Document:

ASSET PURCHASE AGREEMENT

         ASSET  PURCHASE  AGREEMENT  (the  "Agreement"),  dated as of October 9,
2000, between Rich Products  Manufacturing  Corporation,  a Delaware corporation
d/b/a Jon Donaire  Desserts,  with its principal  office located at 1150 Niagara
Street,  Buffalo,  New York ( "Buyer"),  Rich Products  Corporation,  a Delaware
corporation with its principal  office located at 1150 Niagara Street,  Buffalo,
New York ( "RPC") and Starbake, Inc., a Delaware corporation, with its principal
office located at 1919 Friendship Drive, El Cajon, California,  ("Starbake"),  a
wholly owned subsidiary of Paramark  Enterprises,  Inc., a Delaware  corporation
with its  principal  office  located at One Harmon Plaza,  Secaucus,  New Jersey
07094 ("Paramark").  Paramark and Starbake are hereinafter collectively referred
to as "Seller"

                              W I T N E S S E T H :

         WHEREAS, Seller is engaged in the business of manufacturing and selling
certain  bakery  goods  and  other  food  products,  including  cinnamon  rolls,
cinnachips,  bundt cakes,  brownies,  sheet cakes, iced cakes,  decorated cakes,
torte cakes, rugulach and cobblers (collectively, the "Business");

         WHEREAS,  Seller desires to sell to Buyer and Buyer desires to purchase
from Seller,  certain  assets of the Business,  all on the terms and  conditions
hereinafter set forth.

         NOW, THEREFORE,  in consideration of the representations and warranties
made herein, and of the mutual benefits to be derived hereby, and other good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                         SALE AND PURCHASE OF THE ASSETS

         1.1 Assets.  Subject to and upon the terms and  conditions set forth in
this Agreement, at the Closing,  Seller will sell, transfer,  convey, assign and
deliver  to Buyer  good and  marketable  title,  free  and  clear of all  liens,
liabilities,  encumbrances,  security interests, claims, and other restrictions,
and Buyer will purchase or acquire from Seller, all right, title and interest of
Seller in and to (i) the assets  listed in Schedule  1.1 hereto (the  "Specified
Assets") and (ii) the  properties,  assets and rights of every nature,  kind and
description,   tangible  and  intangible  (including  goodwill),  whether  real,
personal or mixed,  whether  accrued,  contingent  or otherwise  and whether now
existing or hereinafter  acquired (other than the Excluded Assets,  as such term
is defined  below)  primarily  relating to or used or held for use in connection
with the  Business as the same may exist on the Closing Date and all in their AS
IS condition without any representation and warranty whatsoever except as may be

<PAGE>

specifically  set forth in this Agreement  (collectively,  the "Assets").  Buyer
will agree to buy certain items of finished  goods  inventory,  ingredients  and
packaging  inventory  as will be  mutually  agreed upon by Buyer and Seller (the
"Inventory").  Buyer and Seller will agree on the Inventory to be purchased, and
the price for same (the "Inventory Price"), no later than October 12, 2000.

         1.2  Excluded  Assets.  Seller will retain and not transfer to Buyer in
connection  with this  Agreement  (a) cash and cash  equivalents,  (b)  accounts
receivable,  and (c) Seller's corporate  records,  minute books, stock books and
tax returns,  (except to the extent that such records are necessary for Buyer to
operate the Business after the Closing, Buyer shall be entitled to make one copy
of such necessary documentation in accordance with Section 4.1.3 hereto).

         1.3  Parties to Act as  Collection  Agents for Other  Parties  Accounts
Receivable.  To the extent that either party to this Agreement receives payment,
after the Closing,  on an account  receivable that was actually due and owing to
the other party, the receiving party shall hold such accounts receivable payment
in trust for the other party and shall turn same over to the other party as soon
as practicable after the receipt thereof.

         1.4 Allocation of Accounts  Receivable  Payments from Shared Customers.
In  furtherance  of the  intent of  Section  1.4  hereinabove,  if either  party
receives a payment on an accounts  receivable after the Closing and such payment
is (i) from a customer of the Business that purchased  bakery  products from the
Business both before and after the Closing and (ii) the payment  received is not
designated  as a payment on a specific  invoice or invoices  submitted by either
Seller or Buyer,  then each of such  payments  shall be applied by the receiving
party thereof as follows:

                  (a) First to any amounts  due and owing from said  customer to
the  receiving  party  pursuant to invoices that are  outstanding  for more than
thirty (30) days and that relate solely to the Business; and

                  (b) Thereafter,  to amounts due and owing to the non-receiving
party by the  same  customer  on  accounts  receivable  relating  solely  to the
Business.

ARTICLE II

CLOSING

         2.1  Place  and  Date.  The  closing  (the  "Closing")  of the sale and
purchase of the Assets  shall take place at 10:00 a.m.  p.d.t.  within seven (7)
business days of Seller having obtained the consent of its  shareholders to this
transaction,  as more specifically set forth below. If personal  appearances are
required, the Closing will occur at 1150 Niagara Street,  Buffalo, New York, or,
if such  appearances are not required,  such other time and place upon which the

<PAGE>

parties may mutually agree in writing.

         2.2  Purchase  Price.  On the terms and subject to the  conditions  set
forth in this Agreement,  Buyer agrees to pay or cause to be paid to Seller,  an
aggregate of One Million Nine Hundred United States  Dollars (U.S.  $1,900,000),
payable by wire transfer to accounts designated by Seller as follows:

         a. $900,000.00 at the Closing;

         d.  $125,000.00  on or before each of June 1st and December 1st of each
of 2001, 2002, 2003 and 2004.

         2.2A Inventory Price. The Inventory Price, less $100,000,  will be paid
to  Seller by Buyer no later  October  13,  2000 by wire  transfer  to  accounts
designated  by Seller.  The  balance of the  Inventory  Price,  in the amount of
$100,000  will be paid by Buyer to Seller at the  Closing  by wire  transfer  to
accounts designated by Seller

         2.2B  RPC  Guarantee.  Subject  to  Section  4.1.8  below,  RPC  hereby
guarantees (the "RPC Guarantee"):

         a. All payments owing to Seller from Buyer under this Agreement and the
License Agreement;

         b. All payments  due and owing  pursuant to the  Consulting  Agreements
described hereinbelow in Section 4.3.6;

         c. The  obligation  of Buyer to  proceed to  Closing  pursuant  to this
Agreement.

