Document:

EX-10.1

 Exhibit 10.1 

SUBSCRIPTION AGREEMENT 
 XOMA Corporation

 2910 Seventh Street 
 Berkeley, California 94710 

Ladies and Gentlemen: 
 The undersigned (the
“Investor”) hereby confirms its agreement with you as follows: 
 1. This Subscription Agreement, including the
Terms and Conditions For Purchase of Units attached hereto as Annex I (collectively, this “Agreement”) is made as of the date set forth below between XOMA Corporation, a Delaware corporation (the “Company”), and the
Investor. 
 2. The Company has authorized the sale and issuance to certain investors of up to an aggregate of
[                    ] units (the “Units”), with each Unit consisting of (i) one share (the “Share,”
collectively, the “Shares”) of its common stock, par value $0.0075 per share (the “Common Stock”), and (ii) one warrant (the “Warrant,” collectively, the “Warrants”) to
purchase one share of Common Stock, in substantially the form attached hereto as Exhibit B, for a purchase price of $[        ] per Unit (the “Purchase Price”). Units will not be issued
or certificated. The Shares and Warrants are immediately separable and will be issued separately. The shares of Common Stock issuable upon exercise of the Warrants are referred to herein as the “Warrant Shares” and, together with
the Units, the Shares and the Warrants, are referred to herein as the “Securities”). 
 3. The offering and sale of
the Units (the “Offering”) are being made pursuant to (1) an effective Registration Statement on Form S-3 (File No. 333-191078) (including the Prospectus contained therein (the “Base Prospectus”), the
“Registration Statement”) filed by the Company with the Securities and Exchange Commission (the “Commission”), (2) if applicable, the “free writing prospectus” (as that term is defined in Rule 405
under the Securities Act of 1933, as amended (the “Act”)), that have or will be filed with the Commission and delivered to the Investor on or prior to the date hereof (the “Issuer Free Writing Prospectus”), and
(3) a Prospectus Supplement (the “Prospectus Supplement” and together with the Base Prospectus, the “Prospectus”) containing certain supplemental information regarding the Securities, the terms of the Offering
the terms of the Offering and information that may be material to the Company and its securities that will be filed with the Commission and delivered to the Investor (or made available to the Investor by the filing by the Company of an electronic
version thereof with the Commission). 
 4. The Company and the Investor agree that the Investor will purchase from the Company and
the Company will issue and sell to the Investor the Units set forth below for the aggregate purchase price set forth below. The Units shall be purchased pursuant to the Terms and Conditions for Purchase of Units attached hereto as Annex I and
incorporated herein by this reference as if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten by the placement agents (the “Placement Agents”) named in the Prospectus Supplement and that
there is no minimum offering amount. 
 5. The manner of settlement of the Shares included in the Units purchased by the Investor
shall be as follows: 

 
Delivery versus payment (“DVP”) through DTC (i.e., the Company shall deliver Shares registered in the Investor’s name and address as set forth below and released by the
Transfer Agent to the Investor through DTC at the Closing directly to the account(s) at Cowen & Company, LLC (“Cowen”) identified by the Investor and simultaneously therewith payment shall be made by Cowen by wire transfer
to the Company). NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:  
  

	 	(I)	NOTIFY COWEN OF THE ACCOUNT OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES BEING PURCHASED BY SUCH INVESTOR, AND  

 

	 	(II)	CONFIRM THAT THE ACCOUNT OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES BEING PURCHASED BY THE INVESTOR HAVE A MINIMUM BALANCE EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR.

 IT IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM THE PROPER ACCOUNT BALANCE IN A
TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC OR DVP IN A TIMELY MANNER. IF THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE UNITS OR DOES NOT MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE UNITS
MAY NOT BE DELIVERED AT CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE OFFERING ALTOGETHER. 
 6. The
executed Warrant included in the Units purchased by the Investor shall be delivered in accordance with the terms thereof. 
 7. The
Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three years with the Company or persons known to it to be affiliates of the Company, (b) it is not a
FINRA member or an Associated Person (as such term is defined under the FINRA Membership and Registration Rules Section 1011) as of the Closing, and (c) neither the Investor nor any group of Investors (as identified in a public filing made
with the Commission) of which the Investor is a part in connection with the Offering, acquired, or obtained the right to acquire, 20% or more of the Common Stock (or securities convertible into or exercisable for Common Stock) or the voting power of
the Company on a post-transaction basis. Exceptions: 

	
	  

	  

	  

	 (If no exceptions, write “none.” If left blank, response will be deemed to be “none.”)

 8. The Investor represents that it has received (or otherwise had made available to it by the filing by
the Company of an electronic version thereof with the Commission) the Base Prospectus, dated September 20, 2013, which is a part of the Company’s Registration Statement, the documents incorporated by reference therein and the Issuer Free
Writing Prospectus (collectively, the “Disclosure Package”), which includes pricing and other information regarding the Offering (the “Offering Information”), prior to or in connection with the receipt of this
Agreement. Such information may be provided to the Investor by any means permitted under the Act, including the Preliminary Prospectus Supplement, Prospectus Supplement, a free writing prospectus and oral communications. 

  
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 9. No offer by the Investor to buy Units will be accepted and no part of the Purchase
Price will be delivered to the Company until the Investor has received the Disclosure Package including the Offering Information and the Company has accepted such offer by countersigning a copy of this Agreement, and any such offer may be withdrawn
or revoked, without obligation or commitment of any kind, at any time prior to the Company (or a Placement Agent on behalf of the Company) sending (orally, in writing or by electronic mail) notice of its acceptance of such offer. An indication of
interest will involve no obligation or commitment of any kind until the Investor has been delivered the Disclosure Package including the Offering Information and this Agreement is accepted and countersigned by or on behalf of the Company. 

  
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	Number of Units:	 		 	
			
	Purchase Price Per Unit: $	 		 	
			
	Aggregate Purchase Price: $	 		 	

 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space
provided below for that purpose. 
  

