Document:

Exhibit

TESORO LOGISTICS LP
2011 LONG-TERM INCENTIVE PLAN 
as amended and restated on October 4, 2016

		
	SECTION 1.
	Purpose of the Plan.

This Tesoro Logistics LP 2011 Long-Term Incentive Plan (the “Plan”) has been adopted by Tesoro Logistics GP, LLC, a Delaware limited liability company (the “Company”), the general partner of Tesoro Logistics LP, a Delaware limited partnership (the “Partnership”).  The Plan is intended to promote the interests of the Partnership and the Company by providing to Employees, Consultants and Directors incentive compensation awards based on Units to encourage superior performance.  The Plan is also contemplated to enhance the ability of the Partnership, the Company and their Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Company, the Partnership and their Affiliates and to encourage them to devote their best efforts to advancing the business of the Company, the Partnership and their Affiliates.

		
	SECTION 2.
	Definitions.

As used in the Plan, the following terms shall have the meanings set forth below: 
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
“ASC Topic 718” means Accounting Standards Codification Topic 718, Compensation - Stock Compensation, or any successor accounting standard.
“Award” means an Option, Restricted Unit, Phantom Unit, DER, Substitute Award, Unit Appreciation Right or Unit Award granted under the Plan.
“Award Agreement” means the written or electronic agreement by which an Award shall be evidenced.
“Board” means the board of directors or board of managers, as the case may be, of the Company.
“Cause” means, unless otherwise set forth in an Award Agreement or other written agreement between the Company and the applicable Participant, a finding by the Committee that a Participant, before or after his termination of Service (i) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment or service with the Company or an Affiliate of the Company which conduct damaged the Company or an Affiliate of the Company or (ii) disclosed trade secrets of the Company or an Affiliate of the Company.  The findings and decision of the Committee with respect to such matter, including those regarding the acts of the Participant and the damage done to the Company or an Affiliate of the Company, will 

be final for all purposes.  No decision of the Committee, however, will affect the finality of the discharge of the individual by the Company or an Affiliate of the Company.
“Change in Control” means, and shall be deemed to have occurred upon one or more of the following events:
(i)any “person” or “group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than the Company or an Affiliate of the Company (as determined immediately prior to such event), shall become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the combined voting power of the equity interests in the Company or the Partnership;
(ii)the limited partners of the Partnership approve, in one or a series of transactions, a plan of complete liquidation of the Partnership;
(iii)the sale or other disposition by either the Company or the Partnership of all or substantially all of its assets in one or more transactions to any Person other than the Company or an Affiliate of the Company or the Partnership; or
(iv)a transaction resulting in a Person other than the Company or an Affiliate of the Company (as determined immediately prior to such event) being the sole general partner of the Partnership.
Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Award which provides for the deferral of compensation and is subject to Section 409A of the Code, the transaction or event described in subsection (i), (ii), (iii) or (iv) above with respect to such Award must also constitute a “change in control event,” as defined in Treasury Regulation §1.409A-3(i)(5), and as relates to the holder of such Award, to the extent required to comply with Section 409A of the Code.
“Code” means the Internal Revenue Code of 1986, as amended.
“Committee” means the Board or such committee as may be appointed by the Board to administer the Plan.
“Consultant” means an individual who renders consulting services to the Company, the Partnership or an Affiliate of either.
“DER” means a distribution equivalent right, representing a contingent right to receive an amount in cash, Units, Restricted Units and/or Phantom Units equal in value to the distributions made by the Partnership with respect to a Unit during the period such Award is outstanding.
“Director” means a member of the board of directors or board of managers, as the case may be, of the Company, the Partnership or an Affiliate who is not an Employee or a Consultant (other than in that individual’s capacity as a Director).

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“Disability” means as determined by the Committee in its discretion exercised in good faith, a physical or mental condition of a Participant that would entitle him or her to payment of disability income payments under the Company’s or Tesoro’s long-term disability insurance policy or plan for employees as then in effect; or in the event that a Participant is not covered, for whatever reason under the Company’s or Tesoro’s long-term disability insurance policy or plan for employees or in the event the Company or Tesoro does not maintain such a long-term disability insurance policy, “Disability” means a total and permanent disability within the meaning of Section 22(e)(3) of the Code; provided, however, that if a Disability constitutes a payment event with respect to any Award which provides for the deferral of compensation and is subject to Section 409A of the Code, then, to the extent required to comply with Section 409A of the Code, the Participant must also be considered “disabled” within the meaning of Section 409A(a)(2)(C) of the Code.  A determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, Participants shall submit to an examination by such physician upon request by the Committee.
“Employee” means an employee of the Company or an Affiliate of the Company. 
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Fair Market Value” means, as of any given date, the closing sales price on such date during normal trading hours (or, if there are no reported sales on such date, on the last date prior to such date on which there were sales) of the Units on the New York Stock Exchange or, if not listed on such exchange, on any other national securities exchange on which the Units are listed or on an inter-dealer quotation system, in any case, as reported in such source as the Committee shall select.  If there is no regular public trading market for the Units, the Fair Market Value of the Units shall be determined by the Committee in good faith and in compliance with Section 409A of the Code.
“Option” means an option to purchase Units.
“Other Unit-Based Award” means an award granted pursuant to Section 6(e) of the Plan. 
“Participant” means an Employee, Consultant or Director granted an Award under the Plan and any authorized transferee of such individual.
“Partnership Agreement” means the Agreement of Limited Partnership of the Partnership, as it may be amended or amended and restated from time to time.
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d).
“Phantom Unit” means a notional interest granted under the Plan that, to the extent vested, entitles the Participant to receive a Unit or an amount of cash equal to the Fair Market Value of a Unit, as determined by the Committee in its discretion.
“Profits Interest Unit” means to the extent authorized by the Partnership Agreement, an interest in the Partnership that is intended to constitute a “profits interest” within the meaning of the Code, Treasury Regulations promulgated thereunder, and any published guidance by the Internal Revenue Service with respect thereto.

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“Restricted Period” means the period established by the Committee with respect to an Award during which the Award remains subject to forfeiture and is either not exercisable by or payable to the Participant, as the case may be.
“Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.
“Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor rule or regulation thereto as in effect from time to time.
“Securities Act” means the Securities Act of 1933, as amended.
“SEC” means the Securities and Exchange Commission, or any successor thereto. 
“Service” means service as an Employee, Consultant or Director.  The Committee, in its sole discretion, shall determine the effect of all matters and questions relating to terminations of Service, including, without limitation, the question of whether and when a termination of Service occurred and/or resulted from a discharge for cause, and all questions of whether particular changes in status or leaves of absence constitute a termination of Service, provided that a termination of Service shall not be deemed to occur in the event of (a) a termination where there is simultaneous commencement by the Participant of a relationship with the Partnership or the Company or an Affiliate of the Partnership or the Company as an Employee, Director or Consultant or (b) at the discretion of the Committee, a termination which results in a temporary severance of the service relationship.
“Substitute Award” means an award granted pursuant to Section 6(f) of the Plan. 
“Tesoro” means Tesoro Corporation, a Delaware corporation, or any successor thereto. 
“Unit” means a Common Unit of the Partnership.
“Unit Appreciation Right” or “UAR” means a contingent right that entitles the holder to receive the excess of the Fair Market Value of a Unit on the exercise date of the UAR over the exercise price of the UAR.
“Unit Award” means an award granted pursuant to Section 6(c) of the Plan. 

SECTION 3.Administration.
(a)The Plan shall be administered by the Committee, subject to subsections (b) and (c) below; provided, however, that, in the event that the Board is not also serving as the Committee, the Board, in its sole discretion, may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan.  The governance of the Committee shall be subject to the charter, if any, of the Committee as approved by the Board.  Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to:  (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and 

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administer the Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or an Award Agreement in such manner and to such extent as the Committee deems necessary or appropriate so that the Plan or any Award Agreement or other documents evidencing Awards made under this Plan complies with applicable law, regulations and listing requirements and so as to avoid unanticipated consequences or address unanticipated events (including any temporary closure of the New York Stock Exchange, disruption of communications or natural catastrophe) deemed by the Committee to be inconsistent with the purposes of the Plan or any Award Agreement or other documents evidencing Awards made under this Plan, provided that no such action shall be taken absent stockholder approval to the extent required under Section 7(a).  Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any beneficiary of any Participant.  Notwithstanding anything in the Plan to the contrary, the Committee shall not have the discretion to accelerate the vesting of any outstanding Awards, except that the Committee may accelerate the vesting of Awards in the event of a Participant’s death or Disability or as provided in Section 7(c) of the Plan with respect to a Change in Control.  Further, and notwithstanding anything in the Plan to the contrary, Options and UARs granted under the Plan may not become exercisable, vest or be settled, in whole or in part, prior to the one-year anniversary of the date of grant, except that the Committee may provide that Awards become exercisable, vest or settle prior to such date in the event of the Participant’s death or Disability or in the event of a Change in Control.  Notwithstanding the foregoing, with respect to Options or Unit Appreciation Rights, up to 5% of the aggregate number of Units authorized for issuance under this Plan (as described in Section 4(a)) may be issued pursuant to Awards subject to any, or no, vesting conditions, as the Committee determines appropriate.
(b)To the extent permitted by applicable law and the rules of any securities exchange on which the Units are listed, quoted or traded, the Board or Committee may from time to time delegate to a committee of one or more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other administrative actions pursuant to Section 3(a); provided, however, that in no event shall an officer of the Company be delegated the authority to grant awards to, or amend awards held by, the following individuals: (i) individuals who are subject to Section 16 of the Exchange Act, (ii) officers of the Company (or Directors) to whom authority to grant or amend Awards has been delegated hereunder, or (iii) to the extent that Section 162(m) of the Code is applicable to the Company or the Partnership, any Employee who is, or could be, a “covered employee” within the meaning of Section 162(m) of the Code; provided, further, that any delegation of administrative authority shall only be permitted to the extent that it is permissible under applicable provisions of the Code and applicable securities laws and the rules of any securities exchange on which the Units are listed, quoted or traded.  Any delegation hereunder shall be subject to such restrictions and 