         The RPC Guarantee is unconditional,  except as it may be limited by the
potential offsets arising out of Section 4.1.8 of this Agreement, and Seller may
seek performance under the RPC Guarantee  simultaneously with seeking to enforce
the obligation of Buyer subject to the RPC Guarantee

         2.3 Meaning of Closing. Closing, as used in this Agreement, shall mean,
as the context requires, either (a) the date of Closing on this Agreement or (b)
the date of  entry  into the  License  Agreement  between  Seller  and  Buyer as
described in Section 4.3.7 below.

         2.4  Assumption of  Liabilities.  Buyer will assume the  liabilities of
Seller  specifically set forth and identified on Schedule 2.4 and Schedule 2.4.1
hereto  (collectively,  the  "Assumed  Liabilities").  Except  for  the  Assumed
Liabilities, Buyer will not assume, be liable for, or become responsible for any
liability of Seller of any nature,  whether  accrued,  absolute,  contingent  or
otherwise.
<PAGE>

         2.5 Equipment and Other Lease Security Deposits. Certain of the Assumed
Liabilities consist of Seller's  liabilities under equipment leases,  and/or car
leases  and or the lease for the  premises  in La Jolla,  California,  where the
Business is maintained by Seller (collectively the "Assumed Leases), all as more
particularly  set forth on Schedule 2.4. To the extent that Seller has delivered
to the respective  lessors under any or all of the Assumed Leases,  the security
deposits  and/or  prepaid  rent  deposits  set  forth  on  Schedule  2.4  hereto
(collectively the "Security  Deposits"),  and such Security Deposits continue to
be held by the respective lessors as of the Closing,  then Buyer shall reimburse
Seller at the Closing for the full amount of said Security Deposits.

         2.6 Adjustment for Assumed Liabilities. Seller shall be responsible for
all payments under the Assumed  Liabilities through the day prior to the Closing
Date, Buyer shall be responsible for all payments under the Assumed  Liabilities
commencing on the Closing Date and Seller shall make a cash  adjustment for same
accordingly at the Closing.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

         3.1  Representations  and Warranties of Seller.  Seller  represents and
warrants to Buyer as follows:

                  3.1.1 General Representations.

                  (a) Corporate Status.  Seller is a corporation duly organized,
validly  existing and in good standing  under the laws of the State of Delaware,
with full  corporate  power and authority to carry on its business and to own or
lease and to operate its  properties as and in the places where such business is
conducted and such properties are owned, leased or operated.

                  (b) Authority Relative to Agreement.  The execution,  delivery
and  performance of this Agreement and all other  agreements,  certificates  and
instruments  contemplated hereby (collectively,  the "Ancillary  Agreements") by
Seller and  consummation by Seller of the transactions  contemplated  hereby and
thereby have been duly and effectively  authorized by all necessary action,  and
this  Agreement  constitutes,  and each  Ancillary  Agreement when executed will
constitute,  a legal, valid and binding obligation of Seller enforceable against
it in accordance with its respective terms.

                  3.1.2 Financial Statements.  The balance sheet of Seller as at
July 31, 2000 (the "Interim Balance Sheet") and the related  statement of income
for the seven  month  period  then  ended  (including  the notes  thereto)  (the

<PAGE>

"Interim Statements") and the audited balance sheet of Seller as of December 31,
1999 (the "Audited Balance Sheet") and the related  statements of income for the
calendar  year then ended (the  "Audited  Statements")  heretofore  delivered by
Seller to Buyer,  are accurate  and complete in all respects and present  fairly
the  financial  position  of Seller  as of such  dates  and the  results  of its
operations and changes in its financial position for such periods, and have been
prepared in conformity with generally accepted accounting  principles.  December
31, 1999 is  sometimes  hereinafter  referred to as the "Audited  Balance  Sheet
Date".

                  3.1.3  Absence of  Changes.  Since the Audited  Balance  Sheet
Date,  Seller has conducted the Business only in the ordinary course  consistent
with prior practice and has not, on behalf of, in connection with or relating to
the Business or the Assets:

                  (a) to the best knowledge of Seller,  suffered any event which
has or may have a  material  adverse  effect on the  Business  or the  Assets (a
"Material Adverse Affect");

                  (b) incurred any obligation or liability,  absolute,  accrued,
contingent  or  otherwise,   whether  due  or  to  become  due,  except  current
liabilities  for trade or business  obligations  incurred in connection with the
purchase of goods or services in the ordinary course of business consistent with
prior  practice,  none of which  liabilities,  in any case or in the  aggregate,
could have a Material Adverse Effect;

                  (c)  discharged  or  satisfied  any lien other than those then
required to be  discharged or  satisfied,  or paid any  obligation or liability,
absolute, accrued, contingent or otherwise,  whether due or to become due, other
than  current  liabilities  shown  on the  Audited  Balance  Sheet  and  current
liabilities incurred since the Audited Balance Sheet Date in the ordinary course
of business, consistent with prior practice;

                  (d)  mortgaged,  pledged or subjected to lien,  any  property,
business  or  assets,  tangible  or  intangible,  held in  connection  with  the
Business;

                  (e) sold, transferred,  leased to others or otherwise disposed
of any of the  Assets,  except  for  inventory  sold in the  ordinary  course of
business,  or canceled or compromised  any debt or claim,  or waived or released
any right of substantial value;

                  (f) received any notice of termination of any contracts, lease
or other  agreement or suffered any damage,  destruction or loss (whether or not
covered by insurance) which, in any case or in the aggregate, has had a Material
Adverse Effect;

                  (g)  transferred or granted any rights under,  or entered into
any  settlement  regarding  the  breach or  infringement  of,  any  Intellectual
Property, or modified any existing rights with respect thereto;

<PAGE>

                  (h) made any change in the rate of  compensation,  commission,
bonus or other  direct or indirect  remuneration  payable,  or paid or agreed or
orally  promised  to pay,  conditionally  or  otherwise,  any bonus,  incentive,
retention  or other  compensation,  retirement,  welfare,  fringe  or  severance
benefit or vacation pay, to or in respect of any shareholder, director, officer,
employee, distributor or agent of Seller relating to the Business;

                  (i) encountered any labor union organizing  activity,  had any
actual or threatened employee strikes, work stoppages, slowdowns or lockouts, or
had any material change in its relations with its employees,  agents,  customers
or suppliers;

                  (j) failed to replenish  inventories  and supplies in a normal
and customary  manner  consistent  with its prior practice and prudent  business
practices prevailing in the industry,  or made any purchase commitment in excess
of the normal,  ordinary and usual  requirements of its business or at any price
in excess of the then  current  market price or upon terms and  conditions  more
onerous than those usual and customary in the industry;

                  (k)  instituted,  settled or agreed to settle any  litigation,
action or  proceeding  before any court or  governmental  body  relating  to the
Business or the Assets other than in the ordinary course of business  consistent
with past practices but not in any case involving amounts in excess of $10,000;

                  (l) entered into any transaction, contract or commitment other
than in the ordinary course of business.