			
	Dated as of: December [    ], 2014
	
	  

	INVESTOR
		
	By:	 	  

	Print Name:	 	
	Title:	 	
	Address:	 	

 Agreed and Accepted 
 this
[    ] day of December, 2014: 
  

			
	XOMA CORPORATION
		
	By:	 	  

	Title:	 	

  
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 ANNEX I 

TERMS AND CONDITIONS FOR PURCHASE OF UNITS 

1. Authorization and Sale of the Units. Subject to the terms and conditions of this Agreement, the Company has authorized the sale of
the Units. 
 2. Agreement to Sell and Purchase the Units; Placement Agents. 

2.1 At the Closing (as defined in Section 3.1), the Company will sell to the Investor, and the Investor will purchase from
the Company, upon the terms and conditions set forth herein, the number of Units set forth on the last page of the Agreement to which these Terms and Conditions for Purchase of Units are attached as Annex I (the “Signature
Page”) for the aggregate purchase price therefor set forth on the Signature Page. 
 2.2 The Company proposes to enter into
substantially this same form of Subscription Agreement with certain other investors (the “Other Investors”) and expects to complete sales of Units to them. The Investor and the Other Investors are hereinafter sometimes collectively
referred to as the “Investors,” and this Agreement and the Subscription Agreements executed by the Other Investors are hereinafter sometimes collectively referred to as the “Agreements.” 

2.3 Investor acknowledges that the Company has agreed to pay Cowen & Company, LLC (“Cowen” or the
“Placement Agents”) a fee (the “Placement Fee”) in respect of the sale of Units to the Investor. 
 2.4
The Company has entered into a Placement Agent Agreement, dated December [    ], 2014 (the “Placement Agreement”), with the Placement Agents that contains certain representations, warranties, covenants and
agreements of the Company that may be relied upon by the Investor, which shall be a third party beneficiary thereof. The Company confirms that neither it nor any other Person (as defined below) acting on its behalf has provided the Investor or their
agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic information, except as will be disclosed in the Form 8-K filing (as defined below) that will be filed with the Commission in
connection with the Offering. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting transactions in securities of the Company. “Person” means an individual, a limited
liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

3. Closings and Delivery of the Units and Funds. 

3.1 Closing. The completion of the purchase and sale of the Units (the “Closing”) shall occur at a place and
time (the “Closing Date”) to be specified by the Company and Cowen, and of which the Investors will be notified in advance by Cowen, in accordance with Rule 15c6-1 promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). At the Closing, (a) the Company shall cause the Transfer Agent to deliver to the Investor the number of Shares set forth on the Signature Page registered in the name of the Investor or, if so indicated on
the Investor Questionnaire attached hereto as Exhibit A, in the name of a nominee designated by the Investor, (b) the Company shall cause to be delivered to the Investor a Warrant to purchase a number of whole Warrant Shares equal to the number
of Shares set forth on the signature page and (c) the aggregate purchase price for the Units being purchased by the Investor will be delivered by or on behalf of the Investor to the Company. 

  
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 3.2 Conditions to the Company’s Obligations. 

(a) The Company’s obligation to issue and sell the Units to the Investor shall be subject to: (i) the receipt by the Company of the
purchase price for the Units being purchased hereunder as set forth on the Signature Page and (ii) the accuracy of the representations and warranties made by the Investor and the fulfillment of those undertakings of the Investor to be fulfilled
prior to the Closing Date. 
 (b) Conditions to the Investor’s Obligations. The Investor’s obligation to purchase
the Units will be subject to the accuracy of the representations and warranties made by the Company and the fulfillment of those undertakings of the Company to be fulfilled prior to the Closing Date, including without limitation, those contained in
the Placement Agreement, and to the condition that the Placement Agents shall not have: (a) terminated the Placement Agreement pursuant to the terms thereof or (b) determined that the conditions to the closing in the Placement Agreement
have not been satisfied. The Investor’s obligations are expressly not conditioned on the purchase by any or all of the Other Investors of the Units that they have agreed to purchase from the Company. 

3.3 Delivery of Funds. No later than the Closing Date, the Investor shall confirm that the account or accounts at Cowen to be
credited with the Units being purchased by the Investor have a minimum balance equal to the aggregate purchase price for the Units being purchased by the Investor. 

3.4 Delivery of Shares. Delivery Versus Payment through The Depository Trust Company. No later than one (1) business
day after the execution of this Agreement by the Investor and the Company, the Investor shall notify Cowen of the account or accounts at Cowen to be credited with the Shares being purchased by such Investor. On the Closing Date, the Company
shall deliver the Shares to the Investor through DTC directly to the account(s) at Cowen identified by Investor and simultaneously therewith payment shall be made by Cowen by wire transfer to the Company. 

4. Representations, Warranties and Covenants of the Investor. 

The Investor acknowledges, represents and warrants to, and agrees with, the Company and the Placement Agents that: 

4.1 The Investor (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect
to, investments in securities presenting an investment decision like that involved in the purchase of the Units, including investments in securities issued by the Company and investments in comparable companies, (b) has answered all questions
on the Signature Page and the Investor Questionnaire and the answers thereto are true and correct as of the date hereof and will be true and correct as of the Closing Date and (c) in connection with its decision to purchase the number of Units
set forth on the Signature Page, has received and is relying only upon the Disclosure Package (including the documents incorporated by reference therein). 

  
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 4.2 No action has been or will be taken in any jurisdiction outside the United States by
the Company or the Placement Agents that would permit an offering of the Units, or possession or distribution of offering materials in connection with the issue of the Securities in any jurisdiction outside the United States where action for that
purpose is required, (b) if the Investor is outside the United States, it will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Securities or has in its possession or
distributes any offering material, in all cases at its own expense and (c) the Placement Agents are not authorized to make and have not made any representation, disclosure or use of any information in connection with the issue, placement,
purchase and sale of the Units, except as set forth in the Issuer Free Writing Prospectus or as set forth in or incorporated by reference in the Base Prospectus or the Prospectus Supplement. 

