that Executive, as a result of a mental or physical
condition or illness, is unable to perform the essential functions of Executive’s position
at the Company for any consecutive 180-day period, even with reasonable accommodation, all
as reasonably determined by the Compensation Committee, in accordance with Section 409A of
the Code.

     1.10 “Disabled” shall mean that Executive has suffered a Disability.

     1.11 “Effective Date” shall mean the day and year first set forth above.

     1.12 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     1.13 “Good Reason” shall mean:

     (i) There is a reduction after a Change in Control, but before the end of
Executive’s Protection Period, in Executive’s Annual Base Salary or there is a
reduction after a Change in Control, but before the end of Executive’s Protection
Period, in Executive’s eligibility to receive any annual bonuses or other incentive
compensation, such that Executive’s eligibility to receive such bonuses or other

4

 

incentive compensation is substantially different than it was immediately prior
to such Change in Control, all without Executive’s express written consent; or

     (ii) There is a significant reduction after a Change in Control, but before the
end of Executive’s Protection Period, in the scope of Executive’s duties,
responsibilities, or authority, or a change in Executive’s reporting level by more
than two levels (in each case, other than as a result of a mere change in
Executive’s title, if such change in title is consistent with the organizational
structure of the Company or its successor following such Change in Control), all
without Executive’s express written consent; or

     (iii) The Company or any successor thereto, at any time after a Change in
Control, but before the end of Executive’s Protection Period (without Executive’s
express written consent), transfers Executive’s primary work site from Executive’s
primary work site on the date of such Change in Control or, if Executive
subsequently consents in writing to such a transfer under this Agreement, from the
primary work site that was the subject of such consent, to a new primary work site
that is more than thirty-five (35) miles from Executive’s then current primary work
site, unless such new primary work site is closer to Executive’s primary residence
than Executive’s then current primary work site; or

     (iv) The Company or any successor thereto, after a Change in Control, but
before the end of Executive’s Protection Period (without Executive’s express written
consent), fails to continue to provide to Executive health and welfare benefits,
deferred compensation benefits, executive perquisites (other than the use of a
company airplane for personal purposes), stock options, restricted stock and
restricted stock unit grants, each as applicable at the time of such Change in
Control, that are in the aggregate comparable in value to those provided to
Executive immediately prior to the Change in Control;

provided, however, that no such act or omission shall be treated as “Good
Reason” under this Section 1.13 if Executive has refused a bona fide offer of continued
employment with the Company, a subsidiary or affiliate thereof or the Company’s successor
following the Change in Control, the terms of which offer would not amount to Good Reason in
accordance with (i) through (iv) above; and

further provided, that no such act or omission shall be treated as “Good
Reason” under this Section 1.13 unless:

     (a) (1) Executive delivers to the Compensation Committee a detailed,
written statement of the basis for Executive’s belief that such act or
omission constitutes Good Reason; and

          (2) Executive delivers such statement before the later of (i) the end
of the ninety (90) day period that starts on the date there is an act or
omission which forms the basis for Executive’s belief that Good

5

 

Reason exists, or (ii) the end of the period mutually agreed upon for
purposes of this subsection (a)(2) in writing by Executive and the Chairman
of the Compensation Committee; and

          (3) Executive gives the Compensation Committee a thirty (30) day period
after the delivery of such statement to cure the basis for such belief; and

          (4) Executive resigns by submitting a written resignation to the
Compensation Committee during the sixty (60) day period that begins
immediately after the end of the thirty (30) day period described in
subsection (a)(3) above if Executive reasonably and in good faith determines
that Good Reason continues to exist after the end of such thirty (30) day
period; or

     (b) The Company states in writing to Executive that Executive has the
right to treat any such act or omission as Good Reason under this Agreement
and Executive resigns during the sixty (60) day period that starts on the
date such statement is actually delivered to Executive.

     (vi) If Executive consents in writing to any reduction described in Section
1.13(i) or (ii), to any transfer described in Section 1.13(iii) or to any failure
described in Section 1.13(iv) in lieu of exercising Executive’s right to resign for
Good Reason and delivers such consent to the Company, the date such consent is
delivered to Company thereafter shall be treated under this definition as the date
of a Change in Control for purposes of determining whether Executive subsequently
has Good Reason under this Agreement to resign under Section 2 as a result of any
subsequent reduction described in Section 1.13(i) or (ii), any subsequent transfer
described in Section 1.13(iii) or any subsequent failure described in Section
1.13(iv).

     1.14 “Protection Period” shall mean the two (2) year period which begins upon
the date of a Change in Control; provided, however, a resignation by
Executive shall be treated under this Agreement as if made during Executive’s Protection
Period if:

     (i) Executive gives the Compensation Committee the statement described in
subsection (a)(1) of the second proviso of Section 1.13 prior to the end of the
thirty (30) day period that immediately follows the end of the Protection Period and
Executive thereafter resigns within the period described in such subsection (a); or

     (ii) Company provides the statement to Executive described in subsection (b)
of the second proviso of Section 1.13 prior to the end of the thirty (30) day
period that immediately follows the end of the Protection Period and Executive
thereafter resigns within the period described in such subsection (b).

6

 

     1.15 “Protective Covenant Agreement” shall mean the Protective Covenant
Agreement, substantially in the form attached hereto as Exhibit A and incorporated
herein by reference, as the same may be updated following the date hereof.

     1.16 “Waiver and Release” shall mean the Waiver and Release attached hereto as
Exhibit B and incorporated herein by reference.

     2. Change in Control.

     2.1 General Rule. If there is a Change in Control and during the Executive’s
Protection Period either (i) the Company or its successor terminates Executive’s employment
without Cause or (ii) Executive terminates Executive’s employment by resigning for Good
Reason, then:

     (i) The Company shall pay Executive an amount equal to ________ ____ (__) times
the sum of (a) Executive’s Annual Base Salary plus (b) Executive’s Average Bonus.
Such payment shall (subject to Section 4) be made in full in accordance with the
provisions of this Agreement on the date set forth in Section 2.2. For the
avoidance of doubt, such payment may be apportioned between and actually paid on the
payrolls of the Company and its subsidiaries and affiliates, as determined by the
Company in its sole discretion.