                  3.1.4 Litigation.  There is no action,  claim,  demand,  suit,
proceeding,  arbitration,  grievance,  citation,  summons,  subpoena, inquiry or
investigation of any nature, civil, criminal, regulatory or otherwise, in law or
in equity,  pending or to the best  knowledge  of Seller  threatened  against or
relating to Seller in  connection  with the Assets or the Business or against or
relating to the transactions contemplated by this Agreement, and Seller does not
know or have reason to be aware of any basis for the same. No fines or penalties
have been  asserted  against  Seller  with  respect  to the  Business  under any
environmental  law or any  foreign,  federal,  state or local  law  relating  to
occupational health or safety.

                  3.1.5 Operation of the Business.  (a) Seller has conducted the
Business only through  Seller and not through any other  divisions or any direct
or indirect  Affiliate  of Seller and (b) no part of the Business is operated by
Seller through any entity other than Seller.  An "Affiliate" of an entity is any
person or entity (a "Person") that controls, is under common control with, or is
controlled by such entity.

<PAGE>

                  3.1.6 Assets.  Seller has good and marketable  title to all of
the Assets free and clear of any and all liens,  except as set forth on Schedule
3.1.6  hereto.  The Assets  comprise  all assets and  services  required for the
continued  procedural  conduct of the Business by Buyer in  materially  the same
manner as currently  being  conducted by Seller.  The Assets,  taken as a whole,
constitute all the properties and assets  relating to or used or held for use in
connection  with the Business  during the past twelve months  (except  inventory
sold,  cash  disposed  of,  accounts  receivable  collected,   prepaid  expenses
realized, contracts fully performed, properties or assets replaced by equivalent
or  superior  properties  or  assets,  in each  case in the  ordinary  course of
business, employees not hired by Buyer, and the Excluded Assets).

                  3.1.7  Inventories.  To the best knowledge of Seller,  (a) all
items included in the Inventory are of good, usable and merchantable  quality in
all material  respects  and do not include  obsolete or  discontinued  items and
(b)all  such  items of  Inventory  are of such  quality  as to meet the  quality
control  standards  of Buyer and any  applicable  governmental  quality  control
standards.  All items  included in the  Inventory  that are  finished  goods are
saleable as current  inventories  at the current  prices thereof in the ordinary
course of  business.  All items  included in the  Inventory  are recorded on the
books of the  Business  at the  lower of cost or  market  value on a  consistent
basis.

                  3.1.8  Product   Warranties.   Except  for  warranties   under
applicable law,(a) there are no warranties express or implied,  written or oral,
with respect to the products of the Business and (b) there are no pending or, to
the best  knowledge  of  Seller,  threatened  claims  with  respect  to any such
warranty,  and to the best  knowledge of Seller,  Seller has no  liability  with
respect to any such  warranty,  whether  known or  unknown,  absolute,  accrued,
contingent or otherwise and whether due or to become due.

                  3.1.9 Intellectual Property.

                  (a) Title. To the best knowledge of Seller,  none of the items
of  intellectual  property  comprising  part of the Assets as listed in Schedule
3.1.9 hereto  (collectively,  the  "Intellectual  Property")  are subject to any
outstanding  licenses,  liens,  encumbrances,  claims or other  restrictions  or
rights of others,  and there are no pending or, to the best knowledge of Seller,
threatened challenges to any of the Intellectual Property. To the best knowledge
of Seller, the Business as heretofore conducted does not infringe or constitute,
and has not infringed or constituted,  an unlawful invasion of any rights of any
Person and no notice of any such  infringement  or invasion has been received by
Seller.  Seller has the right to use,  free and clear of the claims or rights of
others,  all  Intellectual  Property.  To the  best  knowledge  of  Seller,  the
Intellectual  Property  constitutes  all such property  necessary to conduct the
Business as heretofore conducted.

                  (b) Transfer.  Immediately  after the Closing,  Buyer will own
all of the Intellectual  Property,  free from any liens, claims and encumbrances
and on the same terms and conditions as in effect prior to the Closing.
<PAGE>

                  (c) No  Infringement.  To the best  knowledge  of Seller,  The
conduct of the Business does not infringe or otherwise  conflict with any rights
of any Person in respect of any Intellectual  Property. To the best knowledge of
Seller,  None of the Intellectual  Property is being infringed or otherwise used
or available for use, by any other Person.

                  (d) No Intellectual Property Litigation. No claim or demand of
any Person has been made nor is there any proceeding that is pending,  or to the
knowledge  of Seller after due  inquiry,  threatened,  nor is there a reasonable
basis  therefor,  which (i)  challenges  the  rights of Seller in respect of any
Intellectual  Property,  (ii) asserts that Seller is  infringing or otherwise in
conflict with, or is, required to pay any royalty,  license fee, charge or other
amount  with  regard to, any  Intellectual  Property,  or (iii)  claims that any
default exists under any agreement related to any of the Intellectual  Property.
The  Intellectual  Property is not  subject to any  outstanding  order,  ruling,
decree,  judgment  or  stipulation  by  or  with  any  court,   arbitrator,   or
administrative agency, or has been the subject of any litigation within the last
five years, whether or not resolved in favor of Seller.

                  3.1.10 Insurance. Seller has delivered to Buyer a complete and
correct list and summary  description  of all insurance  policies  maintained by
Seller for the  benefit  of or in  connection  with the  Assets or the  Business
together with all riders and amendments thereto. Such policies are in full force
and effect,  and all premiums due thereon have been paid. Seller has complied in
all material respects with the terms and provisions of such policies.

                  3.1.11      Leases.

                  (a) Seller has  delivered to Buyer a correct and complete copy
of the Lease Agreement concerning Seller's commercial bakery facility located at
1919 Friendship Drive, El Cajon, California,  including without limitation,  any
amendments or addendum's thereto (the "Lease").