4.3 The Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions
contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (b) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in
accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability
may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as to the enforceability of any rights to indemnification or contribution that may be violative
of the public policy underlying any law, rule or regulation (including any federal or state securities law, rule or regulation). 
 4.4
The Investor understands that nothing in this Agreement, the Prospectus, the Disclosure Package or any other materials presented to the Investor in connection with the purchase and sale of the Units constitutes legal, tax or investment advice.
The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Units. The Investor also understands that there is no established public trading
market for the Warrants being offered in the Offering, and that the Company does not expect such a market to develop. In addition, the Company does not intend to apply for listing the Warrants on any securities exchange. Without an active market,
the liquidity of the Warrants will be limited. 
 4.5 Since the date on which the Placement Agents first contacted such Investor
about the Offering, the Investor has not engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales involving the Company’s securities). Each Investor covenants that it will not engage in any
transactions in the securities of the Company (including Short Sales) or disclose any information about the Offering (other than to its advisors that are under a legal obligation of confidentiality prior to the time that the transactions
contemplated by this Agreement are publicly disclosed pursuant to the Form 8-K Filing. The Investor agrees that it will not use any of the Securities acquired pursuant to this Agreement to cover any short position in the Common Stock if doing so
would be in violation of applicable securities laws. For purposes hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not
against the box, and all types of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar
arrangements (including on a total return basis), and sales and other transactions through non-US broker dealers or foreign regulated brokers. 

  
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 5. Representations, Warranties and Covenants of the Company 

6.1. 5.1 The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm’s length purchaser with
respect to the Securities and the transactions contemplated hereby and thereby and that the Investor is not (i) an officer or director of the Company or any of its Subsidiaries (as defined below), (ii) an “affiliate” (as defined
in Rule 144) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Exchange Act. The Company further
acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Securities and the transactions contemplated hereby and thereby, and any
advice given by the Investor or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities. The Company further
represents to the Investor that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation by the Company and its representatives. “Subsidiaries” means any Person in which the
Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and
each of the foregoing, is individually referred to herein as a “Subsidiary”. 
 5.2 It is understood and
acknowledged by the Company that (i) following the public disclosure of the transactions contemplated by this Agreement in connection with the Form 8-K Filing, in accordance with the terms thereof, the Investor has not been asked by the Company
or any of its Subsidiaries to agree, nor has the Investor agreed with the Company or any of its Subsidiaries, to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or short)
any securities of the Company, or “derivative” securities based on securities issued by the Company or to hold any of the Securities for any specified term; (ii) the Investor, and counterparties in “derivative” transactions
to which any the Investor is a party, directly or indirectly, presently may have a “short” position in the Common Stock which was established prior to the Investor’s knowledge of the transactions contemplated by this Agreement; and
(iii) the Investor shall not be deemed to have any affiliation with or control over any arm’s length counterparty in any “derivative” transaction. The Company further understands and acknowledges that following the public
disclosure of the transactions contemplated by this Agreement pursuant to the Form 8-K Filing, the Investor may engage in hedging and/or trading activities at various times during the period that the Securities are outstanding and (b) such
hedging and/or trading activities, if any, can reduce the value of the existing stockholders’ equity interest in the Company both at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges that
such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement or the Warrants or any of the documents executed in connection herewith or therewith. 

5.3 Except as disclosed in the Form 8-K Filing, the Company confirms that neither it nor any other Person acting on its behalf has
provided the Investor or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information concerning the Company or any of its Subsidiaries, other than the existence of the
transactions contemplated by this Agreement. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Investor regarding
the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, furnished by or on behalf of the Company or any 

  
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of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in
the light of the circumstances under which they were made, not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the time of release
contain any untrue statement of a material fact or omit 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 are made, not misleading. No
event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or
otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. The Company acknowledges and agrees that the Investor
does not make and has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 4. 

5.4. No executive officer (as defined in Rule 501(f) promulgated under the Act) or other key employee of the Company or any of its
Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. 

6. Covenants. 

6.1. Press Release and Form 8-K. The Company and the Investor agree that the Company shall issue a press release and file a Form
8-K announcing the Offering prior to the open of regular trading on The NASDAQ Global Market on December [    ], 2014, which such Form 8-K shall include any other material information regarding the Company that is contained in
the Issuer Free Writing Prospectus, and attaching this Agreement and the Form of Warrants (the “Form 8-K Filing”), and shall be in a form reasonably acceptable to the Investor. The Company confirms that it has not provided the
Investor with any information that constitutes material, nonpublic information, except as will be disclosed in the Form 8-K filing. The Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their respective
officers, directors, employees and agents not to, provide the Investor with any material, non-public information regarding the Company or any of its Subsidiaries from and after the Form 8-K Filing without the express prior written consent of such
Buyer. 
 6.2 Company Lock Up. 

(a) For the period specified below (the “Lock-Up Period”), the Company will not, directly or indirectly, take any of the
following actions with respect to its Securities or any securities convertible into or exchangeable or exercisable for any of its Securities (“Lock-Up Securities”): (i) amend, modify or change the terms of any warrants to acquire
Common Stock outstanding on the date hereof, (ii) offer, sell, issue, contract to sell, pledge or otherwise dispose of Lock-Up Securities, (iii) offer, sell, issue, contract to sell, contract to purchase or grant any option, right or
warrant to purchase Lock-Up Securities, (iv) enter into any swap, hedge or any other agreement that transfers, in whole or in part, the economic consequences of ownership of Lock-Up Securities, (v) establish or increase a put equivalent
position or liquidate or decrease a call equivalent position in Lock-Up Securities within the meaning of Section 16 of the Exchange Act or (vi) file with the Commission a registration statement under the Act relating to Lock-Up Securities,
or publicly 