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limitations as the Board or Committee specifies at the time of such delegation, and the Board may at any time rescind the authority so delegated or appoint a new delegatee.  At all times, the delegatee appointed under this Section 3(b) shall serve in such capacity at the pleasure of the Board and the Committee.
(c)Notwithstanding any provision to the contrary in the Plan, for so long as the Company is an Affiliate of Tesoro, any Award to be granted under the plan to a Participant that is an executive officer of Tesoro shall only be granted following a recommendation made by the board of directors or Compensation Committee of Tesoro.

		
	SECTION 4.
	Units.

(a)Limits on Units Deliverable.  Subject to adjustment as provided in Section 4(c), the number of Units that may be delivered with respect to Awards under the Plan is One Million Seven Hundred Fifty Thousand (1,750,000).  Units withheld from an Award to either satisfy the Company’s or an Affiliate’s tax withholding obligations with respect to the Award or pay the exercise price of an Award shall be counted against the number of Units that may be delivered under the Plan and shall not be available for future grants of Awards.  If any Award is forfeited, cancelled, exercised, paid, or otherwise terminates or expires without the actual delivery of Units pursuant to such Award (for the avoidance of doubt, the grant of Restricted Units is not a delivery of Units for this purpose), the Units subject to such Award shall again be available for Awards under the Plan.  To the extent permitted by applicable law and exchange rule, Substitute Awards and Units issued in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of combination by the Partnership or any Affiliate shall not be counted against the Units available for issuance pursuant to the Plan.  There shall not be any limitation on the number of Awards that may be paid in cash.
(b)Sources of Units Deliverable Under Awards.  Any Units delivered pursuant to an Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate, the Partnership or any other Person, or Units otherwise issuable by the Partnership, or any combination of the foregoing, as determined by the Committee in its discretion.
(c)Anti-dilution Adjustments.
(i)Equity Restructuring.  With respect to any “equity restructuring” event that could result in an additional compensation expense to the Company or the Partnership pursuant to the provisions of ASC Topic 718 if adjustments to Awards with respect to such event were discretionary, the Committee shall equitably adjust the number and type of Units covered by each outstanding Award and the terms and conditions, including the exercise price and performance criteria (if any), of such Award to equitably reflect such event and shall adjust the number and type of Units (or other securities or property) with respect to which Awards may be granted under the Plan after such event.  With respect to any other similar event that would not result in an ASC Topic 718 accounting charge if the adjustment to Awards with respect to such event were subject to discretionary action, the Committee shall have complete discretion to adjust Awards and the number and type of Units (or other securities or property) with respect to which 

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Awards may be granted under the Plan in such manner as it deems appropriate with respect to such other event.
(ii)Other Changes in Capitalization.  In the event of any non-cash distribution, Unit split, combination or exchange of Units, merger, consolidation or distribution (other than normal cash distributions) of Partnership assets to unitholders, or any other change affecting the units of the Partnership, other than an “equity restructuring,” the Committee may make equitable adjustments, if any, to reflect such change with respect to (A) the aggregate number and kind of Units that may be issued under the Plan; (B) the number and kind of Units (or other securities or property) subject to outstanding Awards; (C) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (D) the grant or exercise price per Unit for any outstanding Awards under the Plan.

		
	SECTION 5.
	Eligibility.

Any Employee, Consultant or Director shall be eligible to be designated a Participant and receive an Award under the Plan.

		
	SECTION 6.
	Awards.

(a)Options and UARs.  Subject to Section 3(c), the Committee shall have the authority to determine the Employees, Consultants and Directors to whom Options and/or UARs shall be granted, the number of Units to be covered by each Option or UAR, the exercise price therefor, the Restricted Period and other conditions and limitations applicable to the exercise of the Option or UAR, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan.  Options which are intended to comply with Treasury Regulation Section 1.409A-1(b)(5)(i)(A) and Unit Appreciation Rights which are intended to comply with Treasury Regulation Section 1.409A-1(b)(5)(i)(B) or any successor regulation may be granted only if the requirements of Treasury Regulation Section 1.409A-1(b)(5)(iii), or any successor regulation, are satisfied.  Options and UARs that are otherwise exempt from or compliant with Section 409A of the Code may be granted to any eligible Employee, Consultant or Director.
(i)Exercise Price.  The exercise price per Unit purchasable under an Option or subject to a UAR shall be determined by the Committee at the time the Option or UAR is granted but, except with respect to a Substitute Award, may not be less than the Fair Market Value of a Unit as of the date of grant of the Option or UAR.
(ii)Time and Method of Exercise.  Subject to the other provisions set forth in this Plan, including Section 3(a), the Committee shall determine the exercise terms and the Restricted Period with respect to an Option or UAR, which may include, without limitation, a provision for accelerated vesting upon the achievement of specified performance goals or other events, and the method or methods by which payment of the exercise price with respect to an Option or UAR may be made or deemed to have been 

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made, which may include, without limitation, cash, check acceptable to the Company, withholding Units from the Award, a “cashless” exercise through procedures approved by the Company, or any combination of the above methods, having a Fair Market Value on the exercise date equal to the relevant exercise price.
(iii)Forfeitures.  Except as otherwise provided in the terms of the Option or UAR grant, upon termination of a Participant’s Service for any reason during the applicable Restricted Period, all unvested Options and UARs shall be forfeited by the Participant.  The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options and/or UARs; provided that the waiver contemplated under this Section shall be effective only to the extent that such waiver will not cause the Participant’s Options and UARs that are intended to satisfy the requirements of Section 409A of the Code to fail to satisfy such requirements.
(iv)Exercise of Options and UARs on Termination of Service.  Each Option and UAR shall set forth the extent to which the Participant shall have the right to exercise the Option or UAR following a termination of the Participant’s Service.  Unless otherwise determined by the Committee, if the Participant’s Service is terminated for cause, the Participant’s right to exercise the Option or UAR shall terminate immediately on the effective date of the Participant’s termination.  To the extent the Option or UAR was not vested and exercisable as of the termination of Service, the Option or UAR shall terminate when the Participant’s Service terminates.  Subject to the foregoing, such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options and UARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.
(v)Term of Options and UARs.  The term of each Option and UAR shall be stated in the Award Agreement, provided, that the term shall be no more than ten (10) years from the date of grant thereof.
(vi)Prohibition on Repricing.  Subject to Section 4(c) and Section 7(c), the Committee shall not, without the approval of the unitholders of the Partnership, (i) reduce the per Unit exercise price of any outstanding Option or UAR, (ii) cancel any Option or UAR in exchange for cash or another Award when the Option or UAR price per Unit exceeds the Fair Market Value of the underlying Units, or (iii) otherwise reprice any Option or UAR.  Subject to Section 4(c), Section 7 and Section 8(e), the Committee shall have the authority, without the approval of the unitholders of the Partnership, to amend any outstanding Award to increase the exercise price per Unit or to cancel and replace an Award with the grant of an Award having an exercise price per Unit that is greater than or equal to the exercise price per Unit of the original Award.
(b)Restricted Units and Phantom Units.  Subject to Sections 3(a) and 3(c), the Committee shall have the authority to determine the Employees, Consultants and Directors to whom Restricted Units and Phantom Units shall be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant, the Restricted Period, the conditions under which the Restricted Units or Phantom Units may become vested or forfeited and such other terms and conditions, including, without limitation, restrictions on transferability, as the Committee may establish with respect to such Awards.