                  (b) The Lease is legal, valid,  binding,  enforceable,  and in
full force and effect.  Neither  Seller nor, to the best of Seller's  knowledge,
any other party is in  default,  violation  or breach in any  respect  under the
Lease,  and, to the best of Seller's  knowledge,  no event has  occurred  and is
continuing  that  constitutes  or,  with  notice or the passage of time or both,
would constitute a default, violation or breach in any respect under the Lease.

                  3.1.12 Employees, Labor Matters, Etc. Seller is not a party to
or bound by any collective bargaining agreement and there are no labor unions or
other  organizations  representing,  purporting  to represent or, to the best of
Seller's  knowledge,  attempting  to  represent  any  employees  employed in the

<PAGE>

operation  of the  Business.  There has not occurred or, to the best of Seller's
knowledge,  been  threatened  any material  strike,  slowdown,  picketing,  work
stoppage,  concerted  refusal to work overtime or other  similar labor  activity
with respect to any employees  employed in the operation of the Business.  There
are no labor disputes currently subject to any grievance procedure,  arbitration
or litigation and there is no  representation  petition  pending or, to the best
knowledge of Seller,  threatened  with  respect to any employee  employed in the
operation of the Business. Seller has complied with all provisions of applicable
law pertaining to the employment of employees,  including,  without  limitation,
all such laws relating to labor  relations,  equal  employment,  fair employment
practices,  entitlements,  prohibited discrimination or other similar employment
practices  or acts,  except for any failure so to comply that,  individually  or
together with all such other failures, has not and will not result in a material
liability or obligation on the part of Buyer or the Business.

                  3.1.13 Employment by Buyer.  Upon the Closing,  Buyer may, but
shall have no obligation to, offer employment to any employee of Seller.

                  3.1.14   Liability.   Regardless   of  whether   Buyer  offers
employment  to  any  employee  of  Seller,  Seller  shall  retain  and  pay  all
obligations and liabilities  arising out of Seller's employment of its employees
and the  termination  thereof,  including,  but not limited to  obligations  and
liabilities   for  all  claims  with   respect  to  wages,   benefits,   workers
compensation, disability, unemployment insurance and related matters, regardless
of when any such claims are made.

                  3.1.15      Employment of Seller's Employees.

                  (a) For a  period  of two (2)  years  from the  Closing  Date,
Seller will not, and will not permit any of its Affiliates to, solicit, offer to
employ or retain the services of or otherwise interfere with the relationship of
Buyer with any Person employed by or otherwise  engaged to perform  services for
Buyer in connection with the operation of the Business.

                  (b)  Neither  Buyer nor any of its  Affiliates  shall have any
liability  with  respect to any  employee of Seller or benefit plan of Seller or
any of its  Affiliates or any claim thereof or related  thereto.  From and after
the Closing,  Seller and its Affiliates  shall,  jointly and  severally,  remain
solely  responsible  for any and all  benefit  liabilities  in  respect  of such
employees,  and their  beneficiaries  and dependents,  relating to or arising in
connection  with  or as a  result  of:  (i)  the  employment  or the  actual  or
constructive  termination of employment of any such employee by Seller; (ii) the
participation in or accrual of benefits or compensation under, or the failure to
participate in or to accrue  compensation or benefits under, any benefit plan or
other  employee or retiree  benefit or  compensation  plan,  program,  practice,
policy,  agreement or  arrangement of Seller or any of its Affiliates ; or (iii)
accrued but unpaid salaries, wages, bonuses, incentive compensation, vacation or
sick pay or other compensation or payroll items (including,  without limitation,

<PAGE>

deferred  compensation),  except,  in any  such  case,  to the  extent  any such
liability is (x) specifically assumed by Buyer pursuant to this Agreement or (y)
reflected on the Audited Balance Sheet or relates to services rendered and arose
after the  Audited  Balance  Sheet  Date in the  ordinary  course  of  business,
consistent  with the  prior  practice  of  Seller  and in  accordance  with this
Agreement  (applied as if the  provisions of Section 4.1 had been in effect from
the close of  business  on the Audited  Balance  Sheet Date  through the Closing
Date).

                  3.1.16 Employee Benefit Plans and Related Matters.

                  (a) Employee Benefit Plans.  Schedule 3.1.16 sets forth a true
and complete list of each "employee  benefit  plan",  as such term is defined in
section 3(3) of the Employee Income Retirement  Security Act ("ERISA"),  whether
or not subject to ERISA,  and each bonus,  incentive  or deferred  compensation,
severance,  termination,  retention,  change of  control,  stock  option,  stock
appreciation,  stock purchase, phantom stock or other equity-based,  performance
or other employee or retiree benefit or compensation plan, program, arrangement,
agreement, policy or understanding,  whether written or unwritten, that provides
or may provide  benefits or  compensation  in respect of any  employee or former
employee  employed or formerly  employed in the operation of the Business or the
beneficiaries  or  dependents  of any such  employee  or former  employee  (such
employees,  former  employees,  beneficiaries and dependents  collectively,  the
"Employees")  or under which any of the  Employees is or may become  eligible to
participate  or  derive  a  benefit  and  that  is or  has  been  maintained  or
established  by  Seller  or  any  other  trade  or  business,   whether  or  not
incorporated,  which,  together with Seller is or would have been at any date of
determination  occurring  within  the  preceding  six years  treated as a single
employer under section 414 of the Internal Revenue Code (the "Code") (such other
trades and businesses  collectively,  the "Related Persons"), or to which Seller
or any Related  Person  contributes  or is or has been  obligated or required to
contribute  or with  respect  to  which  Seller  or the  Business  may  have any
liability or obligation  (collectively,  the "Plans"). With respect to each such
Plan,  Seller has provided  Buyer  complete  and correct  copies of: all written
Plans;  descriptions of all unwritten  Plans;  all trust  agreements,  insurance
contracts or other funding arrangements; the two most recent actuarial and trust
reports;  the two most recent  Forms 5500 and all  schedules  thereto;  the most
recent IRS determination letter; current summary plan descriptions; all material
communications  received  from or  sent to the  Internal  Revenue  Service  (the
"IRS"),  the Pension  Benefit  Guaranty  Corporation  or the Department of Labor
(including a written description of any oral communication);  an actuarial study
of any post-employment life or medical benefits provided under any such Plan, if
any;  statements  or other  communications  regarding  withdrawal or other multi
employer plan  liabilities,  if any; and all amendments and modifications to any
such document  Seller has not  communicated  to any Employee of any intention or
commitment to modify any Plan or to establish or implement any other employee or
retiree benefit or compensation arrangement.