  
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disclose the intention to take any such action, without the prior written consent of the Placement Agents, except (A) grants of awards to purchase Lock-Up Securities, or issuing Lock-Up
Securities, pursuant to employee benefit plans in effect on the date hereof and described in the General Disclosure Package and the Final Prospectus, (B) issuances of Lock-Up Securities pursuant to the exercise, conversion or exchange of
convertible or exchangeable securities outstanding as of the date of this Agreement provided that the exercise price or conversion price of such securities are not lowered or otherwise materially amended in any manner that adversely affects the
Investor or (C) issuances of Lock-Up Securities, which in the aggregate shall not exceed 5% of the outstanding shares of the Securities as of the date of this Agreement, as consideration in connection with collaborations, acquisitions or
strategic transactions approved by a majority of the disinterested directors of the Company, provided that (x) any such issuance shall only be to a person or entity (or to the equityholders of such entity) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company or any of the Subsidiaries and shall provide to the Company additional benefits in addition to the investment of funds, but shall
not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities and (y) the recipient of any such Lock-Up Securities shall agree
in writing to be bound by the terms of this Section 6.2(a). 
 (b) For so long as any Warrant remain outstanding, the Company
and each of its Subsidiaries shall be prohibited from effecting or entering into an agreement to effect any Subsequent Placement involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the
Company or any subsidiary (i) issues or sells any Convertible Securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of
Common Stock at any time after the initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such Convertible
Securities or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, other than pursuant to a customary “weighted average” anti-dilution
provision or (ii) enters into any agreement (including, without limitation, an equity line of credit) whereby the Company or any subsidiary may sell securities at a future determined price (other than standard and customary
“preemptive” or “participation” rights). The Investor shall be entitled to obtain injunctive relief against the Company and its subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect
damages. 
 6. Survival of Representations, Warranties and Agreements; Third Party Beneficiary. Notwithstanding any investigation
made by any party to this Agreement or by the Placement Agents, all covenants, agreements, representations and warranties made by the Company and the Investor herein will survive the execution of this Agreement, the delivery to the Investor of the
Units being purchased and the payment therefor. The Placement Agent shall be third party beneficiary with respect to the representations, warranties and agreements of the Investor in Section 4 hereof. 

7. Notices. All notices, requests, consents and other communications hereunder will be in writing, will be mailed (a) if within
the domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile or (b) if delivered from outside the United States, by International Federal Express
or facsimile, and will be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one business day after so
mailed, (iii) if delivered by International Federal Express, two business days after so mailed and (iv) if delivered by facsimile, upon electric confirmation of receipt and will be delivered and addressed as follows: 

  
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 (a) if to the Company, to: 

XOMA Corporation 
 2910 Seventh
Street 
 Berkeley, California 94710 

Attention: Fred Kurland 

Facsimile: (510) 649 0315 

with copies to (which shall not constitute notice): 

Cooley LLP 
 Five Palo Alto
Square 
 3000 El Camino Real 

Palo Alto, CA 94306  

Attention: Jim Fulton and Mike Tenta 

Facsimile: (650) 490-7400 

(b) if to the Investor, at its address on the Signature Page hereto, or at such other address or addresses as may have
been furnished to the Company in writing. 
 8. Changes. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Investor. 
 9. Headings. The headings of the various sections of this Agreement
have been inserted for convenience of reference only and will not be deemed to be part of this Agreement. 
 10. Severability. In
case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

 11. Governing Law. This Agreement will be governed by, and construed in accordance with, the internal laws of the State of New
York, without giving effect to the principles of conflicts of law that would require the application of the laws of any other jurisdiction. 

12. Counterparts. This Agreement may be executed in two or more counterparts, each of which will constitute an original, but all of
which, when taken together, will constitute but one instrument, and will become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that
the Company shall deliver its counterpart to the Investor along with the Prospectus Supplement (or the filing by the Company of an electronic version thereof with the Commission). 

13. Confirmation of Sale. The Investor acknowledges and agrees that such Investor’s receipt of the Company’s counterpart to
this Agreement, together with the Prospectus Supplement (or the filing by the Company of an electronic version thereof with the Commission), shall constitute written confirmation of the Company’s sale of Units to such Investor. 

  
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 14. Termination. In the event that the Placement Agreement is terminated by the Placement
Agents pursuant to the terms thereof, this Agreement shall terminate without any further action on the part of the parties hereto. 

  
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 EXHIBIT A 

XOMA CORPORATION 

INVESTOR QUESTIONNAIRE 

Pursuant to Section 3 of Annex I to the Agreement, please provide us with the following information: 

 

					
			
	1.	 	The exact name that your Shares and Warrants are to be registered in. You may use a nominee name if appropriate:	  	  

			
	2.	 	The relationship between the Investor and the registered holder listed in response to item 1 above:	  	  

			
	3.	 	The mailing address of the registered holder listed in response to item 1 above:	  	  

			
	4.	 	The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:	  	  

			
	5.	 	Name of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained):	  	  

			
	6.	 	DTC Participant Number:	  	  

			
	7.	 	Name of Account at DTC Participant being credited with the Shares:	  	  

			
	8.	 	Account Number at DTC Participant being credited with the Shares:	  	  

 Exhibit B 

Form of Warrant 

  
 14Exhibit 10.1

 

PROPELL TECHNOLOGIES GROUP INC.

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”), made effective as of December 5, 2014 (the “Effective Date”), by and
between PROPELL TECHNOLOGIES GROUP, INC., a corporation organized under the laws of the State of Delaware with offices located
at 1701 Commerce Street, 2nd Floor, Houston, Texas 77002 (the “Company”), its subsidiaries, affiliates, successors
and assigns (collectively, “Affiliates”) and JOHN WALTER HUEMOELLER II, an individual residing at ______________ (the “Executive”).

 

RECITALS

A.The Agreement supersedes
the previous employment agreement between Propell Technologies Group, Inc and John Walter Huemoeller II signed March 6, 2013.

 

B.The Company desires
to continue to employ Executive as its President and Chief Executive Officer and to have Executive continue to serve on the Board
of Directors of the Company (the "Board") on the terms and conditions hereinafter set forth; and

 

C.Executive desires
to be employed by the Company as its President and Chief Executive Officer and to serve on the Board and to perform and to serve
the Company on the terms and conditions hereinafter set forth.