     (ii) Subject to Section 2.3(i) and (ii), from the date of such termination of
Executive’s employment until the end of Executive’s Protection Period, the Company
shall continue to provide coverage and benefits to Executive and his dependents
under the Company’s health plans for employees, as the same may change from time to
time as determined by the Company in its sole discretion; provided, however, that
for the period that begins on the date Executive’s employment terminates and ends
six (6) months and one (1) day after the date Executive separates from service
(within the meaning of Section 409A of the Code) (“Reimbursement Period”) Executive
shall pay 100% of the cost of such coverage and the Company shall reimburse
Executive for the Company’s portion of such cost as soon as practical after
Executive pays such cost. Further, if the Company determines, within its sole
discretion, that it cannot reasonably provide such coverage and benefits under the
Company’s health plans, the Company either shall use its best efforts to purchase
health insurance coverage for Executive outside such plans at no additional expense
or tax liability to Executive (with Executive paying 100% of the cost of such
coverage and any tax liability and the Company reimbursing Executive for such tax
liability and the Company’s portion of such coverage as soon as practical after
Executive pays such costs) or shall reimburse Executive for Executive’s cost to
purchase such coverage and for any tax liability for such reimbursements.

     2.2. Protective Covenant Agreement; Waiver and Release. The Company’s
obligations to pay any benefits or make any payments or take any actions under this
Agreement are expressly conditioned on the Company’s receipt of each of the following: (i)
an effective Protective Covenant Agreement duly executed by Executive, (ii) an

7

 

effective Waiver and Release that has been duly executed and delivered by Executive (or his
estate or other legal representative pursuant to Section 2.5(ii) hereof) and has not been
revoked within the applicable revocation period, and (iii) Executive’s full compliance with
the terms of the Protective Covenant Agreement and the Waiver and Release. A breach of any
covenant in the Protective Covenant Agreement or any term of the Waiver and Release by
Executive shall result in the immediate forfeiture of Executive’s right to any future
benefits or payments under this Agreement, the immediate forfeiture of Executive’s right to
retain the portion of Executive’s benefits or payments that Executive has already received
under this Agreement, and an obligation on Executive to repay promptly to the Company all
benefits or payments Executive has already received under this Agreement. Notwithstanding
the foregoing, if any repayment obligation is deemed to be in the nature of damages, which
is contrary to the intent of the parties, then the repayment by Executive of the benefits
and payments Executive has already received under this Agreement shall be treated as
liquidated damages and not as a penalty and shall represent a reasonable estimate of the
damages suffered by the Company as a result of Executive’s breach. The Company shall
provide such Protective Covenant Agreement and Waiver and Release within the five day period
immediately following the date Executive separates from service (within the meaning of
Section 409A of the Code). The payment and benefits under the Agreement shall (subject to
the six month and one day rule in Section 4) be made on or commence (as applicable) on the
sixtieth (60th) day after the date Executive separates from service (unless an
earlier date is permissible under Section 409A of the Code) provided the Protective Covenant
Agreement and the Waiver and Release have been executed and become irrevocable on or before
such date. If the Protective Covenant Agreement is not executed or the Waiver and Release
is not executed and irrevocable on or before the end of the sixty (60) day period
immediately following Executive’s separation from service (within the meaning of Section
409A of the Code), Executive’s right to all such payments and benefits shall be immediately
forfeited.

     2.3. Other Benefits.

     (i) If Executive’s employment terminates under the circumstances described in
Section 2.1 or Section 2.4, Executive expressly waives Executive’s right, if any, to
have any payment made under Section 2.1 taken into account to increase the benefits
otherwise payable to, or on behalf of, Executive under any employee benefit plan,
whether qualified or unqualified, maintained by the Company or one of its
subsidiaries or affiliates.

     (ii) If Executive receives payments under this Agreement, then Executive
acknowledges and agrees that Executive shall not be entitled to participate in the
Cousins Properties Incorporated Severance Pay Plan, effective June 1, 2001, as
amended from time to time or to receive any benefits or payments pursuant thereto.

     (iii) Except as otherwise expressly provided in this Agreement, this Agreement
is not intended to take away any benefits and payments otherwise

8

 

payable to Executive pursuant to the terms of any Company plan, policy,
agreement or program, including, without limitation, the Company’s 1999 Incentive
Stock Plan and the Company’s 2009 Incentive Stock Plan.

     2.4. Termination in Anticipation of a Change in Control. Executive shall be
treated under this Section 2 as if Executive’s employment had been terminated without Cause
or Executive had terminated Executive’s employment by resigning for Good Reason during
Executive’s Protection Period if:

     (i) Executive’s employment is terminated by the Company without Cause or
Executive terminates Executive’s employment by resigning for Good Reason; and

     (ii) Such termination is effected or such resignation is effective at any time
during the sixty (60) day period which ends on the date of a Change in Control.

     2.5. Death or Disability.

     (i) Executive agrees that the Company will have no obligation to Executive or
to his estate or other legal representative under this Section 2 if Executive’s
employment terminates exclusively as a result of Executive’s death or Disability.

     (ii) If the Executive dies or becomes Disabled following the date on which the
benefits called for under this Agreement vest pursuant to Section 2.1 hereof, the
Company will be obligated to the Executive or his estate or other legal
representative for any such benefits remaining to be paid under this Agreement in
the same manner as the Company would have been obligated to Executive in the absence
of such death or Disability; provided, the Company has received an effective
Waiver and Release that has been duly executed and delivered by the Executive’s
estate or other legal representative and has not been revoked within the applicable
revocation period.

     2.6 Transfer of Employment. If Executive transfers employment between the
Company and a subsidiary or affiliate of the Company or any successor hereto, the Company
shall assign this Agreement to such subsidiary, affiliate or successor, which shall become
the “Company” for all purposes hereunder, and such transfer of employment shall not be
treated as a termination of Executive employment by the Company.

     2.7 No Mitigation. Except as otherwise expressly provided herein, if Executive
is otherwise eligible to receive benefits under Section 2 of this Agreement, Executive shall
have no duty or obligation to seek or accept other employment, and the amounts due Executive
hereunder shall not be reduced or suspended if Executive accepts such subsequent employment.

