Document:

exhibit_10-1.htm

CONTINUITY AGREEMENT

 

This Continuity Agreement (“Agreement”) is entered into as of _____, 2013, by and between AGL RESOURCES INC. (the “Company”), on behalf of itself and ________________ (its wholly owned subsidiary and the Executive’s employer), and _____________ (the “Executive”).

 

WHEREAS, Executive is presently employed by the Company or one of its subsidiaries in a key management capacity; and

 

WHEREAS, the Company’s Board of Directors desires to assure, and has determined that it is appropriate and in the best interests of the Company and its shareholders to reinforce and assure, the continued attention and dedication of certain key executives of the Company and its subsidiaries to their duties of employment without personal distraction or conflict of interest as a result of the possibility or occurrence of a change in control of the Company; and

 

WHEREAS, the Compensation and Management Development Committee of the Company’s Board of Directors (the “Committee”) has authorized the Company to enter into continuity agreements with those key executives of the Company and its subsidiaries designated by the Committee; and

 

WHEREAS, the Executive is a key executive of the Company or one of its subsidiaries and has been designated by the Committee as an executive to be offered such a continuity agreement with the Company.

 

NOW THEREFORE, in consideration of the foregoing, and of the mutual covenants and agreements of the parties set forth in this Agreement, and of other good and valuable consideration including, but not limited to, Executive’s continuing employment with the Company or one of its subsidiaries, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

SECTION 1

DEFINITIONS

 

1.1. “Accrued Benefits” shall mean the Executive’s earned but unpaid base salary, Earned and Unused Vacation Pay, unreimbursed business expenses and all other amounts earned by (but not paid to) or owed to Executive through and including the date of the Qualifying Termination.

 

1.2. “Announcement” shall mean a press release issued by the Company announcing the intention to engage in a transaction or event that is expected to result in a Change in Control of the Company as defined hereunder.

 

1.3. “Annual Bonus Amount” shall mean the average of the annual incentive payments actually paid to the Executive under the Company’s annual incentive program for the three completed calendar years prior to the calendar year of the Qualifying Termination.

 

  

  

  

1.4. “Board” shall mean the Board of Directors of the Company.

 

1.5. “Cause” shall mean:

 

(a) willful fraud, dishonesty or malfeasance by the Executive in connection with the Executive’s employment with the Company or one of its subsidiaries which results in material harm to the Company or one of its subsidiaries;

 

(b) the Executive’s continued failure to substantially perform the duties and responsibilities of the Executive’s position after written notice from the Company setting forth the particulars of such failure and a reasonable opportunity of not less than thirty (30) business days to cure such failure; or

 

(c) the Executive’s plea of guilty or nolo contendere to, or conviction of, a felony.

 

Cause shall be determined by two-thirds of the members of the Committee at a meeting at which the Executive may appear and present his or her position.  No act or failure to act on the part of the Executive shall be considered “willful” unless it is done by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company or one of its subsidiaries.  Any act or failure to act that is based upon authority given pursuant to a resolution duly adopted by the Board, or the advice of counsel for the Company or one of its subsidiaries, shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.

1.6. “Change in Control” shall mean the earliest of the following to occur:

 

(a) The date any one person, or more than one person acting as a group (as determined under Treasury Regulation 1.409A-3(i)(5)(v)(B), a “Group”), acquires ownership of stock of the Company that, together with stock held by such person or Group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company.  If any one person or Group is considered to own more than 50% of the total fair market value or total voting power of the Company, the acquisition of additional control of the Company by the same person or Group is not considered to cause a Change in Control of the Company;

 

(b) The date any one person or Group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company;

 

(c) The date a majority of the members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of their appointment or election; or

 

(d) The date that any one person or Group, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all assets of the Company immediately before such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the Company, or the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

  

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It is intended that there will be a Change in Control under this Agreement only to the extent such event or transaction would constitute a “change in control event” as such term is defined in Treasury Regulation Section 1.409A-3(i)(5) and thus the provisions of the definition of Change in Control shall be applied and interpreted consistent with the provisions of such Treasury Regulation, as amended from time to time; recognizing however, that the definition of Change in Control in this Agreement may be more restrictive in certain respects than the definition contained in Treasury Regulation Section 1.409A-3(i)(5).

 

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

 

1.8. “Company” shall mean AGL Resources Inc., or a successor thereto.

 

1.9. “Coverage Period” shall mean the period beginning on the earlier of (a) the date of an Announcement or (b) the date of a Change in Control, and ending on the earlier of (i) the second anniversary of the date of the Change in Control or (ii) if applicable, the date the Company publicly announces it is abandoning the transaction or event that was the subject of an Announcement.

 

1.10. “Disability” shall mean, for purposes of this Agreement, the Executive’s absence from the full-time performance of the Executive’s duties pursuant to a determination made in accordance with the procedures established by the Company in connection with the Company’s long-term disability benefits plan (as in effect as of the earlier of the date of the Announcement or the date of a Change in Control) that the Executive is disabled as a result of incapacity due to physical or mental illness.

 

1.11. “Earned and Unused Vacation” shall mean the difference between (a) Earned Vacation (as hereinafter defined), and (b) the actual number of hours of vacation taken by the Executive from January 1 of the calendar year in which the Qualifying Termination occurs through and including the date of the Qualifying Termination; provided that if the difference between (a) and (b) is a negative number, then Executive’s Earned and Unused Vacation shall be deemed to be zero.

 

1.12. “Earned and Unused Vacation Pay” shall mean the product of (a) the Executive’s annual rate of base salary in effect on the date of the Qualifying Termination divided by 2080, and (b) the hours of Executive’s Earned and Unused Vacation.

 

1.13. “Earned Vacation” shall mean the product of (a) the aggregate number of hours of vacation which Executive is entitled to take during the calendar year in which the Qualifying Termination occurs, and (b) the quotient obtained by dividing (i) the number of calendar days from January 1 of the year in which the Qualifying Termination occurs through and including the date of the Qualifying Termination, by (ii) 365.

 

1.14. “Effective Date” shall mean January 1, 2014.

 

  

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1.15. “Good Reason” shall mean the occurrence of one or more of the following without the Executive’s express written consent:

 

(a) any material diminution in the Executive’s position, duties or responsibilities with the Company or any change that would constitute a material adverse alteration in the Executive’s duties, responsibilities or other conditions of employment, from those in effect as of the earlier of the date of the Announcement or the date of a Change in Control; provided, that, it will be deemed that for this purpose it would be a material diminution in the Executive’s position, duties or responsibilities with the Company if the Executive retains the same title or position with the Company but the Company was not a public company and the Executive did not have the same title or position at the ultimate public parent of the Company;

 

(b) except for a diminution which is consistent with such a diminution for all other executives at a comparable level, any material diminution in the Executive’s rate of annual base salary or annual incentive compensation opportunity (i.e., annual cash bonus opportunity under the Annual Incentive Plan or a successor plan) from the rate of annual base salary and annual incentive compensation opportunity in effect as of the earlier of the date of the Announcement or the date of a Change in Control;

 

(c) any action or inaction that constitutes a material breach by the Company of any agreement under which the Executive provides services to the Company; or

 

(d) any material change in the geographic location at which the Executive must perform services for the Company, which the Company has determined is a change in the Executive’s primary employment location to a location which is in excess of fifty (50) miles from the Executive’s primary employment location as of the earlier of the date of the Announcement or the date of a Change in Control.

 

The parties intend and believe that a Qualifying Termination by the Executive for Good Reason as defined above effectively constitutes an involuntary separation from service within the meaning of Code Section 409A, and Treas. Reg §1.409A-1(n)(2).