 

AGREEMENTS 

NOW,
THEREFORE, in consideration of the premises and of the mutual promises, agreements and covenants set forth herein, the parties
hereto agree as follows:

1. Employment.

(a)Duties.
The Company hereby agrees to employ Executive, and Executive hereby accepts such employment, as the Chief Executive Officer and
President of the Company. In his role as Chief Executive Officer and President of the Company, Executive shall be responsible for
such duties and functions of a supervisory or managerial nature as may be directed from time to time by the Board provided that
such duties are reasonable and customary for a Chief Executive Officer. Executive agrees that he shall, during the term of this
Agreement, except during reasonable vacation periods, periods of illness and the like, devote such commercially necessary portion
of his business time, attention and ability to his duties and responsibilities hereunder; provided, however, that
nothing contained herein shall be construed to prohibit or restrict Executive from (i) serving in other various business capacities
or serving as a director, officer or consultant of any corporation, except any business or corporation that is a “Competitor”
as defined in Section 7(a) below, with or without compensation therefor; (ii) serving in various capacities in community, civic,
religious or charitable organizations or trade associations or leagues; or (iii) attending to personal business; provided,
however, that no such service or activity permitted in this Section 1(a) shall materially interfere with the performance
by Executive of his duties hereunder.

    	 

    	 

    

(b)Term.

(i)
The term of this Agreement and Executive’s employment period shall be for a term commencing on the date of this Agreement
and ending on the third (3rd) anniversary of the Effective Date (the "Employment Period"); provided, however,
that commencing on the first day after the date of the Effective Date and on each day thereafter, the Employment Period shall be
extended for one (1) additional day so that a constant three (3) year Employment Period shall be in effect, unless (A) the Company
or Executive elects not to extend the term of this Agreement by giving written notice to the other party in accordance with Sections
3(b) and 13 hereof, in which case, the term of this Agreement shall become fixed and shall end on the first (1st) anniversary of
the date of such written notice ("Notice of Non-Renewal"), or (B) Executive's employment terminates hereunder.

(ii)Notwithstanding
anything contained herein to the contrary, (A) Executive's employment with the Company may be terminated by the Company or Executive
during the Employment Period, subject to the terms and conditions of this Agreement; and (B) nothing in this Agreement shall mandate
or prohibit a continuation of Executive's employment following the expiration of the Employment Period upon such terms and conditions
as the Board and Executive may mutually agree.

(iii)If
Executive's employment with the Company is terminated, for purposes of this Agreement, the term "Unexpired Employment Period"
shall mean the period commencing on the date of such termination and ending on the last day of the Employment Period.

2.Compensation.
Subject to the provisions of Section 8 hereof, the Company and its Affiliates shall each be responsible and have joint and several
liability for all compensation and benefits owed to Executive under this Agreement. A reference to a Company plan, program, obligation
or commitment shall also be considered an obligation or commitment of each of the Company and its Affiliates but shall not result
in duplicate benefits being paid or provided to Executive.

(a)Salary.
Executive shall receive an annual base salary of One Hundred Eighty Thousand Dollars ($180,000) which shall be payable on a bi-weekly
basis. The annual base salary payable to Executive pursuant to this Section 2(a), which may be increased but not decreased by the
Board or the Compensation Committee of the Board, as the case may be, shall be hereinafter referred to as the "Annual Base
Salary."

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(b)Annual
Bonus.

(i)The
Executive shall be eligible for an annual bonus of a percentage of his base salary payable in cash or equity. Any bonus that may
be awarded, if any, will be in the sole and absolute discretion of both the Compensation Committee, if any, and the Board of Directors
of the Company, the “Discretionary Annual Bonus”. The amount of such bonus shall depend on the achievement by
the Executive and/or the Company of certain objectives to be established by the Board or the Compensation Committee in consultation
with the Executive, along with such other factors the Board and Compensation Committee deems relevant. Any bonus for a given fiscal
year shall be payable in one lump sum upon approval by the Board of Directors of the Company or the Compensation Committee, which
shall be obtained by the Company on or about December 31 of such year.

(c)Stock
Grant. The Executive shall receive 10,000,000 restricted shares of the Company’s common stock. The share grant will vest
as follows: 1,250,000 shall vest on January 1, 2015 and 1,250,000 shares shall vest on each quarter anniversary thereafter for
seven (7) successive quarters while Executive is employed by the Company. In addition, the Executive shall receive an additional
750,000 shares of the Company’s common stock on an annual basis commencing on January 1, 2016 and each one year anniversary
thereof, such shares shall vest immediately upon issuance. Notwithstanding the foregoing vesting schedule, in the event of either
a change of control (as defined in the next sentence), termination of Executive by the Company without “Cause” as defined
in Section 3(a)(v), termination of Executive due to disability as set defined in Section 3(a)(iii) or death or termination by Executive
for Good Reason, all shares that have been issued subject to this Agreement shall immediately vest . In the event Executive terminates
this agreement Without Good Reason or is terminated for ‘Cause” as defined in Section 3(a)(i) anytime prior to January
1, 2016 5,000,000 of the restricted shares that have been issued subject to this Agreement shall immediately vest. Change of Control
shall be defined as a sale of all or substantially all of the Company’s assets, or any merger or consolidation of the Company
with or into another corporation other than a merger or consolidation in which the holders of more than 50% of the shares of capital
stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting securities remaining
outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power
represented by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction.

(d)Reimbursement
of Business Expenses. The Company shall promptly reimburse Executive for all reasonable out-of-pocket expenses incurred by
him pursuant to his employment hereunder during the Employment Period, including, but not limited to, all reasonable travel and
entertainment expenses. Executive may only obtain reimbursement under this Section 2(d) upon submission of such receipts and records
as may be initially required by the Board and, thereafter, as may be required under the reimbursement policies established by the
Company. Notwithstanding the foregoing, Executive shall be permitted to charge reasonable expenses delineated in this Section 2(d)
to Company charge cards or other credit accounts made available to Executive by the Board.