9

 

     2.8 Clawback. The Company has the right to take any action which the
Compensation Committee reasonably determines is required for the Company to comply with the
clawback provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

     3. Tax Protection. If the Company or its independent accountants (which shall
consider such issue upon the reasonable request of Executive) determine that any payments or
benefits called for under this Agreement, together with any other payments and benefits made
available to Executive by the Company or a subsidiary or affiliate thereof (collectively, the
“Payments”), will result in Executive’s being subject to an excise tax under Section 4999 of the
Code, then a determination shall be made by the Company or its independent accountants as to
whether it would result in larger net payments to Executive, after paying all applicable taxes
(including any applicable tax under § 4999 of the Code), to: (i) receive all of the Payments, or
(ii) receive the portion of the Payments that in the aggregate is One Dollar ($1.00) less than the
amount which would cause the Payments to be subject to the excise tax imposed by § 4999 of the Code
(the “Safe Harbor Amount”). If the determination is that it would result in larger net payments to
Executive after paying all applicable taxes to receive all of the Payments pursuant to § 3(i), then
such Payments shall be made to Executive in accordance with the terms of this Agreement. If the
determination is that it would result in larger net payments to Executive after paying all
applicable taxes to receive the Safe Harbor Amount pursuant to § 3(ii), then only the Safe Harbor
Amount shall be paid to Executive in accordance with the terms of this Agreement. In the event the
Safe Harbor Amount pursuant to § 3(ii) is to be paid to Executive, the Payments to which Executive
would otherwise be entitled to under this Agreement shall be reduced on a pro rata basis. Any
determinations under this Section 3 shall be made in accordance with Section 280G of the Code and
any applicable related regulations (whether proposed, temporary, or final) and any related Internal
Revenue Service rulings and any related case law and, if Company reasonably requests that Executive
take action to mitigate or challenge, or to mitigate and challenge, any such tax or assessment
(other than waiving Executive’s right to any payments or benefits in excess of the payments or
benefits which Executive has expressly agreed to waive under this Section 3) and Executive complies
with such request, the Company shall provide Executive with such information and such expert advice
and assistance from the Company’s independent accountants, attorneys and other advisors as
Executive may reasonably request, and Company shall pay for all expenses incurred in effecting such
compliance and any related fines, penalties, interest, and other assessments.

     4. Section 409A Deferral. To the extent that Executive is a “specified employee”
within the meaning of Section 409A of the Code, any payment or benefit (or portion thereof, if
applicable) under this Agreement, including, but not limited to, any payment under Section 3, shall
be deferred to the first pay date following the date which is six (6) months and one (1) day after
the Executive has a “separation of service” within the meaning of Section 409A. All amounts so
deferred shall be paid in a single lump sum payment with the first payment otherwise due after the
six (6)-month period.

10

 

     5. Disputes.

     5.1 Forum and Jurisdiction. The parties hereby agree that they will not file any
action arising out of this Agreement other than in a state or federal court located in or having
jurisdiction over either Cobb or Fulton County, Georgia. The parties consent to personal
jurisdiction and venue solely within these forums and solely in either Cobb or Fulton County,
Georgia, and waive all otherwise possible objections thereto.

     5.2 Fees. In the event of any action, suit or proceeding brought by either party
hereto against the other arising from or based upon this Agreement, the prevailing party shall be
entitled to recover from the other its reasonable attorneys’ fees in connection therewith, in
addition to the costs of such action, suit or proceeding. If Executive is the prevailing party
entitled to recover attorneys’ fees and costs under the immediately preceding sentence, the Company
shall hold Executive harmless, on an after-tax basis, for any additional tax imposed under Section
409A of the Code on such recovery.

     6. Miscellaneous.

     6.1 Funding of Benefits. Unless the Board in its discretion shall determine
otherwise, the benefits payable to Executive under this Agreement shall not be funded in any manner
and shall be paid by the Company out of its general assets, which assets are subject to the claims
of the Company’s creditors.

     6.2 Withholding. There shall be deducted from the payment of any benefit due under
this Agreement the amount of any tax required by any governmental authority to be withheld and paid
over by the Company to such governmental authority for the account of Executive.

     6.3 Assignment. Executive shall have no rights to sell, assign, transfer, encumber or
otherwise convey the right to receive any benefit due hereunder, the rights to which are expressly
declared to be nonassignable and nontransferable. Any attempt by Executive to assign, transfer,
encumber or otherwise convey shall be null and void and of no effect. The Company may assign this
Agreement to any of its subsidiaries or affiliates or to its successor following a Change in
Control.

     6.4 Binding Effect. This Agreement shall inure to the benefit of and shall be binding
upon Executive and Executive’s executor, administrator, heirs, personal and legal representatives
and assigns, and upon the Company and its successors and assigns.

     6.5 Survival. This Agreement and all covenants and agreements made herein shall
survive the execution and delivery of this Agreement and the termination of Executive’s employment
with the Company for any reason, with or without Cause or Good Reason.

     6.6 Term and Termination. The term of this Agreement shall commence on the Effective
Date and shall continue until the earlier of (i) the end of Executive’s Protection Period or (ii)
the date Executive’s employment with the Company terminates for any reason that does

11

 

not trigger Executive’s eligibility to receive benefits pursuant to this Agreement. In
addition, this Agreement may be terminated by a writing executed by the parties hereto.

     6.7 Amendment. This Agreement, including all exhibits, may be amended only by a
writing executed by the parties hereto; provided, however, the Company may
unilaterally amend this Agreement with notice to Executive to the extent determined necessary in
good faith by the Company to cause the Agreement to not result in additional taxes under Section
409A of the Code.

     6.8 Construction. This Agreement shall be construed in accordance with and governed
by the laws of the State of Georgia, to the extent not preempted by federal law, disregarding any
provision of law which would require the application of the law of another state. No provision of
this Agreement or any related document shall be construed against or interpreted to the
disadvantage of any party by reason of such party having, or having deemed to have, structured or
drafted such provision.