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(i)DERs.  Subject to Section 3(c), the Committee shall have the authority to determine the Employees, Consultants and Directors to whom DERs are granted, whether such DERs are tandem or separate Awards, whether the DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) the vesting restrictions and payment provisions applicable to the Award, and such other provisions or restrictions as determined by the Committee in its discretion all of which shall be specified in the Award Agreements.  DERs may be granted by the Committee based on distributions made with respect to Units, to be credited as of the distribution dates during the period between the date an Award is granted to a Participant and the date such Award vests, is exercised, is distributed or expires, as determined by the Committee.  Such DERs shall be converted to cash, Units, Restricted Units and/or Phantom Units by such formula and at such time and subject to such limitations as may be determined by the Committee.  Tandem DERs may be subject to the same or different vesting restrictions as the tandem Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion.  Notwithstanding the foregoing, DERs shall only be paid in a manner that is either exempt from or in compliance with Section 409A of the Code.
(ii)Forfeitures.  Except as otherwise provided in the terms of an Award Agreement, upon termination of a Participant’s Service for any reason during the applicable Restricted Period, all outstanding, unvested Restricted Units and Phantom Units awarded the Participant shall be automatically forfeited on such termination.  The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Restricted Units and/or Phantom Units; provided, that the waiver contemplated under this Section shall be effective only to the extent that such waiver will not cause the Participant’s Restricted Units and/or Phantom Units that are intended to satisfy the requirements of Section 409A of the Code to fail to satisfy such requirements.
(iii)Payment; Lapse of Restrictions.
(A)Phantom Units.  The Committee shall specify, or permit the Participant to elect in accordance with the requirements of Section 409A of the Code, the conditions and dates or events upon which the cash or Units underlying an award of Phantom Units shall be issued, which dates or events shall not be earlier than the date as of which the Phantom Units vest and become nonforfeitable and which conditions and dates or events shall be subject to compliance with Section 409A of the Code (unless the Phantom Units are exempt therefrom).
(B)Restricted Units.  Upon or as soon as reasonably practical following the vesting of each Restricted Unit, subject to satisfying the tax withholding obligations of Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her Unit certificate (or book-entry account, as applicable) so that the Participant then holds an unrestricted Unit.
(c)Unit Awards.  Unit Awards may be granted under the Plan (i) to such Employees, Consultants and/or Directors and in such amounts as the Committee, in its discretion, may select, subject to Section 3(c), and (ii) subject to such other terms and conditions, including, without 

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limitation, restrictions on transferability, as the Committee may establish with respect to such Awards.
(d)Profits Interest Units.  Any Restricted Unit award or Unit Award consisting of Profits Interest Units may only be issued to a Participant for the performance of services to or for the benefit of the Partnership (i) in the Participant’s capacity as a partner of the Partnership, (ii) in anticipation of the Participant becoming a partner of the Partnership, or (iii) as otherwise determined by the Committee, provided that the Profits Interest Units would constitute “profits interests” within the meaning of the Code, Treasury Regulations promulgated thereunder and any published guidance by the Internal Revenue Service with respect thereto.  At the time of grant, the Committee shall specify the date or dates on which the Profits Interest Units shall vest and become nonforfeitable, and may specify such conditions to vesting as it deems appropriate.  Profits Interest Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose.
(e)Other Unit-Based Awards.  Other Unit-Based Awards may be granted under the Plan to such Employees, Consultants and/or Directors as the Committee, in its discretion, may select, subject to Section 3(c).  An Other Unit-Based Award shall be an award denominated or payable in, valued in or otherwise based on or related to Units, in whole or in part.  The Committee shall determine the terms and conditions of any Other Unit-Based Award.  Upon vesting, an Other Unit-Based Award may be paid in cash, Units (including Restricted Units) or any combination thereof as provided in the Award Agreement.
(f)Substitute Awards.  Awards may be granted under the Plan in substitution of similar awards held by individuals who become Employees, Consultants or Directors as a result of a merger, consolidation or acquisition by the Partnership or an Affiliate of another entity or the assets of another entity.  Such Substitute Awards that are Options or UARs may have exercise prices less than the Fair Market Value of a Unit on the date of the substitution if such substitution complies with Section 409A of the Code and the Treasury Regulations thereunder and other applicable laws and exchange rules.
(g)General.
(i)Awards May Be Granted Separately or Together.  Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate.  Awards granted in addition to or in tandem with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards.
(ii)Limits on Transfer of Awards.
(A)Except as provided in Paragraph (C) below, each Option and UAR shall be exercisable only by the Participant during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution.

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(B)Except as provided in Paragraph (C) below, no Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant other than by will or the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company, the Partnership or any Affiliate.
(C)The Committee may provide in an Award Agreement that an Award may, on such terms and conditions as the Committee may from time to time establish, be transferred by a Participant without consideration to any “family member” of the Participant, as defined in the instructions to use of the Form S-8 Registration Statement under the Securities Act, as applicable, or any other transferee specifically approved by the Committee after taking into account any state, federal, local or foreign tax and securities laws applicable to transferable Awards.  In addition, vested Units may be transferred to the extent permitted by the Partnership Agreement and not otherwise prohibited by the Award Agreement or any other agreement restricting the transfer of such Units.
(iii)Term of Awards.  Subject to Section 6(a)(v) above, the term of each Award, if any, shall be for such period as may be determined by the Committee.
(iv)Unit Certificates.  Unless otherwise determined by the Committee or required by any applicable law, rule or regulation, neither the Company nor the Partnership shall deliver to any Participant certificates evidencing Units issued in connection with any Award and instead such Units shall be recorded in the books of the Partnership (or, as applicable, its transfer agent or equity plan administrator).  All certificates for Units or other securities of the Partnership delivered under the Plan and all Units issued pursuant to book entry procedures pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any securities exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be inscribed on any such certificates or book entry to make appropriate reference to such restrictions.
(v)Consideration for Grants.  To the extent permitted by applicable Law, Awards may be granted for such consideration, including services, as the Committee shall determine.
(vi)Delivery of Units or other Securities and Payment by Participant of Consideration.  Notwithstanding anything in the Plan or any Award Agreement to the contrary, subject to compliance with Section 409A of the Code, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing Units pursuant to the exercise or vesting of any Award, unless and until the Board or the Committee has determined, with advice of counsel, that the issuance of such Units is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Units are listed or traded, and the Units are covered by an effective registration statement or applicable exemption from 

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registration.  In addition to the terms and conditions provided herein, the Board or the Committee may require that a Participant make such reasonable covenants, agreements, and representations as the Board or the Committee, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.  Without limiting the generality of the foregoing, the delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the Company is not reasonably able to obtain or deliver Units pursuant to such Award without violating applicable law or the applicable rules or regulations of any governmental agency or authority or securities exchange.  No Units or other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award grant agreement (including, without limitation, any exercise price or tax withholding) is received by the Company.

		
	SECTION 7.
	Amendment and Termination. 

Except to the extent prohibited by applicable law:
(a)Amendments to the Plan.  Except as required by applicable law or the rules of the principal securities exchange, if any, on which the Units are traded and subject to Section 7(b) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner without the consent of any partner, Participant, other holder or beneficiary of an Award, or any other Person.  The Board shall obtain securityholder approval of any Plan amendment to the extent necessary to comply with applicable law or securities exchange listing standards or rules.
(b)Amendments to Awards.  Subject to Sections 3(a) and 7(a), the Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided that no change, other than pursuant to Section 7(c), in any Award shall materially reduce the rights or benefits of a Participant with respect to an Award without the consent of such Participant, provided that no such consent shall be required if the Committee determines in its sole discretion and prior to the date of any Change in Control that such amendment or alteration either is required or advisable in order for the Company or Partnership, the Plan or the Award to satisfy any law or regulation or to meet the requirements of or avoid adverse financial accounting consequences under any accounting standard.
(c)Actions Upon the Occurrence of Certain Events.
(i)Subject to Section 7(c)(ii), upon the occurrence of a Change in Control, any transaction or event described in Section 4(c), any change in applicable law or regulation affecting the Plan or Awards thereunder, or any change in accounting principles affecting the financial statements of the Company or the Partnership, the Committee, in its sole discretion, without the consent of any Participant or holder of the Award, and on such terms and conditions as it deems appropriate, may take any one or more of the following actions:

12

(A)provide for either (x) the termination of any Award in exchange for a payment in an amount, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights under such Award (and, for the avoidance of doubt, if as of the date of the occurrence of such transaction or event the Committee determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment) or (y) the replacement of such Award with other rights or property selected by the Committee in its sole discretion having an aggregate value not exceeding the amount that could have been attained upon the exercise of such Award or realization of the Participant’s rights had such Award been currently exercisable or payable or fully vested;
(B)provide that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be exchanged for similar options, rights or awards covering the equity of the successor or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices;
(C)make adjustments in the number and type of Units (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Awards or in the terms and conditions of (including the exercise price), and the vesting and performance criteria included in, outstanding Awards, or both;
(D)provide that such Award shall vest or become exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award Agreement; and
(E)provide that the Award cannot be exercised or become payable after such event, i.e., shall terminate upon such event.
Notwithstanding the foregoing, (i) with respect to an above event that is an “equity restructuring” event that would be subject to a compensation expense pursuant ASC Topic 718, the provisions in Section 4(c) shall control to the extent they are in conflict with the discretionary provisions of this Section 7, provided, however, that nothing in Section 7(c) or Section 4(c) shall be construed as providing any Participant or any beneficiary any rights with respect to the “time value”, “economic opportunity” or “intrinsic value” of an Award or limiting in any manner the Committee’s actions that may be taken with respect to an Award as set forth above or in Section 4(c); and (ii) no action shall be taken under this Section 7 which shall cause an Award to fail to comply with Section 409A of the Code or the Treasury Regulations thereunder, to the extent applicable to such Award.
(ii)Unless otherwise expressly provided in an Award Agreement or another contract, including an employment agreement, or under the terms of a transaction constituting a Change in Control, the Committee may provide that any or all of the following shall occur upon a participant’s termination of Service within twenty-four (24) months following a Change in Control:

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(A)in the case of an Option or UAR, the Participant shall have the ability to exercise any portion of the Option or UAR not previously exercisable,
(B)with respect to any Awards other than Options or UARs, all conditions to the grant, issuance, retention, vesting or transferability of, or any other restrictions applicable to, such Award shall immediately lapse, and
(C)in the case of Awards subject to performance criteria, the Participant shall have the right to receive a payment equal to the target amount payable or, if greater, a payment based on performance through a date determined by the Committee prior to the Change in Control.
Notwithstanding anything herein to the contrary, in the event of a Change in Control in which the acquiring or surviving company in the transaction does not assume or continue outstanding Awards upon the Change in Control, immediately prior to the Change in Control, all Awards that are not assumed or continued shall be treated as follows effective immediately prior to the Change in Control: (i) in the case of an Option or UAR, the Participant shall have the ability to exercise such Option or UAR, including any portion of the Option or UAR not previously exercisable, (ii) in the case of Awards other than Options or UARs, all conditions to the grant, issuance, retention, vesting or transferability of, or any other restrictions applicable to, such Award shall immediately lapse, and (iii) in the case of Awards subject to performance criteria, the Participant shall have the right to receive a payment equal to the target amount payable or, if greater, a payment based on performance through a date determined by the Committee prior to the Change in Control.

		
	SECTION 8.
	General Provisions.

(a)No Rights to Award.  No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants.  The terms and conditions of Awards need not be the same with respect to each recipient.
(b)Tax Withholding.  Unless other arrangements have been made that are acceptable to the Company, the Company or any Affiliate is authorized to deduct or withhold, or cause to be deducted or withheld, from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, Units that would otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of an Award, including its grant, its exercise, the lapse of restrictions thereon, or any payment or transfer thereunder or under the Plan, and to take such other action as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes.  In the event that Units that would otherwise be issued pursuant to an Award are used to satisfy such withholding obligations, the number of Units which may be so withheld or surrendered shall be limited to the number of Units which have a fair market value (which, in the case of a broker-assisted transaction, shall be determined by the Committee, consistent with applicable provisions of the Code) on the date of withholding equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates, or such other rate that will not cause an adverse accounting consequence or cost, for federal, state, local 

14

and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.
(c)No Right to Employment or Services.  The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Affiliate, continue consulting services or to remain on the Board, as applicable.  Furthermore, the Company or an Affiliate may at any time dismiss a Participant from employment or consulting free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award Agreement or other written agreement.
(d)No Rights as Unitholder.  Except as otherwise provided herein, a Participant shall have none of the rights of a unitholder with respect to Units covered by any Award until the Participant becomes the record owner of such Units.
(e)Section 409A.  To the extent that the Committee determines that any Award granted under the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code.  To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the effective date of the Plan.  Notwithstanding any provision of the Plan to the contrary, in the event that following the effective date of the Plan the Committee determines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the effective date of the Plan), the Committee may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (i) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of any penalty taxes under such Section; provided, however, that nothing herein shall create any obligation on the part of the Committee, the Company or any of its Affiliates to adopt any such amendment, policy or procedure or take any such other action, nor shall the Committee, the Company or any of its Affiliates have any liability for failing to do so.  Notwithstanding any provision in the Plan to the contrary, the time of payment with respect to any Award that is subject to Section 409A of the Code shall not be accelerated, except as permitted under Treasury Regulation Section 1.409A-3(j)(4).  To the extent any payment under this Plan is considered deferred compensation subject to the restrictions contained in Section 409A of the Code, and to the extent necessary to avoid the imposition of taxes under Section 409A of the Code, such payment may not be made to a specified employee (as determined in accordance with a uniform policy adopted by the Company or Partnership with respect to all arrangements subject to Section 409A of the Code) upon separation from service (within the meaning of Section 409A of the Code) before the date that is six months after the specified employee’s separation from service (or, if earlier, the specified employee’s death).  Any payment that would otherwise be made during this period of delay shall be accumulated and paid on the sixth month plus one day following the specified employee’s 

15

separation from service (or, if earlier, as soon as administratively practicable after the specified employee’s death).
(f)Lock-Up Agreement.  Each Participant shall agree, if so requested by the Company or the Partnership and any underwriter in connection with any public offering of securities of the Partnership or any Affiliate, not to directly or indirectly offer, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of or otherwise dispose of or transfer any Units held by it for such period, not to exceed one hundred eighty (180) days following the effective date of the relevant registration statement filed under the Securities Act in connection with such public offering, as such underwriter shall specify reasonably and in good faith.  The Company or the Partnership may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such 180-day period.  Notwithstanding the foregoing, the 180-day period may be extended for up to such number of additional days as is deemed necessary by such underwriter or the Company or Partnership to continue coverage by research analysts in accordance with FINRA Rule 2711 or any successor rule.
(g)Compliance with Laws.  The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of Units and the payment of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to state, federal and foreign securities law and margin requirements), the rules of any securities exchange or automated quotation system on which the Units are listed, quoted or traded, and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith.  Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements.  To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.  In the event an Award is granted to or held by a Participant who is employed or providing services outside the United States, the Committee may, in its sole discretion, modify the provisions of the Plan or of such Award as they pertain to such individual to comply with applicable foreign law or to recognize differences in local law, currency or tax policy.  The Committee may also impose conditions on the grant, issuance, exercise, vesting, settlement or retention of Awards in order to comply with such foreign law and/or to minimize the Company’s or the Partnership’s obligations with respect to tax equalization for Participants employed outside their home country.
(h)Governing Law.  The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles.
(i)Severability.  If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it 

16

cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.
(j)Other Laws.  The Committee may refuse to issue or transfer any Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary.
(k)No Trust or Fund Created.  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any participating Affiliate and a Participant or any other Person.  To the extent that any Person acquires a right to receive payments from the Company or any participating Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any participating Affiliate.
(l)No Fractional Units.  No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated.
(m)Headings.  Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.
(n)No Guarantee of Tax Consequences.  None of the Board, the Committee, the Company nor the Partnership makes any commitment or guarantee that any federal, state or local tax treatment will (or will not) apply or be available to any Participant.
(o)Clawback; Misconduct.  To the extent required by applicable law or any applicable securities exchange listing standards, Awards and amounts paid or payable pursuant to or with respect to Awards shall be subject to clawback as determined by the Committee, which clawback may include forfeiture, repurchase and/or recoupment of Awards and amounts paid or payable pursuant to or with respect to Awards.  In addition, and without limiting the foregoing, except as otherwise provided by the Committee, if at any time (including after a notice of exercise has been delivered or an award has vested) the Committee or any person designated by the Committee (each such person, an “Authorized Officer”) reasonably believes that a Participant may have committed an Act of Misconduct as described in this Section 8(o), the Authorized Officer, the Committee or the Board may suspend the Participant’s rights to exercise or to vest in an Award, and/or to receive payment for or receive Units in settlement of an Award pending a determination of whether an Act of Misconduct has been committed.
If the Committee or an Authorized Officer determines a Participant has committed an act of embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Company or any 

17

Affiliate of the Company, breach of fiduciary duty, violation of ethics policy or code of conduct, or deliberate disregard of the Company’s or Affiliate of the Company’s rules resulting in loss, damage or injury to the Company or any Affiliate of the Company, or if a Participant makes an unauthorized disclosure of any trade secret or confidential information, solicits any employee or service provider to leave the employ or cease providing services to the Company or any Affiliate of the Company, breaches any intellectual property or assignment of inventions covenant, engages in any conduct constituting unfair competition, breaches any non-competition agreement, induces any customer to breach a contract with the Company or any Affiliate of the Company or to cease doing business with the Company or any Affiliate of the Company, or induces any principal for whom the Company or any Affiliate of the Company acts as agent to terminate such agency relationship (any of the foregoing acts, an “Act of Misconduct”), then except as otherwise provided by the Committee, (i) neither the Participant nor his or her estate nor transferee shall be entitled to exercise any Option or Unit Appreciation Right whatsoever, vest in or have the restrictions on an Award lapse, or otherwise receive payment of an Award, (ii) the Participant will forfeit all outstanding Awards and (iii) the Participant may be required, at the Committee’s sole discretion, to return and/or repay to the Company or the Partnership any then unvested Units previously granted under the Plan.  In making such determination, the Committee or an Authorized Officer shall give the Participant an opportunity to appear and present evidence on his or her behalf at a hearing before the Committee or its designee or an opportunity to submit written comments, documents, information and arguments to be considered by the Committee.
(p)Facility Payment.  Any amounts payable hereunder to any person under legal disability or who, in the judgment of the Committee, is unable to manage properly his financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner that the Committee may select, and the Partnership, the Company and all of their Affiliates shall be relieved of any further liability for payment of such amounts.

		
	SECTION 9.
	Term of the Plan.