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(e)Additional Benefits; General Rights.
During the Employment Period, Executive shall be entitled to:

(i)participate
in all employee stock option, pension, savings, and other similar benefit plans of the Company as the Company may designate from
time to time;

(ii)the
Company agrees to provide medical insurance for employee;

(iii)
participate in all other welfare plans established by the Company such as life insurance, dental, disability, and business
travel accident plans and programs as the Company may designate from time to time;

(iv)four
(4) weeks paid vacation per year;

(v)the
continued use of the Company’s apartment that is paid for by the Company at 15 N. Chenevert, Apt 511, Houston, TX 77002;

(vi)any
other benefits provided by the Company to its executive officers.

3.
Termination of Employment; Events of Termination.

(a)This
Agreement may be terminated during the Employment Period under the following circumstances:

(i)Cause.
Executive's employment hereunder shall terminate for "Cause" thirty (30) days after the date the Company shall have given
Executive notice of the termination of his employment for "Cause", unless a cure period applies, in which case the termination
date may not precede the expiration date of the applicable cure period. For purposes of this Agreement, "Cause"
shall mean acts of embezzlement or misappropriation of funds or fraud as determined by a non-appealable determination of a court
of law; conviction of a felony.

(ii)Death.
Executive's employment hereunder shall terminate upon his death.

(iii)Disability.
Executive’s “Disability”, meaning Executive’s incapacity, due to physical or mental illness, which results
in Executive having been absent from fully performing his duties with the Company for a continuous period of more than thirty (30)
days or more than sixty (60) days in any period of three hundred sixty-five (365) consecutive days. In the event that the Company
intends to terminate the employment of Executive by reason of Disability, the Company shall give Executive no less than thirty
(30) days’ prior written notice of the Company’s intention to terminate Executive’s employment.  The
Executive agrees, in the event of any dispute hereunder as to whether a Disability exists, and if requested by the Company, to
submit to a physical examination in the state of the Company’s Executive offices by a licensed physician selected by mutual
agreement between the Company and the Executive, the cost of such examination to be paid by the Company. The written medical opinion
of such physician shall be conclusive and binding upon each of the parties hereto as to whether a Disability exists and the date
when such Disability arose. If Executive refuses to submit to appropriate examinations by such physician at the request of the
Company, the determination of the Executive’s Disability by the Company in good faith will be conclusive as to whether such
Disability exists. This Agreement shall be interpreted and applied so as to comply with the provisions of the Americans with Disabilities
Act (to the extent that it is applicable) and any other applicable laws regarding disability.

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(iv)Good
Reason. Executive shall have the right to terminate his employment for "Good Reason." This Agreement shall
terminate effective immediately on the date Executive shall have given the Board notice of the termination of his employment with
the Company for "Good Reason." For purposes of this Agreement, "Good Reason" shall mean (A) any material and
substantial breach of this Agreement by the Company, (B) a diminution of Executive's responsibilities, loss of title or position
in which Executive currently serves, failure to reelect Executive to the Board, (C) a Change in Control (as defined in Section
2(c) occurs and Executive voluntarily quits at any time within the six (6) month period on or immediately following the Change
in Control, (D) the Company issues a Notice of Non-Renewal to Executive, (E) a reduction in Executive's Annual Base Salary or a
material reduction in other benefits (except for bonuses or similar discretionary payments) as in effect at the time in question,
or any other failure by the Company to comply with Section 2, hereof, or (F) this Agreement is not assumed by a successor to the
Company.

(v) Without Cause.
The Company shall have the right to terminate Executive's employment hereunder Without Cause subject to the terms and conditions
of this Agreement. In such event, this Agreement shall terminate, effective immediately upon the date on which the Company shall
have given Executive notice of the termination of his employment for reasons other than for Cause or due to Executive's Disability.

(vi)Without Good
Reason. Executive shall have the right to terminate his employment hereunder without Good Reason at any time for any reason
subject to the terms and conditions of this Agreement. This Agreement shall terminate, effective immediately upon the date as of
which Executive shall have given the Board notice of the termination of his employment without Good Reason.

 

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(b)Notice
of Termination. Any termination of Executive's employment by the Company or any such termination by Executive (other than
on account of death) shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement,
a "Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of Executive's employment under the provision so indicated. In the event of the termination of Executive's employment on account
of death, written Notice of Termination shall be deemed to have been provided on the date of death. 

4.Payments
Upon Termination.

(a)Without
Cause, For Good Reason or Disability. If Executive's employment is terminated by the Company without Cause or by Executive
for Good Reason, or by the Company due to Executive's Disability, Executive, or in the case of Executive's Disability, Executive's
legal representative (assuming Executive’s affairs are handled by a representative rather than Executive himself), shall
be entitled to receive from the Company a lump sum payment in an aggregate amount equal to the greater of (a) six months base salary
together with payment of the cost of Executive’s medical insurance or any COBRA payments for six months after the date of
termination; provided, however that if during such six months the Executive is employed by an employer that pays for Executive’s
medical insurance then the Company shall be relieved of its obligation to pay the cost of the medical insurance (the "Severance
Payment"); (ii) any bonuses which have been earned but not been paid prior to such termination ("Prior Bonus Payment")
and (iii) reimbursement of expenses incurred prior to date of termination (the "Expense Reimbursement"). The aforesaid
amounts shall be payable in cash without discount for early payment, at the option of Executive, either in full immediately upon
such termination or monthly over the Unexpired Employment Period (the "Payment Election"). Executive's additional
benefits specified in Section 2(e) shall terminate at the time of such termination other than the medical insurance which shall
continue as provided above. In addition, the stock issued to Executive shall vest as provided in Section 2 (c).

In the event Executive
is terminated by the Company Without Cause or due to Executive's Disability or Executive terminates his employment with the Company
for Good Reason, Executive shall have no duty to mitigate the amount of the payment received pursuant to this Section 4(a), it
being understood that Executive's acceptance of other employment shall not reduce the Company’s or the other Company' obligations
hereunder other than as set forth above with respect to the payment of medical insurance.