     6.9 Headings. The section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement.

     6.10 Notices. Except as otherwise expressly provided herein, all notices, requests,
comments and other communications under this Agreement shall be in writing and shall be deemed to
be given when delivered personally or mailed first class, registered or certified mail, postage
prepaid, in any case, addressed as follows:

(i) If to Executive:

 

 

 

(ii) If to the Company:

Cousins Properties Incorporated

191 Peachtree Street, Suite 3600

Atlanta, GA 30303-1740

Attention: Corporate Secretary

With a copy to:

Cousins Properties Incorporated

191 Peachtree Street, Suite 3600

Atlanta, GA 30303-1740

Attention: Senior Human Resources Officer

     6.11 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall constitute an original, but all of which together shall constitute one and the same
instrument.

12

 

     6.12 Severability. In the event that any provision or portion of this Agreement shall
be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect
to the fullest extent permitted by law.

     6.13 No Waiver. No waiver by any party hereto of any breach by any party of any
condition or provision contained in this Agreement shall be deemed a waiver of any other condition
or provision hereof. Any waiver must be in writing and signed by Executive or an authorized
officer of the Company, as the case may be.

     6.14 No Agreement of Employment. This Agreement shall not be construed to be an
employment agreement or any guaranty of continued employment with the Company for any period of
time. Executive acknowledges and agrees that Executive’s employment with the Company shall remain
“at will.”

     6.15 Entire Agreement. This Agreement, including all exhibits, constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof and, upon the Effective
Date, will supersede and replace all prior agreements, written or oral, between the parties hereto
with respect to the subject matter hereof.

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

	 	 	 	 	 
	 	“Company”

COUSINS PROPERTIES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	“Executive”

 	 
	 	 	 
	 	Name:  	 	 
	 	 	 	 

13

 

	 	 	 	 	 

Exhibit A

Protective Covenant Agreement

     The attached Protective Covenant Agreement is to be given to [_________________] (“Executive”)
upon the occurrence of an event that triggers eligibility for severance benefits following a Change
in Control, as defined and described in that certain Change in Control Severance Agreement, dated
as of the ___ day of _________, 20__, by and between Executive and Cousins Properties Incorporated.

 

 

PROTECTIVE COVENANT AGREEMENT

     THIS PROTECTIVE COVENANT AGREEMENT (this “Protective Covenant Agreement”) is made and entered
into as of the ___ day of ________________, 20___ by and between COUSINS PROPERTIES INCORPORATED, a
Georgia corporation (the “Company”), and [_____________] (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive is a party to that certain Change in Control Severance Agreement (the
“Severance Agreement”), dated as of the ___ day of _____________, 20__, by and between Executive
and the Company;

     WHEREAS, pursuant to the Severance Agreement, Executive is entitled to receive certain
benefits in the event of a termination of Executive’s employment with the Company following a
“change in control,” as defined in the Severance Agreement;

     WHEREAS, Executive’s employment with the Company has terminated in accordance with the
provisions of the Severance Agreement and Executive desires to elect to accept the benefits
described therein;

     WHEREAS, a condition to Executive’s receipt of the full benefits provided under the Severance
Agreement is Executive’s execution and delivery of this Protective Covenant Agreement imposing
certain reasonable restrictions on Executive’s activities;

     WHEREAS, the benefits Executive will receive under the Severance Agreement are in excess of
those benefits Executive would receive from the Company if Executive elected not to execute and
deliver this Protective Covenant Agreement; and

     WHEREAS, Executive and the Company desire to execute and deliver this Protective Covenant
Agreement in accordance with the Severance Agreement;

     NOW, THEREFORE, in consideration of the premises, Ten Dollars ($10.00) in hand paid, the
mutual promises, covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

	1.	 	Definitions. For the purposes of this Protective Covenant Agreement, the following
terms shall have the following meanings:

	 	(a)	 	“Company’s Business” shall mean the business of the development,
acquisition, financing, management, leasing and sale of real estate properties,
including office, multi-family, retail, industrial and land development.

 

 

	 	(b)	 	“Confidential Information” shall mean any non-public information
concerning the business of the Company that is or has been disclosed to Executive or of
which Executive became aware as a consequence of Executive’s relationship with the
Company and which has value to the Company and is not generally known to the Company’s
competitors, including its financial performance, results or prospects, and any
non-public information provided by a third party with the expectation that the
information will be kept confidential and used solely for the business purpose for
which it was conveyed. “Confidential Information” may include, but is not limited to:
(i) information about the Company’s employees, customers, clients, tenants, buyers
and/or sellers; (ii) business and employment policies, marketing methods and the
targets of those methods, finances, business plans, promotional materials and price
lists; (iii) the terms upon which the Company obtains products or information from its
suppliers and sells them to or utilizes them on behalf of or in service of its
customers, clients, tenants, buyers and/or sellers; (iv) the nature, origin,
composition and development of the Company’s products or services; (v) the manner in
which the Company provides products and services to its customers, clients, tenants,
buyers and/or sellers; and (vi) the terms and conditions of this Protective Covenant
Agreement and the Severance Agreement. Confidential Information shall not include any
data or information that has been voluntarily disclosed to the public by the Company
(except where such public disclosure was made by the Executive without authorization)
or that has been independently developed and disclosed by others, or that otherwise
enters the public domain through lawful means.
	 
	 	(c)	 	“Protective Covenants” shall mean those covenants set forth in
Paragraphs 2, 3, 4 and 5 of this Protective Covenant Agreement.
	 
	 	(d)	 	“Protective Period” shall mean a period equal to the shorter of (i) two
years or (ii) the number of years, or portion thereof, used as a multiplier to
determine Executive’s benefit under the Change in Control Severance Agreement;
provided, however, if Executive is the owner of or a “Seller” within the meaning of
O.C.G.A. § 13-8-17 of all or a material part of (1) the assets of the Company, (2)
shares of the Company, (3) a partnership interest, (4) a limited liability company
membership, or (5) an equity interest or profit participation, of any type, in the
Company following the termination of his employment and the period in Section 1(d)(ii)
is longer than two years, ‘Protective Period” shall mean the period described in
Section 1(d)(ii).
	 
	 	(e)	 	“Restricted Territory” shall mean a fifteen (15) mile radius from any
and all of the Company’s projects set forth on the list attached hereto as Schedule
1 and incorporated herein by reference. Schedule 1 shall be prepared by
the Company in its sole discretion.
	 
