Document:

EXHIBIT 10.1

 

AGREEMENT AND PLAN OF MERGER

 

THIS AGREEMENT AND PLAN OF MERGER (the “Agreement”),
dated as of September [__], 2013 (the “Effective Date”), by and among Stratus Media Group, Inc., a Nevada
corporation (“Stratus”); Canterbury Acquisition, LLC, a Delaware limited liability company and a wholly-owned
subsidiary of Stratus (“Canterbury Merger Sub”); Hygeia Acquisition, Inc., a Delaware corporation and a wholly
owned subsidiary of Stratus (“Hygeia Merger Sub”); Canterbury Laboratories, LLC, a Delaware limited liability
company (“Canterbury”); Hygeia Therapeutics, Inc., a Delaware corporation (“Hygeia”); and
Yael Schwartz, Ph.D. as Holder Representative.

 

WHEREAS, the parties hereto have determined
that it would be advisable and in the best interests of their respective companies and the security holders of their respective
companies that: (a) Canterbury Merger Sub be merged with and into Canterbury and (b) Hygeia Merger Sub be merged with
and into Hygeia, each in a statutory reverse triangular merger (collectively the “Mergers”), with Canterbury
and Hygeia, as the case may be, surviving the Mergers as the surviving entities and on the terms and subject to the conditions
set forth in this Agreement;

 

WHEREAS, the respective Boards of Directors
of Stratus, Canterbury Merger Sub, Hygeia Merger Sub, Canterbury and Hygeia have determined that the Mergers, in the manner contemplated
herein, are advisable and in the best interests of their respective equity holders and, by resolutions duly adopted, have approved
and adopted this Agreement; and

 

WHEREAS, Stratus, Canterbury Merger Sub,
Hygeia Merger Sub, Canterbury and Hygeia desire to make certain representations, warranties, covenants and agreements in connection
with the Mergers and also to prescribe various conditions to the Mergers.

 

NOW, THEREFORE, in consideration of the
representations, warranties, covenants and agreements contained in this Agreement, the receipt and legal sufficiency of which is
hereby acknowledged, accepted and agreed to, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1              
Certain Definitions. For purposes of this Agreement, the following terms shall have the meanings specified in this
Section 1.1:

 

“Affiliate” means, with
respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, such Person, and the term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise.

 

“Canterbury Holders”
means the holders of Canterbury Units.

 

“Canterbury Material Adverse Effect”
means with respect to Canterbury, any condition, change, situation or set of circumstances (any such item, an “Effect”)
that has had or would reasonably be expected to have a material adverse effect on: (i) the business, assets, properties, liabilities,
financial condition, operations, or results of operations of Canterbury or (ii) the ability of Canterbury to consummate the Canterbury
Merger and the other transactions contemplated by this Agreement or perform its material obligations under this Agreement or the
Canterbury Documents, if applicable.

 

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“Canterbury
Intellectual Property” means all Intellectual Property Rights owned by or licensed to Canterbury.

 

“Canterbury Merger Consideration”
means 69,006,938 shares of Stratus Common Stock, which shares are to be issued pursuant to Sections 3.2(b) and 3.3 of this Agreement.

 

“Canterbury
Technology” means all Technology owned by or licensed to Canterbury.

 

“Canterbury Units” means
the membership units of any and all classes and series issued by Canterbury.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time.

 

“Contract” means any
contract, agreement, indenture, note, bond, loan, instrument, lease, commitment or other legally binding arrangement or agreement,
whether written or oral.

 

“DGCL” means the Delaware
General Corporation Law in effect from time to time.

 

“DLLCA” means the Delaware
Limited Liability Company Act in effect from time to time.

 

“Dissenting Securities”
has the meaning ascribed to it by Section 3.9.

 

“Effective Time” has
the meaning ascribed to it by Section 2.2.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

“Escrow Agent” means
the Person who will act as the Escrow Agent pursuant to Section 10.5 which Person shall be subject to the approval of the Holder
Representative and Stratus.

 

“Escrow Shares” means
11,501,160 shares of Stratus Common Stock representing in the aggregate Ten (10%) percent of the Merger Consideration.

 

“GAAP” means generally
accepted accounting principles in the United States.

 

“Governmental Body” means
any government or governmental or regulatory body thereof, or political subdivision thereof, whether federal, state, local or foreign,
or any agency, instrumentality or authority thereof, or any court, arbitrator or mediator (public or private).

 

“Holder Representative Reserve”
means 2,300,229 shares of Stratus Common Stock intended to settle claims and to defray the costs and expenses incurred by the Holder
Representative in connection with her obligations under this Agreement.

 

“Hygeia Material Adverse Effect”
means any condition, change, situation or set of circumstances (any such item, an “Effect”) that has had or
would reasonably be expected to have a material adverse effect on: (i) the business, assets, properties, liabilities, financial
condition, operations, or results of operations of Hygeia or (ii) the ability of Hygeia to consummate the Hygeia Merger and the
other transactions contemplated by this Agreement or perform its material obligations under this Agreement or the Hygeia Documents,
if applicable.

 

“Hygeia
Intellectual Property” means all Intellectual Property Rights owned by or licensed to Hygeia.

 

“Hygeia Merger Consideration”
means 46,004,625 shares of Stratus Common Stock, which shares are to be issued pursuant to Sections 3.1(b) and 3.3. of this Agreement.

 

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“Hygeia Stockholders”
means the holders of any shares of Hygeia Stock issued and outstanding immediately prior to the Effective Time.

 

“Hygeia Stock” means
all capital stock of Hygeia, including Hygeia common stock and Hygeia preferred stock, each with a par value of $0.0001 per share.

 

“Hygeia
Technology” means all Technology owned by or licensed to Hygeia.

 

“Indebtedness” of any
Person means, without duplication: (i) the principal of and premium (if any), prepayment penalties (if any) in respect of (A) indebtedness
of such Person for money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the
payment of which such Person is responsible or liable; (ii) all obligations of such Person issued or assumed as the deferred purchase
price of property, all conditional sale obligations of such Person and all obligations of such Person under any title retention
agreement; (iii) all obligations of such Person under leases required to be capitalized in accordance with GAAP; (iv) all obligations
of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction;
and (v) all obligations of the type referred to in clauses (i) through (iv) of any Persons for the payment of which such Person
is responsible or liable or for which any property or asset of such Person is secured by a Lien, under any legally binding obligation,
including as obligor, guarantor, surety or otherwise.

 

“Intellectual Property or
Intellectual Property Rights” shall mean all of the rights arising from or in respect of the following, whether protected,
created or arising under the Laws of the United States or any foreign jurisdiction: (A) patents, patent applications, any reissues,
reexaminations, divisionals, continuations, continuations-in-part and extensions thereof (collectively, “Patents”);
(B) trademarks, service marks, trade names (whether registered or unregistered), service names, industrial designs, brand names,
brand marks, trade dress rights, Internet domain names, identifying symbols, logos, emblems, signs or insignia, and including all
goodwill associated with the foregoing (collectively, “Marks”), (C) copyrights, whether registered or unregistered
(including copyrights in computer software programs), mask work rights and registrations and applications therefor (collectively,
“Copyrights”); (D) confidential and proprietary information, or non-public processes, designs, specifications,
technology, know-how, techniques, formulas, inventions, concepts, trade secrets, discoveries, ideas and technical data and information,
in each case excluding any rights in respect of any of the foregoing that comprise or are protected by Copyrights or Patents (collectively,
“Trade Secrets”); (E) all uniform resource locators, e-mail and other internet addresses and domain names and
applications and registrations therefor (“Domain Names”); and (F) all applications, registrations and permits
related to any of the foregoing clauses (A) through (E).

 

“IRS” means the Internal
Revenue Service.

 

“Knowledge” means with
respect to any Person, the actual knowledge of each of the directors and officers of such Person and such knowledge as would reasonably
be expected to be known by such individuals in the ordinary and usual course of the performance of their responsibilities.

 

“Law” means any foreign,
federal, state or local law (including common law), statute, code, ordinance, rule, regulation or other requirement issued, enacted,
adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Body.

 

“Legal Proceeding” means
any judicial, administrative, arbitral or mediation-related actions, suits, proceedings (public or private) or claims or proceedings
by or before a Governmental Body.

 

“Liability” means any
debt, loss, damage, adverse claim, liability or obligation (whether direct or indirect, known or unknown, asserted or unasserted,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether in contract, tort,
strict liability or otherwise).

 

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“Lien” shall mean any
lien, mortgage, encumbrance, security interest, claim, lease, charge, or pledge.

 

“Losses” means any and
all Liabilities, Taxes and Tax Losses , costs and expenses, and any and all claims, demands or suits (by any Person, including
without limitation any Governmental Body), including the costs and expenses of any and all actions, suits, proceedings, demands,
assessments, judgments, settlements and compromises relating thereto and including reasonable attorneys’ and other advisors’
fees, costs and expenses in connection therewith.

 

“Merger Consideration”
means the Canterbury Merger Consideration and the Hygeia Merger Consideration.

 

“Merger Consideration Schedule”
has the meaning ascribed to it by Section 3.4.

 

“Order” means any order,
injunction, judgment, decree, ruling, writ, assessment or arbitration award of a Governmental Body.

 

“Ordinary Course of Business”
means the ordinary and usual course of day-to-day operations of the business of Stratus, Hygeia, Canterbury, as the case may be,
consistent with past practice.

 

“Permits” means any approvals,
authorizations, consents, licenses, permits or certificates of a Governmental Body.

 

“Person” means any individual,
corporation, partnership, firm, joint venture, association, joint-stock Company, trust, unincorporated organization, Governmental
Body or other entity.

 

“Software” means computer
programs, including any and all software implementations of algorithms, models and methodologies whether in source code, object
code or other form, databases and compilations, including any and all data and collections of data, descriptions, flow-charts and
other work product used to design, plan, organize and develop any of the foregoing and all documentation, including user manuals
and training materials related to any of the foregoing.

 

“Stratus Material Adverse Effect”
means, with respect to Stratus, any Effect that has had or would reasonably be expected to have a material adverse effect on: (i)
Stratus or the business, assets, properties, liabilities, financial condition, operations, or results of operations of Stratus,
or (ii) the ability of Stratus to consummate the Mergers and the other transactions contemplated by this Agreement or perform its
material obligations under this Agreement or the Stratus Documents, if applicable.

 

“Stratus Common Stock”
means Stratus’s common stock, $0.001 par value.

 

“Subsidiary” means any
Person of which any other Person directly or indirectly owns voting securities, other voting rights or voting partnership interests
which are sufficient to elect at least a majority of such first Person’s board of directors or other governing body (or,
if there are no such voting interests, the second Person directly or indirectly owns 50% or more of the equity interests of such
first Person).

 

“Takeover Proposal” means
any inquiry, proposal or offer from any Person or “group” (as defined in Section 13(d) of the Securities Exchange Act
of 1934, as amended, (the “Exchange Act”)), other than Stratus relating to any: (A) direct or indirect
acquisition (whether in a single transaction or a series of related transactions) of all or any portion of the assets of Canterbury
or Hygeia, (B) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of all
or any portion of the any class of equity securities of Canterbury or Hygeia, (C) tender offer or exchange offer that if consummated
would result in any Person or “group” (as defined in Section 13(d) of the Exchange Act) beneficially owning 15% or
more of any class of equity securities of Canterbury or Hygeia or (D) merger, consolidation, share exchange, business combination,
recapitalization, liquidation, dissolution or similar transaction involving Canterbury or Hygeia; in each case, other than the
transactions contemplated by this Agreement.

 

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“Tax Return” means any
return, report or statement required to be filed with respect to any Tax (including any schedules or attachments thereto, and any
amendment thereof), including any information return, claim for refund, amended return or declaration of estimated Tax, and including,
where permitted or required, combined, consolidated or unitary returns for any group of entities that includes Hygeia or any of
its Affiliates.

 

“Taxes” means: (i) all
federal, state, local or foreign taxes, charges, fees, imposts, levies or other assessments, including all net income, gross receipts,
capital, sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, national insurance or health, excise, severance, stamp, occupation, property and estimated
taxes, customs duties, fees, assessments and other taxes of any kind whatsoever, (ii) all interest, penalties, fines, additions
to tax or additional amounts imposed by any Taxing Authority in connection with any item described in clause (i), and (iii) any
liability in respect of any items described in clauses (i) and/or (ii) payable by reason of Contract, assumption, transferee liability,
operation of Law, Treasury Regulation Section 1.1502-6(c) (or any predecessor or successor thereof of any analogous or similar
provision under Law) or otherwise.

 

“Taxing Authority” means
the IRS and any other Governmental Body responsible for the administration of any Tax.

 

“Technology” means, collectively,
all designs, formulas, algorithms, procedures, techniques, ideas, know-how, Software (whether in source code, object code or human
readable form), databases and data collections, Internet websites and web content, tools, inventions (whether patentable or unpatentable
and whether or not reduced to practice), invention disclosures, developments, creations, improvements, works of authorship, other
similar materials and all recordings, graphs, drawings, reports, analyses, other writings and any other embodiment of the above,
in any form or media, whether or not specifically listed herein, and all related technology, documentation and other materials
used in, incorporated in, embodied in or displayed by any of the foregoing, or used or useful in the design, development, reproduction,
maintenance or modification of any of the foregoing.

 

“Transaction Expenses”
means the expenses payable by Hygeia and Canterbury to their outside professional legal, financial, accounting, other advisors
and as well as certain creditors (other than Torreya Partners LLC) for services performed by them with respect to the negotiation
of this Agreement and the other agreements contemplated hereby and the transactions contemplated hereby and thereby (excluding
any expenses payable by Hygeia and Canterbury to such advisors for tax planning for their executives or Hygeia Stockholders or
Canterbury Holders) whether or not billed or accrued or for services provided to either Hygeia or Canterbury prior to the Closing.

 

“Treasury Regulations”
means the regulations promulgated under the Code.

 

ARTICLE II

THE MERGERS

 

2.1              
The Mergers. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the
DGCL and DLLCA at the Effective Time: (a) Hygeia Merger Sub will merge with and into Hygeia (the “Hygeia Merger”),
and (b) the separate corporate existence of Hygeia Merger Sub will cease and Hygeia will continue its corporate existence
under the DGCL as the surviving corporation in the Hygeia Merger (sometimes referred to herein as the “Hygeia Surviving
Corporation”), (c) Canterbury Merger Sub will merge with and into Canterbury (the “Canterbury Merger”)
and (d) the separate existence of Canterbury Merger Sub will cease and Canterbury will continue its existence under the DGCL
as the surviving entity in the Canterbury Merger (sometimes referred to herein as the “Canterbury Surviving Entity”).

 

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2.2              
Closing.

 

(a)               
Upon the terms and subject to the conditions set forth herein, the closing of the Mergers (the “Closing”)
will take place as soon as practicable (but in any event within five (5) business days after satisfaction or waiver of each of
the conditions set forth in Article IX hereof), unless another time or date is agreed to in writing by the parties
hereto. The Closing shall be held by the remote exchange of documents, and the actual date of the Closing is hereinafter referred
to as the “Closing Date.”

 

(b)               
Subject to the provisions of this Agreement, at the Closing, Hygeia, Stratus, Canterbury Merger Sub and Hygeia Merger Sub,
as the case may be, will cause certificates of merger (the “Certificates
of Mergers”) to be executed, acknowledged and filed with the Secretary of State of the State of Delaware in accordance
with the relevant provisions of the DGCL and DLLCA and shall make all other filings or recordings required under the DGCL and DLLCA.
The Mergers will become effective at such time as the Certificates of Mergers have been duly filed with the Secretary of State
of the State of Delaware or at such later date or time as may be agreed by Hygeia, Canterbury and Stratus, as the case may be,
in writing and specified in the Certificates of Mergers in accordance with the DGCL and DLLCA (the effective time of the Mergers
being hereinafter referred to as the “Effective Time”).

 

2.3              
Effects of the Mergers. The Mergers shall have the effects set forth herein and in the applicable provisions of the
DGCL and DLLCA. Without limiting the generality of the foregoing, and subject thereto, from and after the Effective Time: (a) all
property, rights, privileges, immunities, powers, franchises, licenses and authority of Hygeia and Hygeia Merger Sub shall vest
in the Hygeia Surviving Corporation, and all debts, liabilities, obligations, restrictions and duties of each of Hygeia and Hygeia
Merger Sub shall become the debts, liabilities, obligations, restrictions and duties of the Surviving Hygeia Corporation and (b) all
property, rights, privileges, immunities, powers, franchises, licenses and authority of Canterbury and Canterbury Merger Sub shall
vest in the Canterbury Surviving Entity, and all debts, liabilities, obligations, restrictions and duties of each of Canterbury
and Canterbury Merger Sub shall become the debts, liabilities, obligations, restrictions and duties of the Canterbury Surviving
Entity.

 

2.4              
Certificate of Incorporation; By-laws. At the Effective Time: (a) the Hygeia Certificate of Merger shall amend
the certificate of incorporation of Hygeia so that such certificate of incorporation shall contain only the provisions in the certificate
of incorporation of Hygeia Merger Sub (other than the corporate name) and, as so amended, shall be the certificate of incorporation
of the Hygeia Surviving Corporation, (b) the by-laws of Hygeia Merger Sub as in effect immediately prior to the Effective Time
shall be the by-laws of the Hygeia Surviving Corporation and (c) the operating agreement of Canterbury shall be amended to
the satisfaction of Stratus.

 

2.5              
Directors and Officers. The directors and officers of Hygeia Merger Sub, in each case, immediately prior to the Effective
Time shall, from and after the Effective Time, be the directors and officers, respectively, of the Hygeia Surviving Corporation
until their successors have been duly elected or appointed and qualified or until their earlier death, resignation or removal in
accordance with the certificate of incorporation and by-laws of the Hygeia Surviving Corporation. The managers, directors and officers
of Canterbury Merger Sub, in each case, immediately prior to the Effective Time shall, from and after the Effective Time, be the
managers, directors and officers, respectively, of the Canterbury Surviving Entity until their successors have been duly elected
or appointed and qualified or until their earlier death resignation or removal in accordance with the operating agreement of the
Canterbury Surviving Entity.

 

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ARTICLE III

EFFECT OF THE MERGER ON THE

SECURITIES OF HYGEIA AND HYGEIA MERGER SUB

 

3.1              
Effect on Hygeia Capital Stock. As of the Effective Time, by virtue of the Hygeia Merger and without any action on
the part of Hygeia Merger Sub, Hygeia or the holders of: (i) any shares of Hygeia Stock, or (ii) any shares of common stock
of Hygeia Merger Sub, the following shall occur:

 

(a)               
Cancellation of Certain Hygeia Capital Stock. Each share of Hygeia Stock that is owned by Stratus, Hygeia Merger
Sub or Hygeia (as treasury stock or otherwise) or any of their respective direct or indirect wholly-owned Subsidiaries will automatically
be cancelled and retired and will cease to exist, and no consideration will be delivered in exchange therefor.

 

(b)               
Conversion of Hygeia Stock. All Hygeia Stock issued and outstanding immediately prior to the Effective Time (other
than Dissenting Securities and shares to be cancelled and retired in accordance with Section 3.1(a)) will be converted into the
Hygeia Merger Consideration which Hygeia Merger Consideration shall be distributed to the Hygeia Stockholders, as required for
a “Deemed Liquidation Event” in accordance with the provisions of Subsections 2.1 and 2.2 of Part B of Article Fourth
of Hygeia’s Amended and Restated Certificate of Incorporation, as amended, and to Torreya Partners LLC all as more particularly
set forth in the Merger Consideration Schedule, but in any event subject to Sections 3.3 and 3.8.

 

(c)               
Cancellation of Shares. At the Effective Time, all shares of Hygeia Stock will no longer be outstanding and all shares
of Hygeia Stock will be cancelled and retired and will cease to exist, and each holder of a certificate formerly representing any
such shares will cease to have any rights with respect thereto, except the right to receive the Hygeia Merger Consideration, if
any.

 

(d)               
Conversion of Hygeia Merger Sub Capital Stock. Each share of common stock of Hygeia Merger Sub issued and outstanding
immediately prior to the Effective Time shall be converted into and become one newly issued, fully paid and non-assessable share
of common stock of the Hygeia Surviving Corporation.

 

3.2              
Effect on Canterbury Capital Units. As of the Effective Time, by virtue of the Canterbury Merger and without any
action on the part of Canterbury Merger Sub, Canterbury or the holders of (i) any of Canterbury Units, or (ii) any units of
Canterbury Merger Sub, the following shall occur:

 

(a)               
Cancellation of Certain Canterbury Capital Units. Each Canterbury Unit that is owned by Stratus, Canterbury Merger
Sub or Canterbury (as treasury stock or otherwise) or any of their respective direct or indirect wholly-owned Subsidiaries will
automatically be cancelled and retired and will cease to exist, and no consideration will be delivered in exchange therefor.

 

(b)               
Conversion of Canterbury Units. All Canterbury Units issued and outstanding immediately prior to the Effective Time
(other than Dissenting Securities and units to be cancelled and retired in accordance with Section 3.2(a)) will be converted into
the Canterbury Merger Consideration which Canterbury Merger Consideration shall be distributed to the Canterbury Holders, as required
for a “Deemed Liquidation Event” in accordance with the provisions of Section 20 of Canterbury’s Operating Agreement
dated effective October 20, 2011, as amended, and to Torreya Partners LLC and holders of Canterbury promissory notes all as more
particularly set forth in the Merger Consideration Schedule, but in any event subject to Sections 3.3 and 3.8.

 

(c)               
Cancellation of Units. At the Effective Time, all Canterbury Units will no longer be outstanding and all Canterbury
Units will be cancelled and retired and will cease to exist, and each holder of a certificate formerly representing any such Units
will cease to have any rights with respect thereto, except the right to receive the Canterbury Merger Consideration, if any.