                  (b)   Qualification.   Each  Plan  (including  all  amendments

<PAGE>

thereto)  intended to be qualified  under  section  401(a) of the Code,  and the
trust (if any) forming a part  thereof,  has received a favorable  determination
letter  from the IRS as to its  qualification  under the Code and to the  effect
that each such trust is exempt from taxation  under section  501(a) of the Code,
and nothing has occurred since the date of such determination  letter that could
adversely affect such qualification or tax-exempt status.

                  (c) Compliance; Liability.

                    (i)  No  Plan  is  subject  to  section  412 of the  Code or
                         section 302 or Title IV of ERISA.

                    (ii) No liability  has been or is expected to be incurred by
                         Seller,  any of its Affiliates or the Business  (either
                         directly  or  indirectly,  including  as a result of an
                         indemnification  obligation) under or pursuant to Title
                         I or IV of ERISA or the  penalty,  excise  tax or joint
                         and several  liability  provisions of the Code relating
                         to employee  benefit  plans that could,  following  the
                         Closing,  become or remain a liability  of the Business
                         or  become a  liability  of  Buyer  or of any  employee
                         benefit plan  established  or  contributed  to by Buyer
                         and, to the best knowledge of Seller and its Affiliates
                         after due inquiry,  no event,  transaction or condition
                         has  occurred or exists  that could  result in any such
                         liability to the Business  or,  following  the Closing,
                         Buyer.

                    (iii)Each of the Plans has been  operated  and  administered
                         in all respects in compliance with all applicable laws,
                         except for any failure so to comply that,  individually
                         or together with all other such  failures,  has not and
                         will not result in a material  liability or  obligation
                         on the part of the Business, or, following the Closing,
                         Buyer,  and has not had or  resulted  in,  and will not
                         have or result in, a Material Adverse Effect. There are
                         no material pending or, to the best knowledge of Seller
                         after due inquiry, threatened claims by or on behalf of
                         any  of  the  Plans,   by  any  Employee  or  otherwise
                         involving  any  such  Plan or the  assets  of any  Plan
                         (other than routine claims for benefits).

                    (iv) No Plan is a "multiemployer plan" as defined in Section
                         414(f) of the Code or Sections  3(37) or  4001(a)(3) of

<PAGE>

                         ERISA  or is a  "multiple  employer  plan"  within  the
                         meaning of Section 413(c) of the Code or Sections 4063,
                         4064 or 4066 of ERISA.

                    (v)  All contributions  required to have been made by Seller
                         and each Related  Person to any Plan under the terms of
                         any such Plan or pursuant to any applicable  collective
                         bargaining  agreement or applicable  law have been made
                         within the earliest  time  prescribed by any such Plan,
                         agreement or applicable law.

                    (vi) No   Employee   is   or   may   become    entitled   to
                         post-employment  benefits  of any  kind  by  reason  of
                         employment   in  the   Business,   including,   without
                         limitation,  death or medical benefits  (whether or not
                         insured),  other than (a) coverage provided pursuant to
                         the  terms  of  any  Plan  specifically  identified  as
                         providing such coverage in Schedule  3.1.16 or mandated
                         by section  4980B of the Code (b)  retirement  benefits
                         payable under any Plan  qualified  under section 401(a)
                         of the Code or (c) deferred  compensation  accrued as a
                         liability  on the  Audited  Balance  Sheet or  incurred
                         after the Audited  Balance  Sheet Date in the  ordinary
                         course of business  consistent  with the prior practice
                         of  Seller,  pursuant  to  the  terms  of a  Plan.  The
                         consummation of the  transactions  contemplated by this
                         Agreement, will not result in an increase in the amount
                         of compensation or benefits or the  acceleration of the
                         vesting  or timing of payment  of any  compensation  or
                         benefits payable to or in respect of any Employee.

                  3.1.17  Records.  The minute  books of Seller  insofar as they
relate to or affect the Business and the Assets are  substantially  complete and
correct in all  material  respects.  The books of account of Seller,  insofar as
they relate to or affect the  Business  and the Assets,  are true,  complete and
correct in all material respects.

                  3.1.18  Disclosure.  No  representation  or warranty by Seller
contained in this Agreement nor any statement or certificate  furnished or to be
furnished  by or on  behalf  of  Seller  to  Buyer  or  its  representatives  in
connection  herewith or  pursuant  hereto  contains  or will  contain any untrue
statement of a material  fact,  or omits or will omit to state any material fact
required to make the statements contained herein or therein not misleading.

<PAGE>

                                   ARTICLE IV

                                    COVENANTS

         4.1      Covenants of Seller.

                  4.1.1 Conduct of Business. From the date hereof to the Closing
Date,  except  as  expressly  permitted  or  required  by this  Agreement  or as
otherwise consented to by Buyer in writing, Seller will:

                  (a)  carry on the  Business  in,  and only  in,  the  ordinary
course,  in substantially the same manner as heretofore  conducted,  and use all
reasonable  efforts  to  preserve  intact  its  present  business  organization,
maintain its properties in good operating  condition and repair,  keep available
the services of its present officers and significant employees, and preserve its
relationship with customers,  suppliers and others having business dealings with
it, to the end that its  goodwill  and going  business  shall be in all material
respects unimpaired following the Closing;

                  (b) pay accounts payable and other obligations of the Business
when they become due and payable in the ordinary  course of business  consistent
with prior practice;

                  (c) perform in all material  respects  all of its  obligations
under  all  contracts  and  other  agreements  and  instruments  relating  to or
affecting the Business or the Assets,  and comply in all material  respects with
all applicable laws applicable to it, the Assets or the Business;

                  (d) not enter into or assume any material agreement,  contract
or  instrument  relating to the  Business,  or enter into or permit any material
amendment, supplement, waiver or other modification in respect thereof;

                  (e) not  grant  (or  commit  to  grant)  any  increase  in the
compensation  (including  incentive  or  bonus  compensation)  of  any  employee
employed  in the  operation  of the  Business or  institute,  adopt or amend (or
commit to institute,  adopt or amend) any compensation or benefit plan,  policy,
program or arrangement or collective bargaining agreement applicable to any such
employee; and

                  (f) not take any  action  or omit to take  any  action,  which
action or omission  would result in a breach of any of the  representations  and
warranties set forth in Section 3.1.3.