 

1.16.  “Prorated Annual Bonus” shall mean a payment equal to the product of (a) times (b), where (a) is the greater of the (i) target annual incentive payment (i.e., annual cash bonus opportunity under the Annual Incentive Plan or a successor plan) for the calendar year of the Qualifying Termination, or (ii) actual annual incentive payment which would be paid to the Executive for the calendar year of the Qualifying Termination based on actual performance through the date of the Qualifying Termination, and (b) is a fraction, the numerator of which is the number of days in the calendar year in which the Qualifying Termination occurs that the Executive was employed by the Company or one of its subsidiaries, and the denominator of which is 365.

 

1.17. “Qualifying Termination” shall mean the occurrence of any one or more of the following events:

 

(a) the termination of Executive’s employment by the Company or its subsidiary, as applicable, without Cause; or

 

  

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(b)           Executive’s termination of his or her employment with the Company or its subsidiary, as applicable, for Good Reason.

 

A Qualifying Termination shall not include a termination of Executive’s employment by reason of the Executive’s death, the Executive’s Disability, the Executive’s termination of his or her employment without Good Reason, or the termination of the Executive’s employment for Cause.  To qualify as a termination for Good Reason, the Executive must provide notice to the Company within ninety (90) days of the initial existence of the condition constituting Good Reason and give the Company thirty (30) days to remedy such condition. If the condition of Good Reason is cured within such 30-day period, the notice of Good Reason shall have no effect.  If such condition has not been cured within such 30-day period, the termination of employment by Executive for Good Reason shall be effective as of the expiration of such 30-day period, or such later time as mutually agreed by the parties, which later time may not to exceed two (2) years after the initial existence of the condition constituting Good Reason.

SECTION 2

TERM OF AGREEMENT

 

2.1. Term.  Subject to Section 2.2, this Agreement shall commence on the Effective Date and shall continue in effect until December 31, 2015 (the “Term”).

 

2.2. Modification of Term.  In the event that an Announcement or a Change in Control occurs during the Term, the term of this Agreement shall automatically and irrevocably become a term ending on the later of the last day of the Term or the end of the Coverage Period.  This Agreement shall be assigned to, and shall be assumed by, any successor to the Company upon a Change in Control.  During the modified term pursuant to this section, this Agreement shall not be terminated or amended, altered or nullified by the Company or its successor without the Executive’s written consent.

 

2.3. No Assurances.  Executive acknowledges and agrees that, except as is otherwise expressly provided in Section 2.2, (i) there is no assurance that, upon the expiration of the Term of this Agreement, this Agreement will be renewed or extended, (ii) the Company has no obligation to renew or extend this Agreement, and (iii) Executive has no right to any such renewal or extension.  Executive acknowledges and agrees further that in the event the Company, in its sole discretion, elects to offer Executive a renewal or extension of this Agreement or a new agreement following the expiration of the Term of this Agreement, except for an extension pursuant to Section 2.2, there can be no assurance as to the terms of any such renewal, extension or new agreement, the Company has made no representations to Executive with respect thereto and nothing contained in this Agreement shall be relevant, or of any precedential value whatsoever, in determining the terms of any renewal, extension or new agreement.

 

SECTION 3

CHANGE IN CONTROL BENEFITS

 

3.1. Qualifying Termination Payments and Benefits.  Subject to Section 4 hereof, the Company shall provide to the Executive the payments and benefits described below if (i) the Executive has a Qualifying Termination during the Coverage Period and (ii) a Change in Control occurs during the Coverage Period.

 

  

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(a) Accrued Benefits.  As soon as practicable (but no later than fifteen (15) business days) following the Qualifying Termination, the Company shall pay to the Executive a lump sum cash payment equal to Executive’s Accrued Benefits. Payments made under this subparagraph (a) shall constitute full satisfaction to the Executive for the accrued pay and benefits described in this subparagraph.

 

(b) Severance Benefit.  As soon as practicable (but no later than fifteen (15) business days or, if the Company in its sole discretion determines additional time is needed to prepare any necessary calculations under Section 4.1, sixty (60) days) following the later of the date of the Qualifying Termination or the date of the Change in Control, the Company shall pay to the Executive:

 

(i) a cash payment equal to Executive’s Prorated Annual Bonus; and

 

(ii) a lump sum cash payment equal to two (2) multiplied by the sum of (A) and (B), where (A) equals the greater of the Executive’s annual rate of base salary in effect upon the date of the Qualifying Termination, or the Executive’s annual rate of base salary in effect as of the earlier of the date of the Announcement or the date of a Change in Control, and (B) equals the Annual Bonus Amount.

 

(c) Stock Options, Restricted Stock, Performance-Based Stock and Other Long-Term Incentive Awards.  Subject to Section 4 hereof, in the event a Qualifying Termination occurs during the Coverage Period, any outstanding stock options, restricted stock, performance share, performance unit or other long-term incentive awards of the Executive shall become vested and/or exercisable in accordance with the terms of the plan and/or award agreements under which such grants and awards were made.  Upon the occurrence of a change in control (as defined in each applicable plan or award agreement), all grants and awards shall be subject to the provisions of the plan and award agreements under which they were made.  With regard to any outstanding stock options, the Executive shall have a period of one (1) year (subject to the expiration of the original term of the option) following the date of the Qualifying Termination in which to exercise such options; provided that such extension of the period to exercise shall not extend the exercise period beyond the earlier of (i) the latest date upon which the option could have expired by its terms, or (ii) the tenth (10th) anniversary of the original date of grant; and further provided that if the plan or option agreement under which such options were granted provides a longer period of exercise for which the Executive would be eligible, then such longer period shall be available to the Executive.  Notwithstanding the foregoing, in the event a Qualifying Termination occurs during the Coverage Period but prior to a Change in Control, any such award shall cease vesting pursuant to its normal vesting schedule on the date of the Qualifying Termination but shall not lapse or be forfeited on such date. Instead, such award shall remain outstanding during the Coverage Period, and in the event a Change in Control subsequently occurs during the Coverage Period, such award shall become vested and/or exercisable on the date of such Change in Control, to the extent provided by, and  in accordance with the terms of, the plan and/or award agreements under which such grants and awards were made, as if the Qualifying Termination occurred immediately following, and on the same day as, the Change in Control.

 

  

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(d) Welfare Benefits.

 

(i)  Following the later of the date of the Qualifying Termination or the date of the Change in Control, the Company shall provide the Executive with continued life insurance and disability insurance coverage (provided, however, that long-term disability insurance coverage shall not be provided if, following the Executive’s termination of employment, the Executive is not eligible to receive coverage under the Company’s group long-term disability insurance policy because the Executive is no longer an employee) on the same basis (including premium) as active employees until the earlier of (i) twenty four (24) months after the later of the date of Executive’s Qualifying Termination or the date of the Change in Control, or (ii) the commencement of comparable coverage with a subsequent employer.

 

(ii)  In addition, following the later of the date of the Qualifying Termination or the date of the Change in Control, as long as the Executive pays a monthly premium equal to the amount which is the COBRA premium for such coverage, the Company shall provide the Executive and, as applicable, the Executive’s eligible dependents with continued medical and dental coverage, on the same basis (excluding premiums) as provided to the Company’s active executives and their dependents, as applicable, until the earlier of (x) twenty four (24) months after the later of the date of Executive’s Qualifying Termination or the date of the Change in Control, or (y) the date the Executive is first eligible for comparable coverage with a subsequent employer.  As a separate payment under this Agreement, each month coverage continues under this clause (ii), the Company shall pay to the Executive an amount equal to the excess of the COBRA premium for such monthly coverage over the active employee cost for such monthly coverage, each as determined on the date of the Executive’s Qualifying Termination.