 

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(d)               
Conversion of Canterbury Merger Sub Capital Units. Each unit of Canterbury Merger Sub issued and outstanding immediately
prior to the Effective Time shall be converted into and become one newly issued, fully paid and non-assessable unit of the Canterbury
Surviving Corporation.

 

3.3              
Escrow Fund. At the Closing, Stratus shall issue the Escrow Shares and the Escrow Agent shall hold such shares in
accordance with the terms of Section 10.5 (the “Escrow Fund”). The Canterbury Holders and the Hygeia Stockholders,
as the case may be, shall have the sole and exclusive right to exercise any and all voting and consensual rights and powers, and
shall be entitled to receive and retain any and all cash dividends, accruing to an owner of their respective portion of the Escrow
Shares pursuant to the terms of Article X. For income tax purposes, the Canterbury Holders and the Hygeia Stockholders,
as the case may be, shall be deemed the owners of their pro rata portion of the Escrow Fund.

 

3.4              
Payment of Merger Consideration. At the Effective Time: (i) Stratus shall issue cerificates: (x) in the name
of the Hygeia Stockholders and Torreya Partners LLC representing the Hygeia Merger Consideration and (y) in the name of the
Canterbury Holders and Torreya Partners LLC representing the Canterbury Merger Consideration, as the case may be, in accordance
with the merger consideration set forth on Schedule 3.2 hereto (the “Merger Consideration Schedule”)
and (ii) the Hygeia Stockholders shall deliver to Stratus certificates representing all of the issued and outstanding shares
of Hygeia Stock, provided that prior to any issuance of any Merger Consideration, the Canterbury Holders and Hygeia Stockhodlers
shall have delivered to Stratus a properly completed Omnibus Consent Agreement. Upon surrender of such certificates for cancellation
to Stratus and delivery of the Omnibus Consent Agreement, the holders of such certificates shall be entitled to receive in exchange
therefor, and Stratus shall cause the transfer agent to deliver the applicable Merger Consideration (or evidence of such Consideration
in book-entry form) into which the securities formerly represented by such certificates shall have been converted pursuant to the
terms of this Article III, and the certificates so surrendered shall forthwith be cancelled. All Merger Consideration
paid upon the surrender for exchange of certificates shall be deemed to have been paid in full satisfaction of all rights pertaining
to the shares of Hygeia Stock and Canterbury Units previously represented by such certificates, and at the Effective Time the transfer
books of Hygeia and Canterbury shall be closed and there shall be no further registration of transfers on the stock transfer books
of the shares of Hygeia Stock and Canterbury Units that were outstanding immediately prior to the Effective Time.

 

3.5              
No Fractional Shares. No certificates or scrip representing fractional shares of Stratus Common Stock shall be issued
and any fractions shall be rounded up or down to the nearest whole share.

 

3.6              
Lost, Stolen or Destroyed Certificates. If any certificate evidencing Hygeia Stock or Canterbury Units shall have
been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming such certificate to be lost,
stolen or destroyed and, if required by Stratus, the posting by such person of a bond, in such reasonable amount as Stratus may
direct, as indemnity against any claim that may be made against it with respect to such certificate, Stratus will issue, in exchange
for such lost, stolen or destroyed certificate, the applicable Merger Consideration, and cash in lieu of any fractional shares
of Stratus Common Stock to which such holder would be entitled pursuant to Section 3.3, in each case pursuant to this Agreement.

 

3.7              
Withholding Taxes. Stratus shall be entitled to deduct and withhold from that portion of the applicable Merger Consideration
otherwise payable pursuant to this Agreement such amounts as Stratus is required to deduct and withhold with respect to the making
of such payment under the Code or any provision of state, local, provincial or foreign Tax Law. To the extent that amounts are
so withheld and remitted to the appropriate governmental body, such withheld amounts shall be treated for all purposes of this
Agreement as having been paid to the holder of such securities in respect of which such deduction and withholding was made by Stratus.

 

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3.8              
Holder Representative Reserve. Notwithstanding anything herein to the contrary, at the Closing, Stratus shall cause
to be deposited, in an account designated by the Holder Representative, the Holder Representative Reserve. The Holder Representative
Reserve may be applied as the Holder Representative, in her sole discretion, determines appropriate to pay, settle, defray, offset,
or pay any claims, charges, fees, costs, liabilities or expenses of the Holder Representative incurred in connection with the transactions
contemplated by this Agreement and settlement of any claims. The balance of the Holder Representative Reserve held pursuant to
this Section 3.8, if any, shall be distributed to the Canterbury Holders and Hygeia Stockholders, as the case may be, who
are entitled to receive the Merger Consideration by depositing such balance with Stratus’ transfer agent for distribution
concurrently with, and as part of, any remaining Escrow Shares. Notwithstanding the foregoing, the Holder Representative Reserve
shall only be so distributed when the Holder Representative determines, in her sole discretion, that such distribution is appropriate.
Stratus shall have no liability or responsibility to the Hygeia Stockholders or the Canterbury Holders with respect to the Holder
Representative Reserve or the actions and responsibilities of the Holder Representative contemplated by this Section 3.8.

 

3.9              
Appraisal Rights. Notwithstanding anything in this Agreement to the contrary, shares of Hygeia Stock and Canterbury
Units (the “Securities”) that are issued and outstanding immediately prior to the Effective Time and which are
held by a Hygeia Stockholder or Canterbury Holder, as the case may be, who did not vote in favor of the applicable Merger (or consent
thereto in writing) and who is entitled to demand and properly demands appraisal of such Securities pursuant to, and who complies
in all respects with, the provisions of the DGCL or DLLCA (the “Dissenting Holders”), shall not be converted
into or be exchangeable for the right to receive the applicable Merger Consideration, but instead such Holder shall be entitled
to payment of the fair value of such Securities (the “Dissenting Securities”) in accordance with the provisions
of the DGCL or DLLCA (and at the Effective Time, such Dissenting Securities shall no longer be outstanding and shall automatically
be canceled and shall cease to exist, and such holder shall cease to have any rights with respect thereto, except the right to
receive the fair value of such Dissenting Securities in accordance with the provisions of the DGCL or DLLCA, unless and until such
holder shall have failed to perfect or shall have effectively withdrawn or lost rights to appraisal under the DGCL or DLLCA. If
any Dissenting Holder shall have failed to perfect or shall have effectively withdrawn or lost such right, such Holder’s
Securities shall thereupon be treated as if they had been converted into and become exchangeable for the right to receive, as of
the Effective Time, the applicable Merger Consideration for such Securities without any interest thereon. Each of Hygeia and Canterbury
shall give Stratus: (i) prompt notice of any written demands for attempted withdrawals of such demands and any other instruments
served pursuant to the DGCL or DLLCA, and (ii) the opportunity to participate in all negotiations and proceedings with respect
to demands for appraisal under the DGCL or DLLCA. Neither Hygeia nor Canterbury, except with the prior written consent of Stratus,
shall voluntarily make any payment with respect to, or settle, or offer or agree to settle, any such demand for payment.

 

ARTICLE IV

TERMINATION, AMENDMENT AND WAIVER

 

4.1              
Termination of Agreement. This Agreement may be terminated at any time prior to the Effective Time as follows:

 

(a)               
At the election of Stratus, Hygeia or Canterbury, on or after November 1, 2013 (the “End Date”) if the
Closing shall not have occurred by the close of business on such date; provided, however, that the right to terminate this Agreement
under this Section 4.1(a) shall not be available to any party who is in material default of any of its obligations hereunder;

 

(b)               
by mutual written consent of Stratus, Hygeia and Canterbury;

 

(c)               
by Stratus, Hygeia or Canterbury if: (i) there shall be in effect a final nonappealable Order of a Governmental Body of
competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby
or (ii) there shall be any Law enacted, promulgated or issued or deemed applicable to the Mergers by any Governmental Body that
would make consummation of the Mergers illegal;

 

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(d)               
by Stratus, so long as Stratus is not in material breach of its representations, warranties, covenants or agreements under
this Agreement, if there shall have been a material breach of any representation, warranty, covenant or agreement of Canterbury
or Hygeia set forth in this Agreement, which breach would give rise to a failure of a condition set forth in Sections 9.1(a), 9.1(b)
or 9.1(c) and is incapable of being cured or, if capable of being cured, shall not have been cured within twenty (20) Business
Days following receipt by Canterbury or Hygeia, as the case may be, of written notice of such breach from Stratus;

 

(e)               
by Hygeia or Canterbury, so long as such party is not in material breach of its representations, warranties, covenants or
agreements under this Agreement, if there shall have been a material breach of any representation, warranty, covenant or agreement
of Stratus set forth in this Agreement, which breach would give rise to a failure of a condition set forth in Sections 9.2(a) or
9.2(b) and is incapable of being cured or, if capable of being cured, shall not have been cured within twenty (20) Business Days
following receipt by Stratus of written notice of such breach from Hygeia or Canterbury.

 

4.2              
Effect of Termination. In the event of the termination of this Agreement as provided in Section 4.1, written notice
thereof shall be given to the other party or parties, specifying the provision hereof pursuant to which such termination is made,
and this Agreement shall forthwith become null and void (other than Section 8.9, all of which shall survive termination of this
Agreement); provided, however, that nothing contained herein shall relieve any party from liability for breach of this Agreement
or fraud.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF HYGEIA

 

Hygeia hereby represents and warrants to
Stratus on the date hereof that:

 

5.1              
Organization and Good Standing. Hygeia is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its properties
and to carry on its business as now conducted.

 

5.2              
Authorization of Agreement.

 

(a)               
Hygeia has all requisite power, authority and legal capacity to execute and deliver this Agreement and each other agreement,
document, or instrument or certificate contemplated by this Agreement or to be executed by Hygeia in connection with the consummation
of the transactions contemplated by this Agreement (together with this Agreement, the “Hygeia Documents”), and
to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and each of Hygeia
Documents by Hygeia, the performance of its obligations hereunder and thereunder and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by Hygeia’s Board of Directors and no other action on the part of Hygeia is
necessary to authorize the execution, delivery and performance by Hygeia of this Agreement and the consummation of the transactions
contemplated hereby.

 

(b)               
This Agreement and each of Hygeia Documents have been duly and validly executed and delivered by Hygeia and (assuming the
due authorization, execution and delivery by the other parties hereto and thereto) this Agreement constitutes, and each of Hygeia
Documents when so executed and delivered will constitute, legal, valid and binding obligations of Hygeia enforceable against Hygeia
in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).

 

(c)               
The Board of Directors of Hygeia, at a meeting duly called and held at which all the directors of Hygeia were present in
person or by telephone (or, in lieu of a meeting, by the written consent of the directors of Hygeia), duly and by majority vote
adopted resolutions: (i) approving and declaring advisable this Agreement, the Hygeia Merger and the other transactions contemplated
by this Agreement, (ii) directing that the adoption of this Agreement be submitted to the stockholders of Hygeia and (iii) recommending
that the stockholders of Hygeia adopt this Agreement, which resolutions have not been subsequently rescinded or modified or withdrawn
in any way.

 

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(d)               
Schedule 5.2(d) sets forth a true, correct and complete list of the holders of record of Hygeia Stock as of the date
hereof. Prior to the Effective Time, Hygeia will deliver to Stratus true, correct and complete copies of the irrevocable written
consents, which are valid and effective under the DGCL of the requisite holders of Hygeia Stock (the “Hygeia Shareholder
Consents”) to the Hygeia Merger. The Hygeia Shareholder Consents are the only approval of holders of any class or series
of Hygeia Stock necessary or required (under applicable Law, Hygeia’s certificate of incorporation and bylaws, or otherwise)
to approve this Agreement on behalf of Hygeia and the transactions contemplated hereby, including the Hygeia Merger. From and after
the time of such delivery to Stratus, the Hygeia Shareholder Consents shall remain in full force and effect and shall be valid
and effective under the DGCL.

 

5.3              
Conflicts; Consents of Third Parties.

 

(a)               
The execution and delivery by Hygeia of this Agreement or Hygeia Documents, the consummation of the Hygeia Merger and the
transactions contemplated hereby or thereby, or compliance by Hygeia with any of the provisions hereof or thereof will not conflict
with, or result in any violation of, default or breach (with or without notice or lapse of time, or both) under, or give rise to
a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or give rise to
any obligation of Hygeia to make any payment under, or to the increased, additional, accelerated or guaranteed rights or entitlements
of any Person under, or result in the creation of any Liens upon any of the properties or assets of Hygeia under, any provision
of: (i) the certificate of incorporation and by-laws; (ii) any Intellectual Property, Technology, Contract or Permit to which
Hygeia is a party or by which any of the properties or assets of Hygeia are bound; (iii) any Order of any Governmental Body applicable
to Hygeia or any of its respective properties or assets or (iv) any applicable Law.

 

(b)               
Except as set forth on Schedule 5.3(b), no consent, waiver, approval, Order, Permit or authorization of, or
declaration or filing with, or notification to, any Person or Governmental Body is required on the part of Hygeia in connection
with: (i) the execution and delivery of this Agreement or the Hygeia Documents, the compliance by Hygeia with any of the provisions
hereof or thereof, or the consummation by Hygeia of the Hygeia Merger or the other transactions contemplated hereby or thereby
or (ii) the continuing validity and effectiveness immediately following the Closing of any Permit or Material Contract of Hygeia.

 

5.4              
Capitalization.

 

(a)               
The authorized capital stock of Hygeia consists of:

 

(i)                
42,000,000 shares of common stock, of which 10,124,225 shares are issued and outstanding; and

 

(ii)              
27,000,000 shares of Series A preferred stock, of which 20,000,064 shares are issued and outstanding and for which warrants
to purchase 1,782,901 shares are outstanding.

 

All of the issued and outstanding shares
of Hygeia Stock have been duly authorized, are validly issued, fully paid, and nonassessable, and are held of record by the Hygeia
Stockholders as set forth in Schedule 5.2(d).

 

(b)               
Except as set forth on Schedule 5.4(b), there is no existing option, warrant, call, right or Contract of any character
to which Hygeia is a party requiring, and there are no securities of Hygeia outstanding which upon conversion or exchange would
require, the issuance, sale or transfer of any additional shares of capital stock or other equity securities of Hygeia or other
securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase shares of capital stock or other
equity securities of Hygeia. Except as set forth on Schedule 5.4(b), Hygeia is not a party to any voting trust or other
Contract with respect to the voting, redemption, sale, transfer or other disposition of the capital stock of Hygeia. Each agreement
set forth on Schedule 5.4(b) will be terminated effective as of the Closing.

 

    	11

    	 

    

 

5.5              
Third-Party Interests: Hygeia does not own, directly or indirectly, any shares of capital stock or equity or ownership
interests in, any other Person (collectively, “Hygeia Third-Party Interests”). Hygeia has no rights to, or is
bound by any commitment or obligation to, acquire by any means, directly or indirectly, any Hygeia Third-Party Interests or to
make any investment in, or contribution or advance to, any Person.

 

5.6              
Corporate Records.

 

(a)               
Hygeia has delivered to Stratus true, correct and complete copies of its certificate of incorporation and by-laws (each
certified by the secretary, assistant secretary or other appropriate officer) or comparable organizational documents of Hygeia
as currently in effect.

 

(b)               
The minute books of Hygeia previously made available to Stratus contain true, correct and complete records in all material
respects of all corporate action of the shareholders and board of directors (including committees thereof) of Hygeia. The stock
certificate books and stock transfer ledgers of Hygeia previously made available to Stratus are true, correct and complete in all
material respects. No stock transfer taxes have been or payable with respect to all transfers of shares of Hygeia prior to the
date hereof.

 

5.7              
Liabilities. Except as set forth on Schedule 5.7, Hygeia has no Indebtedness, obligations or Liabilities (whether
or not required by GAAP to be reflected on a balance sheet), including but not limited to Transaction Expenses.

 

5.8              
Taxes.

 

(a)               
Hygeia has: (i) duly and timely filed all material Tax Returns required to be filed by or on behalf of it in all jurisdictions
in which such Tax Returns are required to be filed (after giving effect to any duly obtained extensions of time in which to make
such filings), all such Tax Returns are true, complete and accurate in all material respects, and Hygeia has maintained, to the
extent required, all documentation supporting the positions taken thereon, and (ii) timely paid all Taxes due and payable or claimed
or asserted by any Taxing Authority to be due and payable (except to the extent of any accrual for Taxes established on the Balance
Sheet).

 

(b)               
Hygeia has complied in all material respects with all applicable Laws relating to the payment and withholding of Taxes,
and has duly and timely withheld and paid over to the appropriate Taxing Authority all amounts required to be so withheld and paid
under all applicable Laws.

 

(c)               
Hygeia has made available to Stratus true and complete copies of all Tax Returns of Hygeia for all taxable periods since
inception.

 

(d)               
Hygeia’s federal income tax returns have not been audited, and no action, suit, proceeding, investigation or audit
with respect to Taxes of any type is pending or, to the Knowledge of Hygeia, threatened. There are no outstanding assessments,
claims or deficiencies for any material Taxes of Hygeia that have been asserted or assessed or, to the Knowledge of Hygeia, proposed.
No issue has been raised by a Taxing Authority in any prior examination of Hygeia which, by application of the same or similar
principles, could reasonably be expected to result in a material proposed deficiency for any subsequent taxable period.

 

    	12

    	 

    

 

(e)               
None of the transactions taken pursuant to this Agreement, other than payments to employees of Hygeia, will give rise to
any withholding obligation under any provision of Law (including Section 1445 of the Code).

 

(f)                
Hygeia is not, nor has ever been, classified as an entity other than a corporation for US tax purposes.

 

5.9              
Property and Assets. Hygeia has good and marketable title or license to all of its material properties and assets,
free and clear of all Liens except to the license to Yale University. All material licensed or leased properties of Hygeia are
held under valid and binding leases and/or licenses. Hygeia leases all such properties as are necessary in all material respects
to the operations of Hygeia as now conducted. Hygeia does not own any real property.

 

5.10           
Intellectual Property.

 

(a)               
Schedule 5.10(a) sets forth an accurate and complete list of all Patents and Patent applications, registered marks,
and registrations and applications for registrations of Marks, Copyrights and Domain Names owned or filed by Hygeia (collectively,
“Registered Hygeia Intellectual Property”). Schedule 5.10(a) lists the jurisdictions in which each such
Registered Hygeia Intellectual Property has been issued or registered or in which any application for such issuance and registration
has been filed or in which any other filing or recordation has been made. Each item of Registered Hygeia Intellectual Property
is valid and subsisting, all necessary registration, maintenance and renewal fees currently due in connection with such Registered
Hygeia Intellectual Property has been paid and all necessary documents and certificates in connection with such Registered Hygeia
Intellectual Property have been filed with the relevant patent, copyright, trademark or other authorities in the United States
or foreign jurisdictions, as the case may be, for the purposes of maintaining such Registered Hygeia Intellectual Property.

 

(b)               
Hygeia has full title to and ownership of, or has valid and continuing rights to use, sell or license, all Hygeia Intellectual
Property and Hygeia Technology, free and clear of any Liens of any kind. Hygeia Intellectual Property and Hygeia Technology are
sufficient for the operation and conduct of the business of Hygeia as presently conducted. To the Knowledge of Hygeia, no third
Person has any rights to any Hygeia Intellectual Property or Hygeia Technology that is owned by Hygeia.

 

(c)               
To Hygeia’s Knowledge, no Hygeia Intellectual Property or Hygeia Technology is infringing, misappropriating or violating,
and has not infringed, misappropriated or violated, the Intellectual Property Rights of any third Person, nor will to Hygeia’s
Knowledge, the use, practice or other commercial exploitation of Hygeia Intellectual Property or Hygeia Technology by Hygeia, or
the licensing, marketing or to Hygeia’s Knowledge, use of the same, or the operation of Hygeia’s business, infringe,
constitute an unauthorized use of or misappropriate any Intellectual Property Rights of any third Person. Hygeia is not a party
to or the subject of any pending or, to the Knowledge of Hygeia, threatened suit, action, investigation or proceeding which involves
a claim against Hygeia, of infringement, unauthorized use, or violation of any Intellectual Property Rights of any Person, or challenging
the ownership, use, validity or enforceability of any Hygeia Intellectual Property or contesting the right of Hygeia to use, sell,
exercise, license, transfer or dispose of any Hygeia Intellectual Property or Hygeia Technology, or any products, processes or
materials covered thereby in any manner, nor has Hygeia received any written communications alleging such claims.

 

(d)               
To the Knowledge of Hygeia, no Person (including employees and former employees of Hygeia) is infringing, violating, misappropriating
or otherwise misusing any Hygeia Intellectual Property or Hygeia Technology, and Hygeia has not made any such claims against any
Person (including employees and former employees of Hygeia).

 

5.11           
Insurance. Hygeia does not maintain and has never maintained any insurance.

 

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5.12           
Material Contracts and Obligations. Schedule 5.12 sets forth a list of all material Contracts to which Hygeia
is a party or by which it is bound. Hygeia has made available to Stratus copies of all of the foregoing Contracts (or written summaries
in the case of oral Contracts). All of such Contracts are valid, binding and in full force and effect on Hygeia. Hygeia is not
in default under any material provision of any of such Contracts and, to the Knowledge of Hygeia, no other party to any such Contracts
is in default under any provision thereof. As of the date hereof, Hygeia has not received any written communication from any other
party to the Contracts listed on Schedule 5.12 stating that such other party has decided or plans to terminate or otherwise
discontinue such Contract. To the Knowledge of Hygeia, no event has occurred that with notice, lapse of time or both would constitute
a breach or default thereunder by Hygeia, or would permit the modification or premature termination of such Contract by any other
party thereto.