The Plan was originally effective on April 26, 2011, the date it was originally adopted by the Board.  The most recent amendment and restatement of the Plan was approved by the Board on July 20, 2016 and shall become effective upon approval by the unitholders of the Partnership on October 4, 2016 (the “Effective Date”).  The Plan shall remain available for the grant of Awards until the 10th anniversary of the Effective Date.  Notwithstanding the foregoing, the Plan may be terminated at such earlier time as the Board may determine.  However, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date.

18Spin-out Document

 

EXHIBIT 10.1

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (the "Agreement") entered into as of this the 30th day of September, 2016 (the “Signing Date”), by and between TRUE NATURE HOLDING, INC., a Delaware corporation (“TNTY”) and P3 COMPOUNDING OF GEORGIA, LLC, a Georgia limited liability company (“P3,” and together with TNTY, "Seller"), and ICP HOLDINGS, LLC, a Georgia limited liability company ("Buyer").

WHEREAS, Seller entered into of agreements on June 30, 2016 (the “June Agreement”), pursuant to which Seller acquired a compounding pharmacy business known as Integrity Compounding Pharmacy (the “Business”) from SUSAN GAETANO and CHARLES GAETANO III ("Casey," and with Susan Gaetano, the "Gaetanos"); and

WHEREAS, by the terms of the June Agreement, Seller was obligated to make certain payments to the Gaetanos, including (i) a payment of Four Hundred Twenty-Five Thousand Dollars ($425,000), (ii) a payment of One Hundred Fifty Thousand Dollars ($150,000), which was due on June 30, 2016, and (iii) extension compensation for two (2) extensions of the date on which the amount described in (ii) of this Recital would be due, in the total amount of Forty Thousand Dollars ($40,000) (the amounts describe in this Recital, the "TNH Obligations").  Further, both parties have determined it is in their best interests to create a transaction that moves the operations back to the original owners; and

WHEREAS, in accordance with the terms of the June Agreement, Seller transferred Three Hundred Forty Thousand (340,000) shares of restricted common stock in TRUE NATURE HOLDING, INC. to the Gaetanos as part of the consideration for the purchase of P3 COMPOUNDING OF GEORGIA, LLC (the "Purchase Stock"); and 

WHEREAS, in accordance with the terms of the June Agreement, Seller employed Casey, and in connection with such employment Seller has transferred to Casey One Hundred Twenty Five Thousand (125,000) shares of restricted common stock in TRUE NATURE HOLDING, INC. (the "Employment Stock"); and

WHEREAS, Seller did not timely pay all of the TNH Obligations to the Gaetanos; and

WHEREAS, Buyer desires to acquire from Seller certain assets, some of which were acquired by Seller in the June Agreement, as set forth in this Agreement in order to allow Buyer to operate the Business after the closing on the sale of the assets; and 

WHEREAS, at the request of the Buyer, the Seller's Former Chairman of the Board, Stephen Keaveney ("Keaveney") has agreed to transfer one million (1,000,000) restricted common shares of stock in TRUE NATURE HOLDING, INC. which he personally owned to the Gaetanos in a private transaction; and

WHEREAS, Seller desires to sell such assets to Buyer; and

1

 

WHEREAS, Seller and Buyer agree that Buyer may manage and operate the Business until all of the following shall occur: (i) the Drug Enforcement Agency (“DEA”), Georgia Drugs and Narcotics Agency (“GDNA”) and Georgia Board of Pharmacy licenses have been obtained by Buyer (the "License Approvals"), (ii) the office lease has been assigned to Buyer (the "Lease Assignment"), and (iii) Buyer, in its sole discretion, is satisfied that all other actions have occurred that are needed to operate the Business (together with the License Approvals and the Lease Assignment, the "Operating Requirements"). 

NOW, THEREFORE, in consideration of mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.

ASSETS PURCHASED; LIABILITIES ASSUMED; OPERATIONS 

1.1

ASSETS PURCHASED.  Seller will sell to Buyer, and Buyer will purchase from Seller, on the terms and conditions set forth in this Agreement, all of the Seller’s right, title, and interest in and to all of the Seller's assets of every kind, character, and description, tangible or intangible (including without limitation accounts receivable), associated with the operation of the Business (including but not limited to the trade name INTEGRITY COMPOUNDING PHARMACY, the rights to use all phone numbers, and all associated goodwill and trademark rights, and those specific Assets described in Exhibit A attached hereto (the "Assets").  The Assets will be sold to Buyer free and clear of all mortgages, deeds of trust, liens, pledges, charges, security interests, contractual restrictions, claims or encumbrances of any kind or character (hereinafter collectively referred to as the "Encumbrances").  

1.2

ASSUMPTION OF LIABILITIES.  Buyer shall assume: (a) Seller’s accounts payable and liabilities of a similar nature as set forth in Exhibit A-1 attached hereto incurred in the ordinary course of business prior to the Signing Date, with the specific exclusion of (i) the SunTrust credit card debt, which Seller represents to Buyer to be in the amount of $16,000 as of the Signing Date; (ii) all outstanding balances owed to Stress Free Capital, Inc. and its affiliated entities and individuals as of the Signing Date and subsequent to the Signing Date, which Seller represents to Buyer to be in the amount of $106,000 as of the Signing Date; (iii) upon proof by production of documentation upon Seller’s reasonable request, that specific credit card charge from PCCA that has been previously reversed, in the amount of $10,021.99, plus fair and reasonable fees and penalties relating to the reversal, if applicable; and (iv) upon proof by production of documentation upon Seller’s reasonable request, any Business expense that Seller had previously paid, but which payment was reversed, rejected or returned by the credit card processor, plus fair and reasonable fees and penalties relating to the reversal, rejection or return, if applicable ((i), (ii), (iii), and (iv) collectively, the "Retained Liabilities"); and (b) all liabilities incurred in the ordinary course of business occurring in the period between the Signing Date and the License Transfer Date, as this term is defined herein. In addition to the Retained Liabilities, P3 shall remain responsible for the following liabilities: (c) all tort liability claims of cutomers, employees and others arising in connection with the Business that are incurred prior to the Signing Date, whether known or unknown; and (d) all tort liability claims of cutomers, employees and others arising in connection with the Business that are incurred on or after the Signing Date and on or before the License Transfer Date, whether known or unknown.

2

 

For any Retained Liability paid by Buyer or by a member of Buyer, including but not limited to any outstanding balances owed to Stress Free Capital, Inc. and its affiliated entities and individuals and Retained Liabilities resulting from credit card reversals, Seller shall promptly reimburse Buyer no later than the date of the transfer of all applicable licenses and permits relating to the operation of the Business, as set forth in this Agreement (the “License Transfer Date”).

1.3

OPERATION OF THE BUSINESS.  The parties acknowledge and agree that, as of the Signing Date, Buyer shall assume full control of the Business and its operations in accordance with the terms of the agreement for the management of business, including all of its exhibits and Schedules (the “Business Management Agreement”), in the form attached hereto as Exhibit F.

2.

PURCHASE PRICE FOR ASSETS

2.1

In consideration for the sale of the Assets, Seller’s obligations to pay the TNH Obligations to the Gaetanos under the June Agreement are cancelled.  Exhibit A-2, attached hereto, contains the form of releases the Gaetanos will give to the Sellers (the "Releases").  The Employment Agreement shall be terminated through the execution of a termination agreement in the form attached hereto as Exhibit A-3 (the “Termination Agreement”), and Seller shall have no obligations to any amounts due under the Termination Agreement.

2.2

Each party shall be responsible for their own sales and transfer taxes associated with the contemplated transaction, as well as any professional fees, or other costs incurred as a result of the transaction.  Seller has provided no advice with regard to the fees, taxes or other costs which might be borne by the Buyer in this transaction.

3.

STOCK.  The Gaetanos shall not be obligated to return the Purchase Stock and Casey shall not be obligated to return the Employment Stock, and the Sellers shall not make any claim for either the Purchase Stock or the Employment Stock.  . The parties acknowledge that A) the issuer of the shares, True Nature Holding, Inc. is a reporting company under the Securities Act of 1933 and the Securities Act of 1934, the Private Securities Litigation Reform Act of 1995, FINRA, NASDAQ and numerous other regulations at the local, state and federal levels, and B) that the shares are restricted by Rule 144 of the Securities Act, which limits the market and trading of the shares, as well as Rule 13(d) which applies to holdings of more than 5% of an issuers shares, and C) the holder of the shares may be considered an “affiliate” of the Company and may face further restrictions and reporting  requirements by virtue of that status, and D) the holder of the shares has certain responsibilities related to the ownership of the shares as a result of the reporting company status. The holders agree at all time to comply with the requirements of these regulations and their respective governing bodies, and agrees to not engage in any trading activity that would be considered harmful to the market of the stock, and its shareholders. The holders of these shares acknowledge that they have been informed of the aforementioned details about the shares, and the Company, and that they have read the information contained in the SEC publications found at: https://www.sec.gov/investor/pubs/rule144.htm and https://www.sec.gov/answers/sched13.htm. The holders shall bear all expense associated with these shares, their transfer  and sale, and the Company, nor the former Chairman, shall have any responsibilities with regard to this issuance, or the compliance required as a result of the holdings.