 

(iii)  The medical coverage provided under this section shall not count against any COBRA continuation coverage required by law.

 

(e) Outplacement Benefits.  If so requested by the Executive, outplacement services shall be provided by a professional outplacement provider for up to one (1) year following the later of the date of Executive’s Qualifying Termination and the date of the Change in Control; provided, that, such outplacement services shall be provided at a cost to the Company of not more than 25% of the Executive’s base salary in effect as of the earlier of the date of the Announcement or the date of the Change in Control.

 

SECTION 4

LIMITATIONS ON PAYMENTS

 

4.1. Limitation on Payments. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any “payments in the nature of compensation” (as that term is used in Section 280G of the Code and any regulations promulgated thereunder) by the Company or any of its affiliated companies to or for the benefit of the Executive (whether paid or payable pursuant to the terms of this Agreement or otherwise) (“Payments”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties would be incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Payments shall be either (i) payable in full or (ii) reduced to one dollar less than the amount that would constitute a “parachute payment” under Section 280G of the Code (the “Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable taxes, including, without limitation, federal, state and local income and employment taxes and the Excise Tax, results in the receipt by the Executive, on an after-tax basis, of the greatest amount of Payments.  If the Payments are not reduced pursuant to this Section 4.1, Executive shall be responsible for payment of any Excise Tax resulting from the Payments.  If the Payments are reduced, they shall be reduced in the following order of priority: (A) Payments under Section 3.1(b), (B) Payments under Section 3.1(e), (C) Payments under Section 3.1(d)(ii), (D) other Payments to be provided on or after the Executive’s termination of employment and (E) other Payments to be provided prior to the Executive’s termination of employment; provided, however, that only Payments (or portions of Payments) that, if reduced, would reduce the total amount of “parachute payments” (as that term is used in Section 280G of the Code) shall be reduced.  If there is a question as to which Payments within each of categories (D) and (E) of the prior sentence are to be reduced first, such Payments shall be reduced in reverse order beginning with Payments that are to be paid the farthest in time from the date on which the “change in ownership or effective control” (as that term is used in Section 280G of the Code) or “change in ownership of a substantial portion of the assets” (as that term is used in Section 280G of the Code), as the case may be, shall have occurred.

 

  

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4.2. Accounting Firm.  All determinations required to be made under this Section 4, including, without limitation, whether the Payments must be reduced, the amount of any Excise Tax to be paid by the Executive, the amount and order of any reductions and the assumptions to be utilized in arriving at such determinations, shall be made by such nationally recognized registered public accounting firm as may be designated by the Company (the “Accounting Firm”).  The Accounting Firm shall provide detailed supporting calculations to the Company and the Executive within 15 business days after the Date of Termination, and/or at such earlier time as may be requested by the Company and the Executive.  All fees and expenses of the Accounting Firm shall be paid solely by the Company.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

4.3. Tax Claim.  The Executive shall notify the Company in writing of any claim or proposed adjustment by the Internal Revenue Service or other taxing authority (“Claim”) that, if successful, would require payment of (i) any Excise Tax on the Payments, if Payments have been reduced to avoid the Excise Tax or if no reduction occurred because the Accounting Firm determined no Excise Tax would be incurred, or (ii) any Excise Tax on the Payments in an amount greater than that reported by the Company on the Executive’s Form W-2 (in the case of either (i) or (ii), an “Underpayment”).  Such notification shall be given as soon as practicable, but no later than ten (10) business days after the Executive is informed in writing of such Claim, and shall apprise the Company of the nature of such Claim and the date on which such Claim is payable.  If the Company desires to contest such Claim, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such Claim and may, at its sole option, either direct the Executive to pay the Underpayment and sue for a refund or contest the Claim in any permissible manner.  The Executive agrees to cooperate with the Company in good faith in order effectively to contest such Claim, including, without limitation, providing any information and taking such action as may be reasonably requested by the Company.  The Company’s control of the contest shall be limited to issues that relate to the Underpayment, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.  The Executive shall be responsible for payment of the Underpayment.  The Company shall pay directly (or shall promptly reimburse the Executive for) all legal, accounting and other costs and expenses incurred in connection with any Claim and shall indemnify the Executive, on an after-tax basis, for any Underpayment incurred by the Executive pursuant to such Claim.  Notwithstanding anything contained herein to the contrary, any payment or reimbursement by the Company of costs and expenses incurred in connection with a Claim, as provided herein, shall be paid promptly, but in all events no later than the last day of the calendar year following the calendar year in which the cost or expense was incurred.  Any indemnification for the Executive’s payment of an Underpayment shall be paid by the Company to the Executive promptly, but in all events no later than the last day of the calendar year following the calendar year in which the Executive remitted the Underpayment.  The amount of such costs or expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and no right of the Executive to such reimbursement shall be subject to liquidation or exchange for another benefit. The Executive’s right to payment or reimbursement of expenses pursuant to this Section 4.3 shall expire at the end of 10 years following the Effective Date.

 

  

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SECTION 5

SUCCESSORS AND ASSIGNMENT

 

5.1. Successors.  The Company shall require any successor (whether pursuant to a Change in Control transaction, direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform the Company’s obligations under this Agreement, in the same manner and to the same extent that the Company would be required to perform them if no such succession had taken place.  Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall constitute a material breach of the Agreement and shall entitle the Executive to terminate the Executive’s employment with Good Reason immediately prior to or at any time after such succession.  Any successor to the Company shall be deemed to be the Company for all purposes of this Agreement.

 

5.2. Assignment by Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s executor and/or administrators, heirs, devisees, and legatees.  If the Executive should die while any amount would be payable to Executive hereunder had the Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s estate.  Executive’s rights hereunder shall not otherwise be assignable.

 

  

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SECTION 6

CONFIDENTIALITY; NON-DISPARAGEMENT;

NON-SOLICITATION; TRADE SECRETS

 

Without the prior written consent of the Company, Executive agrees hereby not to disclose or use, directly or indirectly (except as may be required for the performance of duties assigned by the Company or one of its subsidiaries or as may be required by a court of competent jurisdiction), any trade secret or other confidential information pertaining to the conduct of the Company’s business, unless and until such trade secret or confidential information is in the public domain.  The Company’s business, as that term is used herein, includes, but is not limited to, the Company’s and any of its subsidiaries’ records, processes, methods, data, reports, information, documents, equipment, training manuals, customer lists and business secrets.  Executive further agrees that, during the twenty-four (24) month period following a Qualifying Termination, Executive shall not initiate contact with employees of the Company or any of its subsidiaries for employment outside the Company or one of its subsidiaries, including those employees who were employed by the Company or one of its subsidiaries up to and including the date of the Qualifying Termination; provided, however, that nothing contained herein shall prevent Executive from responding to contacts initiated by such employees.  Except as may be compelled by a court of competent jurisdiction or as may otherwise be required by law, Executive shall take no action (including without limitation the making of any oral or written statement) which action damages the reputation of the Company or any of its subsidiaries.

 

SECTION 7

MISCELLANEOUS

 

7.1. Contractual Rights to Benefits.  Except as expressly stated herein, nothing herein contained shall require or be deemed to require the Company to segregate, earmark, or otherwise set aside any funds or other assets, in trust or otherwise, to provide for any payments to be made or required hereunder; provided, however, that the Company may segregate, earmark, or otherwise set aside any funds or other assets, in trust or otherwise as it deems appropriate.