	 	(f)	 	“Trade Secrets” shall mean any technical or non-technical data,
formula, pattern, compilation, program, device, method, technique, drawing, process,
financial data, financial plan, product plan, list of actual or potential customers or
suppliers or other information similar to any of the foregoing, which (i) derives
economic

2

 

	 	 	 	value, actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can derive economic value from
its disclosure or use and (ii) is the subject of efforts that are reasonable under
the circumstances to maintain its secrecy.

	2.	 	Confidentiality.

	 	 	Executive agrees that Executive will not (without the prior written consent of the Company)
directly or indirectly use, copy, disclose or otherwise distribute to any other person or
entity: (i) any Confidential Information for so long as such information remains
Confidential Information. or (ii) any Trade Secret at any time such information constitutes
a trade secret under applicable law. Executive shall promptly return to the Company all
documents and items in Executive’s possession or control which contain any Confidential
Information or Trade Secrets. Executive further agrees that if Executive is questioned
about information subject to this Protective Covenant Agreement by anyone not authorized to
receive such information, Executive will promptly notify Executive’s former supervisor or an
officer of the Company.
	 
	3.	 	Non-Competition.
	 
	 	 	Executive agrees that for the Protective Period Executive will not (without the prior
written consent of the Company), either on Executive’s behalf or on behalf of any other
legal entity, compete with the Company’s Business within the Restricted Territory by
performing executive leadership and management activities substantially similar to those
performed by Executive for the Company within two (2) years prior to the termination of
Executive’s employment.
	 
	4.	 	Non-Solicitation.

	 	(a)	 	Executive agrees and covenants that for the Protective Period Executive shall
not solicit or attempt to solicit, directly or by assisting others, any business from
any of the Company’s customers, including actively sought prospective customers, with
whom Executive has material contact during Executive’s employment for purposes of
providing development, acquisition, financing, management, leasing and sale of real
estate properties, including office, multi-family, retail, industrial and land
development, products or services that are competitive with those provided by the
Company.
	 
	 	(b)	 	For purposes of this paragraph, products or services shall be considered
competitive with those provided by the Company if products or services are of the type
conducted, authorized, offered or provided by the Company within two (2) years prior to
the termination of Executive’s employment.
	 
	 	(c)	 	For purposes of this Agreement, the term “material contact” shall mean contact
between Executive and each customer or potential customer (1) with whom Executive dealt
on behalf of the Company, (2) whose dealings with the Company were coordinated or
supervised by Executive, (3) about whom the Executive obtained Confidential Information
in the ordinary course of business as a result of

3

 

	 	 	 	Executive’s association with the Company or (4) who receives products or services
authorized by the Company, the sale or possession of which results or resulted in
compensation, commissions, or earnings for Executive within two (2) years prior to
the termination date of Executive’s employment.

	5.	 	Non-Recruitment of Employees.
	 
	 	 	Executive agrees that for the Protective Period Executive will not (without the prior
written consent of the Company) directly or indirectly solicit or attempt to solicit any
employee of the Company with whom Executive had direct personal contact during Executive’s
employment with the Company to terminate or lessen that party’s affiliation with the Company
or to violate the terms of any agreement or understanding between such employee and the
Company.
	 
	6.	 	Acknowledgments.
	 
	 	 	[Section 6 may be tailored by the Company in its discretion for the Executive prior to
execution of the Protective Covenant Agreement.]

	 	(a)	 	Executive hereby acknowledges and agrees that the Protective Covenants are
reasonable as to time, scope and territory given the Company’s need to protect its
business, personnel, Trade Secrets and Confidential Information. Executive
acknowledges and represents that Executive has substantial experience and knowledge and
that Executive can readily obtain subsequent employment without violating the
Protective Covenants. In the event any of the Protective Covenants shall be determined
by any court having proper jurisdiction to be unenforceable by reason of its extending
for too great a period of time or over too great a geographical area or by reason of
its being too extensive in any other respect, it shall be interpreted to extend only
over the maximum period of time for which it may be enforceable and/or over the maximum
geographical area as to which it may be enforceable and/or to the maximum extent in all
other respects as to which it may be enforceable, all as determined by such court in
such action.
	 
	 	(b)	 	Executive acknowledges and agrees that during the Term of Executive’s
employment with the Company Executive has and will continue to have access to
Confidential Information (as defined below) and Trade Secrets (as defined below) and
that unauthorized or improper use or disclosure by Executive of such Confidential
Information or Trade Secrets will cause serious and irreparable harm to the Company.
Executive acknowledges that an important part of Executive’s duties have been and will
continue to be to advance the business of the Company by directly or through the
supervision of others, developing and maintaining substantial relationships with
prospective or existing customers, patients, vendors or clients of the Company and/or
developing and maintaining the goodwill of the Company associated with an (1) ongoing
business, commercial or professional practice, including but not limited to a trade
name, trademarks, service marks, or trade dues, or (2) a specific geographic location,
or (3) a specific marketing or

4

 

	 	 	 	trade area. Executive acknowledges that Executive has and will continue to be
provided extensive/specialized training as a part of Executive’s employment.

	 	(c)	 	Executive acknowledges and agrees that during the Term of Executive’s
employment with the Company, Executive has and will continue to in the course of
Executive’s employment customarily and regularly solicit for the Company customers or
prospective customers and/or customarily and regularly engage in making sales or
obtaining orders or contracts for products or services to be performed by others,
and/or perform each of the following duties: (1) have the primary duty of managing the
business in which the Executive is employed or of a customarily recognized department
of subdivision thereof; (2) customarily and regularly direct the work of two or more
employees; and (3) have the authority to hire or fire other employees or have
particular weight given to Executive’s suggestions and recommendations as to the
hiring, firing, advancement, promotion, or any other change of status of other
employees and/or by reason of the Company’s investment of time, training, money, trust,
exposure to the public, or exposure to customers, vendors, or other business
relationships, (1) gain a high level of notoriety, fame, reputation, or public persona
as the Company’s representative or spokesperson or (2) a high level of influence or
credibility with the Company’s customers, vendors, or other business relationships
and/or be intimately involved in the planning for or direction of the business of the
Company or a defined unit of the business of the Company and/or obtain selective or
specialized skills, knowledge, abilities, or customer contacts or information.
Executive and the Company recognize, acknowledge and agree that Executive’s primary
duties for the Company have and will continue to be the performance of work requiring
knowledge of an advanced type in a field of science or learning customarily acquired by
a prolonged course of specialized intellectual instruction or requiring invention,
imagination, originality, or talent in a recognized field of artistic or creative
endeavor.