<PAGE>

                  4.1.2 No  Solicitation.  During  the  term of this  Agreement,
Seller,  any of its  Affiliates or any Person acting on its behalf shall not (i)
solicit  or  encourage  any  inquiries  or  proposals  for,  or  enter  into any
discussions  with respect to, the  acquisition of any properties and assets held
for use in connection with,  necessary for the conduct of, or otherwise material
to,  the  Business  or (ii)  furnish  or cause to be  furnished  any  non-public
information  concerning  the  Business  to any Person  (other than Buyer and its
agents and  representatives),  other than in the ordinary  course of business or
pursuant to applicable law and after prior written notice to Buyer. Seller shall
not sell,  transfer or  otherwise  dispose of,  grant any option or proxy to any
Person with respect to, create any lien, claim or encumbrance  upon, or transfer
any  interest in, any Asset,  other than in the ordinary  course of business and
consistent with this Agreement.

                  4.1.3 Access and Information.

                  (a) So long as this Agreement  remains in effect,  Seller will
(and will cause its Affiliates,  respective accountants,  counsel,  consultants,
employees and agents to) give Buyer,  Buyer's prospective lenders and investors,
and their respective accountants,  counsel,  consultants,  employees and agents,
full  access  during  normal  business  hours  to,  and  furnish  them  with all
documents,  records,  work papers and  information  with respect to, all of such
Person's properties, assets, books, contracts,  commitments, reports and records
relating to the Business,  as Buyer shall from time to time reasonably  request.
In  addition,   Seller  will  permit  Buyer,  Buyer's  prospective  lenders  and
investors, and their respective accountants, counsel, consultants, employees and
agents,  reasonable  access to such  personnel of Seller during normal  business
hours as may be  necessary  or useful to Buyer in its review of the  properties,
assets and business affairs of the Business and the  above-mentioned  documents,
records and  information.  Seller will keep Buyer  generally  informed as to the
affairs of the Business.

                  (b) Seller will  retain all books and records  relating to the
Business in accordance with Seller's record  retention  policies as presently in
effect.  During the four-year period beginning on the Closing Date, Seller shall
not dispose of or permit the disposal of any such books and records not required
to be retained  under such policies  without first giving sixty (60) days' prior
written  notice to Buyer  offering  to  surrender  the same to Buyer at  Buyer's
expense.

                  4.1.4  Public  Announcements.  Except  for  the  filing  of an
accurate registration statement with the Securities and Exchange Commission (the
"SEC") and as required by  Applicable  Law,  Seller  shall not, and it shall not
permit  any  Affiliate  to,  make any  public  announcement  in  respect of this
Agreement or the  transactions  contemplated  hereby  without the prior  written
consent of Buyer, which consent shall not be unreasonably withheld or delayed.

                  4.1.5 Further Actions.

<PAGE>

                  (a) Seller agrees to use all reasonable  good faith efforts to
take  all  actions  and to do all  things  necessary,  proper  or  advisable  to
consummate the transactions contemplated hereby.

                  (b) Seller will, as promptly as  practicable,  file or supply,
or  cause  to  be  filed  or  supplied,  all  applications,   notifications  and
information  required to be filed or supplied by Seller  pursuant to  applicable
law in connection with this Agreement.

                  (c)  Seller,   as  promptly  as  practicable,   will  use  all
reasonable  efforts to obtain, or cause to be obtained,  all consents  necessary
for the parties to consummate the  transactions  contemplated by this Agreement.
Buyer agrees to use reasonable  commercial efforts to assist Seller in obtaining
such consents.

                  (d)  Seller  will  coordinate  and  cooperate  with  Buyer  in
exchanging such  information and supplying such reasonable  assistance as may be
reasonably requested by Buyer in connection with this Agreement.

                  4.1.6 Further Assurances. Following the Closing, Seller shall,
and shall cause its Affiliates  to, from time to time,  execute and deliver such
additional instruments, documents, conveyances or assurances and take such other
actions as shall be necessary,  or otherwise  reasonably  requested by Buyer, to
confirm and assure the rights and  obligations  provided for in this  Agreement,
and render effective the consummation of the transactions contemplated thereby.

                  4.1.7 Bulk Sales.  In lieu of complying with the provisions of
the  California  Commercial  Code relating to Bulk Sales,  Seller  covenants and
agrees to defend, hold harmless and indemnify Buyer from and against any and all
loss,  liability,  damage or claim  whatsoever  arising  out of the  failure  or
alleged failure to comply with said provisions of the California Commercial Code
(including,  but without  limitation,  claims,  actions or suits by Creditors of
Seller) and all reasonable costs and expenses including, but without limitation,
reasonable attorneys' fees incident thereto.

                  4.1.8  Setoff.  Seller  further  agrees in the  event  that in
addition to the remedies set forth in this Agreement,  and without  limiting any
other  remedy Buyer and/or RPC may have as a result of a breach by Seller of the
foregoing covenants,  Buyer and/or RPC may set off the costs, expenses,  losses,
liabilities  and damages  incurred  by Buyer  and/or RPC (but only to the extent
such costs,  expenses,  losses,  liabilities and damages represent actual out of
pocket costs paid by Buyer and/or RPC to unaffiliated third parties) as a result
of any breach or failure to pay by Seller relating to the payment of any amounts
owing to Buyer and/or RPC, whether under this Agreement or otherwise.

         4.2 Covenants of Buyer.

<PAGE>

                  4.2.1 Public  Announcements.  Prior to the Closing,  except as
required by Applicable Law, Buyer shall not, and shall not permit its Affiliates
to,  make  any  public   announcement  in  respect  of  this  Agreement  or  the
transactions  contemplated  hereby without the prior written  consent of Seller,
which consent shall not be unreasonably withheld.

                  4.2.2 Further Actions.

                  (a) Buyer agrees to use all  reasonable  good faith efforts to
take  all  actions  and to do all  things  necessary,  proper  or  advisable  to
consummate the transactions contemplated hereby.

                  (b) Buyer will, as promptly as practicable, file or supply, or
cause to be filed or supplied,  all applications,  notifications and information
required  to be filed  or  supplied  by  Buyer  pursuant  to  applicable  law in
connection with this Agreement.

                  (c)  Buyer  will  coordinate  and  cooperate  with  Seller  in
exchanging such  information and supplying such reasonable  assistance as may be
reasonably requested by Seller in connection with this Agreement.

                  4.2.3 Further Assurances.  Following the Closing, Buyer shall,
and shall cause its Affiliates  to, from time to time,  execute and deliver such
additional instruments, documents, conveyances or assurances and take such other
actions as shall be necessary,  or otherwise  reasonably requested by Seller, to
confirm and assure the rights and  obligations  provided for in this  Agreement,
and render effective the consummation of the transactions contemplated thereby.