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(b)Death.
If Executive's employment is terminated due to death of Executive, Executive's estate or beneficiary(ies), as the case may be,
shall be entitled to a lump payment in an amount equal to the Severance Payment, the Prior Bonus Payment and Expense Reimbursement.

(c)Termination
With Cause or Without Good Reason. If the Company terminates Executive's employment for Cause or in the event Executive voluntarily
terminates his employment Without Good Reason, Executive shall be entitled to (i) his Annual Base Salary through the date of the
termination of such employment and Executive shall be entitled to any bonuses which have been earned but not paid prior to such
termination and (ii) Expense Reimbursement. The aforesaid amounts shall be payable in cash without discount for early payment,
at the option of Executive, either in full immediately upon such termination or monthly over the Unexpired Employment Period (the
"Payment Election"). Executive shall not be entitled to any other bonuses. Executive's additional benefits specified
in Section 2(e) shall terminate at the time of such termination. In addition, the stock issued to Executive shall vest as provided
in Section 2 (c).

(d)Termination
by the Company Upon Change in Control. If the Company terminates Executive's employment for any reason in connection with a
Change in Control (as defined in Section 2(c)), Executive shall receive from the Company in one lump sum, payable on the consummation
of the Change in Control an amount equal to the Severance Payment, the Prior Bonus Payment and the Expense Reimbursement.

In the event Executive
is terminated by the Company in connection with a Change in Control which is not approved by the Continuing Directors of the Company,
Executive shall have no duty to mitigate the amount of the payment received pursuant to this Section 6(d), it being understood
that Executive's acceptance of other employment shall not reduce the Company’s obligations hereunder.

5.Confidential Information.

(a)Executive agrees that during the
course of his employment or at any time thereafter, he will not disclose or make accessible to any other person, the Company’s
products, services and technology, both current and under development, promotion and marketing programs, lists, trade secrets and
other confidential and proprietary business information of the Company or any Affiliates or any of their clients. Executive agrees:
(i) not to use any such information for himself or others; and (ii) not to take any such material or reproductions thereof from
the Company’s facilities at any time during his employment by the Company other than to perform his duties hereunder. Executive
agrees immediately to return all such material and reproductions thereof in his possession to the Company upon request and in any
event upon termination of employment.

(b)Except with prior written authorization
by the Company, Executive agrees not to disclose or publish any of the confidential, technical or business information or material
of the Company, its clients or any other party to whom the Company owes an obligation of confidence, at any time during or after
his employment with the Company.

 

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(c)In the event that Executive
breaches any provisions of this Section 5 or there is a threatened breach, then, in addition to any other rights which the Company
may have, the Company shall be entitled, without the posting of a bond or other security, to injunctive relief to enforce the restrictions
contained herein. In the event that an actual proceeding is brought in equity to enforce the provisions of this Section 5, Executive
shall not urge as a defense that there is an adequate remedy at law, nor shall the Company be prevented from seeking any other
remedies which may be available. In addition, Executive agrees that in the event that he breaches the covenants in this Section
5, in addition to any other rights that the Company may have, Executive shall be required to pay to the Company any amounts he
receives in connection with such breach.

(d)Executive recognizes that in
the course of his duties hereunder, he may receive from the Company or others information which may be considered “material,
non-public information” concerning a public company that is subject to the reporting requirements of the United States Securities
and Exchange Act of 1934, as amended. Executive agrees not to:

(i)Buy or sell any security, option, bond or warrant while
in possession of relevant material, non-public information received from the Company or others in connection herewith, and

 

(ii)Provide the Company with information
with respect to any public company that may be considered material, non-public information, unless first specifically agreed to
in writing by the Company.

 

6. Inventions Discovered by Executive.

 

(a)Executive shall
promptly disclose to the Company any invention, improvement, discovery, process, formula, or method or other intellectual property,
whether or not patentable or copyrightable (collectively, "Inventions"), conceived or first reduced to practice
by Executive, either alone or jointly with others, while performing services hereunder (or, if based on any Confidential Information,
within one (1) year after the Term) (a) which pertain to any line of business activity of the Company, whether then conducted or
then being actively planned by the Company, with which Executive was or is involved; (b) which is developed using time, material
or facilities of the Company, whether or not during working hours or on the Company premises; or (c) which directly relates to
any of Executive’s work during the Term, whether or not during normal working hours. Executive hereby assigns to the Company
all of Executive’s right, title and interest in and to any such Inventions. During and after the Term, Executive shall execute
any documents necessary to perfect the assignment of such Inventions to the Company and to enable the Company to apply for, obtain
and enforce patents, trademarks and copyrights in any and all countries on such Inventions, including, without limitation, the
execution of any instruments and the giving of evidence and testimony, without further compensation beyond Executive’s agreed
compensation during the course of Executive’s employment. All such acts shall be done without cost or expense to Executive.
Executive shall be compensated for the giving of evidence or testimony after the term of Executive’s employment at the rate
of $1,000/day. Without limiting the foregoing, Executive further acknowledges that all original works of authorship by Executive,
whether created alone or jointly with others, related to Executive’s employment with the Company and which are protectable
by copyright, are "works made for hire" within the meaning of the United States Copyright Act, 17 U.S.C. (S) 101, as
amended, and the copyright of which shall be owned solely, completely and exclusively by the Company. If any Invention is considered
to be work not included in the categories of work covered by the United States Copyright Act, 17 U. S. C. (S) 101, as amended,
such work is hereby assigned or transferred completely and exclusively to the Company. Executive hereby irrevocably designates
counsel to the Company as Executive's agent and attorney-in-fact to do all lawful acts necessary to apply for and obtain patents
and copyrights and to enforce the Company's rights under this Section. This Section 6 shall survive the termination of this Agreement.
Any assignment of copyright hereunder includes all rights of paternity, integrity, disclosure and withdrawal and any other rights
that may be known as or referred to as "moral rights" (collectively "Moral Rights"). To the extent such
Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries
where Moral Rights exist, Executive hereby waives such Moral Rights and consents to any action of the Company that would violate
such Moral Rights in the absence of such consent. Executive agrees to confirm any such waivers and consents from time to time as
requested by the Company.