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4.

OTHER AGREEMENTS.  On the Signing Date, the parties shall execute or cause to be executed and deliver the following additional agreements as conditions precedent to each of such party's obligations to buy and sell the Assets:

4.1

The Termination Agreement.

4.2

The Releases.

4.3

The Lease Assignment in the form attached hereto as Exhibit B. 

4.4

A bill of sale for the Assets (the "Bill of Sale") in the form attached hereto as Exhibit C.

4.5

A stock transfer power (the “Stock Transfer Power”) in the form attached hereto as Exhibit D.

4.6

The Business Management Agreement.

4.7

The Personal Guaranty of Richard Smyth (the “Personal Guaranty”), in the form attached hereto as Exhibit G.  . 

Notwithstanding anything to the contrary in the foregoing, the Termination Agreement, the Releases, the Lease Assignment, and the Bill of Sale shall be executed on the Signing Date and held in escrow, by Buyer's attorney to be released on the License Transfer Date.

5.

BUYER'S REPRESENTATIONS.  Buyer represents and warrants to Seller that:

5.1

ORGANIZATION AND GOOD STANDING.  Buyer is a limited liability company duly organized and validly existing under the laws of the State of Georgia.

5.2

AUTHORITY; CONSENT; NO VIOLATION.  Buyer has full power and authority to execute and deliver this Agreement and the other agreements, documents, and instruments contemplated hereby, to consummate the transactions contemplated hereby and thereby, and to perform its obligations hereunder and thereunder.  The execution and delivery by Buyer of this Agreement and the other agreements, documents, and instruments contemplated hereby, the consummation by Buyer of the transactions contemplated hereby and thereby, and the performance by Buyer of its obligations hereunder and thereunder:  (i) have been duly and validly authorized by all necessary company action, including all necessary member action; and (ii) do not and will not (a) conflict with or violate any of the provisions of the certificate of organization or operating agreement of Buyer, (b) violate any law, ordinance, rule or regulation, or any judgment, order, writ, injunction, or decree or similar command of any court, administrative or governmental agency, or other body applicable to Buyer, (c) violate or conflict with the terms of, or result in the acceleration of, any indebtedness or obligation of Buyer, or violate or conflict with or result in a breach of, or constitute a default under any material instrument, agreement, or indenture or any mortgage, deed of trust, or similar contract to which Buyer is a party

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5.3

BUYER’S BROKER’S AND FINDER’S FEES.  Buyer has not used a broker, finder, or agent or any other individual or entity that would be due any fees or commissions with respect to the transactions contemplated by this Agreement, other than Buyer’s attorneys and accountants.  Buyer shall indemnify and hold Seller harmless from any and all claims, costs, or damages, including reasonable attorney’s fees, arising out of or relating to any broker, finder, or agent’s claim for commissions or finder’s fees that have been induced or incurred by Buyer.  

6.

SELLER'S REPRESENTATIONS AND WARRANTIES.  Seller represents and warrants to Buyer as follows:

6.1

TITLE TO ASSETS.  Seller holds good and marketable title to the Assets, free and clear of restrictions on or conditions to transfer or assignment, and free and clear of Encumbrances.  All equipment is in good working condition.

6.2

TRANSFER NOT SUBJECT TO ENCUMBRANCES OR THIRD PARTY APPROVAL.  The execution and delivery of this Agreement by Seller, and the consummation of the contemplated transactions (a) will not result in the creation or imposition of any Encumbrance on any of the Assets, and (b) except as related to the federal DEA, the GDNA, and Georgia Board or Pharmacy, will not require the authorization, consent, or approval of any third party, including any governmental division or regulatory agency.  

6.3

LABOR AGREEMENTS AND DISPUTES.  Seller is neither a party to, nor otherwise subject to any collective bargaining or other agreement governing the wages, hours, in terms of employment of Seller's employees.   The Seller is not aware of any labor dispute or labor trouble involving employees of Seller.

6.4

NONCANCELLABLE CONTRACTS.  At the time of License Transfer, other than those disclosed in Exhibit E, and other than the Lease, there will be no material leases, employment contracts, contracts for services, or maintenance, or other similar contacts, existing or related to or connected with the operation of Seller's Business not cancelable within thirty (30) days.

6.5

LITIGATION.  Seller has no knowledge of any claim, litigation, proceeding, or investigation pending or threatened against Seller.  Seller knows of no facts that support a reasonable basis for the institution of any such suit or proceeding.  Seller is not now under any judgment, order, writ, injunction, decree, award or other similar command of any court, administrative agency, or other governmental authority applicable to the Business, the operations of the Business, or any of the Assets.

6.6

PROPERTIES.

6.6.1

The Company has good, fee simple, marketable title to and in all of its assets and properties (both real and personal) including any Business equipment, free and clear of any lien, charge, encumbrance, security interest, option or claim whatsoever other than liens for current taxes not yet due and payable.

6.6.2

None of the tangible personal or real properties or assets of the Company or the present use thereof by the Company violates any applicable law, regulation, or ordinance 

5

 

(including, without limitation, any applicable zoning laws or ordinances and environmental laws, ordinances, rules or regulations).  There are no developments or actions affecting any of such properties pending or, to the knowledge of the Seller, threatened which might curtail the present or future use of such properties for the purpose for which they were acquired or the purpose for which they are used. 

6.6.3

The Assets are in good working condition and all necessary repairs and maintenance have been made which would allow the Assets transferred to function in a manner consistent with their original purpose.

6.7

ORGANIZATION/GOOD STANDING.  Seller is a corporation, validly existing and in good standing under the laws of the State of Delaware. 

6.8

AUTHORITY; CONSENT; NO VIOLATION.  Seller has full corporate power and authority to carry on the Business as now conducted, to execute and deliver this Agreement and the other agreements, documents, and instruments contemplated hereby, to consummate the transactions contemplated hereby and thereby, and to perform its obligations hereunder and thereunder.  The execution and delivery by Seller of this Agreement and the other agreements, documents, and instruments contemplated hereby, the consummation by Seller of the transactions contemplated hereby and thereby, and the performance by Seller of its obligations hereunder and thereunder:  (i) have been duly and validly authorized by all necessary corporate action, including all necessary shareholder action; and (ii) do not and will not (a) conflict with or violate any of the provisions of the certificate of incorporation or bylaws, each as amended, of Seller, (b) violate any law, ordinance, rule or regulation, or any judgment, order, writ, injunction, or decree or similar command of any court, administrative or governmental agency, or other body applicable to Seller, or the Assets, (c) violate or conflict with the terms of, or result in the acceleration of, any indebtedness or obligation of Seller, or violate or conflict with or result in a breach of, or constitute a default under any material instrument, agreement, or indenture or any mortgage, deed of trust, or similar contract to which Seller is a party or by which Seller or any of the Assets are bound or affected, or (d) result in the creation or imposition of any Encumbrance upon any of the Assets.

6.9

ABSENCE OF CERTAIN CHANGES.  Since the date of the June Agreement, Seller has operated the Business in the ordinary course, consistent with past practices, and there has not been incurred, nor has there occurred any of the following: (a) any damage, destruction, or loss (whether or not covered by insurance) adversely affecting the Assets or the Business; (b) any material sale, transfer, pledge, or other disposition of any tangible or intangible assets of Seller (except sales in the ordinary course of business); (c) any termination, amendment, cancellation or waiver of any contract or any termination, amendment, cancellation, or waiver of any rights or claims of Seller under any contract (except in each case in the ordinary course of business and consistent with past practices); (d) any material change in the accounting methods, procedures, or practices followed by Seller; (e) any material change in policies, operations, or practices with respect to business operations followed by Seller or the Business, including with respect to selling methods, discounts, or other terms of service, or with respect to the policies, operations, or practices of Seller concerning the employees of Seller or the employee benefit plans of the Seller; (f) any general uniform increase, other than in the ordinary course of business, in the cash or other compensation of employees of any of Seller; (g) any material write-down or write-up of the value of any Asset or any 

6

 

increase or decrease in inventory levels in excess of historical levels for comparable periods; (h) any other change in the condition (financial or otherwise), business operations, assets, earnings, business, or prospects of Seller or the Business that has, or could reasonably be expected to have, a material adverse effect on the Assets or the Business; (i) any transfer of any assets, inventory, equipment, materials, or other items of any sort from Seller to any affiliate of Seller; or (j) any agreement, whether in writing or otherwise, by the Seller to take or do any of the actions enumerated in this paragraph.

6.10

SELLER’S BROKER’S AND FINDER’S FEES.  Seller has not used a broker, finder, or agent or any other individual or entity that would be due any fees or commissions with respect to the transactions contemplated by this Agreement, other than Seller's attorney's and accountants.  Seller shall indemnify and hold Buyer harmless from any and all claims, costs, or damages, including reasonable attorney’s fees, arising out of or relating to any broker, finder, or agent’s claim for commissions or finder’s fees that have been induced or incurred by Seller.  