         4.3  Other Covenants and Conditions of Closing.

                  4.3.1  Subsequent  Monthly  Financial   Statements.   Seller's
monthly financial  statements for each month after July 31, 2000 shall have been
provided to Buyer and shall (a) contain no  liabilities  different in kind or in
scope from the  liabilities  set forth in the  Audited  Balance  Sheet,  and (b)
confirm  and  be  consistent  with  the  information   concerning  the  Business
(including the projected results of operations)  previously provided to Buyer by
Seller prior to the date hereof.

                  4.3.2  Corporate  Proceedings.  Buyer  shall  have  received a
certificate  of the  Secretary  of Seller  certifying  that  Seller has  adopted
necessary  resolutions  on a director  and  shareholder  level  authorizing  the
transaction contemplated herein.

                  4.3.3 Transfer Documents. Seller shall have delivered to Buyer
at the Closing all documents,  certificates and agreements necessary to transfer
to Buyer good and marketable title to the Assets,  free and clear of any and all
liens, claims and encumbrances thereon, including without limitation:

<PAGE>

                  (a) a bill of sale, assignment and general conveyance, in form
and substance  reasonably  satisfactory  to Buyer,  dated the Closing Date, with
respect to the Assets; and

                  (b)  assignments  of all assumed  contracts that are a part of
the Assumed  Liabilities,  including  the Lease in the form  attached as Exhibit
4.3.3(b),  and assignments of the Intellectual Property and any other agreements
and instruments  constituting Assets, dated the Closing Date, assigning to Buyer
all of Seller's right, title and interest therein and thereto, with any required
consents included.

                  4.3.4  Consents  and  Estoppel.   Buyer  shall  have  received
consents to the  assignment  of the Lease to Buyer from the lessor of the Lease.
Buyer shall also have received estoppel certificates addressed to Buyer and from
the lessor of the Lease,  dated within 45 days of the Closing Date,  identifying
the Lease  documents and any  amendments  thereto,  stating that the Lease is in
full force and effect and, to the best  knowledge of the lessor,  that Seller is
not in default  under the Lease and no event has occurred  that,  with notice or
lapse of time or both,  would constitute a default by Seller under the Lease and
containing any other information reasonably requested by Buyer.

                  4.3.5 Corporate  Proceedings.  All corporate proceedings shall
be reasonably  satisfactory  in substance  and form to both  parties,  and their
respective  counsel,  and each such party shall have received all such documents
and instruments, or copies thereof, certified if requested, as may be reasonably
requested.

                  4.3.6  Consulting  Agreements.  Seller  and Buyer  shall  have
entered into the four (4) year consulting  agreements in substantially  the same
form as the forms of Consulting Agreements attached as Exhibit 4.3.6.

                  4.3.7 License  Agreement.  Simultaneous  with the execution of
this Agreement,  Seller and Buyer shall have entered into the License  Agreement
attached as Exhibit 4.3.7 hereto.

ARTICLE V

TERMINATION

         5.1 Termination.  This Agreement may be terminated at any time prior to
the Closing Date:

<PAGE>

                  (a) by the written agreement of Buyer and Seller;

                  (b) by either  Seller or Buyer by written  notice to the other
party if the  transactions  contemplated  hereby shall not have been consummated
pursuant hereto by December 31, 2000,  unless (i) such date shall be extended by
the mutual written  consent of Seller and Buyer (ii) Seller shall, at such time,
be actively  engaged in  soliciting  the  approval of the  shareholder's  of its
parent company to the transaction  contemplated by this Agreement in which event
the Agreement may not be terminated unless the said shareholders refuse to grant
said approval within a reasonable time after December 31, 2000;

                  (c)  by  Buyer   by   written   notice   to   Seller   if  the
representations and warranties of Seller shall not have been true and correct in
all  respects  (in the case of any  representation  or warranty  containing  any
materiality  qualification)  or in all  material  respects  (in the  case of any
representation or warranty without any materiality qualification) as of the date
when made; or

                  (d)  by   Seller   by   written   notice   to   Buyer  if  the
representations  and warranties of Buyer shall not have been true and correct in
all  respects  (in the case of any  representation  or warranty  containing  any
materiality  qualification)  or in all  material  respects  (in the  case of any
representation or warranty without any materiality qualification) as of the date
when made.

         5.2  Effect of  Termination.  In the event of the  termination  of this
Agreement,  this  Agreement  shall  become void and have no effect,  without any
liability to any Person in respect  hereof or of the  transactions  contemplated
hereby  on the part of any  party  hereto,  or any of its  directors,  officers,
employees,  agents,  consultants,  representatives,  advisers,  stockholders  or
Affiliates,  except for any liability resulting from such party's breach of this
Agreement.

ARTICLE VI

NON-COMPETITION AGREEMENT

         6.1  Non-competition  and  Non-disclosure.  Following the Closing Date,
Seller agrees not to:

                  a. engage or become  interested,  directly or  indirectly,  as
owner, employee, partner, through stock ownership (except ownership of less than
one percent (1%) of the number of shares outstanding of any securities which are
listed for trading on any securities exchange),  investment of capital,  lending
of money or property,  rendering of services, or otherwise,  whether alone or in
association  with  others,  in the  operation  of any  business  engaged  in the

<PAGE>

manufacturing of bakery products materially the same as the bakery products that
are a part of the  Business  as of the date of  Closing  anywhere  in the United
States of America (the "Territory");

                  b. solicit or accept orders for services  competitive to those
heretofore  provided or sold by the Seller as a part of the Business anywhere in
the  Territory  from any then or previous  customer  of the Seller or  otherwise
induce or  attempt  to  induce  any such  customer  to  reduce  such  customer's
patronage of the Business; or

                  c. divulge,  communicate, or utilize for the benefit of anyone
other than the Buyer,  any  confidential  information  of or  pertaining  to the
Business or any of its customers.

         6.2 Equitable  Remedies.  Seller  specifically  acknowledges and agrees
that the remedy at law for any breach of any  provision  of this Article VI will
be inadequate  and that Buyer,  as  applicable,  in addition to any other relief
available to it, shall be entitled to the issuance of a restraining order or any
other similar equitable relief by any court of proper jurisdiction.