 

7.2. Obligation Absolute; No Effect on Other Rights.  Except for amounts that may be owed to the Company pursuant to Section 7.3 hereof, the obligations of the Company to make the payments and provide the benefits to the Executive and the Executive’s dependents, and to make the arrangements provided for herein shall be absolute and unconditional and shall not be reduced by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or a third party at any time, nor shall the amount of any payment or benefit hereunder (except as provided for in Section 3.1(d)(ii) hereof) be reduced by any compensation earned by Executive as a result of employment by another employer.  Except as provided in Section 3.1(a) with respect to Accrued Benefits and Section 3.1(b)(i) with respect to the Prorated Annual Bonus, and except as otherwise provided in Section 7.8, the provisions of this Agreement, and any payment provided for herein, shall not supersede or in any way limit the rights, benefits, duties or obligations which the Executive may have now or in the future under any benefit, incentive or other plan or arrangement of the Company or a subsidiary or any other agreement with the Company or a subsidiary.

 

  

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7.3. Legal Fees and Expenses.  In addition to all other amounts payable to the Executive under this Agreement, the Company shall pay the Executive’s legal fees and expenses (including, without limitation, any and all court costs and attorneys’ fees and expenses), as incurred by the Executive in connection with or as a result of any claim, action or proceeding brought by the Company or the Executive with respect to or arising out of this Agreement or any provision hereof; provided, however, in the case of an action brought by the Executive, if it is determined by an arbitrator or by a court of competent jurisdiction that such action was frivolous or without merit, any remaining unpaid legal fees or expenses shall not be paid and the Executive shall repay to the Company all amounts previously paid by the Company under this Section 7.3.  No payment or reimbursement under this Section 7.3 shall be requested or made, after the end of the calendar year following the calendar year in which the expense was incurred. The amount of such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and no right of the Executive to such reimbursement shall be subject to liquidation or exchange for another benefit.  The Executive’s right to payment or reimbursement of expenses pursuant to this Section 7.3 shall expire at the end of 10 years following the Effective Date.

 

7.4. Dispute Resolution.  Notice of any dispute or controversy arising under this Agreement shall be provided in writing to the other party.  If such dispute is not resolved by mutual agreement of the parties within 60 calendar days of the provision of such notice, Executive shall have the right and option to elect (in lieu of litigation) to have any such dispute or controversy settled by binding arbitration.  Such arbitration shall be conducted before a panel of three (3) arbitrators sitting in a location selected by Executive in the metropolitan area nearest to, and in the same county as, the Executive’s place of residence, in accordance with the rules of the American Arbitration Association then in effect.  Executive’s election to arbitrate, as herein provided, and the decision of the arbitrators in that proceeding, shall be binding on the Company and Executive.  The Company may elect to have a dispute or controversy settled by binding arbitration only if such dispute or controversy arises under Section 6 of this Agreement.

 

7.5. Notices.  Any notice required to be delivered to the Company, any of its affiliates or the Committee by Executive hereunder shall be properly delivered to the Company, any of its affiliates or the Committee when personally delivered to, or received through the U.S. mail, postage prepaid, by:

 

AGL Resources Inc.

Attn: General Counsel

10 Peachtree Place, 19th Floor

Atlanta, GA 30309

or to such other address as the Company shall have furnished to the Executive in writing in accordance herewith.

 

Any notice required to be delivered to Executive by the Company, its affiliates or the Committee hereunder shall be properly delivered to Executive when personally delivered to, or actually received through the U.S. mail, postage prepaid, by Executive.

 

  

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7.6. Amendment.  Except as otherwise provided in Sections 2.2 and 2.3 hereof, no provision of this Agreement may be amended, altered, modified, waived or discharged unless such amendment, alteration, modification, waiver or discharge is agreed to in a writing signed by both the Executive and such officer of the Company as is specifically designated by the Committee or the Board.  No waiver by any party to this Agreement, at any time, of any breach by the other of, or of compliance by other party with, any condition or provision of this Agreement to be performed or complied with by such other party shall be deemed a waiver of any similar or dissimilar provision or condition of this Agreement or any other breach or failure to comply with the same condition or provision at any prior or subsequent time.

 

7.7. Employment Status.  Nothing herein contained shall be deemed to create an employment agreement between the Company and Executive providing for the employment of Executive by the Company for any fixed period of time.  Subject to the terms of any other agreement between the Company or a subsidiary and the Executive, if any, Executive’s employment with the Company or a subsidiary is terminable at will by the Company or a subsidiary or Executive and each shall have the right to terminate Executive’s employment with the Company or a subsidiary at any time, with or without Cause and with or without Good Reason, subject to the Company’s obligation to provide any payments or benefits required hereunder.

 

7.8. Entire Agreement.  Except as expressly provided herein, no agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party to this Agreement.  This Agreement represents the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, and agreements concerning the subject matter hereof, including, but not limited to, any prior severance agreement made between Executive and the Company or any of its subsidiaries; provided, however, that nothing contained herein shall prevent the Executive from receiving any severance benefits to which he or she is entitled under the terms of a Company or subsidiary provided severance plan if the Executive’s termination of employment does not qualify as a Qualifying Termination within the Coverage Period; provided, further, that nothing contained herein shall prevent the Executive from receiving benefits to which he or she may be entitled under any employee or retiree benefit or incentive plan maintained or contributed to by the Company or one of its subsidiaries, including, without limitation, the AGL Resources Inc. retiree medical plan.

 

7.9. Tax Withholding.  The Company shall withhold from any amounts payable under this Agreement all federal, state, city, payroll or other taxes legally required to be withheld.

 

7.10. Severability.  In the event any provision of the Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

 

7.11. Applicable Law.  To the extent not preempted by the laws of the United States, the law of the State of Georgia shall be the controlling law in all matters relating to this Agreement.

 

  

12

  

7.12. Specified Employee.  If the Executive is considered a “specified employee” (as that term is defined in Treasury Regulations Section 1.409A-1(i)), as of the date of the Executive’s separation from service, payments of amounts under this Agreement which are considered “deferred compensation” under Code Section 409A and paid based upon a separation from service may not be made or otherwise begin until the date that is six months after the date of separation from service (or, if earlier than the end of the six-month period, the date of death of the specified employee) to the extent such is required pursuant to Code Section 409A.

 

7.13. 409A.  It is the intent of the parties to this Agreement that any amount or benefit payable under this Agreement shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Code Section 409A and the regulations issued pursuant thereto, and the provisions of this Agreement shall be interpreted to be consistent therewith.

 

7.14. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument.

 

 

(signatures appear on following page)

 

 

 

  

13

  

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement, to be effective as of the day and year first written above.

 

COMPANY:

AGL RESOURCES INC.

By:  _____________________________                                                                      

Name:  ___________________________

 

Title:  ____________________________                                                                      

EXECUTIVE:

                                                                                  

                                                                                    ________________________________

Signature

THIS DOCUMENT HAS BEEN EXECUTED IN DUPLICATE

	  

 

 

  

14Exhibit 10.1

 

EXOSOME SCIENCES, INC.

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (the “Agreement”)
is made as of November ___, 2013 by and among Exosome Sciences, Inc., a Nevada corporation (the “Company”),
and the purchasers listed on Exhibit A attached hereto (each a “Purchaser” and together the “Purchasers”).

 

The parties hereby agree as follows:

 

1.       Purchase
and Sale of Common Stock.

 

1.1       Sale
and Issuance of Common Stock. Subject to the terms and conditions of this Agreement,
each Purchaser agrees, severally and not jointly, to purchase at the Initial Closing and the Company agrees to sell and issue to
each Purchaser at the Initial Closing that number of shares of the Company’s common stock, par value $.001 per share (the
“Common Stock”), set forth opposite each such Purchaser’s name on Exhibit A at a purchase price of $5.00 per
share. The shares of Common Stock issued to the Purchasers pursuant to this Agreement (including any shares issued at the Initial
Closing and any Additional Shares, as defined below), shall be referred to in this Agreement as the “Stock.” The Company
may sell up to an aggregate of 300,000 shares of Stock (the “Offered Stock”) pursuant to this Agreement. The minimum
investment amount per Purchaser is $20,000. 