	7.	 	Specific Performance.
	 
	 	 	Executive acknowledges and agrees that any breach of the Protective Covenants by Executive
will cause irreparable damage to the Company, the exact amount of which will be difficult to
determine, and that the remedies at law for any such breach will be inadequate.
Accordingly, Executive agrees that, in addition to any other remedy that may be available at
law, in equity, under the Severance Agreement, or hereunder, the Company shall be entitled
to specific performance and injunctive relief, without posting bond or other security to
enforce or prevent any violation of any of the Protective Covenants by Executive. The
existence of any claim or cause of action by Executive against the Company, including any
dispute relating to the termination of the Severance Agreement, shall not constitute a
defense to enforcement of any of the Protective Covenants by injunction.

5

 

	8.	 	Indemnification.
	 
	 	 	Executive hereby indemnifies and agrees to defend and hold harmless the Company and its
employees, officers, directors, agents, representatives, affiliates and independent
contractors from and against any and all damages, losses, costs (including, without
limitation, court costs and attorneys’ fees), settlements, suits, actions, expenses,
liabilities and claims of any kind caused by or resulting from any breach of this Protective
Covenant Agreement by Executive
	 
	9.	 	Construction.
	 
	 	 	The Protective Covenants shall be presumed to be enforceable, and any reading causing
unenforceability shall yield to a construction permitting enforcement. If any one of the
Protective Covenants shall be found unenforceable, it shall be severed and the remaining
Protective Covenants enforced in accordance with the tenor thereof.
	 
	10.	 	Miscellaneous.

	 	(a)	 	Assignment. Executive shall not assign this Protective Covenant
Agreement, in whole or in part, without the prior written consent of the Company, and
any attempted assignment not in accordance herewith shall be null and void and of no
force or effect. The Company may assign this Protective Covenant Agreement to any of
its subsidiaries or affiliates or to its successor following a Change in Control.
	 
	 	(b)	 	Binding Effect. This Protective Covenant Agreement shall inure to the
benefit of and shall be binding upon the parties hereto and their respective successors
and assigns.
	 
	 	(c)	 	Survival. This Protective Covenant Agreement and all covenants and
agreements made herein shall survive the execution and delivery hereof.
	 
	 	(d)	 	Amendment and Termination. This Protective Covenant Agreement,
including all exhibits, may be amended or terminated only by a writing executed by the
parties hereto.
	 
	 	(e)	 	Construction. This Protective Covenant Agreement shall be construed in
accordance with and governed by the laws of the State of Georgia, to the extent not
preempted by federal law, disregarding any provision of law which would require the
application of the law of another state. No provision of this Protective Covenant
Agreement or any related document shall be construed against or interpreted to the
disadvantage of any party by reason of such party having, or having deemed to have,
structured or drafted such provision.
	 
	 	(f)	 	Headings. The section and paragraph headings contained herein are for
reference purposes only and shall not affect in any way the meaning or interpretation
of this Protective Covenant Agreement.
	 
	 	(g)	 	Notices. Except as otherwise expressly provided herein, all notices,
requests, comments and other communications under this Protective Covenant Agreement

6

 

	 	 	 	shall be in writing and shall be deemed to be given when delivered personally or
mailed first class, registered or certified mail, postage prepaid, in any case,
addressed as follows:

(i) If to Executive:

 

 

 

(ii) If to the Company:

Cousins Properties Incorporated

191 Peachtree Street, Suite 3600

Atlanta, GA 30303-1740

Attention: Corporate Secretary

With a copy to:

Cousins Properties Incorporated

191 Peachtree Street, Suite 3600

Atlanta, GA 30303-1740

Attention: Senior Human Resources Officer

	 	(h)	 	Counterparts. This Protective Covenant Agreement may be executed in
multiple counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same instrument.
	 
	 	(i)	 	Severability. In the event that any provision or portion of this
Protective Covenant Agreement shall be determined to be invalid or unenforceable for
any reason, in whole or in part, the remaining provisions hereof shall be unaffected
thereby and shall remain in full force and effect to the fullest extent permitted by
law.
	 
	 	(j)	 	No Waiver. No waiver by any party hereto of any breach by any party of
any condition or provision contained herein shall be deemed a waiver of any other
condition or provision hereof. Any waiver must be in writing and signed by Executive
or an authorized officer of the Company, as the case may be.
	 
	 	(k)	 	Attorneys’ Fees and Costs. Should Executive or the Company be required
to commence an action in any court of competent jurisdiction to enforce this Protective
Covenant Agreement, such party shall be entitled to recover its attorneys’ fees and
costs, to the extent that such party is the prevailing party.

[Remainder of page intentionally left blank]

7

 

     IN WITNESS WHEREOF, the parties hereto have executed this Protective Covenant Agreement to be
effective as of the day and year first above written.

	 	 	 	 	 
	 	“Company”

COUSINS PROPERTIES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	“Executive”

 	 
	 	 	 
	 	Name:  	 	 
	 	 	 	 
	 

8

 

Schedule 1

to

Protective Covenant Agreement

COMPANY PROJECTS

 

 

Exhibit B

Waiver and Release

     The attached Waiver and Release is to be given to [___________________] (“Executive”) upon
the occurrence of an event that triggers eligibility for severance benefits following a Change in
Control, as defined and described in that certain Change in Control Severance Agreement, dated as
of the ___ day of _________, 20__, by and between Executive and Cousins Properties Incorporated.