 

5.13           
Compliance. Hygeia has, in all material respects, complied with all Laws and Orders applicable to its business, operations
or assets and has all material Permits required thereby wherein the failure to so comply would have a Hygeia Material Adverse Effect.
There is no term or provision of any Order or Law applicable to or binding upon Hygeia that has had or would reasonably be expected
to have a Hygeia Material Adverse Effect. Hygeia has not received any written or oral notices or communications from any Governmental
Body of: (i) any material pending violation with respect to any Laws, Orders or material Permits applicable to its business, operations
or assets or (ii) threatening to terminate, revoke or cancel any material Permit held by Hygeia. Since its inception, Hygeia has
not entered into or been subject to any Order with respect to any material aspect of its business, operations, properties, assets
or employees or received any written notice from any Governmental Body commencing or threatening any inquiry, investigation or
Legal Proceeding with respect to any of the foregoing. To the Knowledge of Hygeia, none of the employees of Hygeia is in violation
of any Contract or covenant (either with Hygeia or with another entity) relating to employment, patent, other proprietary information
disclosure, non-competition, or non-solicitation.

 

5.14           
Employee Benefits. Hygeia does not currently provide, and has not previously provided, any employee benefits.

 

5.15           
Labor and Employment Matters.

 

(a)               
Hygeia is not, or at any time has been, a party to any collective bargaining agreement or other labor union agreement, nor
is any such collective bargaining agreement being negotiated. To the Knowledge of Hygeia, no activities or proceedings are underway
by any labor union to organize any employees of Hygeia. Hygeia: (i) has no direct or indirect Liability with respect to any misclassification
of any Person as an independent contractor or temporary worker hired through a temporary worker agency rather than as an employee,
(ii) is in compliance in all material respects with all applicable foreign, federal, state and local Laws respecting employment,
employment practices, labor relations, fair employment, employment discrimination, health and safety, terms and conditions of employment,
wages and hours, workers compensation, unemployment Laws, immigration Laws and social security Laws and (iii) has not received
any written remedial order or notice of offense under applicable occupational health and safety Law.

 

(b)               
There is no unfair labor practice charge or complaint against Hygeia pending or, to the Knowledge of Hygeia, threatened,
before the National Labor Relations Board, any court or any Governmental Body.

 

(c)               
With respect to Hygeia, there are no pending or, to the Knowledge of Hygeia, threatened actions, charges, citations or consent
decrees concerning: (i) wages, compensation, bonuses, commissions, awards or payroll deductions, equal employment or human rights
violations regarding race, color, religion, sex, national origin, age, disability, veteran’s status, marital status, or any
other recognized protected class, status or attribute under any federal, state, local or foreign equal employment Law prohibiting
discrimination, (ii) representation petitions or unfair labor practices, (iii) occupational safety and health, (iv) workers’
compensation, (v) wrongful termination, negligent hiring, invasion of privacy or defamation or (vi) immigration or any other claims
under state or federal labor Law.

 

    	14

    	 

    

 

(d)               
Schedule 5.15(d) contains a complete and correct list setting forth: (i) the names and titles of, and current
annual compensation and the two most recent annual bonuses for and exempt or non-exempt status of, each current employee of Hygeia,
(ii) the names of each director of Hygeia, (iii) the name of each Person who currently provides, or who has within the prior twelve
month period provided, services to Hygeia as an independent contractor, and (iv) the names of each employee or independent contractor
of Hygeia who is a party to a non-competition agreement with Hygeia. To the Knowledge of Hygeia, no person has any plans to terminate
employment or service with Hygeia. Except as specifically identified on Schedule 5.15(d), all employees of Hygeia are
employed at will.

 

(e)               
Hygeia has never terminated any employee.

 

5.16           
Litigation. There is no Legal Proceeding pending or threatened against Hygeia or any Affiliate thereof, against any
of the officers, directors or employees of Hygeia or any Affiliate thereof with respect to their business activities on behalf
of Hygeia, or to which Hygeia or any Affiliate thereof is otherwise a party before any Governmental Body nor, to the Knowledge
of Hygeia, are there any facts, claims or allegations that could reasonably be expected to result in such a Legal Proceeding or
a Hygeia Material Adverse Effect. Hygeia is not subject to any Order, nor is any Affiliate of Hygeia subject to any Order that
relates to Hygeia. Hygeia is not engaged in (or intends to engage in) any legal action to recover monies due it or for damages
sustained by it. There are no facts, claims or allegations that could reasonably be expected to result in liability of Hygeia under
Hygeia’s organizational documents or in any indemnification agreements in effect as of the date hereof.

 

5.17           
Related Party Transactions. (i) Hygeia is not indebted to any director, officer or employee of Hygeia (any such Person,
an “Hygeia Related Party”) (except for amounts due as salaries and bonuses under employment contracts or employee
benefits plans and amounts payable in reimbursement of ordinary expenses); (ii) to the Knowledge of Hygeia, no Hygeia Related
Party owns any direct or indirect interest of any kind in, or controls or is a director, officer, employee or partner of, or consultant
to, or lender to or borrower from or has the right to participate in the profits of, any Person which is (A) a competitor, supplier,
landlord, tenant, creditor or debtor of Hygeia, (B) engaged in a business related to the business of Hygeia, or (C) a participant
in any transaction to which Hygeia is a party; (iii) no Hygeia Related Party is indebted to Hygeia, nor has Hygeia made any loans
or committed to make any loan or extend or guarantee credit to or for the benefit of any Hygeia Related Party; (iv) no Hygeia Related
Party owns or has any interest in any property (real or personal, tangible or intangible), used in or pertaining to the business
of, Hygeia other than as a result of his, her or its ownership of or interest in Hygeia Stock; or (v) no Hygeia Related Party is
a party to any Contract or involved in any business arrangement or other relationship with Hygeia.

 

5.18           
Banks. Schedule 5.18 contains a complete and correct list of the names and locations of all banks in which
Hygeia has accounts or safe deposit boxes and the names of all persons authorized to draw thereon or to have access thereto.

 

5.19           
Financial Advisors. Except as set forth on Schedule 5.19, no Person has acted, directly or indirectly, as
a broker, finder or financial advisor for Hygeia in connection with the transactions contemplated by this Agreement and no Person
is entitled to any fee or commission or like payment in respect thereof.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF CANTERBURY

 

Canterbury hereby represents and warrants
to Stratus on the date hereof that:

 

6.1              
Organization and Good Standing. Canterbury is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all requisite power and authority to own, lease and operate its properties
and to carry on its business as now conducted.

 

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6.2              
Authorization of Agreement.

 

(a)               
Canterbury has all requisite power, authority and legal capacity to execute and deliver this Agreement and each other agreement,
document, or instrument or certificate contemplated by this Agreement or to be executed by Canterbury in connection with the consummation
of the transactions contemplated by this Agreement (together with this Agreement, the “Canterbury Documents”),
and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and each of Canterbury
Documents by Canterbury, the performance of its obligations hereunder and thereunder and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by Canterbury’s directors and no other action on the part of Canterbury is necessary
to authorize the execution, delivery and performance by Canterbury of this Agreement and the consummation of the transactions contemplated
hereby.

 

(b)               
This Agreement and each of Canterbury Documents have been duly and validly executed and delivered by Canterbury and (assuming
the due authorization, execution and delivery by the other parties hereto and thereto) this Agreement constitutes, and each of
Canterbury Documents when so executed and delivered will constitute, legal, valid and binding obligations of Canterbury enforceable
against Canterbury in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles
of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

(c)               
The directors of Canterbury, at a meeting duly called and held at which all the directors of Canterbury were present in
person or by telephone (or, in lieu of a meeting, by the written consent of the directors of Canterbury), duly and by majority
vote adopted resolutions: (i) approving and declaring advisable this Agreement, the Canterbury Merger and the other transactions
contemplated by this Agreement, (ii) directing that the adoption of this Agreement be submitted to the members of Canterbury and
(iii) recommending that the members of Canterbury adopt this Agreement, which resolutions have not been subsequently rescinded,
modified or withdrawn in any way.

 

(d)               
Schedule 6.2(d) sets forth a true, correct and complete list of the holders of record of Canterbury Units and promissory
notes as of the date hereof. Prior to the Effective Time, Canterbury will deliver to Stratus true, correct and complete copies
of the irrevocable written consents, which are valid and effective under the DLLCA of the requisite holders of Canterbury Units
(the “Member Consents”) to the Canterbury Merger. The Member Consents are the only approval of holders of any
class or series of Canterbury Units necessary or required (under applicable Law, Canterbury’s certificate of formation, or
otherwise) to approve this Agreement on behalf of Canterbury and the transactions contemplated hereby, including the Canterbury
Merger. From and after the time of such delivery to Stratus, the Member Consents shall remain in full force and effect and shall
be valid and effective under the DLLCA.

 

6.3              
Conflicts; Consents of Third Parties.

 

(a)               
The execution and delivery by Canterbury of this Agreement or the Canterbury Documents, the consummation of the Canterbury
Merger and the transactions contemplated hereby or thereby, or compliance by Canterbury with any of the provisions hereof or thereof
will conflict with, or result in any violation of, default or breach (with or without notice or lapse of time, or both) under,
or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under,
or give rise to any obligation of Canterbury to make any payment under, or to the increased, additional, accelerated or guaranteed
rights or entitlements of any Person under, or result in the creation of any Liens upon any of the properties or assets of Canterbury
under, any provision of: (i) the operating agreement of Canterbury; (ii) any Intellectual Property, Technology, Contract or
Permit to which Canterbury is a party or by which any of the properties or assets of Canterbury are bound; (iii) any Order
of any Governmental Body applicable to Canterbury or any of its properties or assets or (iv) any applicable Law.

 

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(b)               
Except as noted on Schedule 6.3(b), no consent, waiver, approval, Order, Permit or authorization of, or declaration
or filing with, or notification to, any Person or Governmental Body is required on the part of Canterbury in connection with: (i)
the execution and delivery of this Agreement or the Canterbury Documents, the compliance by Canterbury with any of the provisions
hereof or thereof, or the consummation by Canterbury of the Canterbury Merger or the other transactions contemplated hereby or
thereby or (ii) the continuing validity and effectiveness immediately following the Closing of any Permit or Material Contract
of Canterbury.

 

6.4              
Capitalization.

 

(a)               
The authorized capital stock of Canterbury consists of:

 

(i)                
106,000,000 Common Units, of which 7,774,260 Units are issued and outstanding;

 

(ii)              
7,341,880 Profits Units, of which 6,588,598 Units are issued and outstanding; and

 

(iii)            
91,000,000 Preferred Units, of which 53,745,298 Units are issued and outstanding and for which warrants to purchase 1,782,901
Units are outstanding.

 

All of the issued and outstanding Canterbury
Units have been duly authorized, are validly issued, fully paid, and nonassessable, and are held of record by Canterbury Holders
as set forth in Schedule 6.2(d).

 

(b)               
Except as set forth on Schedule 6.4(b), there is no existing option, warrant, call, right or Contract of any
character to which Canterbury is a party requiring, and there are no securities of Canterbury outstanding which upon conversion
or exchange would require, the issuance, sale or transfer of any additional shares of capital stock or other equity securities
of Canterbury or other securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase units
of capital stock or other equity securities of Canterbury. Except as set forth on Schedule 6.4(b), Canterbury is not
a party to any voting trust or other Contract with respect to the voting, redemption, sale, transfer or other disposition of the
capital stock of Canterbury. Each agreement set forth on Schedule 6.4(b) will be terminated effective as of the Closing.

 

6.5              
Third-Party Interests: Canterbury does not own, directly or indirectly, any shares of capital stock or equity or
ownership interests in, any other Person (collectively, “Canterbury Third-Party Interests”). Canterbury has
no rights to, or is bound by any commitment or obligation to, acquire by any means, directly or indirectly, any Canterbury Third-Party
Interests or to make any investment in, or contribution or advance to, any Person.

 

6.6              
Records.

 

(a)               
Canterbury has delivered to Stratus true, correct and complete copies of its certificate of formation and operating agreement
(each certified by the secretary, assistant secretary or other appropriate officer) or comparable organizational documents of Canterbury
as currently in effect.

 

(b)               
The minute books of Canterbury previously made available to Stratus contain true, correct and complete records in all material
respects of all action of the members and board of directors (including committees thereof) of Canterbury. The certificate books
and transfer ledgers of Canterbury previously made available to Stratus are true, correct and complete in all material respects.
No transfer taxes have been or payable with respect to all transfers of Canterbury Units prior to the date hereof.

 

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6.7              
Liabilitites. Except as set forth on Schedule 6.7, Canterbury has no Indebtedness, obligations or Liabilities
(whether or not required by GAAP to be reflected on a balance sheet), including but not limited to Transaction Expenses.

 

6.8              
Taxes.

 

(a)               
Canterbury has: (i) duly and timely filed all material Tax Returns required to be filed by or on behalf of it in all jurisdictions
in which such Tax Returns are required to be filed (after giving effect to any duly obtained extensions of time in which to make
such filings), all such Tax Returns are true, complete and accurate in all material respects, and Canterbury has maintained, to
the extent required, all documentation supporting the positions taken thereon, and (ii) timely paid all Taxes due and payable or
claimed or asserted by any Taxing Authority to be due and payable (except to the extent of any accrual for Taxes established on
the Balance Sheet).

 

(b)               
Canterbury has complied in all material respects with all applicable Laws relating to the payment and withholding of Taxes,
and has duly and timely withheld and paid over to the appropriate Taxing Authority all amounts required to be so withheld and paid
under all applicable Laws.

 

(c)               
Canterbury has made available to Stratus true and complete copies of all Tax Returns of Canterbury for all taxable periods
since inception.

 

(d)               
Canterbury’s federal income tax returns have not been audited, and no action, suit, proceeding, investigation or audit
with respect to Taxes of any type is pending or, to the Knowledge of Canterbury, threatened. There are no outstanding assessments,
claims or deficiencies for any material Taxes of Canterbury that have been asserted or assessed or, to the Knowledge of Canterbury,
proposed. No issue has been raised by a Taxing Authority in any prior examination of Canterbury which, by application of the same
or similar principles, could reasonably be expected to result in a material proposed deficiency for any subsequent taxable period.

 

(e)               
None of the transactions taken pursuant to this Agreement, other than payments to employees of Canterbury, will give rise
to any withholding obligation under any provision of Law (including Section 1445 of the Code).

 

(f)                
Canterbury is not, nor has ever been, classified as an entity other than a partnership for US tax purposes.

 

6.9              
Property and Assets. Canterbury has good and marketable title or license to all of its material properties and assets,
free and clear of all Liens except to the license to Yale Univeristy. All material leased properties of Canterbury are held under
valid and binding leases and/or licenses. Canterbury leases all such properties as are necessary in all material respects to the
operations of Canterbury as now conducted. Canterbury does not own any real property.

 

6.10           
Intellectual Property.

 

(a)               
Schedule 6.10(a) sets forth an accurate and complete list of all Patents and Patent applications, registered marks,
and registrations and applications for registrations of Marks, Copyrights and Domain Names owned or filed by Canterbury (collectively,
“Registered Canterbury Intellectual Property”). Schedule 6.10(a) lists the jurisdictions in which each
such Registered Canterbury Intellectual Property has been issued or registered or in which any application for such issuance and
registration has been filed or in which any other filing or recordation has been made. Each item of Registered Canterbury Intellectual
Property is valid and subsisting, all necessary registration, maintenance and renewal fees currently due in connection with such
Registered Canterbury Intellectual Property has been paid and all necessary documents and certificates in connection with such
Registered Canterbury Intellectual Property have been filed with the relevant patent, copyright, trademark or other authorities
in the United States or foreign jurisdictions, as the case may be, for the purposes of maintaining such Registered Canterbury Intellectual
Property.

 

    	18

    	 

    

 

(b)               
Canterbury has full title to and ownership of, or has valid and continuing rights to use, sell or license, all Canterbury
Intellectual Property and Canterbury Technology, free and clear of any Liens of any kind. Canterbury Intellectual Property and
Canterbury Technology are sufficient for the operation and conduct of the business of Canterbury as presently conducted. To the
Knowledge of Canterbury, no third Person has any rights to any Canterbury Intellectual Property or Canterbury Technology that is
owned by Canterbury.

 

(c)               
To Canterbury’s Knowledge, no Canterbury Intellectual Property or Canterbury Technology is infringing, misappropriating
or violating, and has not infringed, misappropriated or violated, the Intellectual Property Rights of any third Person, nor will,
to Cantebury’s Knowledge, the use, practice or other commercial exploitation of Canterbury Intellectual Property or Canterbury
Technology by Canterbury, or the licensing, marketing or, to Canterbury’s Knowledge, use of the same, or the operation of
Canterbury’s business, infringe, constitute an unauthorized use of or misappropriate any Intellectual Property Rights of
any third Person. Canterbury is not a party to or the subject of any pending or, to the Knowledge of Canterbury, threatened suit,
action, investigation or proceeding which involves a claim against Canterbury, of infringement, unauthorized use, or violation
of any Intellectual Property Rights of any Person, or challenging the ownership, use, validity or enforceability of any Canterbury
Intellectual Property or contesting the right of Canterbury to use, sell, exercise, license, transfer or dispose of any Canterbury
Intellectual Property or Canterbury Technology, or any products, processes or materials covered thereby in any manner, nor has
Canterbury received any written communications alleging such claims.

 

(d)               
To the Knowledge of Canterbury, no Person (including employees and former employees of Canterbury) is infringing, violating,
misappropriating or otherwise misusing any Canterbury Intellectual Property or Canterbury Technology, and Canterbury has not made
any such claims against any Person (including employees and former employees of Canterbury).

 

6.11           
Insurance. Canterbury does not maintain and has never maintained any insurance.

 

6.12           
Material Contracts and Obligations. Schedule 6.12 sets forth a list of all material Contracts to which Canterbury
is a party or by which it is bound. Canterbury has made available to Stratus copies of all of the foregoing Contracts (or written
summaries in the case of oral Contracts). All of such Contracts are valid, binding and in full force and effect on Canterbury.
Canterbury is not in default under any material provision of any of such Contracts and, to the Knowledge of Canterbury, no other
party to any such Contracts is in default under any provision thereof. As of the date hereof, Canterbury has not received any written
communication from any other party to the Contracts listed on Schedule 6.12 stating that such other party has decided
or plans to terminate or otherwise discontinue such Contract. To the Knowledge of Canterbury, no event has occurred that with notice,
lapse of time or both would constitute a breach or default thereunder by Canterbury, or would permit the modification or premature
termination of such Contract by any other party thereto.

 

6.13           
Compliance. Canterbury has, in all material respects, complied with all Laws and Orders applicable to its business,
operations or assets and has all material Permits required thereby wherein the failure to so comply would have a Canterbury Material
Adverse Effect. There is no term or provision of any Order or Law applicable to or binding upon Canterbury that has had or would
reasonably be expected to have a Canterbury Material Adverse Effect. Canterbury has not received any written or oral notices or
communications from any Governmental Body of (i) any material pending violation with respect to any Laws, Orders or material Permits
applicable to its business, operations or assets or (ii) threatening to terminate, revoke or cancel any material Permit held by
Canterbury. Since its inception, Canterbury has not entered into or been subject to any Order with respect to any material aspect
of its business, operations, properties, assets or employees or received any written notice from any Governmental Body commencing
or threatening any inquiry, investigation or Legal Proceeding with respect to any of the foregoing. To the Knowledge of Canterbury,
none of the employees of Canterbury is in violation of any Contract or covenant (either with Canterbury or with another entity)
relating to employment, patent, other proprietary information disclosure, non-competition, or non-solicitation.

 

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6.14           
Employee Benefits. Canterbury does not currently provide, and has not previously provided, any employee benefits.

 

6.15           
Labor and Employment Matters.

 

(a)               
Canterbury is not, or at any time has been, a party to any collective bargaining agreement or other labor union agreement,
nor is any such collective bargaining agreement being negotiated. To the Knowledge of Canterbury, no activities or proceedings
are underway by any labor union to organize any employees of Canterbury. Canterbury: (i) has no direct or indirect Liability with
respect to any misclassification of any Person as an independent contractor or temporary worker hired through a temporary worker
agency rather than as an employee, (ii) is in compliance in all material respects with all applicable foreign, federal, state and
local Laws respecting employment, employment practices, labor relations, fair employment, employment discrimination, health and
safety, terms and conditions of employment, wages and hours, workers compensation, unemployment Laws, immigration Laws and social
security Laws and (iii) has not received any written remedial order or notice of offense under applicable occupational health and
safety Law.

 

(b)               
There is no unfair labor practice charge or complaint against Canterbury pending or, to the Knowledge of Canterbury, threatened,
before the National Labor Relations Board, any court or any Governmental Body.

 

(c)               
With respect to Canterbury, there are no pending or, to the Knowledge of Canterbury, threatened actions, charges, citations
or consent decrees concerning: (i) wages, compensation, bonuses, commissions, awards or payroll deductions, equal employment or
human rights violations regarding race, color, religion, sex, national origin, age, disability, veteran’s status, marital
status, or any other recognized protected class, status or attribute under any federal, state, local or foreign equal employment
Law prohibiting discrimination, (ii) representation petitions or unfair labor practices, (iii) occupational safety and health,
(iv) workers’ compensation, (v) wrongful termination, negligent hiring, invasion of privacy or defamation or (vi) immigration
or any other claims under state or federal labor Law.