 

1.2       Closing;
Delivery.

 

(a)       The
purchase and sale of the Stock shall take place remotely via the exchange of documents and signatures,
at 1:00 p.m. (Pacific Time), on the date hereof, or at such other time and place as the Company and the Purchasers mutually agree
upon, orally or in writing (which time and place are designated as the “Initial Closing”; each of the Initial
Closing and each Additional Closing (as defined below) may be referred to herein as a “Closing”).

 

(b)       At
each Closing, the Company shall deliver to each Purchaser a certificate representing the Stock being purchased by such Purchaser
against payment of the purchase price therefor by check payable to the Company or by wire transfer to a bank account designated
by the Company.

 

1.3       Subsequent
Sales of Stock. At any time following the Initial Closing but no later than December
31, 2013, which date may be extended in the Company’s sole discretion, the Company may sell up to the balance of the Offered
Stock not sold at the Initial Closing to such persons as may be approved by the Company (the “Additional Purchasers”).
All such sales made at any additional closings (each an “Additional Closing”)
shall be made on the terms and conditions set forth in this Agreement, and (i) the representations and warranties of the Company
set forth in Section 2 hereof (and the Disclosure Schedule) shall speak as of the Initial Closing and the Company shall have no
obligation to update any such disclosure, and (ii) the representations and warranties of the Additional Purchasers in Section
3 hereof shall speak as of such Additional Closing. The Schedule of Purchasers may be amended by the Company without the consent
of the Purchasers to include any Additional Purchasers upon the execution by such Additional Purchasers of a counterpart signature
page hereto. Any shares of Stock sold pursuant to this Section 1.3 shall be deemed to be “Stock” for all purposes
under this Agreement and any Additional Purchasers thereof shall be deemed to be “Purchasers” for all purposes under
this Agreement. 

 

    	1

    	 

    

1.4       Defined
Terms Used in this Agreement. In addition to the terms defined above, the following terms used in this Agreement shall be
construed to have the meanings set forth or referenced below.

 

“Affiliate” means, with
respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control
with such Person, including, without limitation, any general partner, managing member, officer or director of such Person or any
venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares
the same management company with, such Person.

 

“Material Adverse Effect”
means a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property
or results of operation of the Company.

 

“Person” means any individual,
corporation, partnership, trust, limited liability company, association or other entity.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

2.       Representations
and Warranties of the Company.
The Company hereby represents and warrants to each Purchaser that, except
as set forth on a Disclosure Schedule delivered separately by the Company to each Purchaser, which exceptions shall be deemed
to be representations and warranties as if made hereunder, the following representations are true and complete as of the date
of the Initial Closing, except as otherwise indicated. 

 

For purposes of these representations and
warranties, the phrase “to the Company’s knowledge” shall mean the actual knowledge, after reasonable
investigation, of James A. Joyce.

 

2.1       Organization,
Good Standing and Qualification. The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all
requisite corporate power and authority to carry on its business as presently conducted and as currently proposed to be conducted.
The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify
would have a Material Adverse Effect.

 

2.2       Capitalization.
The authorized capital of the Company consists, or will consist, immediately
prior to the Initial Closing, of: 

 

(a)       20,000,000
shares of Common Stock, 1,200,000 shares of which are issued and outstanding immediately prior to the Initial Closing. All of the
outstanding shares of Common Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with
the Securities Act and all applicable state securities laws.

 

    	2

    	 

    

(b)       Except
for the Stock, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first
refusal or similar rights) or agreements, orally or in writing, for the purchase or acquisition from the Company of any shares
of its capital stock. No stock plan, stock purchase, stock option or other agreement between the Company and any holder of equity
securities or rights to purchase equity securities provides for acceleration of vesting, or the lapse of a Company repurchase right,
upon the occurrence of any event. The Company has never adjusted or amended the exercise price of any stock options previously
awarded, whether through amendment, cancellation, replacement grant, repricing, or any other means.

 

2.3       Subsidiaries.
The Company does not currently own or control, directly or indirectly,
any interest in any other corporation, partnership, trust, joint venture, limited liability company, association or other business
entity. The Company is not a participant in any joint venture, partnership or similar arrangement.

 

2.4       Authorization.
All corporate action on the part of the Company and its officers, directors
and stockholders necessary for the authorization, execution and delivery of this Agreement, the performance of all obligations
of the Company hereunder and the authorization, issuance and delivery of the Stock has been taken or will be taken prior to the
Initial Closing, and this Agreement, when executed and delivered by the Company, shall constitute the valid and legally binding
obligation of the Company, enforceable against the Company in accordance with its terms except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the
enforcement of creditors’ rights generally, or (b) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

2.5       Valid
Issuance of Securities. The
Stock, when issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein,
will be duly and validly issued, fully paid and nonassessable and free of liens, encumbrances and restrictions on transfer other
than restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created
by or imposed by a Purchaser. Based in part upon the representations of the Purchasers in Section 3 of this Agreement and subject
to the provisions of Section 2.6 below, the Stock will be issued in compliance with the Securities Act and all applicable federal
and state securities laws. The sale of the Stock is not subject to any preemptive rights or rights of first refusal that have
not been properly waived or complied with.

 

2.6       Governmental
Consents and Filings. Assuming
the accuracy of the representations made by the Purchasers in Section 3 of this Agreement, no consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority
is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement,
except for filings pursuant to Regulation D of the Securities Act, and applicable state securities laws, which have been made
or will be made in a timely manner.

 

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2.7       Litigation.
There is no claim, action, suit, proceeding, arbitration, complaint, charge
or investigation pending or, to the Company’s knowledge, currently threatened against the Company that questions the validity
of this Agreement or the right of the Company to enter into it, or to consummate the transactions contemplated hereby, or that
would reasonably be expected to cause, either individually or in the aggregate, a Material Adverse Effect. Neither the Company
nor, to the Company’s knowledge, any of its officers or directors, is a party or is named as subject to the provisions of
any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no action, suit,
proceeding or investigation by the Company pending or which the Company intends to initiate. The foregoing includes, without limitation,
claims, actions, suits, proceedings or investigations pending or threatened in writing (or any basis therefor known to the Company)
involving the prior employment of any of the Company’s employees, their use in connection with the Company’s business,
or any information or techniques allegedly proprietary to any of their former employers, or their obligations under any agreements
with prior employers. 