 

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7.Non-Compete; Non-Solicitation.

(a)Non-Compete.  For
a period commencing on the Effective Date and ending one (1) year after the date Executive ceases to be employed by the Company
(the "Non-Competition Period"), Executive shall not, directly or indirectly, either for himself or any other person,
own, manage, control, materially participate in, invest in, permit his name to be used by, act as consultant or advisor to, render
material services for (alone or in association with any person, firm, corporation or other business organization) or otherwise
assist in any manner any business which develops, markets or sells products that are directly competitive with the products being
developed or sold by the Company at the time of termination (collectively, a "Competitor").  Nothing
herein shall prohibit Executive from being a passive owner of not more than five percent (5%) of the equity securities of a Competitor
which is publicly traded, so long as he has no active participation in the business of such Competitor.

 

(b)Non-Solicitation.  During
the Non-Competition Period, Executive shall not, directly or indirectly (i) induce or attempt to induce or aid others in inducing
anyone working at or for the Company to cease working at or for the Company, or in any way interfere with the relationship between
the Company and anyone working at or for the Company except in the proper exercise of Executive’s authority; or (ii) in any
way interfere with the relationship between the Company and any customer, supplier, licensee or other business relation of the
Company.

 

(c)Scope.  If,
at the time of enforcement of this Section 8, a court shall hold that the duration, scope, area or other restrictions stated herein
are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, area or other restrictions
reasonable under such circumstances shall be substituted for the stated duration, scope, area or other restrictions.

 

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(d)Independent
Agreement.  The covenants made in this Section 7 shall be construed as an agreement independent of any other provisions
of this Agreement, and shall survive the termination of this Agreement.  Moreover, the existence of any claim or cause
of action of Executive against the Company or any of its Affiliates, whether or not predicated upon the terms of this Agreement,
shall not constitute a defense to the enforcement of these covenants.

 

8.Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns. The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all its assets to expressly assume and agree to perform this Agreement in the same manner and to the same extent the Company would
be required to perform if no such succession had taken place. Executive agrees that this Agreement is personal to him and may not
be assigned by him other than by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by Executive's legal representative.

9.Joint
and Several Liability.

(a)No
Duplication of Payments. The Company and its Affiliates shall be jointly and severally liable for any amounts payable to Executive
under this Agreement. Any amounts payable to Executive shall be paid in the first instance by the Company, and to the extent not
paid by the Company shall be paid by its Affiliates. In no event shall any amount payable pursuant to this Agreement be paid by
the Company and its Affiliates and Executive shall not be entitled to receive duplicate benefits or payments under any of the provisions
of this Agreement.

(b)New
Subsidiaries. Any subsidiary of the Company that is formed or acquired on or after the Effective Date shall be required to
become a signatory to this Agreement and shall become jointly and severally liable with the Company for the obligations hereunder.

(c)Sale
of Subsidiaries. Upon the sale of the stock or substantially all of the assets of any subsidiary of the Company, which is approved
by the Board, such subsidiary shall be automatically released from its obligations hereunder and shall not be considered as having
any continuing liability for the obligations hereunder, and Executive shall be released from his obligations to such subsidiary
hereunder.

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10.Governing Law.
This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware of the
United States of America without regard to principles of conflict of laws. The State of Delaware shall be the exclusive jurisdiction
for any disputes arising under this Agreement and the Parties hereby consent to such jurisdiction.

11.Entire
Agreement. This instrument contains the entire understanding and agreement among the parties relating to the subject matter
hereof, except as otherwise referred to herein, and supersedes all other prior agreements and undertakings, both written and oral,
among the parties with respect to the subject matter hereof. Neither this Agreement nor any provisions hereof may be waived or
modified, except by an agreement in writing signed by the party(ies) against whom enforcement of any waiver or modification is
sought.

12.Severability.
In case any one or more of the provisions of this Agreement shall be invalid, illegal or unenforceable in any respect, or to any
extent, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected
or impaired thereby.

13.Notices.
Any notice required or permitted to be given under the provisions of this Agreement shall be in writing and delivered by courier
or personal delivery, facsimile transmission (to be followed promptly by written confirmation mailed by certified mail as provided
below) or mailed by certified mail, return receipt requested, postage prepaid, addressed as follows:

	If to the Company:	1701 Commerce Street
	 	Second Floor
	 	Houston, TX 77002
	 	 
	 	 
	If to Executive:	Mr. John W. Huemoeller II
	 	
	 	

 

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If
delivered personally, by courier or facsimile transmission (confirmed as aforesaid and provided written confirmation and receipt
is obtained by the sender), the date on which a notice is delivered or transmitted shall be the date on which such delivery is
made. Notices given by mail as aforesaid shall be effective and deemed received upon the date of actual receipt or upon the third
business day subsequent to deposit in the U.S. mail, whichever is earlier. Either party hereto may change its or his address specified
for notices herein by designating a new address by notice in accordance with this Section 12.

 

14.No
Undue Influence. This Agreement is executed voluntarily and without any duress or undue influence. Executive acknowledges that
he has read this Agreement and executed it with his full and free consent. No provision of this Agreement shall be construed against
any party by virtue of the fact that such party or its counsel drafted such provision or the entirety of this Agreement.

15.Counterparts.
This Agreement may be executed in separate counterparts, each of which is deemed to be an original and both of which taken together
shall constitute one and the same agreement.

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

 

 

 

	EXECUTIVE:	 	COMPANY:
	 	 	 
	 	 	Propell Technologies Group Inc.
	 	 	a Delaware Corporation
		 	 
		 	By:	/s/ John Zotos
	John W. Huemoeller II	 	 	John Zotos, Secretary
	 	 	 	 
	 	 	 	 

 

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