 

(d)               
Schedule 6.15(d) contains a complete and correct list setting forth: (i) the names and titles of, and current
annual compensation and the two most recent annual bonuses for and exempt or non-exempt status of, each current employee of Canterbury,
(ii) the names of each director of Canterbury, (iii) the name of each Person who currently provides, or who has within the prior
twelve month period provided, services to Canterbury as an independent contractor, and (iv) the names of each employee or independent
contractor of Canterbury who is a party to a non-competition agreement with Canterbury. To the Knowledge of Canterbury, no person
has any plans to terminate employment or service with Canterbury. Except as specifically identified on Schedule 4.6(d),
all employees of Canterbury are employed at will.

 

(e)               
Canterbury has never terminated any employee.

 

6.16           
Litigation. There is no Legal Proceeding pending or threatened against Canterbury or any Affiliate thereof, against
any of the officers, directors or employees of Canterbury or any Affiliate thereof with respect to their business activities on
behalf of Canterbury, or to which Canterbury or any Affiliate thereof is otherwise a party before any Governmental Body nor, to
the Knowledge of Canterbury, are there any facts, claims or allegations that could reasonably be expected to result in such a Legal
Proceeding or a Canterbury Material Adverse Effect. Canterbury is not subject to any Order, nor is any Affiliate of Canterbury
subject to any Order that relates to Canterbury. Canterbury is not engaged in (or intends to engage in) any legal action to recover
monies due it or for damages sustained by it. There are no facts, claims or allegations that could reasonably be expected to result
in liability of Canterbury under Canterbury’s organizational documents or in any indemnification agreements in effect as
of the date hereof.

 

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6.17           
Related Party Transactions. (i) Canterbury is not indebted to any director, officer or employee of Canterbury (any
such Person, a “Canterbury Related Party”) (except for amounts due as salaries and bonuses under employment
contracts or employee benefits plans and amounts payable in reimbursement of ordinary expenses); (ii) to the Knowledge of
Canterbury, no Canterbury Related Party owns any direct or indirect interest of any kind in, or controls or is a director, officer,
employee or partner of, or consultant to, or lender to or borrower from or has the right to participate in the profits of, any
Person which is (A) a competitor, supplier, landlord, tenant, creditor or debtor of Canterbury, (B) engaged in a business related
to the business of Canterbury, or (C) a participant in any transaction to which Canterbury is a party; (iii) no Canterbury Related
Party is indebted to Canterbury, nor has Canterbury made any loans or committed to make any loan or extend or guarantee credit
to or for the benefit of any Canterbury Related Party; (iv) no Canterbury Related Party owns or has any interest in any property
(real or personal, tangible or intangible), used in or pertaining to the business of, Canterbury other than as a result of his,
her or its ownership of or interest in Canterbury Stock; or (v) no Canterbury Related Party is a party to any Contract or involved
in any business arrangement or other relationship with Canterbury.

 

6.18           
Banks. Schedule 6.18 contains a complete and correct list of the names and locations of all banks in
which Canterbury has accounts or safe deposit boxes and the names of all persons authorized to draw thereon or to have access thereto.

 

6.19           
Financial Advisors. Except as set forth on Schedule 6.19, no Person has acted, directly or indirectly, as
a broker, finder or financial advisor for Canterbury in connection with the transactions contemplated by this Agreement and no
Person is entitled to any fee or commission or like payment in respect thereof.

 

ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF STRATUS, 

CANTERBURY MERGER SUB AND HYGEIA MERGER SUB

 

Stratus, Canterbury Merger Sub and Hygeia
Merger Sub represent and warrant to Hygeia and Canterbury on the date hereof, that:

 

7.1              
Organization and Good Standing. Each of Stratus, Canterbury Merger Sub and Hygeia Merger Sub is a corporation or
limited liability company, as the case may be, validly existing and in good standing under the laws of its jurisdiction of organization
and has all requisite corporate power and authority to own, lease and operate its properties and carry on its business as now conducted.
Stratus is duly qualified or authorized to do business as a foreign corporation and is in good standing under the laws of each
jurisdiction in which it owns or leases real property and each other jurisdiction in which the conduct of its business or the ownership
of its properties requires such qualification or authorization.

 

7.2              
Authorization of Agreement. Each of Stratus, Canterbury Merger Sub and Hygeia Merger Sub has all requisite power
and authority and legal capacity to execute and deliver this Agreement and each other agreement, document, instrument or certificate
contemplated by this Agreement or to be executed by Stratus, Hygeia Merger Sub and/or Canterbury Merger Sub in connection with
the consummation of the transactions contemplated hereby and thereby (the “Stratus Documents”), and to consummate
the transactions contemplated hereby and thereby. The execution, delivery and performance by each of Stratus, Hygeia Merger Sub
and Canterbury Merger Sub of this Agreement and each of Stratus Documents, to the extent applicable, have been duly authorized
by all necessary corporate action on behalf of Stratus, Hygeia Merger Sub and Canterbury Merger Sub. This Agreement has been, and
each Stratus Document will be at or prior to the Closing, duly executed and delivered by each of Stratus, Hygeia Merger Sub and
Canterbury Merger Sub, to the extent applicable, and (assuming the due authorization, execution and delivery by the other parties
hereto and thereto) this Agreement constitutes, and each Stratus Document when so executed and delivered will constitute, the legal,
valid and binding obligation of each of Stratus, Hygeia Merger Sub and Canterbury Merger Sub, to the extent applicable, enforceable
against it in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles
of equity, (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

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7.3              
Conflicts; Consents of Third Parties.

 

(a)               
Neither the execution and delivery by Stratus, Hygeia Merger Sub and Canterbury Merger Sub of this Agreement and of Stratus
Documents, nor the compliance by Stratus with any of the provisions hereof or thereof will (i) conflict with, or result in any
violation of, default or breach of, any provision of the articles of incorporation, certificate of formation or by-laws of Stratus,
Hygeia Merger Sub or Canterbury Merger Sub, (ii) conflict with, violate, result in the breach of, or constitute a default under
any note, bond, mortgage, indenture, license, agreement or other obligation, in each case to which Stratus, Hygeia Merger Sub and
Canterbury Merger Sub is a party or by which Stratus, Hygeia Merger Sub and Canterbury Merger Sub or their properties or assets
are bound or (iii) violate any Law or Order of any Governmental Body by which Stratus, Hygeia Merger Sub or Canterbury Merger
Sub are bound.

 

(b)               
Except as set forth on Schedule 7.3(b), no consent, waiver, approval, Order, Permit or authorization of, or declaration
or filing with, or notification to, any Person or Governmental Body is required on the part of Stratus, Hygeia Merger Sub or Canterbury
Merger Sub in connection with the execution and delivery of this Agreement or the Stratus Documents or the compliance by Stratus,
Hygeia Merger Sub or Canterbury Merger Sub with any of the provisions hereof or thereof or the consummation by Stratus of the transactions
contemplated hereby.

 

7.4              
SEC Filings. As of their respective filing dates, Stratus’ SEC filings complied in all material respects with
the requirements of the Securities Exchange Act of 1934 Act and the Securities Act of 1933. Stratus has, to its knowledge, filed
with the SEC all filings required by those laws and has provided all certifications of its officers which are required by Sarbanes-Oxley
and the rules and regulations promulgated in connection therewith, as such rules and regulations have been enacted by the SEC.
None of Stratus’ SEC filings, as of their respective dates, 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 made therein, in light of the
circumstances under which they were made, not misleading; provided, however, that Stratus makes no representations or warranties
as to the information contained in or omitted from Stratus’ SEC filings in reliance upon and in conformity with information
furnished to Stratus by or on behalf of counterparties to the material contracts included in Stratus’ SEC filings.

 

7.5              
Financial Advisors. Except as set forth on Schedule 7.5, no Person has acted, directly or indirectly,
as a broker, finder or financial advisor for either Stratus or Merger Sub in connection with the transactions contemplated by this
Agreement and no Person is entitled to any fee or commission or like payment in respect thereof.

 

7.6              
Capitalization.

 

(a)               
The authorized capital stock of Stratus consists of:

 

(i)                
One billion (1,000,000,000) shares of common stock, $0.001 par value, of which 421,332,919 shares are issued and outstanding
and of which 90,750,435 shares are subject to outstanding option grants and warrants; and

 

(ii)              
Ten Million (10,000,000) shares of preferred stock, $0.001 par value, of which no shares are outstanding.

 

(b)               
All of the issued and outstanding shares of capital stock of Stratus have been duly authorized, are validly issued, fully
paid and nonassessable.

 

(c)               
Except as set forth on Schedule 7.6, there is no existing option, warrant, call, right or Contract of any character
to which Stratus is a party requiring, and there are no securities of Stratus outstanding which upon conversion or exchange would
require, the issuance, sale or transfer of any additional shares of capital stock or other equity securities of Stratus or other
securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase shares of capital stock or other
equity securities of Stratus. Stratus is not a party to any voting trust or other Contract with respect to the voting, redemption,
sale, transfer or other disposition of the capital stock of Stratus.

 

    	22

    	 

    

 

7.7              
Corporate Records. Stratus has delivered to Hygeia and Canterubry true, correct and complete copies of its articles
of incorporation and by-laws (each certified by the secretary, assistant secretary or other appropriate officer) as currently in
effect.

 

ARTICLE VIII

COVENANTS

 

8.1              
Board Seat. Effective as of the Closing, Yael Schwartz, Ph.D. and Nelson Stacks (the “Canterbury Designees”)
will be elected to the Stratus Board of Directors. The term of service for the Canterbury Designees shall be the same as for the
other members of the Stratus Board of Directors, which is approximately one (1) year from the Closing Date. Prior to the Effective
Date, Stratus will provide the Canterbury Designees with agreements covering their duties and responsibilities, compensation, stock
option agreements and reimbursement of out-of-pocket expenses. Further, the Canterbury Designees shall not be removed from the
Stratus Board of Directors except in the event of their individual commission of an act of fraud or a breach of any agreement pursuant
to which either of them is providing services to Stratus, Canterbury Surviving Entity, or Hygeia Surviving Corporation. The removal
of either Yael Schwartz, Ph.D. or Nelson Stacks as a Director in accordance with the terms of this Section 8.1 shall not
affect the other Canterbury Designee.

 

8.2              
Cooperation. The parties shall cooperate fully with each other and their respective employees, legal counsel, accountants
and other representatives and advisers in connection with the steps required to be taken as part of their respective obligations
under this Agreement, including the filing by Stratus of a Form 8-K pursuant to Section 8.10; and each of them
shall, at any time and from time to time after the Closing, upon the request of the other, do, execute, acknowledge and deliver,
or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, consents,
receipts, acknowledgments, acceptances and assurances as may be reasonably required (without incurring unreimbursed expense) to
satisfy and perform the obligations of such party hereunder.

 

8.3              
No Public Announcements. Without the prior written consent of the other parties, (which may be withheld in their
sole and absolute discretion), no party hereto will make any press release or other public disclosure with regard to the transactions
contemplated by this Agreement.

 

8.4              
Further Assurances. Subject to the terms and conditions of this Agreement, each party agrees to use all of its reasonable
efforts to take, or cause to be taken, all actions and to do or cause to be done, all things necessary and proper or advisable
to consummate and make effective the transactions contemplated by this Agreement (including the execution and delivery of such
further instruments and documents as the other party may reasonably request).

 

8.5              
Access to Information. Prior to the Effective Time, each party shall be entitled, through its officers, employees
and representatives (including its legal advisors and accountants), to make such investigation of the properties, businesses and
operations of the other parties and such examination of the books, records and financial condition of such other parties as it
reasonably requests and to make extracts and copies of such books and records. Each party shall reasonably cooperate, and shall
cause such party to reasonably cooperate, with all such reasonable requests. No investigation by or on behalf of any party prior
to or after the date of this Agreement shall diminish or obviate any of the representations, warranties, covenants or agreements
of the other parties contained in this Agreement. In order that a party may have full opportunity to make such physical, business,
accounting and legal review, examination or investigation as it may reasonably request of the affairs of the other party, each
such other party shall use commercially reasonable efforts to cause the officers, employees, consultants, agents, accountants,
attorneys and other representatives of such other party to cooperate fully in connection with such review and examination.

 

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8.6              
Conduct of the Business Pending the Closing.

 

(a)               
Except as otherwise expressly contemplated by this Agreement, each of Canterbury and Hygeia shall:

 

(i)               conduct
its businesses only in the Ordinary Course of Business;

 

(ii)              use commercially reasonable efforts to: (A) preserve its present business operations, organization, material rights, franchises,
Intellectual Property Rights and goodwill and (B) preserve its present relationship with Persons having material business dealings
with such party;

 

(iii)             use its commercially reasonable efforts to maintain: (A) all material assets and properties of such party in their current
condition, ordinary wear and tear excepted and (B) insurance upon all of the properties and assets of such party in such amounts,
of such kinds and with such carriers as are substantially similar to that in effect on the date of this Agreement;

 

(iv)             maintain its books, accounts and records in accordance with generally accepted accounting principles;

 

(v)              give all required notices of the transactions contemplated by this Agreement and use its commercially reasonable efforts
to obtain all third party consents material to such party’s business that are necessary or advisable in order to consummate
the transactions contemplated by this Agreement;

 

(vi)             not take any action which would reasonably be expected to adversely affect the ability of the parties to consummate the
transactions contemplated by this Agreement; and

 

(vii)           
promptly notify Stratus in writing if, prior to the consummation of the Closing, to their Knowledge: (a) any of the representations
and warranties contained herein applicable to Canterbury or Hygeia are not accurate and complete in all material respects or (b) Canterbury
or Hygeia fails to comply with or satisfy any material covenant, condition or agreement to be complied with or satisfied by it
hereunder; provided, however, that the delivery of any notice pursuant to this Section 8.6 shall not limit or otherwise
affect the remedies available hereunder to Stratus.

 

8.7              
Reasonable Best Efforts; Regulatory Approvals. Upon the terms and subject to the conditions set forth in this Agreement,
each of the parties agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done,
and to assist and cooperate with the other parties in doing, all things reasonably necessary, proper or advisable to consummate
and make effective, in the most expeditious manner practicable, the Mergers and the other transactions contemplated by this Agreement
and bring about the fulfillment of the conditions precedent contained in this Agreement.

 

8.8              
No Solicitation by Canterbury or Hygeia

 

(a)               
Each of Canterbury and Hygeia shall use its reasonable best efforts to cause its respective directors, officers, employees,
investment bankers, financial advisors, attorneys, accountants, agents and other representatives (collectively, the “Representatives”)
to, immediately cease and cause to be terminated any discussions or negotiations with any Person conducted heretofore with respect
to a Takeover Proposal, and use best efforts to obtain the return from all such Persons or cause the destruction of all copies
of confidential information previously provided to such parties by each of Canterbury and Hygeia or Representatives. Canterbury
and Hygeia shall not, and shall not permit its Representatives to, directly or indirectly: (i) solicit, initiate, knowingly facilitate
or encourage (including by way of furnishing information) any inquiries or proposals that constitute, or may reasonably be expected
to lead to, any Takeover Proposal, (ii) other than informing Persons of the existence of the provisions contained in this Section
8.8, participate in any discussions or negotiations with any third party regarding any Takeover Proposal or (iii) enter into
any agreement related to any Takeover Proposal.

 

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(b)                In addition to the other obligations of the Company set forth in this Section 8.8, Canterbury and Hygeia shall
promptly advise Stratus, in writing, and in no event later than 24 hours after receipt, if any proposal, offer, inquiry or other
contact is received by, any information is requested from, or any discussions or negotiations are sought to be initiated or continued
with, Canterbury and Hygeia in respect of any Takeover Proposal, and shall, in any such notice to Stratus, indicate the identity
of the Person making such proposal, offer, inquiry or other contact and the terms and conditions of any proposals or offers or
the nature of any inquiries or contacts (and shall include with such notice copies of any written materials received from or on
behalf of such Person relating to such proposal, offer, inquiry, contact or request), and thereafter shall promptly keep Stratus
informed of all material developments affecting the status and terms of any such proposals, offers, inquiries, contacts or requests
(and Canterbury and Hygeia shall provide Stratus with copies of any additional written materials received that relate to such proposals,
offers, inquiries, contacts or requests) and of the status of any such discussions or negotiations.

 

(c)                Canterbury and Hygeia acknowledge that damages for any breach of the obligations in this Section will be difficult to measure
and that Stratus has the right to have the provisions of this Section 8.8, specifically enforced.

 

8.9              
Confidentiality and Non-Disclosure.

 

(a)                Confidential Information. The term “Confidential Information” means any information disclosed
to a party to this Agreement (referred to in this Section as the “Recipient”), either prior to or subsequent
to the date of this Agreement, whether orally, in writing, in any other medium, however documented (or not documented), by or on
behalf of any other party to this Agreement (referred to within this Section as the “Disclosing Party”) including,
without limitation, the Disclosing Party’s actual and proposed business(es); historical and protected financial information;
budgets; services; products; trade secrets; techniques; processes; operations; formulae; product specifications; know-how; processes;
compositions; inventions; discoveries; designs; formats; business, marketing and manufacturing plans and materials; analyses; strategies;
forecasts; research and development; concepts; ideas; names, addresses and any other characteristics, identifying information or
aspects of the Disclosing Party’s existing or potential customers, employees, vendors or suppliers; or any information derived,
summarized or extracted from any of the foregoing.

 

(b)                Confidential Information shall not include any information which: (i) is or becomes available to the public other than as
a consequence of a breach by any person of any fiduciary duty or obligation of confidentiality, including, without limitation,
catalogues, product descriptions and sales literature that the Disclosing Party has distributed to the public generally; or (ii)
is or was developed by a Recipient independently of, and without reliance on or reference to, the confidential information of the
Disclosing Party. All of the parties agree that in the event an order by any court or other government entity is issued requiring
a Recipient to turn over any Confidential Information, Recipient shall give the Disclosing Party written notice of such court order
immediately upon knowledge thereof and shall cooperate with any efforts of Disclosing Party to protect the confidentiality of the
information.

 

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(c)               
Non-Disclosure of Confidential Information. Each party to this letter hereby agrees to hold in strict confidence
and trust all Confidential Information and agrees not to disclose or otherwise provide or transfer, directly or indirectly, any
Confidential Information or anything related to the Confidential Information to third parties without the prior written consent
of the other party or as permitted by Section 8.9(b) or the next sentence. A Recipient may disclose Confidential Information (without
consent of the other party): (i) to its directors, officers, stockholders, unitholders, employees, agents and advisors (including
without limitation attorneys, accountants, consultants, bankers, financing sources and financial advisors) (“Representatives”)
who are advised of the terms of this Section and who need to know such information to enable Recipient to evaluate the possible
business relationship with a Disclosing Party, and then only to the extent necessary to carry out the legitimate use of the Confidential
Information and (ii) as required by any final, unappealable court order. Each party further agrees that it may use the Confidential
Information only in connection with the evaluation of this transaction and not for any other purpose or for the benefit of any
third party. Each party agrees to require any of its Representatives who obtain Confidential Information to comply with this Section
and also agrees to be responsible for any breach of this Section by such persons.

 

8.10           
Preparation of Canterbury and Hygeia Financial Statements; Compliance with Form 8-K.

 

(a)               
Within ten (10) business days of the Effective Date, each of Hygeia and Canterbury shall deliver to Stratus the financial
statements of Canterbury and Hygeia as are required to be filed (the “Target Financial Statements”) pursuant
to Items 2.01 and 9.01 of Form 8-K, except that such Target Financial Statements shall not be required to be audited. The
Target Financial Statements shall be prepared in accordance with generally accepted accounting principles. The parties shall cooperate
with each other in connection with the drafting of a current Report on Form 8-K containing such information as may be required
pursuant thereto, including business descriptions, risk factors and compensation data.

 

(b)               
Each of Canterbury and Hygeia will, contemporaneous with the delivery of the information described in Section 8.10(a),
provide Stratus with a representation that the information provided by it for inclusion and/or incorporation into Stratus’
Securities Act filings is true and accurate in all material respects and that there is no material fact or matter which has not
been disclosed in the disclosure document which renders such information untrue or misleading in any material respect.

 

ARTICLE IX

CONDITIONS TO CLOSING

 

9.1              
Conditions Precedent to Obligations of Stratus and Hygeia Merger Sub and Canterbury Merger Sub. The obligations of
Stratus, Hygeia Merger Sub and Canterbury Merger Sub to consummate the transactions contemplated by this Agreement are subject
to the satisfaction, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived by
Stratus in whole or in part to the extent permitted by applicable Law):

 

(a)               
the representations and warranties of Hygeia and Canterbury contained in Article V and VI respectively, that
are qualified as to materiality shall be true and correct in all respects and those that are not qualified as to materiality shall
be true and correct in all material respects as of the Closing as though made at and as of the Closing, except to the extent such
representations and warranties expressly relate to an earlier date (in which case such representations and warranties that are
qualified as to materiality shall be true and correct in all respects on and as of such earlier date and those that are not qualified
as to materiality shall be true and correct in all material respects on and as of such earlier date);

 

(b)               
Each of Hygeia and Canterbury shall have performed and complied in all material respects with all obligations and agreements
required in this Agreement to be performed or complied with by it prior to the Closing Date, and received all Shareholder and Unitholder
approvals, and Stratus shall have received copies of such corporate resolutions and other documents evidencing the performance
thereof as Stratus may reasonably request;

 

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(c)                 there shall not be in effect any Order by a Governmental Body of competent jurisdiction restraining, enjoining or otherwise
prohibiting the consummation of the transactions contemplated hereby, and there shall not be pending any Legal Proceeding seeking
to restrain or prohibit the consummation of the Mergers or seeking a material amount for damages in connection with the transactions
contemplated hereby;

 

(d)                 there
shall be no Indebtedness of Liabilities of Hygeia or Canterbury outstanding other than: (i) Indebtedness to be paid at Closing,
(ii) Transaction Expenses and (iii) those other payables listed on Schedule 9.1(d) ((ii) and (iii) collectively the
“Post-Closing Payment Amounts”) all of which Post-Closing Payment Amounts will not exceed Three Hundred Thousand
($300,000) Dollars, at least Fifty (50%) percent of which will be paid by Stratus simultaneously with the closing of the Financing
as required by Section 12.3 hereof and the remainder by December 20, 2013 also pursuant to Section 12.3 hereof.