6.11

TAXES.  All federal, state, and local tax returns and reports required as of the date hereof to be filed by Seller for taxable periods ending prior to the date hereof have been duly and timely filed by Seller with the appropriate governmental agencies, and all such returns and reports are true, correct, accurate, and complete in all Material respects.  All federal, state and local income, profits, franchise, sales, use, occupation, property, excise, payroll, withholding, employment, estimated, and other taxes of any nature, including interest, penalties, and other additions to such taxes (hereinafter collectively referred to as “Taxes”), payable by, and due from, Seller for all periods ending on or before the License Transfer Date have been fully paid or adequately reserved for by Seller or, with respect to Taxes required to be accrued, Seller has properly accrued or will properly accrue such Taxes in the ordinary course of business consistent with past practice of Seller.

6.12

ACCURACY OF REPRESENTATIONS AND WARRANTIES.  None of the representations or warranties in this Article contain, nor will contain at License Transfer, any untrue statements of a material fact or omit, or will omit, or misstate a material fact necessary in order to make statements in this Agreement not misleading.  Seller knows of no fact that has resulted, or that in the reasonable judgment of Seller will result, in material changes in the Business, operations, or assets of Seller that has not been set forth in this Agreement.  Notwithstanding any provision to the contrary, the representation and warranty contained in this Section 6.12 shall not in any manner serve to modify, diminish, or dilute any other warranty and representation contained in this Agreement.

6.13

ENVIRONMENTAL COMPLIANCE.  Seller has complied fully and is full compliance with all federal, state, local, and foreign statutes, regulations, ordinances, and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations and all common law concerning public health and safety, worker health and safety, and pollution or protection of the environment, including all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, threatened release, control, or cleanup of any hazardous materials, substances, or wastes, chemical substances or mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum products or byproducts, automotive fluids, 

7

 

cleansing agents, solvents, asbestos, polychlorinated biphenyls, monoethanolamine, noise, or radiation, each as amended and as now or hereafter in effect.

7.

COVENANTS OF SELLER

7.1

SELLER'S OPERATION OF BUSINESS PRIOR TO LICENSE TRANSFER DATE.  Seller agrees that between the date of this Agreement and the License Transfer Date, Seller will: 

7.1.1

Not assign, sell, lease, or otherwise transfer or dispose of any of the Assets except to Buyer; 

7.1.2

Not to be in default under the provisions of any other agreement to which it is a party; and

7.1.3

Continue to keep P3 in good standing, have P3 file all tax returns required for its employees (provided that Buyer pays or reimburses Seller for expenses in accordance with the Business Management Agreement), and continue to have P3 hold all of the licenses it held prior to the Signing Date.

7.2

BEST EFFORTS  Seller will use its best efforts to effectuate the transactions contemplated by this Agreement and to fulfill all the conditions of the obligations of Seller under this Agreement, and will do all acts and things as may be required to carry out his obligations under this Agreement and to consummate and complete this Agreement.

7.3

COOPERATION  On a timely basis Seller will cooperate with all requests of Buyer to provide personnel, financial, and other information requested by Buyer about the Business, cooperate with all Buyer requests concerning regulatory matters that require Seller information and consents, and in all other matters required to allow Buyer to operate the Business. 

8.

COVENANTS OF BUYER  Buyer will use its best efforts to effectuate the transaction contemplated by this Agreement and to fulfill all the conditions of Buyer's obligations under this Agreement, and shall do all acts and things as may be required to carry out Buyer's obligations and to consummate this Agreement.

9.

CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS.  The obligation of Buyer to purchase the Assets is subject to the fulfillment, prior to or at the License Transfer Date, of each of the following conditions, any one or portion of which may be waived in writing by Buyer:

9.1

REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER.  All representations and warranties made in this Agreement by Seller shall be true as of the License Transfer Date as fully as those such representations and warranties had been made on or as of the License Transfer Date, and, as of the License Transfer Date, Seller shall not have violated or shall have failed to perform in accordance with any covenant contained in this Agreement.

9.2

OPERATING REQUIREMENTS.  All of the Operating Requirements shall have been satisfied.

8

 

9.3

CONDITIONS OF THE BUSINESS.  There shall have been no material adverse change in the manner in of operation of Seller's Business prior to the License Transfer Date.

9.4

NO SUITS OR ACTIONS.  At the License Transfer Date, no suit, action or other proceeding shall have been threatened or instituted to restrain, enjoin or otherwise prevent the consummation of this Agreement or the contemplated transactions.

9.5

DOCUMENTS.  Buyer receives (a) the Lease Assignment signed by Landlord and, if a sublease, by Sublessor, (b) the Bill of Sale signed by Seller, (c) the Stock Transfer Power signed by Keaveney, and (d) Agreement to Operate Business signed by the Buyer.

10.

CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER.  The obligations of Seller to consummate the transactions contemplated by this Agreement is subject to the fulfillment, prior to or at the License Transfer Date, of the following condition, which may be waived in writing by Seller:

10.1

REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER.  All representations and warranties made in this Agreement by Buyer shall be true as of the License Transfer Date as fully as those such representations and warranties had been made on or as of the License Transfer Date, and, as of the License Transfer Date, Buyer shall not have violated or shall have failed to perform in accordance with any covenant contained in this Agreement.

10.2

NO SUITS OR ACTIONS.  At the License Transfer Date, no suit, action or other proceeding shall have been threatened or instituted to restrain, enjoin or otherwise prevent the consummation of this Agreement or the contemplated transactions.

10.3

DOCUMENTS.  Seller receives (a) the Lease Assignment signed by Landlord and, if a sublease, by Sublessor, (b) the Release signed by Buyer, (c) Employment Termination Agreement signed by Casey, and (d) Agreement to Operate Business signed by the Buyer.

11.

Intentionally omitted.

12.

INDEMNIFICATION AND SURVIVAL

12.1

SURVIVAL OF REPRESENTATIONS AND WARRANTIES.  All representations and warranties made in this Agreement, and all covenants of Seller and Buyer that by their terms extend beyond License Transfer, shall survive the closing of this Agreement and shall not be merged with any document signed on the Signing Date or released on the License Transfer Date.  Any party learning of a misrepresentation or breach of representation or warranty under this Agreement shall immediately give notice thereof to all other parties to this Agreement.

12.2

SELLER INDEMNIFICATION.  Seller hereby agrees to indemnify and hold Buyer, its successors and assigns harmless from and against (a) any and all claims, liabilities and obligations of every kind and description, contingent or otherwise, arising out of or related to the operation of the Business prior to the close of business on the day before the License Transfer Date, and (b) any and all damages or deficiencies resulting from any misrepresentation or breach of warranty or covenant, or non-fulfillment of any agreement on the part of Seller under this 

9

 

Agreement.  If any claim is asserted against Buyer that would give rise to a claim by Buyer against Seller for indemnification under the provisions of this paragraph, then Buyer shall give reasonable written notice to Seller concerning such claim, and Seller shall, at no expense to Buyer, defend the claim.

12.3

BUYER’S INDEMNIFICATION.  Buyer agrees to defend, indemnify and hold harmless Seller from and against any and all claims, liabilities, and obligations of every kind and description arising out of or related to (a) the operation of the Business after the License Transfer Date, or (b) Buyer's material breach of this Agreement.  Notwithstanding the foregoing to the contrary, this indemnity will not cover such matters that arise out of or relate to the negligence or willful conduct of Seller.  If any claim is asserted against Seller that would give rise to a claim by Seller against Buyer for indemnification under the provisions of this paragraph, then Seller shall give reasonable written notice to Buyer concerning such claim, and Buyer shall, at no expense to Seller, defend the claim.

13.

LICENSE TRANSFER.

13.1

PRE-LICENSE TRANSFER PERIOD.  Until the License Transfer Date Buyer shall manage and operate the Business in accordance with the terms of the "Agreement to Operate Business," attached hereto as Exhibit F and made a part hereof. 

13.2

TIME AND PLACE.  When, in Buyer’s discretion, the Operating Requirements have been satisfied, Buyer shall give notice to Seller (the “Operating Notice”).  The date three (3) business days after the Operating Notice shall be the License Transfer Date.  License Transfer shall occur at 9:00 AM at the offices of Kitchens Kelley Gaynes, P.C., 5555 Glenridge Connector, Suite 800, Atlanta Georgia 30342, or at such other place and time as mutually agreed by the parties.

13.3

OBLIGATIONS OF SELLER AT LICENSE TRANSFER.  At License Transfer, Seller shall deliver the following documents to Buyer, which include but are not limited to those documents identified in Section 4 of this Agreement to be held in escrow until the License Transfer Date.:

13.3.1

Bills of Sale, any applicable assignments, and other instruments of transfer, in form and substance reasonably satisfactory to counsel for Buyer, necessary to transfer and convey all of the Assets to Buyer.

13.3.2

Lease Assignment..

13.3.3

Termination Agreement..

13.3.4

Such other certificates and documents as may be called for by the provisions of this Agreement to be signed by Seller or Tenant at License Transfer.

13.4

OBLIGATIONS OF BUYER AT LICENSE TRANSFER.  At License Transfer, Buyer shall deliver the following documents to Seller, which include but are not limited to those documents identified in Section 4 of this Agreement to be held in escrow until the License Transfer Date:

10

 

13.4.1

The Releases.