 

 

CHANGE IN CONROL SEVERANCE AGREEMENT

WAIVER AND GENERAL RELEASE

This Change in Control Severance Agreement Waiver and General Release (this “Release”) is executed
and delivered by [______________________], an individual resident of the State of _____________
(“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive is a party to that certain Change in Control Severance Agreement (the
“Agreement”), dated as of the ___ day of _____________, 20__, by and between Executive and Cousins
Properties Incorporated, a Georgia corporation (including any subsidiaries, parents, affiliated
entities, successors and assigns, the “Company”);

     WHEREAS, pursuant to the Agreement, Executive is entitled to receive certain benefits in the
event of a termination of Executive’s employment with the Company following a “change in control,”
as defined in the Agreement;

     WHEREAS, Executive’s employment with the Company has terminated in accordance with the
provisions of the Agreement and Executive desires to elect to accept the benefits described
therein;

     WHEREAS, a condition to Executive’s receipt of the full benefits provided under the Agreement
is Executive’s execution and delivery of this Release;

     WHEREAS, the benefits Executive will receive under the Agreement are in excess of those
benefits Executive would receive from the Company if Executive elected not to execute and deliver
this Release; and

     WHEREAS, Executive desires to execute and deliver this Release in accordance with the
Agreement and intends to release all claims Executive may have against the Company or any successor
in interest thereto as set forth herein;

     NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and in the
Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Executive agrees as follows:

	1.	 	Executive’s Separation.

	 	(a)	 	Executive’s employment with the Company has terminated in accordance with the
provisions of the Agreement.
	 
	 	(b)	 	Executive agrees to immediately return to the Company all property, equipment,
funds, lists, books, records, other materials and property of the Company in
Executive’s possession.

 

 

	 	(c)	 	Executive acknowledges and agrees that Executive shall not be eligible to
participate in the Cousins Properties Incorporated Severance Pay Plan, effective June
1, 2001 and as amended from time to time, or to receive any benefits or payments
pursuant thereto.

	2.	 	General Release and Covenant Not to Sue.

	 	 	Executive hereby knowingly and voluntarily releases, discharges, and covenants not to sue
the Company, and its predecessors, successors, parents, subsidiaries, affiliates, and
divisions, and their respective current and former employees, officers, directors,
shareholders, partners, trustees, representatives, attorneys, and agents (collectively
referred to herein as “Releasees”) from and for all claims, liabilities, demands, and causes
of action, known or unknown, fixed or contingent, of any nature whatsoever, which Executive,
his or her heirs, administrators, executors, personal representatives, beneficiaries, or
assigns ever had, now has, or may have or claim to have against the Releasees arising from
or related to events which occurred from the beginning of time to the execution of this
Release. This release, discharge and covenant not to sue include but are not limited to
claims of:

	 	(a)	 	violations of Title VII of the Civil Rights Act of 1964, the Age Discrimination
in Employment Act, the Fair Labor Standards Act, the Civil Rights Act of 1991, the
Americans With Disabilities Act, the Equal Pay Act, the Civil Rights Act of 1866, 42
U.S.C. § 1981, the Family and Medical Leave Act, the Labor Management Relations Act,
the National Labor Relations Act, the Consolidated Omnibus Budget Reconciliation Act of
1985, Executive Order 11246, Executive Order 11141, the Rehabilitation Act of 1973, the
Employee Retirement Income Security Act, or the Sarbanes-Oxley Act of 2002;

	 	(b)	 	violations of any other federal or state statute or regulation or local
ordinance;

	 	(c)	 	claims for lost or unpaid wages, compensation, or other benefits claims under
state law, defamation, intentional infliction of emotional distress, negligent
infliction of emotional distress, bad faith action, slander, assault, battery, wrongful
or constructive discharge, negligent hiring, retention and/or supervision, fraud,
misrepresentation, conversion, tortuous interference with property, negligent
investigation, breach of contract, or breach of fiduciary duty;

	 	(d)	 	any claims to benefits under the Cousins Properties Incorporated Severance Pay
Plan, effective June 1, 2001 and as amended from time to time, which Executive ever had
or now has or may in the future have; or

	 	(e)	 	any other claims under state law arising in tort or contract.

	 	 	By referencing the laws above, the Releasees do not admit coverage or liability under any of
these laws. This Release does not release any claim that may arise from events which occur
after the date of execution of this Release. Executive also does not release claims

2

 

	 	 	to any benefits that Executive is already entitled to receive under the Agreement or any
right Executive has to benefits under the Consolidated Omnibus Budget Reconciliation Act.
However, nothing in this Release or in the Agreement is intended to or shall be construed to
require the Company to institute or continue in effect any particular plan or benefit
sponsored by the Company, and the Company hereby reserves the right to amend or terminate
any of its benefit plans at any time in accordance with the procedures set forth in the
applicable plans or agreements.

	3.	 	No Disparagement.

	 	 	Executive agrees and covenants that, except as may be required by law, Executive shall not
make any statement, written or verbal, in any forum or media, or take any action, in
disparagement of the Company or any of the other Releasees.

	4.	 	No Disclosure of Terms of Release.

	 	 	Executive agrees that the terms and conditions of this Release are confidential, and may not
and will not be disclosed by Executive at any time, under any circumstances, without the
express written consent of the Company. Nothing in this Paragraph 4 shall prohibit
Executive from disclosing or discussing this Release with his or her spouse, attorneys, or
tax accountants, provided that any such individuals are also informed and agree to abide by
this non-disclosure provision, or from disclosing the terms of this Release if legally
compelled to do so.

	5.	 	Future Cooperation.

	 	 	Executive agrees and covenants that Executive shall, to the extent reasonably requested in
writing, cooperate with and assist the Company in any pending or future litigation in which
the Company is a party, and regarding which Executive, by virtue of Executive’s former
employment with the Company, has factual knowledge or information relevant to said
litigation, including, but not limited to, acting as the Company’s representative in any
said litigation. Executive further agrees and covenants that, in any such litigation,
Executive shall provide, without the necessity for subpoena, in any jurisdiction in which
the Company requests, truthful testimony relevant to said litigation. The Company will
reimburse Executive for reasonable expenses incurred with regard to such cooperation and
assistance.

	6.	 	No Future Employment.

	 	 	Executive forever releases and discharges the Company from any obligation to employ
Executive in any capacity in the future. Notwithstanding the above, nothing in this
Paragraph 6 shall preclude the Company from offering Executive employment and hiring
Executive at some time in the future.