 

(e)                 there
shall not have been any Canterbury Material Adverse Effect or Hygeia Material Adverse Effect since the date of this Agreement;

 

(f)                  Stratus
shall have received a certificate signed by the Chief Executive Officer of each of Hygeia and Canterbury, in form and substance
reasonably satisfactory to Stratus, dated the Closing Date, to the effect that each of the conditions specified above in Sections
9.1(a), (b), (c), (d) and (e) have been satisfied in all respects;

 

(g)                 Hygeia
and Canterbury shall have obtained all consents, waivers and approvals referred to on Schedule 5.3(b) and Schedule 6.3(b),
each such consent, waiver and approval being in form and substance reasonably satisfactory to Stratus and not requiring as a term
thereof or condition thereto any adverse condition or requirement on the conduct of business by Hygeia, Canterbury or Stratus;

 

(h)                 non-competition
agreements, each substantially in the form attached hereto as Exhibit B, shall have been entered into by Yael Schwartz,
Ph.D. and Craig Abolin, Ph.D. and each such agreement shall remain in full force and effect;

 

(i)                  an
employment agreement, each substantially in the form attached hereto as Exhibit C, shall have been entered into by
Yael Schwartz, Ph.D. and Craig Abolin, Ph.D. on the Closing Date, and each such agreement shall remain in full force and effect
with the agreements effective as of the Closing Date with all compensation and benefits accrued from the Closing Date to the closing
of the Financing and then all accrued compensation shall be paid in full simultaneously with the closing of the Financing and
thereafter continuing in accordance with their terms;

 

(j)                  the
board of directors will be reconstituted as set forth in Section 8.1 with Yael Schwartz, Ph.D. and Nelson Stacks as
members;

 

(k)                 Hygeia
and Canterbury shall have delivered, or caused to be delivered, to Stratus certificates of good standing as of a recent date with
respect to Hygeia and Canterbury issued by the Delaware Secretary of State; and

 

(l)                  Stratus,
the Hygeia Stockholders and the Canterbury Holders shall have entered into the Registration Rights Agreement in the form attached
hereto as Exhibit D.

 

(m)                Stratus
shall have available audited Financial Statements of Canterbury and Hygeia so as to enable Stratus to comply with its reporting
obligations under Items 2.01 and 9.01 of Form 8-K.

 

9.2                Conditions Precedent to Obligations of Hygeia and Canterbury . The obligations of Hygeia and Canterbury to consummate
the transactions contemplated by this Agreement are subject to the fulfillment, prior to or on the Closing Date, of each of the
following conditions (any or all of which may be waived by Hygeia and Canterbury in whole or in part to the extent permitted by
applicable Law):

 

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(a)               
the representations and warranties of Stratus, Hygeia Merger Sub and Canterbury Merger Sub contained in Article VII
that are qualified as to materiality shall be true and correct in all respects and those that are not qualified as to materiality
shall be true and correct in all material respects as of the Closing as though made at and as of the Closing, except to the extent
such representations and warranties expressly relate to an earlier date (in which case such representations and warranties that
are qualified as to materiality shall be true and correct in all respects on and as of such earlier date and those that are not
qualified as to materiality shall be true and correct in all material respects on and as of such earlier date); and

 

(b)                 Stratus shall have performed and complied in all respects with all obligations and agreements required by this Agreement
to be performed or complied with by Stratus on or prior to the Closing Date;

 

(c)                 there
shall not be in effect any Order by a Governmental Body of competent jurisdiction restraining, enjoining or otherwise prohibiting
the consummation of the transactions contemplated hereby, and there shall not be pending any Legal Proceeding seeking to restrain
or prohibit the consummation of the Mergers or seeking a material amount for damages in connection with the transactions contemplated
hereby and the Hygeia Stockholders and Canterbury Unitholders have approved the Merger and all Transactions;

 

(d)                 there
shall not have been any Stratus Material Adverse Effect since the date of this Agreement;

 

(e)                 Hygeia
and Canterbury shall have received a certificate signed by the Chief Executive Officer of Stratus, in form and substance reasonably
satisfactory to Hygeia and Canterbury, dated the Closing Date, to the effect that each of the conditions specified above in Sections 9.2(a)(b),(c),(d),
and (e) have been satisfied in all respects;

 

(f)                  non-competition
agreements, each substantially in the form attached hereto as Exhibit B, shall have been entered into by Yael Schwartz,
Ph.D. and Craig Abolin, Ph.D., and each such agreement shall remain in full force and effect;

 

(g)                 an
employment agreement, each substantially in the form attached hereto as Exhibit C, shall have been entered into by
Yael Schwartz, Ph.D. and Craig Abolin, Ph.D. on the Closing Date, and each such agreement shall remain in full force and effect;

 

(h)                 the
board of directors of Stratus shall have been reconstituted as provided in Section 8.1, with Yael Schwartz, Ph.D.
and Craig Abolin, Ph.D as members; and

 

(i)                  Stratus,
the Hygeia Stockholders and the Canterbury Holders shall have entered into the Registration Rights Agreement in substantially
the form attached hereto as Exhibit D.

 

ARTICLE X

INDEMNIFICATION

 

10.1           
Survival of Representations and Warranties.

 

(a)                 The
representations and warranties of the parties contained in this Agreement shall survive the Closing until 11:59 p.m. EST on the
twelfth (12th) month anniversary of the Closing Date (the “Expiration Date”). Any claim for a Loss
asserted in good faith on or prior to the Expiration Date which sets forth in a written notice in reasonable detail (based on
the facts then available) the nature and estimated scope of such claim will be timely made for purposes hereof (the “Timely
Claim”). Any claim for indemnification with respect to any of such matters that is not asserted by notice to the other
party on or prior to the Expiration Date may not be pursued and is hereby irrevocably waived after such time.

 

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(b)                 All
covenants and agreements made by the parties to this Agreement which contemplate performance following the Closing Date shall
survive the Closing Date in accordance with their terms. All covenants and agreements that contemplate performance prior to the
Closing Date shall not survive the Closing Date; provided, however, that if any such covenant or agreement is breached
on or prior to the Closing Date, the non-breaching party shall retain all rights and remedies hereunder with respect to such breach
following the Closing Date.

 

10.2           
Indemnification by Hygeia Stockholders. Subject to the limitations set forth in this Article X, from and after
the Closing Date, Stratus, the Surviving Hygeia Corporation and the Surviving Canterbury Entity, and their respective subsidiaries,
shareholders, members, directors, officers, employees, consultants, independent contractors, agents and representatives (the “Stratus
Indemnified Parties”) shall be entitled to be indemnified, defended and held harmless by the Hygeia Stockholders, on
a several and not a joint basis, for all Losses suffered or incurred by such Stratus Indemnified Party (irrespective of whether
or not such Losses arise out of or in connection with a third-party claim) resulting from, or arising out of or relating to the
following:

 

(a)                 any
failure of the representations and warranties made by Hygeia set forth in this Agreement or in any Hygeia Document to be true
and correct;

 

(b)               
any breach of any covenant or other agreement on the part of Hygeia under this Agreement or any Hygeia Document; or

 

(c)                 any
claims by current or former Hygeia Stockholders with respect to the determination by Hygeia to enter into this Agreement or the
allocation of the Merger Consideration as set forth in the Merger Consideration Schedule.

 

10.3           
Indemnification by Canterbury Holders. Subject to the limitations set forth in this Article X, from and after
the Closing Date, the Stratus Indemnified Parties shall be entitled to be indemnified, defended and held harmless by the
Canterbury Holders, on a several and not a joint basis, for all Losses suffered or incurred by such Stratus Indemnified Party (irrespective
of whether or not such Losses arise out of or in connection with a third-party claim) resulting from, or arising out of or relating
to the following:

 

(a)                 any
failure of the representations and warranties made by Canterbury set forth in this Agreement or in any Canterbury Document to
be true and correct;

 

(b)                 any
breach of any covenant or other agreement on the part of Canterbury under this Agreement or any Canterbury Document; or

 

(c)                 any
claims by current or former Canterbury Holders with respect to the determination by Canterbury to enter into this Agreement or
the allocation of the Merger Consideration as set forth in the Merger Consideration Schedule.

 

10.4           
Indemnification by Stratus. Subject to the limitations set forth in this Article X, from and after the
Closing Date, Hygeia Stockholders and Canterbury Holders and their respective subsidiaries, shareholders, members, directors, officers,
employees, consultants, independent contractors, agents and representatives (the “Target Indemnified Parties”
and with the Stratus Indemnified Parties, each an “Indemnified Party”) shall be entitled to be indemnified, defended
and held harmless by Stratus for all Losses suffered or incurred by such Target Indemnified Party (irrespective of whether or not
such Losses arise out of or in connection with a third-party claim) resulting from, or arising out of or relating to the following:

 

    	29

    	 

    

 

(a)                 any
failure of the representations and warranties made by Stratus, Hygeia Merger Sub or Canterbury Merger Sub set forth in this Agreement
or in any Stratus Document to be true and correct; or

 

(b)                 any
breach of any covenant or other agreement on the part of Stratus, Hygiea Merger Sub or Canterbury Merger Sub under this Agreement
or any Stratus Document.

 

10.5           
Escrow Arrangements.

 

(a)                 Escrow
Fund. The Escrow Shares shall be available to compensate the Stratus Indemnified Parties for any claims by such Parties for
any Losses incurred or sustained by them and for which they are entitled to recovery under this Article X.

 

(b)                 Escrow
Period; Distribution upon Termination of Escrow Period. Subject to the following requirements, the Escrow Fund shall be in
existence as of the Closing and shall terminate at 11:59 p.m., local time, on the sixth (6th) month anniversary after
the Closing Date with respect to Fifty (50%) percent of the Escrow Fund, and the balance of the Escrow Fund shall terminate at
11:59 P.M., local time twelve (12) months after the Closing Date (the “Escrow Period”); provided, however,
that the Escrow Period shall not terminate with respect to 100% of the amount of any unsatisfied claims specified in any Officer’s
Certificate delivered in good faith prior to the respective expiration date with respect to facts and circumstances existing prior
to the Expiration Date (each, an “Unresolved Claim”). As soon as an Unresolved Claim has been resolved (whether
by settlement, other agreement or Order), Stratus shall forthwith deliver to the Holder Representative for distribution, to and
in the names of those Persons designated by the Holder Representative, the portion of the Escrow Shares, if any, not required
to satisfy other Unresolved Claims. For the purposes hereof, “Officer’s Certificate” shall mean a certificate
signed by any executive officer of Stratus and delivered to the Holder Representative: (1) stating that Stratus has paid, incurred,
sustained or accrued, or reasonably anticipates that it will have to pay, incur, sustain or accrue Losses, and (2) specifying
in as much detail as then exists the individual items of Losses included in the amount so stated, the date each such item was
paid, incurred, sustained or accrued, or the basis for such anticipated liability, and the nature of the misrepresentation, breach
of warranty or covenant to which such item is related.

 

10.6           
Indemnification Procedures.

 

Subject to Section 10.5, the
following shall apply to all Claims; provided that the Holder Representative shall be the exclusive person to act on and receive
all Notices on behalf of the Canterbury Holders and the Hygeia Stockholders:

 

(a)                 Claims
for Indemnification. In the event that any Indemnified Party asserts a Timely Claim, it shall provide written notice thereof
containing reasonable details regarding the claim (the “Claim Notice”) to the party against which such claim
is asserted (an “Indemnifying Party”) with a copy to the Holder Representative.

 

(b)                 Resolution
of Conflicts; Arbitration.

 

(i)                
If the Indemnifying Party shall object in writing to any claim or claims made in any Claim Notice to recover Losses within
thirty (30) days after delivery of such Claim Notice, then the Indemnifying Party and Indemnified Party shall attempt in good faith
to agree upon the rights of the respective parties with respect to each of such claims. If the Indemnifying Party and Indemnified
Party should so agree, a memorandum setting forth such agreement shall be prepared and signed by both parties, and the Indemnifying
Party shall pay the agreed-upon amount of the Claim to the Indemnified Party.

 

(ii)              
If no such agreement can be reached after good faith negotiation and prior to sixty (60) days after delivery of the Claim
Notice, then the matter shall be referred to arbitration in accordance with Section 13.9 hereof.

 

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(c)               
Third-Party Claims With Respect to Indemnified Parties.

 

(i)                
In the event an Indemnified Party becomes aware of a third-party claim which the Indemnified Party reasonably believes may
result in a demand against an Indemnifying Party, the Indemnified Party shall notify the Indemnifying Party in writing of such
claim. The Indemnifying Party shall have the right to elect to assume the defense of such claim; provided that the Indemnifying
Party shall have acknowledged in writing to the Indemnified Party that to the best of its knowledge, such party is obligated to
indemnify the Indemnified Party with respect to such third-party claim as and to the extent provided hereunder; and provided,
further, that in the event the Indemnifying Party subsequently determines that it is not obligated to indemnify any
such Indemnified Person with respect to such third-party claim, it shall promptly notify the Indemnified Party to such effect and
the Indemnifying Party shall cease to have the right to control the defense of such third-party claim. Notwithstanding the foregoing,
the Indemnifying Party shall not have the right to elect to assume the defense of such third-party claim if: (w) the Indemnified
Party determines in good faith that there is a reasonable probability that such third-party claim seeks material non-monetary relief;
(x) the third-party claim is a criminal proceeding or (y) the claim seeks relief which would limit or otherwise adversely
affect the conduct of business by the Indemnified Party. Failure by the Indemnifing Party to notify the Indemnified Party of its
election to assume the defense of any such claim or litigation by a third party within ten (10) days after notice thereof has been
given to the Indemnifying Party shall be deemed a waiver by the Indemnifying Party of its right to assume the defense of such claim
or litigation, and the Indemnified Party shall have the right to retain its own counsel, without prejudice to its right of indemnification
under this Agreement. All claims for legal fees and expenses or other Losses for which an Indemnified Party is entitled to indemnification
pursuant to this Section 10.6(c) shall be subject to the claims processing and dispute procedures set forth in Section 10.6(b).

 

(ii)              
The Indemnifying Party, if he or it are entitled to and do assume the defense, shall retain counsel reasonably satisfactory
to the Indemnified Party to defend such claim and shall pay the fees and disbursements of such counsel with regard thereto. If
the Indemnifying Party elects to assume the defense, the obligations under Article X of this Agreement shall include
taking all steps necessary in the investigation, defense or settlement of such claim or litigation (including the retention of
legal counsel) and holding the Indemnified Parties harmless from and against any and all Losses caused by or arising out of any
settlement approved by the Indemnifying Party or any judgment in connection with such claim or litigation; provided, however,
that: (x) the Indemnifying Party shall first consult with the Indemnified Party regarding such settlement, (y) no settlement may
be made by the Indemnifying Party without the consent in writing of the Indemnified Party, unless such settlement (i) releases
the Indemnified Parties from any liability in respect thereof, (ii) does not include any admission of culpability on the part of
the Indemnified Parties and (iii) does not impose an injunction or other equitable relief upon the Indemnified Parties or any of
their Affiliates or otherwise impose affirmative or negative covenants on the Indemnified Party, and (z) the Indemnifying
Party shall not enter into any settlement with respect to Taxes without the Indemnified Party’s consent, which shall not
be unreasonably withheld. If the Indemnifying Party elects to assume the defense, the Indemnifying Party shall permit the Indemnified
Party to participate in such defense or settlement through separate counsel chosen by the Indemnified Party, with the fees and
expenses of such separate counsel borne by the Indemnified Party; provided, however, that in the event the Indemnified Party shall
conclude (upon the advice of counsel) that there may be legal defenses or rights available to it which are different from, in actual
conflict with, or additional to those available to the Indemnifying Party, the Indemnified Party shall be entitled to select separate
counsel to act on its behalf, and the Indemnifying Party shall pay the reasonable separate counsel fees and other reasonable expenses
related thereto.

 

(iii)            
If the Indemnified Party elects to assume such third-party claim or litigation, the Indemnified Party shall permit the Indemnifying
Party to participate in such defense or settlement through separate counsel chosen by the the Indemnifying Party, with the fees
and expenses of such separate counsel borne by the Indemnifying Party.

 

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10.7           
Limitation on Indemnification.

 

(a)               
Other than as set forth below, resort to indemnification pursuant to this Article X and the Escrow Fund shall
be the sole and exclusive remedy of the Stratus Indemnified Parties and the Stratus Indemnified Parties hereby waive, to the fullest
extent permissible by law, any other rights or remedies that may arise under any applicable statute, rule or regulation.

 

(b)               
For purposes of determining the amount of Escrow Shares to satisfy any Indemnification Claims, the Escrow Shares shall be
valued at the fair market value of such shares at the time such claim is made (as determined by mutual agreement of the parties
or by a third party valuation expert appointed by the parties, the cost of which shall be shared by the parties).

 

(c)               
An Indemnifying Party shall not have any liability under this Article X unless the aggregate amount of Losses
to the indemnified parties as finally determined exceed Seventy Five Thousand ($75,000) Dollars (the “Threshold Amount”),
in which event, subject to Section 10.7(a) the Indemnifying Party shall be required to pay the full amount of such
Losses in excess of the Threshold Amount; provided however, that the maximum liability of any Hygeia Stockholder or Canterbury
Holder hereunder shall be limited to the consideration received by such Hygeia Stockholder or Canterbury Holder minus any taxes
paid.

 

ARTICLE XI

HOLDER REPRESENTATIVE

 

11.1           
Holder Representative.

 

(a)               
Upon the adoption of this Agreement and the approval of the Mergers and the transactions contemplated hereby by the Hygeia
Stockholders and Canterbury Holders Yael Schwartz, Ph.D. (the “Holder Representative”) shall be appointed as
the Holder Representative hereunder to give and receive notices and communications, to waive any breach or default of Stratus under
this Agreement, to receive all notices and services of process on behalf of the Hygeia Stockholders and Canterbury Holders in connection
with any claims under this Agreement, including indemnification claims by or against Canterbury or Hygeia pursuant to Article X
or any related document or instrument, to exercise the right of rescisssion pursuant to Section 12.1, and to take all
other actions that are either: (i) necessary or appropriate in the judgment of the Holder Representative for the accomplishment
of the foregoing or (ii) specifically mandated by the terms of this Agreement; provided, however that such agency shall apply
only to matters affecting the Hygeia Stockholders and Canterbury Holders and any matter that affects only an individual Hygeia
Stockholder and Canterbury Holder shall be addressed by Stratus and such Hygeia Stockholder and Canterbury Holder. Such agency
may be changed by the Hygeia Stockholders and Canterbury Holders from time to time upon not less than thirty (30) days prior written
notice to Stratus. No bond shall be required of the Holder Representative, and the Holder Representative shall not receive any
compensation for his services. Notices or communications to or from the Holder Representative shall constitute notice to or from
the Hygeia Stockholders and Canterbury Holders.

 

(b)               
Except for intentional fraud, the Holder Representative shall not be liable for any act done or omitted hereunder as Holder
Representative. Pursuant to the following sentence, and to the fullest extent permitted by applicable Law, the Hygeia Stockholders
and Canterbury Holders shall be, severally based on such Hygeia Stockholders’ and Canterbury Holders’ pro rata Portion
of the Merger Consideration and not jointly, obligated to indemnify the Holder Representative and hold the Holder Representative
harmless against any loss, liability or expense incurred without gross negligence or bad faith on the part of the Holder Representative
and arising out of or in connection with the acceptance or administration of the Holder Representative’s duties hereunder,
including the reasonable fees and expenses of any legal counsel retained by the Holder Representative. At the time of distribution
pursuant to Section 10.5 of any remaining Escrow Shares, the Holder Representative shall be entitled to deduct and
withhold from such Shares to pay and reimburse fees and expenses of third parties incurred or expected to be incurred in connection
with her role as Holder Representative pursuant to this Agreement to the extent the Holder Representative Reserve would be insufficient
to pay and reimburse fees and expenses of third parties.

 

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(c)               
The grant of authority provided for in Section 11.1 is coupled with an interest and is being granted, in part, as
an inducement to Stratus, Hygeia Merger Sub and Canterbury Merger Sub to enter into this Agreement, shall be irrevocable.

 

(d)               
In connection with the performance of his obligations hereunder, the Holder Representative shall have the right at any time
and from time to time to select and engage, at the cost and expense of the Hygeia Stockholders and Canterbury Holders, attorneys,
accountants, investment bankers, advisors, consultants and clerical personnel and obtain such other professional and expert assistance,
and maintain such records, as the Holder Representative may deem necessary or desirable and incur other out-of-pocket expenses
related to performing its services hereunder.

 

(e)               
In dealing with this Agreement and any instruments, agreements or documents relating thereto, and in exercising or failing
to exercise all or any of the powers conferred upon the Holder Representative hereunder or thereunder: (i) the Holder Representative
and his agents, counsel, accountants and other representatives shall not assume any, and shall incur no, responsibility whatsoever
(in each case, to the extent permitted by applicable Law) to the Hygeia Stockholders, Canterbury Holders or Stratus by reason of
any error in judgment or other act or omission performed or omitted hereunder or in connection with this Agreement or any such
other agreement, instrument or document other than with respect to intentional fraud of the Holder Representative, and (ii) the
Holder Representative shall be entitled to rely in good faith on the advice of counsel, public accountants or other independent
experts experienced in the matter at issue, and any error in judgment or other act or omission of the Holder Representative pursuant
to such advice shall in no event subject the Holder Representative to liability to the Hygeia Stockholders, the Canterbury Holders
or Stratus.