13.4.2

Such agreements and instruments required to be executed by both Buyer and Seller.

13.4.3

Such other certificates and documents as may be called for by the provisions of this Agreement to be signed by Buyer at License Transfer.

14.

RIGHTS AND OBLIGATIONS SUBSEQUENT TO LICENSE TRANSFER

14.1

BOOKS AND RECORDS.  This sale does not include the books of account and records of Seller's Business other than those required to be delivered pursuant to the operation of the Business and this Agreement.  

14.2

SHARING OF INFORMATION.  Buyer and Seller shall cooperate in providing records between themselves and each shall grant to the other full access to the information decribed in this Section 14.2.  

14.2.1

Each party shall provide to the other the following: 

14.2.1.1

the full Business records of P3 up to and through until the Signing Date (or if there is no License Transfer Date before the termination date of this Agreement, then the termination date of this Agreement);

14.2.1.2

formation and corporate operating documents for P3;

14.2.1.3

all 2015 and 2016 accounting and financial records, including QuickBooks, banking, client and vendor billing, and credit card related records;

14.2.1.4

all records that are required to respond to any inquiries from any regulatory bodies;

14.2.1.5

information about any claims by employees, or former employees, and

14.2.1.6

all documents that might be required to respond to, and defend any tort or other claims for which the companies may be responsible. 

14.2.2

The parties agree to the following schedule in establishing the above sharing of documents, or procedures by which the records shall be preserved:

14.2.2.1

By 11:59 p.m. on October 7, 2016 all QuickBooks files (as-is), banking statements (or online access to such), and credit card statements (or online access to such), shall be delivered to the Manager of P3, and the Chairman of TNTY;

14.2.2.2

By 11:59 p.m. on October 15, 2016, all parties agree to review the normal and customary procedures for record retention and access, either as required by law, regulation or common sense practice, by a compounding pharmacy such as P3;

11

 

14.2.2.3

By 11:59 p.m October 20, 2016 all parties shall have agreed upon either a transfer of the pertinent documents, including QuickBooks files updated through September 30, 2016;

14.2.2.4

Within ten (10) business days after the date upon which the transfer of license shall have occurred, all accounting records for the period of time from September 30, 2016, until the date of the license transfer, including QuickBooks, banking, personnel, business tax, and other reasonable items required for the audit of P3 and True Nature Holding, Inc., shall be provided.

15.

TERMINATION OF AGREEMENT

15.1

BY MUTUAL CONSENT.  This Agreement may be terminated by mutual written consent of Buyer and Seller.

15.2

BREACH OF REPRESENTATIONS AND WARRANTIES; FAILURE OF CONDITIONS.  Buyer may elect by notice to Seller, and Seller may elect by notice to Buyer, to terminate this Agreement if:

15.2.1

The terminating party shall have discovered a material error, misstatement, or omission in the representations and warranties made in this Agreement by the other party which shall not have been cured by such other party within fifteen (15) days after written notice to such other party specifying in detail such asserted error, misstatement, or omission (and if such 15-day period is outside the License Transfer Date, then the License Transfer Date shall be extended to the end of such 15-day period); or

15.2.2

All of the conditions precedent of the terminating party's obligations under this Agreement have not occurred and have not been waived by the terminating party on or prior to the License Transfer Date.

15.3

CLOSING NOTWITHSTANDING THE RIGHT TO TERMINATE.  The party with a right to terminate this Agreement shall not be bound to exercise such right, and its failure to exercise such right shall not constitute a waiver of any other right it may have under this Agreement, including but not limited to remedies for breach of a representation, warranty, or covenant.

16.

Intentionally omitted.

17.

MISCELLANEOUS  

17.1

The provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives, successors, and assigns of the parties.

17.2

Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be delivered by (i) overnight delivery, (ii) hand delivery, or (iii) certified mail, return receipt requested, postage prepaid, addressed to the parties as follows:

12

 

SELLER

True Nature Holding, Inc.

1355 Peachtree Street, Suite 1150

Atlanta Georgia 30309

BUYER

ICP HOLDINGS, LLC

5555 Glenridge Connector, Suite 800

Atlanta Georgia 30342

with a copy to :

Bruce H. Gaynes

Kitchens Kelley Gaynes, P.C.

5555 Glenridge Connector, Suite 800

Atlanta Georgia 30342

All notices and other communications shall be deemed to be given (a) on the next business day if sent by overnight delivery, (b) on the date of delivery if sent by hand delivery, and (c) at the expiration of three (3) days after the date of mailing if sent by certified mail.  The addresses to which notices or other communications shall be mailed may be changed from time to time by giving written notice to the other parties as provided above.

17.3

In the event of a default under this Agreement, the defaulting party shall reimburse the non-defaulting party or parties for all costs and expenses reasonably incurred by the non-defaulting party or parties in connection with the default, including without limitation attorney fees.  Additionally, in the event a suit or action is filed to enforce this Agreement or with respect to this Agreement, the prevailing party or parties shall be reimbursed by the other party for all costs and expenses incurred in connection with the suit or action, including without limitation reasonable attorney fees at the trial level and on appeal.

17.4

No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any provision, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.

17.5

This Agreement shall be governed by and shall be construed in accordance with the laws of the State of Georgia without regard to that state's conflicts of law provisions.

17.6

All unresolved disputes among or between the parties relating to this Agreement must be submitted to binding arbitration upon one party sending the others a notice to proceed to arbitration, which notice must set forth the nature of the dispute.  If the parties cannot agree to an arbitrator within ten (10) days after the notice to proceed to arbitration, then the arbitrator shall be selected by the American Arbitration Association in Atlanta, Georgia.  Any arbitration award rendered will be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction.  The expenses of any arbitration will be borne equally by the parties to the arbitration, provided that each party will pay for and bear the cost of its own experts, evidence, and counsel's fees, except that the arbitrator must award the prevailing party full and complete relief, including the award of costs, attorneys fees, and expenses.  All arbitration shall be conducted within Gwinnett County, Georgia before a forum acceptable to the parties, and if no such forum can be agreed upon, then before the American Arbitration Association.  The parties irrevocably waive any 

13

 

objection that they may now or hereafter have to the bringing of any such proceeding in such jurisdiction, including objections to the laying of venue and those based on the grounds of forum non conveniens.

17.7

Jurisdiction and venue for all disputes related to obtaining a temporary or permanent injunction under Article 16 shall be proper only in the Superior or State Court for Fulton County, Georgia or the United States District Court, Northern District of Georgia, Atlanta Division, depending upon which of the said Courts has subject matter jurisdiction.  The parties hereby submit to the exclusive jurisdiction and venue of said courts and hereby waive any defenses to such jurisdiction and venue, including forum non conveniens.

17.8

This Agreement may be executed in two multiple originals or counterparts.  To facilitate execution, this Agreement may be executed by facsimile signature.

17.9

All costs or expenses incurred in connection with the negotiation, execution, and performance of this Agreement will be borne by the party incurring such cost or expense except as provided otherwise in this Agreement.

17.10

If any one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable by an authority of competent jurisdiction, the validity, legality, or enforceability of the remaining provisions of this Agreement shall not be affected thereby.

17.11

This Agreement may only be amended in a writing signed by all the parties.

17.12

Neither party may assign this Agreement without the written consent of all of the other parties.

17.13

The headings in this Agreement are for convenience only and are not intended to define, limit, or construe the contents of the various paragraphs.  This Agreement is a negotiated document and shall be deemed to have been drafted jointly by the parties.  No rule of construction or interpretation shall apply against any particular party based on a contention that the Agreement was drafted by one of the parties.

17.14

This Agreement constitutes the entire agreement between the parties pertaining to its subject matter, and it supersedes all prior contemporaneous agreements, representations, and understandings of the parties.  No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all parties.

17.15

The parties have each had the opportunity to seek and retain independent legal counsel at their own expense, and have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.  The parties have read this Agreement and fully understand all of the terms and conditions contained herein with respect to their meaning and legal consequences.

[Remainder of the Page Intentially Left Blank]

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Witness the signatures of the parties as of this the first above written.

					
	SELLER:

	 
	BUYER:

	True Nature Holding, Inc.

	 
	ICP HOLDINGS, LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:

	 
	 
	By:

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	P3 Compounding of Georgia, LLC

	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By: 

	 
	 
	 
	 

15

 

EXHIBIT A

ASSETS

16

 

EXHIBIT A-1

ASSUMED LIABILITIES

17

 

EXHIBIT A-2

CONSENTS TO FORGIVE SELLER OBLIGATIONS

18

 

EXHIBIT A-3

EMPLOYMENT TERMINATION AGREEMENT

19

 

EXHIBIT B

LEASE ASSIGNMENT

20

 

EXHIBIT C

BILL OF SALE

21

 

EXHIBIT D

STOCK TRANSFER POWER

22

 

EXHIBIT E 

NON-CANCELABLE CONTRACTS

23

 

EXHIBIT F 

AGREEMENT TO OPERATE BUSINESS

24

 

EXHIBIT G

PERSONAL GUARANTY OF RICHARD SMYTH

25

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