 

2.8       Intellectual
Property. To the Company’s knowledge, the Company
owns or possesses sufficient legal rights to all trademarks, service marks, trade names, domain names, copyrights, trade secrets,
licenses, information and proprietary rights and processes and all patents necessary to the conduct of the Company’s business
as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of or violation of, the
rights of others. Section 2.8 of the Disclosure Schedule contains a complete list of patents and pending patent applications and
registrations and applications for trademarks of the Company. There are no outstanding options, licenses, agreements, claims,
encumbrances or shared ownership interests of any kind relating to any of the foregoing owned by or exclusively licensed to the
Company, nor is the Company bound by or a party to any options, licenses or agreements of any kind with respect to the patents,
trademarks, service marks, trade names, domain names, copyrights, trade secrets, licenses, information, proprietary rights and/or
processes of any other person or entity, except, in either case, for standard end-user, object code, internal-use software license
and related support/maintenance agreements for software that is not and will not be incorporated into, the Company’s software,
products or services. The Company has not received any communications alleging that the Company has violated or, by conducting
its business as proposed, would violate any of the patents, trademarks, service marks, trade names, domain names, copyrights,
trade secrets or other proprietary rights or processes of any other person or entity, and the Company is not aware of any potential
basis for such an allegation or of any reason to believe that such an allegation may be forthcoming. The Company is not aware
that any of its employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other
agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use
of such employee’s best efforts to promote the interest of the Company or that would conflict with the Company’s business
as now conducted and as currently proposed to be conducted. Neither the execution or delivery or performance of this Agreement,
nor the carrying on of the Company’s business by the employees of the Company, nor the conduct of the Company’s business
as proposed, will, to the Company’s knowledge, conflict with or result in a breach of the terms, conditions, or provisions
of, or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated. The Company
does not believe it is or will be necessary to use any inventions of any of its employees made prior to or outside the scope of
their employment by the Company.

 

    	4

    	 

    

2.9       Compliance
with Other Instruments. The
Company is not in violation or default (i) of any provisions of its Articles of Incorporation or Bylaws, or (ii) of any instrument,
judgment, order, writ, or decree, or under any note, indenture, mortgage, lease, agreement, contract or purchase order to which
it is a party or by which it is bound or, (iii) to its knowledge, of any provision of federal or state statute, rule or regulation
applicable to the Company, and with respect to the foregoing subsections (ii) and (iii) only, the violation of which could reasonably
be expected to have a Material Adverse Effect. The execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated hereby will not result in any such violation or be in conflict with or constitute, with or without
the passage of time and giving of notice, either a default under any such provision, instrument, judgment, order, writ, decree
or contract or an event which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the
suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable
to the Company.

 

2.10       Agreements;
Actions.

 

(a)       Except
for this Agreement or as set forth in Section 2.10(a) of the Disclosure Schedule, there are no agreements, understandings, instruments,
contracts or proposed transactions to which the Company is a party or by which it is bound that involve (i) obligations (contingent
or otherwise) of, or payments to, the Company in excess of $50,000, (ii) the license of any patent, copyright, trade secret or
other proprietary right to or from the Company other than the non-exclusive license to the Company of standard, generally commercially
available “off-the-shelf” third-party products that are not and will not be incorporated into the Company’s
products, (iii) the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other person
or affect the Company’s exclusive right to develop, manufacture, assemble, distribute, market or sell its products, or (iv)
indemnification by the Company with respect to infringements of proprietary rights, except in the ordinary course of business pursuant
to standard end-user agreements.

 

(b)       Except
as set forth in Section 2.10(b) of the Disclosure Schedule, the Company has not (i) declared or paid any dividends, or authorized
or made any distribution upon or with respect to any class or series of its capital stock, (ii) incurred any indebtedness for money
borrowed or incurred any other liabilities individually in excess of $25,000 or in excess of $100,000 in the aggregate, (iii) made
any loans or advances to any person, other than ordinary advances for travel expenses, or (iv) sold, exchanged or otherwise disposed
of any of its assets or rights, other than the sale of its inventory in the ordinary course of business. For the purposes of subsections
(b) and (c) of this Section 2.10, all indebtedness, liabilities, agreements, understandings, instruments, contracts and proposed
transactions involving the same person or entity (including persons or entities the Company has reason to believe are affiliated
with that person or entity) shall be aggregated for the purposes of meeting the individual minimum dollar amounts of each such
subsection.

 

    	5

    	 

    

(c) The Company is not a guarantor or indemnitor
of any indebtedness of any person.

 

(d) The Company has not engaged in the past
three months in any discussion with any representative of any Person regarding (i) a sale of all or substantially all of the Company’s
assets, or (ii) any merger, consolidation or other business combination transaction of the Company with or into another Person.

 

2.11       Certain
Transactions. 

 

(a)       Except
as set forth in Section 2.11(a) of the Disclosure Schedule, there are no agreements, understandings or proposed transactions between
the Company and any of its officers, directors or consultants, or any of its or their Affiliates.

 

(b)       The
Company is not indebted, directly or indirectly, to any of its directors, officers or employees or to their respective spouses
or children or to any Affiliate of any of the foregoing. None of the Company’s directors, officers or employees, or any members
of their immediate families, or any Affiliate of the foregoing are, directly or indirectly, indebted to the Company or, to the
Company’s knowledge, have any (i) material commercial, industrial, banking, consulting, legal, accounting, charitable or
familial relationship with any of the Company’s customers, suppliers, service providers, joint venture partners, licensees
and competitors, (ii) direct or indirect ownership interest in any firm or corporation with which the Company is affiliated or
with which the Company has a business relationship, or any firm or corporation which competes with the Company except that directors,
officers, employees or stockholders of the Company may own stock in (but not exceeding two percent (2%) of the outstanding capital
stock of) publicly traded companies that may compete with the Company; or (iii) financial interest in any material contract with
the Company.

 

2.12       Title
to Property and Assets. The
Company owns its property and assets free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for
statutory liens for the payment of current taxes that are not yet delinquent and encumbrances and liens that arise in the ordinary
course of business and do not materially impair the Company’s ownership or use of such property or assets. With respect
to the property and assets it leases, the Company is in compliance with such leases and, to its knowledge, holds a valid leasehold
interest free of any liens, claims or encumbrances other than to the lessors of such property or assets. The Company does not
own any real property.

 

2.13       Financial
Statements. The Company
has not prepared any balance sheet, income statement, statement of operations, statement of changes in financial position and
stockholders’ equity or other financial statement. Except as set forth in Section 2.13 of the Disclosure Schedule, the Company
has no material liabilities, contingent or otherwise, other than (a) liabilities incurred after the date of incorporation in the
ordinary course of business that are not material, individually or in the aggregate, and (b) obligations under contracts and commitments
incurred in the ordinary course of business which would not be required under generally accepted accounting principles to be reflected
in financial statements prepared in accordance with generally accepted accounting principles. 

 

    	6

    	 

    

2.14       Employee
Benefit Plans. The Disclosure
Schedule sets forth all employee benefit plans maintained, established or sponsored by the Company, or in or to which the Company
participates or contributes, which are subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
The Company has made all required contributions and has no liability to any such employee benefit plan, other than liability for
health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied with all applicable laws for any
such employee benefit plan.

 

2.15       Tax
Returns and Payments. There are no federal, state, county, local or foreign taxes due and payable by the Company which have
not been timely paid. There are no accrued and unpaid federal, state, county, local or foreign taxes of the Company which are
due, whether or not assessed or disputed. There have been no examinations or audits of any tax returns or reports of the Company
by any applicable federal, state, local or foreign governmental agency. The Company has duly and timely filed all federal, state,
county, local and foreign tax returns required to have been filed by it and there are in effect no waivers of applicable statutes
of limitations with respect to taxes for any year.

 

2.16       Insurance.
The Company has in full force and effect fire and casualty insurance
policies, with extended coverage, sufficient in amount (subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.

 

2.17       Labor
Agreements and Actions. The
Company is not bound by or subject to (and none of its assets or properties is bound by or subject to) any written or oral, express
or implied, contract, commitment or arrangement with any labor union, and no labor union has requested or, to the Company’s
knowledge, has sought to represent any of the employees, representatives or agents of the Company. There is no strike or other
labor dispute involving the Company pending, or to the Company’s knowledge threatened, which could have a Material Adverse
Effect, nor is the Company aware of any labor organization activity involving its employees. The Company is not aware that any
officer or key employee intends to terminate their employment with the Company, nor does the Company have any present intention
to terminate the employment of any officer or key employee. The employment of each officer and employee of the Company is terminable
at the will of the Company. To its knowledge, the Company has complied in all material respects with all applicable state and
federal equal employment opportunity laws and with other laws related to employment. The Company is not a party to or bound by
any deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, or retirement agreement. The Company is
not obligated to pay severance or any other additional compensation upon the termination of any director, officer, consultant
or employee.