 

(f)                
All of the immunities and powers granted to the Holder Representative under this Agreement shall survive the Closing and/or
any termination of this Agreement.

 

(g)               
A decision, act, consent or instruction of the Holder Representative, including an extension or waiver of this Agreement,
shall constitute a decision of the Hygeia Stockholders and Canterbury Holders and shall be final, binding and conclusive upon the
Hygeia Stockholders and Canterbury Holders; and Stratus may rely upon any such decision, act, consent or instruction of the Holder
Representative as being the decision, act, consent or instruction of the Hygeia Stockholders and Canterbury Holders. Stratus is
hereby relieved from any Liability to any Person for any acts done by them in accordance with such decision, act, consent or instruction
of the Holder Representative.

 

(h)               
The Holder Representative has all requisite power, authority and legal capacity to execute and deliver this Agreement and
each other agreement, document, or instrument or certificate contemplated by this Agreement or to be executed by the Holder Representative
in connection with the consummation of the transactions contemplated by this Agreement (together with this Agreement, the “Holder
Representative Documents”), and to consummate the transactions contemplated hereby and thereby. The execution and delivery
of this Agreement and each of the Holder Representative Documents, the performance of its respective obligations hereunder and
thereunder and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all required action
on the part of the Holder Representative. This Agreement has been, and each of the Holder Representative Documents will be at or
prior to the Closing, duly and validly executed and delivered by the Holder Representative and (assuming the due authorization,
execution and delivery by the other parties hereto and thereto) this Agreement constitutes, and each of the Holder Representative
Documents when so executed and delivered will constitute, legal, valid and binding obligations of the Holder Representative enforceable
against it in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles
of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

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ARTICLE XII

RESCISSION RIGHTS; PREEMPTIVE RIGHTS; 

PAYMENT OF POST-CLOSING PAYMENT AMOUNTS

 

12.1           
Rescission Rights. It is the intention of Stratus to raise at least Ten Million Dollars ($10,000,000) after the Effective
Date through the sale by Stratus of its securities upon usual and customary terms (the “Financing”). In the
event that at least Seven Million Five Hundred Thousand ($7,500,000) Dollars in gross proceeds from the Financing is not achieved
by January 15, 2014, Stratus, Canterbury and Hygeia will then, at the option of the Holder Representative to be exercised no later
than January 31, 2014 (which date may be extended by the Holder Representative at her option to March 31, 2014), take all necessary
steps to unwind the Mergers (the “Rescission”) and return the parties to the position they were in immediately
prior to the closing of the Mergers. The Rescission shall be effected by notice to Stratus from the Holder Representative and must
pertain to both Hygeia and Canterbury.

 

12.2           
Preemptive Rights. Each Hygeia Stockholder and Canterbury Holder will be allowed to participate in the Financing
on the same terms and conditions and have the right and option for at least ten (10) calendar days after receipt of all final,
fully negotiated offering documents, to purchase securities being offered in the Financing sufficient to maintain such Person’s
pro-rata ownership interest in Stratus post-closing of the Financing. As soon as practicable, all offering documents will be provided
to the Hygeia Stockholders and the Canterbury Unitholders. If a Hygeia Stockholder or Canterbury Unitholder declines to purchase
his, her or its pro-rata share, then any oversubscription shall be permitted for an additional period of five (5) days to any Hygeia
Stockholder or Canterbury Unitholder who has purchased his, her or its pro-rata ownership interest pursuant to this Section 12.2.

 

12.3           
Payment of Post-Closing Payment Amounts. Concurrently with the Closing of Financing, Status shall pay at least Fifty
(50%) percent of the Post-Closing Payment Amounts with the remainder no later than December 20, 2013. All payments will be made
to the Client Trust Account of Rubin and Rudman LLP for distribution.

 

ARTICLE XIII

MISCELLANEOUS

 

13.1           
Submission to Jurisdiction; Consent to Service of Process.

 

(a)               
The parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court located within
the State of Delaware over any dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby
and each party hereby irrevocably agrees that all claims in respect of such dispute or any suit, action proceeding related thereto
may be heard and determined in such courts. The parties hereby irrevocably waive, to the fullest extent permitted by applicable
law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any
defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such
dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

(b)               
Each of the parties hereto hereby consents to process being served by any party to this Agreement in any suit, action or
proceeding by delivery of a copy thereof in accordance with the provisions of Section 13.5.

 

    	34

    	 

    

 

13.2           
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada
applicable to contracts made and performed in such state.

 

13.3           
Entire Agreement; No Third-Party Beneficiaries. This Agreement: (a) constitutes the entire agreement, and supersedes
all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement
and (b) except for the provisions of Article VII, are not intended to confer upon any Person other than the parties hereto any
rights or remedies.

 

13.4           
Amendment and Waivers. This Agreement may be amended, supplemented or changed by the parties hereto; provided,
however, that there shall be made no amendment that by Law requires further approval by the Hygeia Stockholders or the Canterbury
Holders without such approval having been obtained. This Agreement may not be amended except by an instrument in writing signed
on behalf of each of the parties hereto. No action taken pursuant to this Agreement, including any investigation by or on behalf
of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty,
covenant or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not
operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure
on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. Any agreement on the part of a party to any extension or waiver shall
be valid only if set forth in an instrument in writing signed on behalf of such party. All remedies hereunder are cumulative and
are not exclusive of any other remedies provided by law.

 

13.5           
Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given:
(i) when delivered personally, (ii) when sent by facsimile (with confirmation of transmission), (iii) when sent via confirmed
email, or (iv) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case
at the following addresses and facsimile numbers (or to such other address or facsimile number as a party may have specified by
notice given to the other party pursuant to this provision):

 

If to Hygeia or Canterbury, to

 

8 Canterbury Lane

Holden, Massachusetts 01520

Attention: Yael Schwartz, Ph.D.

Email: yschwartz@canterbury-labs.com

 

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

 

Rubin and Rudman LLP

50 Rowes Wharf, 3rd Floor

Boston, Massachusetts 02110

Attention: Peter B. Finn, Esq.

Email: PFinn@rubinrudman.com

 

 

If to Holder Representative:

 

Yael Schwartz, Ph.D.

8 Canterbury Lane

Holden, MA 01520

 

    	35

    	 

    

 

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

 

Rubin and Rudman LLP

50 Rowes Wharf, 3rd Floor

Boston, MA 02110

Attn: Peter B. Finn, Esq.

Email: PFinn@rubinrudman.com

 

If to Stratus, Canterbury Merger Sub or Hygeia Merger
Sub, to:

 

1800 Century Park East

6th Floor

Los Angeles, CA 90067

Attention: Jerrold Rubinstein

Email: jhr@miaminc.com

 

With a copy to:

 

TroyGould PC

1801 Century Park East, Suite 1600

Los Angeles, California 90067

Attention: David L. Ficksman, Esq.

Email: dficksman@troygould.com

 

13.6           
Severability. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced
by any law or public policy, all other terms or provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated
to the greatest extent possible.

 

13.7           
Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in
whole or in part, by operation of Law or otherwise by any of the parties without the prior written consent of the other parties.
Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties
and their respective successors and assigns.

 

13.8           
Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original
copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

    	36

    	 

    

 

13.9           
Arbitration. In the event of any dispute, controversy, disagreement, breach or claim arising out of or relating to
this Agreement or interpretation of any of the provisions, the same shall be submitted, for resolution, to final and binding arbitration
in accordance with the following procedures: The parties shall first attempt to mediate the matter(s). If the matter(s) has not
been satisfactorily resolved (or waived), within thirty (30) days after written notice by either party to the other requesting
mediation, then the matter shall be referred to arbitration for resolution under the then commercial arbitration rules of the American
Arbitration Association (the “A.A.A.”) and the decision of the arbitrator shall be final and binding on the
parties. The parties shall have the right to select the arbitrator. If the parties are unable to agree upon an arbitrator within
thirty (30) days following a notice of initiating arbitration to the other party, then the arbitrator shall be appointed by the
A.A.A. Each party shall be responsible for the filing fee and the arbitrator’s fee; and otherwise, each party shall be responsible
for its own costs and expenses, including but not limited to, travel, consultants, depositions, witnesses and attorneys’
fees and disbursements. The arbitrator shall be authorized to only interpret and apply the provisions of this Agreement or any
related agreements entered into under this Agreement and shall have no power or authority to modify or change any of the above
in any manner.

 

The arbitrator shall have no authority to
award punitive or speculative damages or any damages inconsistent with this Agreement. In addition to monetary award, the arbitrator
shall be empowered to award equitable relief, including an injunction and specific performance of any obligation under this Agreement.
The arbitrator shall, within thirty (30) days of the conclusion of the hearing, unless such time is extended by mutual agreement,
notify the parties in writing of his/her decision, stating the reasons for such decision and separately listing the findings of
fact and conclusions of law. The arbitration shall be conducted in New York, New York, and shall be governed by the laws of the
State of Delaware, and the decision of the arbitrator may be entered in any court of competent jurisdiction. Any costs, fees or
taxes incident to enforcing the award shall, to the maximum extent permitted by Law, be charged against the non-prevailing party
or shall be recovered by the prevailing party, as applicable, in any final judgment or arbitration award.

 

**REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK**

 

 

 

 

 

 

 

 

 

    	37

    	 

    

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement and Plan of Mergers to be executed by their respective officers thereunto duly authorized, all as of the
date first written above.

 

 

	 	“STRATUS”	 
	 	 	 
	 	STRATUS MEDIA GROUP, INC.	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:  	 	 
	 	 	 

 

	“HYGEIA MERGER SUB”	 	“HYGEIA”	 
	 	 	 	 
	HYGEIA ACQUISITION, INC.	 	HYGEIA THERAPEUTICS, INC.	 
	 	 	 	 
	 	 	 	 
	By:	 	 	By:	 	 
	Name:	 	 	Yael Schwartz, Ph.D., President	 
	Title:	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	“CANTERBURY MERGER SUB”	 	“CANTERBURY”	 
	 	 	 	 
	CANTERBURY ACQUISITION INC.	 	CANTERBURY LABORATORIES, LLC	 
	 	 	 	 
	 	 	 	 
	By:	 	 	By:	 	 
	 	 	Yael Schwartz, Ph.D., President	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	HOLDER REPRESENTATIVE	 
	 	 	 	 
	 	 	 	 
	 	 	Yael Schwartz, Ph.D.	 
	 	 	 	 
	 	 	 	 

 

 

    	38

    	 

    

 

EXHIBIT “A”

 

AMENDED CANTERBURY OPERATING AGREEMENT

 

To Be Provided by Stratus Post Closing.

 

 

 

 

 

 

    	39

    	 

    

 

EXHIBIT
“B”

 

NON-COMPETITION
AGREEMENT

 

 

 

 

 

    	40

    	 

    

 

EXHIBIT
“C”

 

EMPLOYMENT
AGREEMENTS

 

 

 

 

 

    	41

    	 

    

 

EXHIBIT “D”

 

REGISTRATION RIGHTS AGREEMENT

 

 

 

 

 

    	42

    	 

    

 

DISCLOSURE SCHEDULE

 

TO

 

AGREEMENT AND PLAN OF MERGER

 

BY AND AMONG

 

STRATUS MEDIA GROUP, INC.

 

AND

 

CANTERBURY ACQUISITION, LLC AND HYGEIA
ACQUISITION, INC.

 

AND

 

CANTERBURY LABORATORIES, LLC AND HYGEIA
THERAPEUTICS, INC.

 

September ____, 2013

 

 

This Disclosure Schedule is made and given
by Hygeia Therapeutics, Inc. (“Hygeia”) and Canterbury Laboratories, LLC (“Canterbury”) pursuant to the
Agreement and Plan of Merger dated September ___, 2013 (the “Merger Agreement”), by and among the Stratus Media Group,
Inc. (“Stratus”), Hygeia, Canterbury, Canterbury Acquisition, LLC (“Canterbury Merger Sub”), and Hygeia
Acquisition, Inc. (“Hygeia Merger Sub”).

 

The Schedule numbers in the Disclosure
Schedule correspond to the Section numbers of the Hygeia representations and warranties contained in Article V of the Merger Agreement
and the Canterbury representations and warranties contained in Article VI of the Merger Agreement and the respective covenants
of Hygeia and Canterbury contained in Article VIII of the Merger Agreement. If, and to the extent, any item required to be disclosed
in a section of this Disclosure Schedule is disclosed in any other section(s) of the Disclosure Schedule, each item shall be deemed
to be included in such Section where such information is required to be disclosed to the extent such item is described in sufficient
detail to enable a party to reasonably identify that such item belongs to such section.

 

Capitalized terms used by not otherwise
defined herein shall have the meaning ascribed to them in the Merger Agreement.

 

	Schedule 5.2:	A complete list of the Holders of Hygeia stock is attached as Exhibit 5.2(d).
	 	 
	Schedule 5.3(b):	Yale University
	 	 
	Schedule 5.4(b):	Right of First Refusal and Co-Sale Agreement, Stockholders’ Voting Agreement, and Investors’ Rights Agreement each dated March 31, 2010.
	 	 

 

 

    	43

    	 

    

 

 

	Schedule 5.7:	Indebtedness:
	 	 
	 	(i)	Yale University:	$87,295.76
	 	 	 	 
	 	(ii)	WIL Research Co.:	$118,000.00

 

	 	Transaction Expenses:	 
	 	 	 	 
	 	(i)	Rubin and Rudman LLP:	$125,000.00 (est.)
	 	 	 	 
	 	(ii)	Abrams Little-Gill Loberfeld PC	$50,000.00 (est.)

 

	Schedule 5.10(a):	Exclusive License Agreement with Yale University effective as of June 30, 2011, covering U.S. Patents #6,476,012 issued November 5, 2002 and #7,015,211 issued on March 21, 2006.
	 	 
	 	hygeiatherapeutics.com
	 	hygeiatherapeutics.net
	 	hygeiatherapeutics.biz
	 	 
	Schedule 5.12:	SBIR Application SF 424 (NIH) filed with GLSynthesis Inc., dated November 29, 2012.
	 	 
	Schedule 5.14:	Hygeia previously provided, on a sporadic basis, health insurance benefits through Blue Cross/Blue Shield of Massachusetts.  All benefits ceased as of December 22, 2011.

 

	Schedule 5.15(d):	(i)	None.
	 	 	 
	 	(ii)	Schwartz, Ph.D., Elkan Gamzu, Ph.D. and Thomas Jerussi, Ph.D.
	 	 	 
	 	(iii)	None.
	 	 	 
	 	(iv)	None.

 

	Schedule 5.18:	All bank accounts have been closed.
	 	 
	Schedule 5.19:	Torreya Partners, LLC
	 	 
	Schedule 6.2(d):	A complete list of the Holders of the Canterbury Units and Convertible Promissory Notes is attached as Exhibit 6.2(d).
	 	 
	Schedule 6.3(b):	Yale University
	 	 
	Schedule 6.4(b):	Right of First Refusal and Co-Sale Agreement, Members’ Voting Agreement, and Investors’ Rights Agreement each dated October 20, 2011.

 

    	44

    	 

    

 

	Schedule 6.7:	Indebtedness:
	 	 
	 	(i)	Yale University:	$87,295.76
	 	 	 	 
	 	(ii)	WIL Research Co.:	$118,000.00

 

	 	Transaction Expenses:	 
	 	 	 	 
	 	(i)	Rubin and Rudman LLP:	$125,000.00 (est.)
	 	 	 	 
	 	(ii)	Abrams Little-Gill Loberfeld PC	$50,000.00 (est.)

 

	Schedule 6.10(a):	Exclusive License Agreement with Yale University effective as of October 27, 2007, as amended by First Amendment dated as of March 26, 2010, covering U.S. Patents #6,476,012 issued November 5, 2002 and #7,015,211 issued on March 21, 2006.
	 	 
	 	canterbury-labs.com
	 	canterbury-labs.net
	 	canterbury-labs.biz

 

	Schedule 6.12:	(1)  Master Services Agreement with MicroConstants dated March 22, 2012.
	 	 
	 	(2)  Master Contract and Services Agreement with GLSynthesis effective as of March 28, 2012.
	 	 
	 	 
	 	(3)  Investment Banking Engagement Letter with Torreya Capital, a division of Financial West Investment Group.
	 	 
	 	(4)  Sublicense Agreement with Ferndale Pharma Group, Inc. dated as of March 22, 2012.
	 	 
	 	(5)  Collaboration Agreement with the Ferndale Pharma Group, Inc. dated as of July 25, 2013.
	 	 
	 	(6)  Board of Director Agreement with Nelson K. Stacks dated March 15, 2013.
	 	 
	 	(7)  Board of Director Agreement with Marc E. Goldberg dated March 15, 2013.
	 	 
	 	(8)  Service Agreement with CEREP dated October 18, 2011.
	 	 
	 	(9)  Quotation Agreement with Syncom dated March 28, 2013, together with Subcontractor Agreement with Cambridge Major Laboratories Inc. dated August 6, 2012.

 

    	45

    	 

    

 

	Schedule 6.14:	Canterbury has provided, on a sporadic basis, health insurance benefits through BlueCross/BlueShield of Massachusetts.  Canterbury is currently providing health benefits to Dr. Schwartz and Dr. Abolin.
	 	 
	Schedule 6.15(d):	(i)  Yael Schwartz, Ph.D., President and Chief Executive Officer:  annual salary of $135,000, with no bonus.  
	 	Craig Abolin, Ph.D.:  annual salary of $120,000, with no bonus.
	 	 
	 	(iii)  Julie Burrows, d/b/a Burrows Product Results
	 	 
	 	(iv)  None.

 

	Schedule 6.18:	Baystate Savings Bank Account #761284117, Holden, Massachusetts. Dr. Schwartz is the sole signatory.
	 	 
	Schedule 6.19:	Torreya Partners, LLC

 

 

 

    	46

    	 

    

 

EXHIBIT 5.2(d)

 

	 	 	 
	Stockholder Name:	 	 
	Abolin, Craig R., Ph.D.	 	Jerussi, Thomas P., Ph.D.
	Altman, Alan	 	Kislauskis, Edward, Ph.D.
	Altman, Judith	 	MacLeod, Robert
	Amster, Shelley W.	 	McCabe, Frank
	BioVentures Investors III LP	 	Perdios, David J. and Sarale
	BioVentures Investors (Offshore) III L.P.	 	Philips, Dr. Tania
	Blair, Clealand B., Jr.	 	Piskorski, Walter
	Cederbaum, Fella	 	Polan, Mary Lake, Ph.D., M.D.
	Cohen, Steven D., M.D., and Elaine S.	 	Popli, Om P.
	Curme, Oliver D.	 	Popli, Sanjeev, M.B.A.
	Davidow, Peter	 	Sacks, Barry and Yvonne
	Dean, Herbert and Brenda	 	Schwartz, Yael, Ph.D.
	Dean, Joan, Trust	 	Seibel, Mache, M.D.
	ENPV, Ltd.	 	Shenko, Dr. James
	Finn, Peter B.	 	Shepro, David, M.D.
	Fisher, Robin, M.D. and Mark Levasseur	 	Stevens, Dolores M.
	Gamzu, Elkan, Ph.D.	 	TVJ Holdings, LLC
	GL Synthesis, Inc.	 	Walter Greenblatt & Associates, Inc.
	Gold, Steven K., M.D.	 	Whaley, Jeffrey
	The Goldstein Company	 	White, Steven W.
	Goodman, The H. Maurice, Trust	 	Wulf H. Utian, LLC
	Grau, Dan	 	Yale University
	Greenblatt, Walter	 	 
	Hochberg, Richard, Ph.D.	 	 

 

 

 

 

    	47

    	 

     

 

EXHIBIT 6.2(d)

	 
	Unit
    Holder Names
	Abolin, Craig R., Ph.D.
	Altman, Alan
	Altman, Judith
	Amster, Shelley W.
	BioVentures Investors III LP
	BioVentures Investors (Offshore) III L.P.
	Blair, Clealand B., Jr.
	Burrows, Julie
	Cederbaum, Fella
	Cohen, Steven D., M.D., and Elaine S.
	Curme, Oliver D.
	Davidow, Peter
	Dean, Herbert and Brenda
	Dean, Joan, Trust
	ENPV, Ltd.
	Finn, Peter B.
	Fisher, Robin, M.D. and Mark Levasseur
	Gamzu, Elkan, Ph.D.
	GL Synthesis, Inc.
	Gold, Steven K., M.D.
	The Goldstein Company
	Goodman, The H. Maurice, Trust
	Grau, Dan
	Greenblatt, Walter
	Hochberg, Richard, Ph.D.
	Jerussi, Thomas P., Ph.D.
	Kislauskis, Edward, Ph.D.
	Macleod, Robert
	McCabe, Frank
	Perdios, David J. and Sarale
	Phillips, Tania, Dr.
	Piskorski, Walter
	Polan, Mary Lake, Ph.D., M.D.
	Popli, Om P.
	Popli, Sanjeev, M.B.A.
	Sacks, Barry and Yvonne
	Schwartz, Yael, Ph.D.
	Seibel, Mache, M.D.
	Shenko, Dr. James
	Shepro, David, M.D.
	Stacks, Nelson
	Stevens, Dolores M.
	TVJ Holdings, LLC
	Utian, Wulf H., M.D.
	Walter Greenblatt & Associates, Inc.
	Whaley, Jeffrey
	White, Steven W.
	Yale University

 

    	48

    	 

    

 

 

	Convertible Promissory Notes
	 
	Name
    of Note Holder
	Altman, Alan M., M.D.
	Berry, Victoria M.
	Berry, Victoria M.
	BioVentures Investors III LP
	BioVentures Investors (Offshore) III L.P.
	Harris, Kurt G., M.D.
	Harris, Kurt G., M.D.
	Janszen, Eric H. and Candy C.
	Janszen, Eric H. and Candy C.
	Sacks, Barry A and Yvonne
	White, Steven W.