3

 

	7.	 	Assignment of Claims.

	 	 	Executive hereby represents and warrants that Executive has not assigned, transferred, or
hypothecated or purported to assign, transfer, or hypothecate any claim or matter herein
released, disclaimed, discharged or terminated.

	8.	 	Forfeiture and Return of Benefits.

	 	 	Executive agrees that if Executive violates the provisions of Paragraphs 1, 2, 3, 4, 5, 6 or
7 of this Release, Executive will immediately forfeit any portion of the benefits and
payments described in the Agreement that has not already been paid or distributed and will
immediately forfeit Executive’s right to retain (and shall become obligated to repay
promptly to the Company) any portion of the benefits and payments described in the Agreement
that Executive has already received, all as described in Section 2.2 of the Agreement.
However, nothing in this Release shall preclude the Company from seeking and receiving such
other monetary and equitable relief as allowed by law for Executive’s violations of this
Release.

	9.	 	Denial of Liability.

	 	 	Executive understands and agrees that this Release does not constitute an admission of
liability, wrongdoing, or unlawful conduct on the part of the Company.

	10.	 	Employment Reference.

	 	 	Executive agrees to direct any inquiries concerning employment references to the attention
of the senior human resources officer. Executive agrees that if potential employers contact
the senior human resources officer concerning Executive, the senior human resources officer
will:

	 	(a)	 	Provide such employers with information regarding Executive’s last position
held, Executive’s dates of employment, and confirmation of Executive’s compensation;
and

	 	(b)	 	Provide additional information or access to other Company references concerning
Executive’s employment.

	11.	 	Miscellaneous.

	 	(a)	 	Assignment. This Release is assignable by the Company in whole or in
part to any subsidiaries or affiliates of the Company or to any successor to the
Company, whether by merger, consolidation, sale of stock, sale of assets or otherwise.
This Release is not assignable by Executive.

	 	(b)	 	Modification. No provision of this Release may be changed, altered,
modified or waived except in writing signed by Executive and the Company’s general

4

 

	 	 	 	counsel, which writing shall specifically reference this Release and the provision
which the parties intend to waive or modify.

	 	(c)	 	Severability. Except as noted below, should any provision of this
Release be declared or determined by any court of competent jurisdiction to be
unenforceable or invalid for any reason, the validity of the remaining parts, terms or
provisions of this Release shall not be affected thereby and the invalid or
unenforceable part, term or provision shall be deemed not to be a part of this Release.

	 	(d)	 	Reformation. If any of the covenants or promises of this Release are
determined by any court of law or equity with jurisdiction over this matter to be
unreasonable or unenforceable, in whole or in part, as written, the parties hereby
consent to and affirmatively request that said court reform the covenant or promise so
as to be reasonable and enforceable and that said court enforce the covenant or promise
as reformed.

	 	(e)	 	Applicable Law. This Release has been entered into in and shall be
governed by and construed under the laws of the State of Georgia without regard to
choice of law rules.

	 	(f)	 	Consent to Jurisdiction and Venue. Executive consents, and waives any
objection, to personal jurisdiction and venue in the federal and state courts having
jurisdiction in Cobb or Fulton County, Georgia, in any dispute arising out of the terms
of this Release.

	 	(g)	 	Attorneys’ Fees and Costs. Should Executive or the Company be required
to commence an action in any court of competent jurisdiction to enforce this Release,
such party shall be entitled to recover its attorneys’ fees and costs, to the extent
that such party is the prevailing party.

	 	(h)	 	Headings and Captions. The headings and captions used in this Release
are for convenience of reference only, and shall in no way define, limit, expand or
otherwise affect the meaning or construction of any provision of this Release.

	 	(i)	 	No Waiver. The waiver by the Company of a breach of any of the
provisions of this Release shall not operate or be construed as a waiver of any
subsequent or simultaneous breach of the same or different provisions.

	 	(j)	 	Counterparts. This Release may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument.

5

 

	12.	 	Understanding.

	 	 	Executive warrants and agrees that:

	 	(a)	 	Executive has been given a period of at least twenty-one (21) calendar days to
consider the terms of this Release and that Executive has been, and hereby is advised
in writing to seek the advice of an attorney regarding the content and effect of this
Release. In the event Executive delivers to the Company an executed Release before the
end of the twenty-one (21) calendar day consideration period, Executive has voluntarily
waived the right to the full twenty-one (21) calendar day period, and Executive’s
decision to do so is knowing and voluntary and not induced through fraud,
misrepresentation or threat to withdraw or alter the offer prior to the expiration of
the twenty-one (21) calendar day period;

	 	(b)	 	Executive has a period of seven (7) calendar days following the date on which
Executive delivers this Release to revoke the Release;

	 	(c)	 	If Executive chooses to revoke this Release, Executive must provide written
notification of such revocation to Corporate Secretary, Cousins Properties
Incorporated, 191 Peachtree Street, Atlanta, GA 30303, with a copy to the senior human
resources officer at the same address, and such notice must be received by close of
business on the 7th day following the date Executive signed this Release in
order to be effective;

	 	(d)	 	Executive has been and hereby is advised that this Release shall not become
effective or enforceable until the next business day after the end of any applicable
revocation period set forth herein or in the Agreement;

	 	(e)	 	Executive has carefully read and fully understands all of the provisions of
this Release;

	 	(f)	 	Executive knowingly and voluntarily agrees to all the terms set forth in this
Release and intends to be legally bound by the same;

	 	(g)	 	Executive is, through this Release, releasing the Releasees from any and all
claims Executive may have against the Company, except to the extent expressly provided
otherwise herein; and

	 	(h)	 	In entering into this Release, Executive relies wholly upon Executive’s own
judgment and has not been influenced by any statement made by the Company or by any
person representing or employed by the Company.

6

 

     IN WITNESS WHEREOF, the undersigned has executed this Release as of the date set forth below.

	 	 	 	 	 
	 	“Executive”

 	 
	 	  	 	 
	 	 	Name:  	 	 
	 	 	 	 	 
	 	 	Date:                                          	 
	 

Acknowledged and Accepted by the Company, as defined in the Release.

	 	 	 	 	 

	By:

	 	 
 

	 	 
	Name:

	 	 
 

	 	 
	Title:

	 	 
 

	 	 
	Date:

	 	 
 

	 	 

7

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