 

2.18       Permits.
The Company has all franchises, permits, licenses and any similar authority
necessary for the conduct of its business, the lack of which could have a Material Adverse Effect, and the Company believes it
can obtain, without undue burden or expense, any similar authority for the conduct of its business as proposed. The Company is
not in default in any material respect under any of such franchises, permits, licenses or other similar authority.

 

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2.19       Corporate
Documents. The
Articles of Incorporation and Bylaws of the Company are in the form provided to counsel for the Purchasers. The copy of the minute
books of the Company provided to the Purchasers’ counsel contains minutes of all meetings of directors and stockholders and
all actions by written consent without a meeting by the directors and stockholders since the date of incorporation and accurately
reflects in all material respects all actions by the directors (and any committee of directors) and stockholders with respect to
all transactions referred to in such minutes.

 

2.20       Disclosure.
The Company has made available to each Purchaser all the information reasonably
available to the Company that such Purchaser has requested for deciding whether to purchase the Stock. No representation or warranty
of the Company contained in this Agreement, as qualified by the Disclosure Schedule, or in any certificate furnished or to be furnished
to a Purchaser at the Closing contains any untrue statement of a material fact or omits to state a material fact necessary to make
the statements herein or therein not misleading in light of the circumstances under which they were made.

 

3.       Representations
and Warranties of the Purchasers. Each
Purchaser, severally and not jointly, hereby represents and warrants to the Company that:

 

3.1       Authorization.
The Purchaser has full power and authority to enter into this Agreement.
This Agreement, when executed and delivered by the Purchaser, will constitute the valid and legally binding obligation of the Purchaser,
enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, and any other laws of general application relating to or affecting enforcement of creditors’ rights
generally, and (b) as limited by laws relating to the availability of a specific performance, injunctive relief, or other equitable
remedies.

 

3.2       Purchase
Entirely for Own Account. This
Agreement is made with the Purchaser in reliance upon the Purchaser’s representation to the Company, which by the Purchaser’s
execution of this Agreement the Purchaser hereby confirms, that the Stock to be acquired by the Purchaser will be acquired for
investment for the Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution
of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract,
undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third
Person, with respect to any of the Stock. If the Purchaser is a corporation, partnership or other entity, such Purchaser has not
been formed for the specific purpose of acquiring the Stock.

 

3.3       Disclosure
of Information. The
Purchaser believes it has received all information it considers necessary or appropriate for deciding whether to purchase the Stock.
The Purchaser has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of
the offering of the Stock and the business, properties, prospects and financial condition of the Company. The foregoing, however,
does not limit or modify the representations and warranties of the Company in Section 2 of this Agreement or the right of the Purchasers
to rely on such representations and warranties.

 

    	8

    	 

    

3.4       Restricted
Securities. The Purchaser understands that the Stock will be characterized as “restricted
securities” under the federal securities laws, inasmuch as it is being acquired from the Company in a transaction not involving
a public offering, and that under such laws and applicable regulations such Stock may not be resold without registration under
the Securities Act, except in certain limited circumstances. In this connection, the Purchaser represents that it is familiar with
Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and
by the Securities Act. The Purchaser acknowledges that the Company has no obligation to register or qualify the Stock for resale.
The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned
on various requirements including, but not limited to, the time and manner of sale, the holding period for the Stock, and on requirements
relating to the Company that are outside the Purchaser’s control, and which the Company is under no obligation and may not
be able to satisfy.

 

3.5       No
Public Market.  The
Purchaser understands that no public market now exists for the Stock, and that the Company has made no assurances that a public
market will ever exist for the Stock.

 

3.6       Legends.
The Purchaser understands that any certificates representing
the Stock and any securities issued in respect of or exchange for the Stock, may bear one or all of the following legends:

 

(a)       
“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED
FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY
BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

(b)       Any
legend set forth in or required by any other section of this Agreement.

 

(c)       Any
legend required by the securities laws of any state to the extent such laws are applicable to the shares represented by the certificate
so legended.

 

3.7       Accredited
Investor.
The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities
Act.

 

3.8       Foreign
Investors. If
the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended),
such Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection
with any invitation to subscribe for the Stock or any use of this Agreement, including (a) the legal requirements within its jurisdiction
for the purchase of the Stock, (b) any foreign exchange restrictions applicable to such purchase, (c) any governmental or other
consents that may need to be obtained, and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale, or transfer of the Stock. Such Purchaser’s subscription and payment for and continued beneficial
ownership of the Stock, will not violate any applicable securities or other laws of the Purchaser’s jurisdiction. The funds
used to purchase the Stock do not violate the anti-money laundering provisions of the Money Laundering Control Act of 1986 or the
Bank Secrecy Act of 1970, as amended by the USA Patriot Act of 2001.

 

    	9

    	 

    

3.9       No
General Solicitation. Neither the Purchaser, nor any of its officers, employees, agents,
directors, stockholders or partners has engaged the services of a broker, investment banker or finder to contact any potential
investor nor has the Purchaser or any of the Purchaser’s officers, employees, agents, directors, stockholders or partners,
agreed to pay any commission, fee or other remuneration to any third party to solicit or contact any potential investor. Neither
the Purchaser, nor any of its officers, directors, employees, agents, stockholders or partners has (a) engaged in any general solicitation,
or (b)published any advertisement in connection with the offer and sale of the Stock.

 

3.10       Exculpation
Among Purchasers. The
Purchaser acknowledges that it is not relying upon any Person, other than the Company and its officers and directors, in making
its investment or decision to invest in the Company. The Purchaser agrees that neither any Purchaser nor the respective controlling
persons, officers, directors, partners, members, agents, or employees of any Purchaser shall be liable to any other Purchaser for
any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the Stock.

  

3.11       Residence.
If the Purchaser is an individual, then the Purchaser
resides in the state or province identified in the address of the Purchaser set forth on Exhibit A; if the Purchaser is a partnership,
corporation, limited liability company or other entity, then the office or offices of the Purchaser in which its principal place
of business is located is identified in the address or addresses of the Purchaser set forth on Exhibit A.

 

4.       Conditions
of the Purchasers’ Obligations at Closing.
 The obligations of each Purchaser to purchase Stock at the Initial Closing
or any subsequent Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless
otherwise waived by the applicable Purchaser:

 

4.1       Representations
and Warranties. The representations and warranties of the Company contained in Section
2 shall be true and correct in all respects as of the Closing.

 

4.2       Performance.
The Company shall have performed and complied with
all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied
with by it on or before the Closing.

 

4.3       Compliance
Certificate. The
President of the Company shall deliver to the Purchasers at the Closing a certificate certifying that the conditions specified
in Sections 4.1 and 4.2 have been fulfilled.

 

    	10

    	 

    

4.4       Qualifications.
All authorizations, approvals or permits, if any,
of any governmental authority or regulatory body of the United States or of any state that are required in connection with the
lawful issuance and sale of the Stock pursuant to this Agreement shall be obtained and effective as of the Closing.

 

4.5       Secretary’s
Certificate. The
Secretary of the Company shall deliver to the Purchasers at the Closing a certificate certifying (a) the Articles of Incorporation
of the Company, (b) the Bylaws of the Company, and (c) resolutions of the Board of Directors of Company approving this Agreement
and the transactions contemplated hereby.