 

 

 

 

    	49

    	 

    

 

SCHEDULE 7.6

 

Stratus Media Group, Inc.

Options and Warrants Outstanding

August 31, 2013

 

	Options	 	 	 
	 	 	 	 
	Strike	 	Outstanding at 8/31/13	 
	Price	 	Total	 	 	Exercisable	 
	 	 	 	 	 	 	 
	$ 0.54	 	 	4,160,000	 	 	 	3,810,000	 
	0.43	 	 	733,523	 	 	 	733,523	 
	0.38	 	 	750	 	 	 	250,000	 
	0.35	 	 	2,300,000	 	 	 	2,300,000	 
	0.03	 	 	31,000,000	 	 	 	31,000,000	 
	 	 	 	38,943,523	 	 	 	38,093,523	 

 

 

	Warrants	 	 	 
	 	 	 	 
	 	 	Outstanding at 8/31/13	 
	Strike	 	 	Total	 	 	 	Exercisable	 
	 	 	 	 	 	 	 	 	 
	$ 2.00	 	 	836,740	 	 	 	836,740	 
	1.65	 	 	600,000	 	 	 	600,000	 
	1.00	 	 	6,792,792	 	 	 	6,792,792	 
	0.75	 	 	1,000,000	 	 	 	1,000,000	 
	0.65	 	 	10,935,713	 	 	 	10,935,713	 
	0.38	 	 	9,000,000	 	 	 	9,000,000	 
	0.30	 	 	5,250,000	 	 	 	5,250,000	 
	0.03	 	 	17,391,667	 	 	 	17,391,667	 
	 	 	 	51,806,912	 	 	 	51,806,912	 

 

 

 

 

    	50Exhibit 4.19

 

SHAREHOLDER AND REGISTRATION RIGHTS AGREEMENT

 

THIS SHAREHOLDER AND REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of [·], 2013, by and among Plains GP Holdings, L.P., a limited partnership (the “Company”), and each of the parties listed on Annex A (the “Initial Holders”) (each a “Party” and collectively, the “Parties”).

 

W I T N E S S E T H:

 

WHEREAS, in connection with, and in consideration of, the transactions contemplated by the Company’s Registration Statement on Form S-1, (File No. 333-190227) initially filed with the Commission (as hereinafter defined) on July 29, 2013 and declared effective by the Commission under the Securities Act (as hereinafter defined) on [·], 2013, the Initial Holders have requested, and the Company has agreed to provide, registration rights with respect to the Registrable Securities (as hereinafter defined), as set forth in this Agreement.

 

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

 

Section 1.              Definitions

 

Unless otherwise defined herein, as used in this Agreement, the following terms have the following meanings:

 

“AAP” means Plains AAP, L.P., a Delaware limited partnership.

 

“AAP Class A Units” means Class A Units representing limited partner interests in AAP.

 

“AAP Class B Units” means Class B Units representing limited partner interests in AAP.

 

“AAP Partnership Agreement” means the Seventh Amended and Restated Limited Partnership Agreement of AAP, dated as of the date hereof, as such may be further amended, modified, supplemented or restated from time to time in accordance with the terms thereof.

 

“Affiliate” means, when used with respect to any Person, any Person directly or indirectly controlling, controlled by, or under common control with such person. For the purposes of this definition, the terms “controlling”, “controlled by”, or “under common control” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.

 

“Blackout Period” means any of the following:

 

(a)           in the event that at any time Company management determines in good faith that the registration or offering of Registrable Securities at that time would be reasonably likely to cause or require disclosure (i) that the Company or PAA is pursuing a significant acquisition and that the disclosure of the pursuit of such transaction would 

 

 

be reasonably likely to jeopardize such transaction or (ii) of material, non-public information, the disclosure of which would be harmful to the Company or PAA and with respect to which the Company or PAA otherwise has a bona fide business purpose for preserving as confidential, a period of up to 30 calendar days following such determination;

 

(b)           if the Company has notified the Holders pursuant to Section 6 that it is updating any Registration Statement or Prospectus in accordance with the terms of this Agreement, a reasonable period of time, not to exceed 10 days, for the Company to complete such update;

 

(c)           any regular quarterly “black-out” period during which all directors and executive officers of the Company are not permitted to trade under the insider trading policy of the Company then in effect; and

 

(d)           in the event PAA is conducting or actively pursuing a securities offering with anticipated offering proceeds of at least one hundred and fifty million dollars ($150,000,000) (other than in connection with any at-the-market offering or similar continuous offering program), a period of fifteen (15) calendar days as specified in a written notice delivered by the Company to the applicable Holders pursuant to Section 2 or 3; provided, however, that the Company shall not be entitled to provide such a notice more than once in any three month period.

 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in Houston, Texas or New York, New York.

 

“Commission” means the Securities and Exchange Commission.

 

“Demanding Holder” means Oxy, EMG, Kayne Anderson or PAA Management.

 

“EMG” means EMG Investment, LLC, a Delaware limited liability company.

 

“Encumbrance” means any security interest, pledge, mortgage, lien, charge, encumbrance, adverse claim, any defect or imperfection in title, preferential arrangement or restriction, right to purchase, right of first refusal or other burden or encumbrance of any kind.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Governmental Authority” means any United States, foreign, supra-national, federal, state, provincial, local or self-regulatory governmental, regulatory or administrative authority, agency, division, body, organization or commission or any judicial or arbitral body.

 

“Holder” means any Party owning Registrable Securities (including any holder of AAP Class B Units who becomes a Party to this Agreement in accordance with Section 11), and any other Person to which such Registrable Securities are Transferred in accordance with this Agreement.

 

“IPO” means the initial offering and sale of the PAGP Class A Shares to the public.

 

2

 

“Kayne Anderson” means collectively KAFU Holdings, L.P., a Delaware limited partnership, KA First Reserve XII, LLC, a Delaware limited liability company, KA First Holdings II, L.P., a Delaware limited partnership, Kayne Anderson MLP Investment Company, a Maryland corporation, Kayne Anderson Energy Development Company, a Maryland corporation, and Kayne Anderson Midstream/Energy Fund, Inc., a Maryland corporation.

 

“Lock-Up Period” means, subject to any waiver granted pursuant to Section 13(a), the period commencing with the closing of the IPO and ending on the fifteen month anniversary of such closing.

 

“Offering Request” has the meaning set forth in Section 3(a).

 

“Oxy” means Oxy Holding Company (Pipeline), Inc., a Delaware corporation.

 

“PAA Management” means PAA Management, L.P., a Delaware limited partnership.

 

“PAGP Class A Shares” means Class A Shares of the Company.

 

“PAGP Class B Shares” means Class B Shares of the Company.

 

“Party” has the meaning set forth in the preamble.

 

“Permitted Transfer” has the meaning assigned to such term in the AAP Partnership Agreement.

 

“Person” means any individual, partnership, corporation, limited liability company, trust, incorporated or unincorporated organization or other legal entity of any kind.

 

“Prospectus” has the meaning set forth in Section 6(a).

 

“Registering Holder” means any Holder of Registrable Securities giving the Company a written notice pursuant to Section 2 requesting that its Registrable Securities be included in a Shelf Registration Statement or pursuant to Section 3 or Section 4 hereof requesting that its Registrable Securities be included in an Offering Request or any offering initiated by the Company.

 

“Registrable Securities” means any PAGP Class A Shares issuable upon exchange of AAP Class A Units and PAGP Class B Shares (including any such PAGP Class A Shares issuable in respect of vested AAP Class B Units following their exchange for AAP Class A Units and PAGP Class B Shares), even if any such exchange shall not have yet occurred.  As to any particular Registrable Securities, once issued, such securities shall cease to be Registrable Securities when (a) they are sold pursuant to an effective Registration Statement under the Securities Act, (b) they are sold pursuant to Rule 144 (or any similar provision then in force under the Securities Act) and the transferee thereof does not receive “restricted securities” as defined in Rule 144, (c) they shall have ceased to be outstanding or (d) they have been sold in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of the securities.

 

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“Registration Expenses” means, except for Selling Expenses (as hereinafter defined), all expenses incurred by the Company in effecting any registration or offering pursuant to this Agreement, including all registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, the expense of any special audits incident to or required by any such registration.

 

“Registration Request” has the meaning set forth in Section 3(a).

 

“Registration Statement” has the meaning set forth in Section 6(a).

 

“Rule 144” means Rule 144 under the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Selling Expenses” means all underwriting discounts and selling commissions applicable to the securities sold in a transaction or transactions registered on behalf of the Holders.

 

“Shelf Notice” has the meaning set forth in Section 2(b).

 

“Shelf Registration Statement” has the meaning set forth in Section 2(a).

 

“Transfer” means to give, sell, exchange, assign, transfer, pledge, mortgage, hypothecate, bequeath, devise or otherwise dispose of or subject to any Encumbrance, voluntarily or involuntarily, by operation of law or otherwise, and whether of record, beneficially, by participation or otherwise.

 

“Underwriting Request” has the meaning set forth in Section 3(a).

 

“Violation” has the meaning set forth in Section 8(a).

 

“Wachovia Holders” means each of Jay Chernosky, Paul N. Riddle, Russell T. Clingman, David E. Humphreys, Phillip J. Trinder and Kipp PAA Trust.

 

“WKSI” has the meaning set forth in Section 2(a).

 

Section 2.              Shelf Registration Statement

 

(a)           Subject to Section 2(d), and further subject to the availability of a registration statement on Form S-3 or any successor form thereto (“Form S-3”) to the Company, as soon as reasonably practicable after it is initially eligible to do so, the Company shall file, and use its commercially reasonable efforts to cause to be declared effective by the Commission as soon as reasonably practicable after such filing date, a Form S-3 providing for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act relating to the offer and sale, from time to time, of the Registrable Securities owned by the Holders in accordance with the plan and method of distribution set forth in the prospectus included in such Form S-3 (the “Shelf Registration Statement”).  Even if the Company is a well-known seasoned issuer (as defined in 

 

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Rule 405 under the Securities Act) (a “WKSI”), the Company shall not be required to file the Shelf Registration Statement on an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) or any successor form thereto, to the extent that the Company would be an ineligible issuer (as defined in Rule 405 under the Securities Act) with respect to a broad plan of distribution (inclusive of distributions not involving a firm commitment underwriting) customarily included in a shelf registration statement.

 

(b)           At least twenty (20) Business Days prior to the date on which the Company anticipates filing a Shelf Registration Statement, the Company will deliver written notice (the “Shelf Notice”) thereof to each Holder.  Each Holder will have the right to include its Registrable Securities in the Shelf Registration Statement by delivering to the Company a written request to so include such Registrable Securities within ten (10) calendar days after the Shelf Notice is received by any such Holder.

 

(c)           Subject to Section 2(d), the Company shall use commercially reasonable efforts to keep the Shelf Registration Statement continuously effective (including by filing any necessary post-effective amendments to such Shelf Registration Statement or one or more successor Shelf Registration Statements) until the date on which all Registrable Securities covered by the Shelf Registration Statement have been sold thereunder in accordance with the plan and method of distribution disclosed in the prospectus included in the Shelf Registration Statement, or otherwise cease to be Registrable Securities.

 

(d)           Notwithstanding anything to the contrary contained in this Agreement, the Company shall be entitled, from time to time, by providing written notice to the Registering Holders who elected to participate in the Shelf Registration Statement (which notice shall provide reasonable detail regarding the basis for the Blackout Period), to require such Registering Holders to suspend the use of the prospectus for sales of Registrable Securities under the Shelf Registration Statement during any Blackout Period. After the expiration of any Blackout Period and without any further request from a Registering Holder, the Company shall immediately notify all such Registering Holders and, to the extent necessary, shall as promptly as reasonably practicable prepare a post-effective amendment or supplement to the Shelf Registration Statement or the prospectus, or any document incorporated therein by reference, or file any other required document so that, as thereafter delivered to purchasers of the Registrable Securities included therein, the prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(e)           All rights of Oxy, EMG and Kayne Anderson and their respective Affiliates to Transfer PAGP Class A Shares using the Shelf Registration Statement shall be subject to the transfer restrictions contained in Section 13(a).

 

Section 3.              Demand Registration Rights

 

(a)           General.  At any time following the Lock-Up Period but subject to any pending lock-up arrangement in accordance with Section 13(b), if the Company shall receive from any Demanding Holder a written request (an “Offering Request”) (i) that the Company file a registration statement with respect to any of such Holder’s Registrable Securities (a 

 

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“Registration Request”) or (ii) in the event that a Shelf Registration Statement covering such Holders’ Registrable Securities is already effective, that the Company engage in an underwritten offering (an “Underwriting Request”) in respect of such Holder’s Registrable Securities, then the Company shall, within one (1) Business Day of the receipt thereof, give written notice of such request to all Holders, and the Company and the Holders shall comply with the notice and participation procedures set forth in Section 4.  Subject to the other terms of this Section 3, the Company shall use its commercially reasonable efforts to effect, as soon as reasonably practicable, the registration under the Securities Act of the resale of all Registrable Securities that the Holders request to be registered in any Registration Request and/or the underwritten offering of all Registrable Securities that the Holders request to be offered pursuant to any Underwriting Request.  With respect to any Registration Request, the Company shall use commercially reasonable efforts to cause any related Registration Statement to be declared effective under the Securities Act as promptly as practicable after the filing thereof and to keep such Registration Statement effective until participating Holder or Holders have completed the distribution described in such Registration Statement.  The Demanding Holder may request that the Company register the resale or effect an offering of such Registrable Securities on an appropriate form, including a Shelf Registration Statement (so long as the Company is eligible to use Form S-3).  The Company’s obligations pursuant to this Section 3(a) shall be subject to the following limitations and conditions:

 

(i)            the Company shall not be required to comply with any Offering Request that is received within ninety (90) calendar days after the closing of any underwritten offering effected by one or more Holders or the Company;

 

(ii)           the Company shall not be required to comply with any Offering Request where the anticipated aggregate offering price of all Registrable Securities requested to be registered or offered by the Demanding Holder (together with any related requests of other Demanding Holders) is equal to or less than two hundred million dollars ($200,000,000), unless the Demanding Holder’s remaining Registrable Securities have a value less than such two hundred million dollar ($200,000,000) limit, in which case such Demanding Holder may make a single and final request with respect to its remaining Registrable Securities; or

 

(iii)          the Company shall not be required to comply with any Offering Request, and may suspend its obligations under this Section 3, as applicable, for the duration of any applicable Blackout Period, following its delivery of written notice thereof to the Holders;

 

(iv)          the Company shall not be required to comply with any Registration Request at any time that the Shelf Registration Statement is effective;

 

(v)           the Company shall be entitled to postpone any Offering Request if, in the Company’s good faith judgment, it is not feasible for the Company to proceed with the Offering Request because audited or pro forma financial statements that are required by the Securities Act to be included in any related registration statement or prospectus are then unavailable, until such time as such financial statements are completed or obtained by the Company, provided that the Company shall use its commercially reasonable efforts to complete or obtain such financial statements as promptly as reasonably practicable.

 

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(b)           Demand Procedures.

 

(i)            Any Offering Request shall specify: (i) the approximate aggregate number of Registrable Securities requested to be registered or offered for sale in such Offering Request, (ii) the intended method of disposition in connection with such Offering Request, to the extent then known and (iii) the identity of the Demanding Holder or Demanding Holders.

 

(ii)           In connection with any Offering Request, the Demanding Holder(s) and Company management shall jointly participate in the process of selecting the investment banking firms that will serve as lead and co-managing underwriters with respect to such underwritten offering.  In addition, the Company (together with all Holders proposing to distribute their securities through such underwriting) shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwritten offering.  Notwithstanding any other provision of this Section 3, if the managing underwriter(s) advise the Demanding Holder(s) in writing that marketing factors require a limitation of the number of shares to be underwritten in a Holder-initiated registration or offering, the Company shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the registration and underwriting shall be allocated as follows:

 

(A)          first, among all Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities requested by such Holders to be included in the registration or underwritten offering;

 

(B)          second, to the Company; and

 

(C)          third, if there remains availability for additional securities to be included in such registration or underwritten offering, pro rata among any other Persons who have been granted registration rights, or who have requested participation in such registration or underwritten offering.

 

Section 4.              Piggyback Registrations and Participation Rights

 

(a)           General.  If, at any time or from time to time after the date hereof, the Company proposes to register the sale of any of its securities or conduct an offering of registered securities for its own account or for the account of any third Person (including any Demanding Holder(s) or other Holders pursuant to this Agreement) on a form which would permit the registration or offering of Registrable Securities, except as otherwise provided herein, the Company will:

 

(i)            promptly give to each Holder written notice thereof; and

 

(ii)           include in such registration or offering, all the Registrable Securities specified in a written request or requests, made within seven (7) calendar days after delivery of such written notice from the Company, by any Holders (except that (A) if the managing underwriter(s) or the Person initiating the registration or offering determine that marketing factors require a shorter time period and so inform each Holder in the applicable written notice, such written request or requests must be made within three (3) calendar days and (B) in the case of an “overnight” offering or a “bought deal,” such written request or requests must be made 

 

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within one (1) Business Day), except as set forth in Section 3(b) or Section 4(b); provided, however, that the Company may withdraw any registration or offering initiated by the Company at any time before any related registration statement becomes effective, or postpone or terminate any offering of securities under such registration statement initiated by the Company, without obligation or liability to any Holder. The Company shall not have to provide notice of any new registration of securities proposed by the Company to the extent the Registrable Securities of the Holders are already included in an effective Shelf Registration Statement. The absence of any requirement to provide such notice shall have no effect on the rights of any Holder to participate in any offering following such registration in accordance with the terms of this Agreement. Additionally, the Company shall not have to provide notice of any registration of securities proposed by the Company to any Holder to the extent such Holder does not hold a sufficient number of Registrable Securities to meet the minimum participation level set forth in Section 4(c) of this Agreement.

 

(b)           Underwriting.  The piggyback and participation rights of any Holder pursuant to Section 3 or this Section 4 shall be conditioned upon such Holder’s acceptance of the terms of, and participation in, the underwriting arrangements as agreed to by the Company and the managing underwriter(s). All Holders proposing to distribute their Registrable Securities through such underwriting shall (together with the Company) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting.  In the event of any registration or offering initiated by the Company, the Company shall select the underwriters to participate in such registration or offering in its sole discretion.  Notwithstanding any other provision of this Section 4, if the managing underwriter(s) determine that marketing factors require a limitation of the number of shares to be underwritten in a Company-initiated registration or offering, the Company shall so advise all Holders whose securities would otherwise be registered or offered pursuant hereto, and the number of shares of Registrable Securities that may be included in the registration or underwritten offering shall be so limited and, except as otherwise provided herein, shall be allocated as follows:

 

(i)            first, to the Company;

 

(ii)           second, if there remains additional availability for additional Registrable Securities to be included in such registration or underwritten offering, among all Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities requested by such Holders to be included in the registration or underwritten offering; and

 

(iii)          third, if there remains availability for additional securities to be included in such registration or underwritten offering, pro rata among any other Persons who have been granted registration rights, or who have requested participation in such registration or underwritten offering.

 

If any Holder disapproves of the terms of any underwriting related to any underwritten offering effected pursuant to Section 3 or this Section 4, the Holder may elect to withdraw therefrom by written notice to the Company and the managing underwriter(s).  If by the withdrawal of such Registrable Securities a greater number of shares of Registrable Securities held by other Holders may be included in such registration (up to the maximum of any limitation imposed by the managing underwriter(s)), then the Company shall offer to all Holders who have 

 

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included Registrable Securities in the registration or underwritten offering the right to include additional shares of Registrable Securities in the same proportion used in determining the participation limitation in Section 3(b) or this Section 4(b).

 

(c)           Minimum Participation Level. To the extent a Holder has Registrable Securities included in an effective Shelf Registration Statement, such Holder may not exercise its piggyback or participation rights pursuant to this Section 4 unless such Holder requests the inclusion of Registrable Securities in the applicable registration or underwritten offering with a gross anticipated offering price that is equal to or greater than twenty-five million dollars ($25,000,000).

 

(d)           Wachovia Holders. Notwithstanding anything in this Agreement to the contrary, the Wachovia Holders shall not be deemed Holders for purposes of Sections 3 and 4 hereof, and accordingly shall not be entitled to notice or the piggyback or participation rights contemplated therein.

 

Section 5.              Registration Expenses

 

The Company will cause all Registration Expenses incurred in connection with any registration, filing, qualification or compliance pursuant to Sections 2, 3 and 4 to be borne by AAP, regardless of whether any Registration Statement becomes effective.  All Selling Expenses relating to the sale of securities registered by the Holders shall be borne by the Holders of such securities pro rata on the basis of the number of shares so sold.

 

Section 6.              Further Obligations

 

(a)           In connection with any registration of the sale of shares of Registrable Securities under the Securities Act pursuant to this Agreement, the Company will consult with each Holder whose Registrable Securities are to be included in any such registration concerning the form of underwriting agreement (and shall provide to each such Holder the form of underwriting agreement prior to the Company’s execution thereof) and shall provide to each such Holder and its representatives such other documents (including correspondence with the Commission with respect to the registration statement and the related securities offering) as such Holder shall reasonably request in connection with its participation in such registration.  The Company will furnish each Registering Holder whose Registrable Securities are registered thereunder and each underwriter, if any, with a copy of the registration statement and all amendments thereto and will supply each such Registering Holder and each underwriter, if any, with copies of any prospectus forming a part of such registration statement (including a preliminary prospectus and all amendments and supplements thereto, the “Prospectus”), in such quantities as may be reasonably requested for the purposes of the proposed sale or distribution covered by such registration.  In the event that the Company prepares and files with the Commission a registration statement on any appropriate form under the Securities Act (a “Registration Statement”) providing for the sale of Registrable Securities held by any Registering Holder pursuant to its obligations under this Agreement, the Company will:

 

(i)            prepare and file with the Commission such amendments and post-effective amendments to the Registration Statement as may be necessary to keep such Registration 

 

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Statement effective; cause the related Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with the intended methods of distribution by the participating Holder or Holders thereof set forth in such Registration Statement or supplement to such Prospectus;

 

(ii)           promptly notify the Registering Holders and the managing underwriter(s), if any, (A) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (B) of any request by the Commission or any state securities commission for amendments or supplements to a Registration Statement or related Prospectus or for additional information, (C) of the issuance by the Commission or any state securities commission of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (D) of the receipt by the Company of any notification with respect to the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and (E) of the existence of any fact which results in a Registration Statement, a Prospectus or any document incorporated therein by reference containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein not misleading;

 

(iii)          use commercially reasonable efforts to promptly obtain the withdrawal of any order suspending the effectiveness of a Registration Statement;

 

(iv)          if requested by a Registering Holder or the managing underwriter(s), promptly incorporate in a Prospectus supplement or post-effective amendment such information as the Registering Holders holding a majority of the Registrable Securities being sold by Registering Holders or the managing underwriter(s) agree should be included therein relating to the sale of such Registrable Securities, including without limitation information with respect to the amount of Registrable Securities being sold to such underwriters, the purchase price being paid therefor by such underwriters and with respect to any other terms of the underwritten (or best efforts underwritten) offering of the Registrable Securities to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective amendment as soon as notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;

 

(v)           furnish to such Registering Holder and each managing underwriter at least one signed copy of the Registration Statement and any post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference) (provided, however, that any such document made available by the Company through EDGAR shall be deemed so furnished);

 

(vi)          deliver to such Registering Holders and the underwriters, if any, as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons may reasonably request;

 

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(vii)                           prior to any public offering of Registrable Securities, register or qualify or cooperate with the Registering Holders, the underwriters, if any, and their respective counsel in connection with the registration or qualification of such Registrable Securities for offer and sale under the securities or blue sky laws of such jurisdictions within the United States as any Registering Holder or underwriter reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the applicable Registration Statement; provided, however, that the Company will not be required to qualify generally to do business in any jurisdiction where it is not then so required to be qualified or to take any action which would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject;

 

(viii)                        cooperate with the Registering Holders and the managing underwriter(s), if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to such Registration Statement and not bearing any restrictive legends, and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters may request at least one (1) Business Day prior to any sale of Registrable Securities to the underwriters;

 

(ix)                              if any fact described in subparagraph (ii)(E) above exists, promptly prepare and file with the Commission a supplement or post-effective amendment to the applicable Registration Statement or the related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading;

 

(x)                                 cause all Registrable Securities covered by the Registration Statement to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then listed;

 

(xi)                              provide a CUSIP number for all Registrable Securities included in such Registration Statement, not later than the effective date of the applicable Registration Statement;

 

(xii)                           enter into such agreements (including an underwriting agreement in form reasonably satisfactory to the Company) and take all such other reasonable actions in connection therewith in order to expedite or facilitate the disposition of such Registrable Securities, including, in the case of underwritten offerings, (i) customary participation of management; provided that senior management of the Company shall not be required to dedicate an unreasonably burdensome amount of time in connection with roadshow and related marketing activities for any underwritten offering, (ii) using reasonable efforts to cause its counsel to issue opinions of counsel in form, substance and scope as are customary in underwritten offerings, including a standard “10b-5” opinion for such offering, addressed and delivered to the underwriter(s), (iii) if requested, using reasonable efforts to cause to be delivered, immediately prior to the pricing of any underwritten offering, immediately prior to effectiveness of each Registration Statement (and, in the case of an underwritten offering, at the time of closing of the sale of Registrable Securities pursuant thereto), letters from the Company’s independent registered public accountants addressed to each underwriter, if any, stating that such accountants are independent public accountants within the meaning of the 

 

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Securities Act and the applicable rules and regulations adopted by the Commission thereunder, and otherwise in customary form and covering such financial and accounting matters as are customarily covered by letters of the independent registered public accountants delivered in connection with underwritten public offerings and (iv) delivering a standard officer’s certificate from the chief executive officer or chief financial officer, or other senior officers serving such functions, of the general partner of the Company addressed to each underwriter, if any;

 

(xiii)                        make available for inspection by a representative of the Registering Holders whose Registrable Securities are being sold pursuant to such Registration Statement, any underwriter participating in any disposition pursuant to a Registration Statement, and any attorney or accountant retained by such Registering Holders or underwriter, all financial and other records and any pertinent corporate documents and properties of the Company reasonably requested by such representative, underwriter, attorney or accountant in connection with such Registration Statement; provided, however, that any records, information or documents that are designated by the Company in writing as confidential shall be kept confidential by such Persons or entities unless disclosure of such records, information or documents is required by law, legal process or regulatory requirements; provided, further, that information shall not be deemed confidential information for purposes of this Section 6(a)(xiii), if such information (i) is already known to such Party (or its representatives), having been disclosed to such Party (or its representatives) by a third Person without such third Person having an obligation of confidentiality to the Company, (ii) is or becomes publicly known through no wrongful act of such Party (or its representatives), or (iii) is independently developed by such Party (or its representatives) without reference to any confidential information disclosed to such Party under this Agreement; and

 

(xiv) in the event any Holder could reasonably be deemed to be an “underwriter” (as defined in Section 2(a)(11) of the Securities Act) in connection with such Registration Statement and any amendment or supplement thereof, reasonably cooperate with such Holder in allowing such Holder to conduct customary “underwriter’s due diligence” with respect to the Company and satisfy its obligations in respect thereof.  In addition, at any Holder’s request, the Company will use commercially reasonable efforts to furnish to such Holder, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as such Holder may reasonably request, (A) subject to such Holder’s delivery of any letter required by the Company’s independent certified public accountants, a “cold comfort” letter, dated such date, from the Company’s independent certified public accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering addressed to such Holder, (B) an opinion, dated as of such date, of counsel representing the Company, in form, scope and substance as is customarily given in an underwritten public offering, including a standard “10b-5” opinion for such offering, addressed to such Registering Holder and (C) a standard officer’s certificate from the chief executive officer or chief financial officer, or other senior officers serving such functions, of the general partner of the Company addressed to the Holder.

 

(b)                                 Each Holder agrees that, upon receipt of any notice from the Company of the happening of an event of the kind described in Section 6(a)(ii)(B) through Section 6(a)(ii)(E), such Holder will immediately discontinue disposition of shares of Registrable Securities pursuant to a Shelf Registration Statement until such stop order is vacated or such Holder receives a copy of the supplemented or amended Prospectus.  If so directed by the Company, each Holder will deliver to the Company (at the reasonable expense of the Company) all copies 

 

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in its possession, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such shares of Registrable Securities at the time of receipt of such notice.

 

Section 7.                                           Further Information Furnished by Holders

 

It shall be a condition precedent to the obligations of the Company to take any action pursuant to Sections 2 through 6 that the Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them, and the intended method of distribution of such securities as shall be required to effect the registration or offer and sale of their Registrable Securities.

 

Section 8.                                           Indemnification

 

In the event any Registrable Securities are included in a registration statement under Sections 2, 3 or 4:

 

(a)                                 To the fullest extent permitted by law, the Company will indemnify and hold harmless each Holder and underwriter (as defined in the Securities Act) and each of the officers, directors, partners and agents of each such Holder and underwriter, and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or any violation or alleged violation by the Company or any officer, director, employee, advisor or affiliate thereof of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law, and the Company will reimburse each such Holder, officer, director, partner or agent, underwriter or controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld, conditioned, delayed or denied), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration or offering by any such Holder or underwriter.  The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of any Holder or underwriter or any officer, director or controlling Person of such Holder or underwriter and shall survive the transfer of securities.

 

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(b)                                 To the fullest extent permitted by law, each Holder severally, and not jointly, will, if shares of Registrable Securities held by such Person are included in the securities as to which such registration or offering is being effected, indemnify and hold harmless the Company, each of its directors and officers, each legal counsel and independent accountant of the Company, each Person, if any, who controls the Company within the meaning of the Securities Act, each underwriter (within the meaning of the Securities Act) of the Company’s securities covered by such registration or offering, any Person who controls such underwriter, and any other Holder selling securities in such registration and each of its directors, officers, partners or agents or any Person who controls such Holder, against any losses, claims, damages, or liabilities (joint or several) to which the Company or any such underwriter, other Holder, director, officer, partner or agent or controlling Person may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration or offering, and each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such underwriter, other Holder, officer, director, partner or agent or controlling Person in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 8(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld, conditioned, delayed or denied); and provided, that in no event shall any indemnity under this Section 8(b) exceed the net proceeds from the offering received by such Holder.

 

(c)                                  Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if the indemnified party shall have been advised by counsel that representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure of any indemnified party to notify an indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of liability to the indemnified party under this Section 8 only to the extent that such failure to give notice shall materially prejudice the indemnifying party in the defense of any such claim or any such litigation, but the failure to notify the indemnifying party will not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than under this Section 8.

 

(d)                                 If the indemnification provided for in this Section 8 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any losses, 

 

14

 

claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, that in no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder.

 

(e)                                  The obligations of the Company and the Holders under this Section 8 shall survive completion of any offering of Registrable Securities pursuant to any Registration Statement.

 

(f)                                   Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with any registration or offering provided for under Sections 2, 3 or 4 are in conflict with the foregoing provisions of this Section 8, the provisions in such underwriting agreement shall control.

 

Section 9.                                           Rule 144 Reporting

 

The Company shall file the reports required to be filed by it under the Securities Act and the Exchange Act, and will take such further action as any Holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such Holder following an exchange of AAP Class A Units and PAGP Class B Shares for PAGP Class A Shares to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144.  Upon the request of any Holder of Registrable Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements.

 

Section 10.                                    Assignment of Rights

 

The provisions hereof will inure to the benefit of and be binding upon the successors and assigns of each of the Parties hereto, except as otherwise provided herein; provided, however, that the registration rights granted hereby may be transferred to any Person to whom a Holder transfers Registrable Securities pursuant to a Permitted Transfer in accordance with the terms of the AAP Partnership Agreement, provided further that any such transferee shall not be entitled to rights pursuant to Sections 2, 3 or 4 hereof unless such transferee of registration rights hereunder agrees to be bound by the terms and conditions hereof and executes and delivers to the Company a customary acknowledgment and agreement to such effect; and provided further that a Demanding Holder’s right to make a single and final request with respect to its remaining Registrable Securities may not be assigned to any transferee unless the transferee acquires 

 

15

 

Registrable Securities having a fair market value at the time of transfer of the last prior transfer of Registrable Securities, of at least two hundred million dollars ($200,000,000).  Any Holder transferring Registrable Securities shall provide notice of any such transfer to the Company, including the identity and notice information for the transferee.

 

In the event that EMG effects a Permitted Transfer to one or more of its members in accordance with the terms of the AAP Partnership Agreement, notwithstanding any such Transfer, EMG shall act as the representative of such transferees for all purposes under this Agreement and thereafter remain the notice party for all purposes under this Agreement with respect to such transferees, and EMG shall be responsible for providing notices to, and delivering responses from, such transferees.

 

Section 11.                                    Amendment of Registration Rights

 

Except as otherwise provided in this Agreement, any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Holders of at least [a majority] of the Registrable Securities; provided that Section 13(a) may only be amended with the written consent of the Company, acting through the board of directors of its general partner (without participation of any representative of Oxy, EMG or Kayne Anderson).  Any amendment or waiver effected in accordance with this Section 11 shall be binding upon each Holder and the Company.

 

Annex A hereto may be amended or supplemented from time to time by the Company to reflect any Transfers that result in Registrable Securities no longer qualifying as Registrable Securities or Transfers involving an assignment of Registrable Securities effected in accordance with Section 10, and any such amendment or supplement shall not be considered an amendment of this Agreement. Upon the reasonable request of the Company from time to time, each Holder hereby agrees to provide a certification to the Company as to the number of Registrable Securities held by such Holder. In addition, upon the execution of a customary acknowledgement and agreement agreeing to be bound by the terms and conditions hereof, the Company shall promptly amend or supplement Annex A from time to time to reflect the inclusion of any holder of vested AAP Class B Units, it being the intent of the Parties that all holders of vested AAP Class B Units become a Party to this Agreement subject to the execution and delivery of such customary acknowledgment and agreement.  Further, upon any such amendment or supplement of Annex A to reflect the inclusion of any holder of vested AAP Class B Units, the Company will take all appropriate action to include such Holder’s Registrable Securities in any effective Shelf Registration Statement.  Any such addition of a holder of AAP Class B Units shall not be considered an amendment of this Agreement.  The Company may also amend or supplement Annex A from time to time to reflect any increase or reduction in the ownership of vested AAP Class B Units held by any Holder and any such amendment or supplement shall not be considered an amendment of this Agreement.

 

Section 12.                                    Limitations on Subsequent Registration Rights

 

From and after the date of this Agreement and so long as the original Parties to this Agreement continue to own at least ten percent (10%) of the Registrable Securities initially 

 

16

 

subject to this Agreement, the Company shall not, without approval of the Holders of at least sixty-six and two-thirds percent (66 2/3%) of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder any registration rights the terms of which are equivalent to or more favorable than the registration rights granted to holders of Registrable Securities hereunder, or which would reduce the amount of Registrable Securities the holders can include in any registration filed or offering effected pursuant to Section 3 or Section 4 hereof, unless such rights are subordinate to those of the Holders of Registrable Securities.

 

Section 13.                                    Transfer Restrictions; “Market Stand-off” Agreement

 

(a)                                 During the Lock-Up Period, each of Oxy, EMG and Kayne Anderson hereby agrees not to, and hereby agrees to cause its respective Affiliates not to, directly or indirectly, Transfer any PAGP Class A Shares issuable upon exchange of their AAP Class A Units and PAGP Class B Shares; provided that the foregoing Persons may (i) effect any Permitted Transfer (as such term is defined in the AAP Partnership Agreement), (ii) effect, following any such exchange, any Transfer of PAGP Class A Shares that would have been permitted under subclauses (a), (b) and (c) of the definition of Permitted Transfer (as such term is defined in the AAP Partnership Agreement) prior to such exchange, in each of clauses (i) and (ii) above so long as any transferee in such Transfer agrees in writing to be subject to the restrictions contained in this Section 13 for the remaining term of the Lock-Up Period, and (iii) make de minimus charitable gifts to any entity or organization registered under Section 501(c)(3) of the Internal Revenue Code.  The restrictions contained in this Section 13 may only be waived by the Company, acting through the board of directors of its general partner (without participation of any representative of Oxy, EMG or Kayne Anderson), which may grant or refuse to grant any such waiver in its sole discretion.

 

(b)                                 In connection with any underwritten offering pursuant to this Agreement, each Holder, other than the Wachovia Holders, hereby agrees, subject to and following its receipt of notice from the Company, that it (i) will not, to the extent requested by the Company and any underwriter, sell or otherwise transfer or dispose of any Registrable Securities, except securities included in such offering or certain permitted transfers of securities pursuant to the AAP Partnership Agreement, during the period beginning fifteen (15) days prior to the expected date of “pricing” of such offering and continuing for a period not to exceed forty-five (45) days with respect to any offering beginning on the date of such final prospectus (or prospectus supplement if the offering is made pursuant to a Shelf Registration Statement), and (ii) will enter into agreements with the underwriter in connection with any such sale to give effect to the foregoing.  In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each such Holder (and the shares or securities of every other Person subject to the foregoing restriction) until the end of such forty-five (45)-day period.

 

Section 14.                                    Miscellaneous

 

(a)                                 Notices. All notices and other communications provided for or permitted hereunder shall be in writing or be delivered via e-mail (which shall also constitute written notice) and shall be deemed to have been duly given and received when, if in writing, delivered 

 

17

 

by overnight courier or hand delivery, when sent via e-mail, receipt of such e-mail is confirmed by the recipient thereof (either by e-mail or orally), when sent by fax, or three (3) days after mailing if sent by registered or certified mail (return receipt requested) postage prepaid, to the Parties at the following addresses (or at such other address for any Party as shall be specified by like notices, provided that notices of a change of address shall be effective only upon receipt thereof).

 

If to the Company, at:

 

333 Clay Street, Suite 1600
 Houston, Texas 77002
 Attention: General Counsel
 Fax: 713.[·]

Email: RKMcGee@paalp.com

 

If to any Holder of Registrable Securities, to such Person’s address set forth on Annex A or as set forth on the records of the Company.

 

(b)                                 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

(c)                                  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.

 

(d)                                 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION.

 

(e)                                  Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the Parties hereto shall use their reasonable best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the Parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(f)                                   Entire Agreement. This Agreement is intended by the Parties as a final expression of their agreement, and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein, with respect to the registration rights granted by the Company with respect to Registrable

 

18

 

Securities. This Agreement supersedes all prior written or oral agreements and understandings between the Parties with respect to such subject matter.

 

(g)                                  Securities Held by the Company or its Subsidiaries. Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its subsidiaries shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage.

 

(h)                                 Termination. This Agreement shall terminate when no shares of Registrable Securities remain outstanding; provided that Sections 8 and 14 shall survive any termination hereof.

 

(i)                                     Specific Performance. The Parties hereto recognize and agree that money damages may be insufficient to compensate the Holders of any Registrable Securities for breaches by the Company of the terms hereof and, consequently, that the equitable remedy of specific performance of the terms hereof will be available in the event of any such breach.

 

[Signature pages follow]

 

19

 

IN WITNESS WHEREOF, the parties hereto have caused this Shareholder and Registration Rights Agreement to be duly executed as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
PLAINS   GP HOLDINGS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PAA   GP Holdings LLC, its general partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HOLDERS:
    
	
 
    	
 
    	
 
    
	
 
    	
OXY   HOLDING COMPANY (PIPELINE), INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMG   INVESTMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
KAFU   HOLDINGS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KAFU   Holdings, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KA   FIRST RESERVE XII, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PAA   MANAGEMENT, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PAA   Management LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    	
 
    
	
 
    	
Fax:
    	
 
    
	
 
    	
Email:
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
STROME   PAA, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
[·],
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MARK   E. STROME LIVING TRUST
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WINDY,   L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
LYNX   HOLDINGS I, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KAFU   HOLDINGS II, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KAYNE   ANDERSON MLP INVESTMENT
    
	
 
    	
COMPANY
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
KAYNE   ANDERSON ENERGY
    
	
 
    	
DEVELOPMENT COMPANY
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KAYNE   ANDERSON MIDSTREAM/ENERGY
    
	
 
    	
FUND, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
Name:   Jay Chernosky
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   for notice:
    
	
 
    	
 
    	
[·]
    
	
 
    	
 
    	
Fax:
    
	
 
    	
 
    	
Email:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Paul N. Riddle
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   for notice:
    
	
 
    	
 
    	
[·]
    
	
 
    	
 
    	
Fax:
    
	
 
    	
 
    	
Email:
    
				

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Russell T. Clingman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   for notice:
    
	
 
    	
 
    	
[·]
    
	
 
    	
 
    	
Fax:
    
	
 
    	
 
    	
Email:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   David E. Humphreys
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   for notice:
    
	
 
    	
 
    	
[·]
    
	
 
    	
 
    	
Fax:
    
	
 
    	
 
    	
Email:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Phillip J. Trinder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   for notice:
    
	
 
    	
 
    	
[·]
    
	
 
    	
 
    	
Fax:
    
	
 
    	
 
    	
Email:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KIPP   PAA TRUST
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for notice:
    
	
 
    	
[·]
    
	
 
    	
Fax:
    
	
 
    	
Email:
    
				

 

Signature Page to Registration Rights Agreement

 

 

Annex A

 

	
Contributing Party
    	
 
    	
Registrable
   Securities
   (Exchangeable
   PAGP Class A
   Shares)
    
	
Plains   GP Holdings, L.P.
    	
 
    	
 
    
	
Oxy   Holding Company (Pipeline), Inc.
    	
 
    	
 
    
	
EMG   Investment, LLC
    	
 
    	
 
    
	
KAFU   Holdings, L.P.
    	
 
    	
 
    
	
KA   First Reserve XII, LLC
    	
 
    	
 
    
	
KA   First Holdings II, L.P.
    	
 
    	
 
    
	
Kayne   Anderson MLP Investment Company
    	
 
    	
 
    
	
Kayne   Anderson Energy Development Company
    	
 
    	
 
    
	
Kayne   Anderson Midstream/ Energy Fund, Inc.
    	
 
    	
 
    
	
PAA   Management, L.P.
    	
 
    	
 
    
	
Mark   E. Strome Living Trust
    	
 
    	
 
    
	
Strome   PAA, L.P.
    	
 
    	
 
    
	
Windy,   L.L.C.
    	
 
    	
 
    
	
Lynx   Holdings I, LLC
    	
 
    	
 
    
	
Jay   M. Chernosky
    	
 
    	
 
    
	
Kipp   PAA Trust
    	
 
    	
 
    
	
Paul   N. Riddle
    	
 
    	
 
    
	
Russell   T. Clingman
    	
 
    	
 
    
	
David   E. Humphreys
    	
 
    	
 
    
	
Phillip   J. Trinder
    	
 
    	
 
    
	
Total

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