 

4.6       Proceedings
and Documents. All corporate and other proceedings in connection with the transactions
contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to such Purchaser,
and such Purchaser (or its counsel) shall have received all such counterpart original and certified or other copies of such documents
as reasonably requested. Such documents may include good standing certificates.

 

5.       Conditions
of the Company’s Obligations at Closing. The
obligations of the Company to sell Stock to the Purchasers at the Initial Closing or any subsequent Closing are subject to the
fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

5.1      Representations
and Warranties. The
representations and warranties of each Purchaser contained in Section 3 shall be true and correct in all respects on and as of
the Closing.

 

5.2       Performance.
The Purchasers shall have performed and complied
with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied
with by them on or before the Closing.

 

5.3       Qualifications.
All authorizations, approvals or permits, if any,
of any governmental authority or regulatory body of the United States or of any state that are required in connection with the
lawful issuance and sale of the Stock pursuant to this Agreement shall be obtained and effective as of the Closing.

 

6.       Miscellaneous.

 

6.1       Survival
of Warranties. Unless otherwise set forth in this Agreement, the warranties, representations
and covenants of the Company and the Purchasers contained in or made pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the Closing.

 

6.2       Transfer;
Successors and Assigns. The terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

    	11

    	 

    

6.3       Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California,
without giving effect to principles of conflicts of law.

 

6.4       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method, and any
counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

6.5       Title
and Subtitles. The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.

 

6.6       Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt, or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s
next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying
next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at
their address as set forth on the signature page or Exhibit A, or to such
e-mail address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 6.6.
If notice is given to the Company, a copy shall also be sent to Jennifer A. Post, c/o Post Law Group, PC, 5900 Wilshire Boulevard,
Suite 620, Los Angeles, California 90036.

 

6.7       Finder’s
Fees. Each party represents that it neither is nor will be obligated for any finder’s
fee or commission in connection with this transaction. Each Purchaser agrees to indemnify and to hold harmless the Company and
each other Purchaser from any liability for any commission or compensation in the nature of a finder’s fee arising out of
this transaction (and the costs and expenses of defending against such liability or asserted liability) for which such Purchaser
or any of its officers, employees, or representatives is responsible. The Company agrees to indemnify and hold harmless each Purchaser
from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this
transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any
of its officers, employees or representatives is responsible.

 

6.8       Attorney’s
Fees. Subject to Section 6.14, if any action at law or in equity (including arbitration)
is necessary to enforce or interpret the terms of any of this Agreement, the prevailing party shall be entitled to reasonable attorney’s
fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

 

    	12

    	 

    

6.9       Amendment
and Waivers. Any term of this Agreement may be amended or waived only with the written
consent of the Company and (a) the holders of a majority of the then-outstanding Stock sold hereunder, or (b) if prior to the Initial
Closing, Purchasers obligated to purchase a majority of the Stock to be issued at the Initial Closing. Any amendment or waiver
effected in accordance with this Section 6.9 shall be binding upon the Purchasers and each transferee of the Stock, each future
holder of all such securities, and the Company.

 

6.10       Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as though such provision were so excluded and shall be
enforceable in accordance with its terms.

 

6.11       Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing
to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right,
power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent
or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the
part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party,
shall be cumulative and not alternative.

 

6.12       Entire
Agreement. This Agreement and the documents referred to herein constitute the entire
agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements
relating to the subject matter hereof existing between the parties hereto are expressly canceled.

 

6.13       Confidentiality.
Each Purchaser hereto agrees that, except with the prior written permission of the Company, such Purchaser shall at all times hold
in confidence and trust and not use or disclose any confidential information of the Company provided to or learned by such Purchaser
in connection with the Purchaser’s rights under this Agreement; provided, however, that that the foregoing shall not apply
to information disclosed by a Purchaser that is an investment fund to its limited partners, partners or members in order to allow
such Purchaser to comply with its obligations and arrangements with such persons or entities, provided that, in each case, such
parties are subject to substantially similar confidentiality obligations with respect to such information; provided further, that
each Purchaser may disclose any confidential information of the Company provided to or learned by such Purchaser in connection
with such rights to the extent reasonably necessary (a) to evaluate or monitor such Purchaser’s investment in the Company;
(b) as required by any court or other governmental body, provided that such Purchaser provides the Company with prompt notice of
such court order or requirement to enable the Company to seek a protective order or otherwise to prevent or restrict such disclosure;
(c) to legal counsel of such Purchaser; (d) in connection with the enforcement of this Agreement or rights under this Agreement;
or (e) to comply with applicable law. The provisions of this Section 6.13 shall be in addition to, and not in substitution for,
the provisions of any separate nondisclosure agreement executed by the parties hereto with respect to the transactions contemplated
hereby.

 

    	13

    	 

    

 

 

6.14       Dispute
Resolution. Any unresolved controversy or claim arising out of or relating to this Agreement,
except as (a) otherwise provided in this Agreement, or (b) any such controversies or claims arising out of any party’s intellectual
property rights for which a provisional remedy or equitable relief is sought, shall be submitted to arbitration by one arbitrator
mutually agreed upon by the parties, and if no agreement can be reached within thirty (30) days after names of potential arbitrators
have been proposed by the American Arbitration Association (the “AAA”), then by one arbitrator having reasonable experience
in corporate finance transactions of the type provided for in this Agreement and who is chosen by the AAA. The arbitration shall
take place in the State of California, County of San Diego, in accordance with the AAA rules then in effect, and judgment upon
any award rendered in such arbitration will be binding and may be entered in any court having jurisdiction thereof. There shall
be limited discovery prior to the arbitration hearing as follows: (1) exchange of witness lists and copies of documentary evidence
and documents relating to or arising out of the issues to be arbitrated, (2) depositions of all party witnesses and (3) such other
depositions as may be allowed by the arbitrators upon a showing of good cause. Depositions shall be conducted in accordance with
Section 6.3 hereof, the arbitrator shall be required to provide in writing to the parties the basis for the award or order of
such arbitrator, and a court reporter shall record all hearings, with such record constituting the official transcript of such
proceedings. The prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements in
addition to any other relief to which such party may be entitled.

 

 

 

 

[Signature
Pages Follow]

 

 

 

    	14

    	 

    

 

The parties have executed this Stock Purchase
Agreement as of the date first written above.

 

	 	 
	 	COMPANY:
	 	EXOSOME SCIENCES, INC.
	 	 
	 	 
	 	By:  /s/ James A. Joyce
	 	 
	 	Name:  James A. Joyce
	 	 
	 	Title:  President
	 	 
	 	Address:  8910 University Center
	 	Lane, Suite 660
	 	San Diego, CA 92122

 

 

 

Signature Page to Exosome
Sciences, Inc. Stock Purchase Agreement

    	15

    	 

    

 

The parties have executed this Stock Purchase
Agreement as of the date first written above.

 

	 	
        Purchasers:

         

        _________________________

         

         

         

        By: ______________________

        Name: ____________________

        Title: _____________________

         

        Address:

        ________________________

        ________________________

        ________________________

         

         

        Investment amount: $_______

         

	 	 

 

 

 

 

 

 

Signature Page to Exosome
Sciences, Inc. Stock Purchase Agreement

    	16

    	 

    

 

EXHIBIT A

 

SCHEDULE OF PURCHASERS

 

INITIAL CLOSING: November ___, 2013

 

	
        Purchaser
        Name and Address
	
        Purchase
        Price
	
        Shares
        of Common Stock Purchased

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	TOTAL:	
        $

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