ARTICLE VII

MISCELLANEOUS

         7.1 Indemnification.

                  (a)  By  Seller.   Seller  covenants  and  agrees  to  defend,
indemnify and hold harmless Buyer, its officers,  directors,  employees, agents,
advisers, representatives and Affiliates (collectively, the "Buyer Indemnities")
from and  against,  and pay or  reimburse  Buyer  Indemnities  for,  any and all
claims, liabilities,  obligations, losses, fines, costs, royalties, proceedings,
deficiencies or damages (whether absolute, accrued, conditional or otherwise and
whether  or not  resulting  from third  party  claims)  including  out-of-pocket
expenses  and  reasonable  attorneys'  and  accountants'  fees  incurred  in the
investigation  or  defense  of any of the  same  or in  asserting  any of  their
respective rights hereunder (collectively,  "Losses"), resulting from or arising
out of, but not limited to:

                    (i)  any inaccuracy of any  representation  or warranty made
                         by Seller herein;

                    (ii) any  failure  of  Seller to  perform  any  covenant  or
                         agreement  hereunder or fulfill any other obligation in
                         respect hereof;

                    (iii) any liabilities (other than the Assumed Liabilities);

                    (iv) any of the Excluded Assets;

                    (iv) any and all Taxes of Seller;

                    (vi) any  and  all   Benefit   Liabilities   in  respect  of
                         Employees;

<PAGE>

                    (vii)all   liabilities   and  costs   arising   out  of  the
                         operations of the Business prior to the Closing Date or
                         relating to the Excluded Assets; and

                    (viii) any product  liability claim with respect to products
                         manufactured  or sold or events  occurring prior to the
                         Closing.

                  (b) By Buyer. Buyer covenants and agrees to defend,  indemnify
and  hold  harmless  Seller  and its  officers,  directors,  employees,  agents,
advisers,    representatives   and   Affiliates   (collectively,   the   "Seller
Indemnities")  from and against any and all Losses resulting from or arising out
of:

                    (i)  any  inaccuracy  in any  representation  or warranty by
                         Buyer made herein;

                    (ii) any  failure  of  Buyer  to  perform  any  covenant  or
                         agreement  hereunder or fulfill any other obligation in
                         respect hereof;

                    (iii)the  operation  of the  Business  by Buyer  or  Buyer's
                         ownership,   operation   or  use  of  the   Assets   or
                         performance under the Assumed Liabilities or employment
                         of any Employees employed by Buyer or product liability
                         claim with respect to products  manufactured or sold by
                         Buyer,  provided  such  activities  and or  liabilities
                         follow  or  arise  out of  Buyer's  actions  after  the
                         Closing  Date,  and  except to the extent  such  Losses
                         result from or arise out of any liabilities of Seller.

                  (c)  Indemnification  Procedures.  In the  case  of any  claim
asserted by a third party against a party entitled to indemnification under this
Agreement (the  "Indemnified  Party"),  notice shall be given by the Indemnified
Party to the  party  required  to  provide  indemnification  (the  "Indemnifying
Party") promptly after such Indemnified  Party has actual knowledge of any claim
as to which indemnity may be sought,  and the Indemnified Party shall permit the
Indemnifying  Party (at the  expense of such  Indemnifying  Party) to assume the
defense of any claim or any litigation  resulting  therefrom,  provided that (i)
the counsel  for the  Indemnifying  Party who shall  conduct the defense of such
claim or litigation shall be reasonably  satisfactory to the Indemnified  Party,
(ii) the Indemnified  Party may participate in such defense at such  Indemnified
Party's expense,  and (iii) the omission by any Indemnified Party to give notice
as  provided   herein   shall  not  relieve  the   Indemnifying   Party  of  its

<PAGE>

indemnification  obligation  under this Agreement except to the extent that such
omission  results in a failure of actual  notice to the  Indemnifying  Party and
such  Indemnifying  Party is  materially  damaged as a result of such failure to
give notice.  Except with the prior written consent of the Indemnified Party, no
Indemnifying  Party,  in the  defense  of any such  claim or  litigation,  shall
consent to entry of any judgment or enter into any settlement 'that provides for
injunctive or other non-monetary  relief affecting the Indemnified Party or that
does not include as an unconditional term thereof the giving by each claimant or
plaintiff to such Indemnified Party of a release from all liability with respect
to such claim or litigation.  In the event that the  Indemnified  Party shall in
good faith  determine  that the conduct of the  defense of any claim  subject to
indemnification  hereunder or any proposed  settlement  of any such claim by the
Indemnifying Party might be expected to affect adversely the Indemnified Party's
Tax  liability  or the  ability of Buyer to conduct  the  Business,  or that the
Indemnified Party may have available to it one or more defenses or counterclaims
that are  inconsistent  with one or more of those that may be  available  to the
Indemnifying Party in respect of such claim or any litigation  relating thereto,
the Indemnified  Party shall have the right at all times to take over and assume
control over the defense, settlement, negotiations or litigation relating to any
such  claim at the sole cost of the  Indemnifying  Party,  provided  that if the
Indemnified  Party does so take over and assume control,  the Indemnified  Party
shall not settle such claim or  litigation  without  the written  consent of the
Indemnifying Party, such consent not to be unreasonably  withheld.  In the event
that the  Indemnifying  Party does not accept the defense of any matter as above
provided,  the Indemnified Party shall have the full right to defend against any
such  claim or demand  and shall be  entitled  to settle or agree to pay in full
such claim or demand.  In any event, the Indemnifying  Party and the Indemnified
Party shall  cooperate in the defense of any claim or litigation and the records
of each shall be available to the other with respect to such defense.

         7.2   Survival   of   Representations   and   Warranties,    Etc.   The
representations and warranties  contained in Article III of this Agreement shall
survive the  execution  and delivery of this  Agreement  for a period of two (2)
years after the Closing Date.

         7.3 Expenses.  Seller,  on the one hand, and Buyer,  on the other hand,
shall bear their  respective  expenses,  costs and fees  (including  attorneys',
auditors' and financial  commitment  fees) in connection  with the  transactions
contemplated hereby,  including the preparation,  execution and delivery of this
Agreement and compliance herewith (the "Transaction  Expenses"),  whether or not
the transactions contemplated hereby shall be consummated.

         7.4  Severability.  If any provision of this  Agreement,  including any
phrase, sentence,  clause, section or subsection is inoperative or unenforceable
for any reason,  such  circumstances  shall not have the effect of rendering the
provision  in  question  inoperative  or  unenforceable  in any  other  case  or
circumstance, or of rendering any other provision or provisions herein contained
invalid, inoperative, or unenforceable to any extent whatsoever.

<PAGE>

         7.5  Notices.  All  notices,  requests,   demands,  waivers  and  other
communications  required or permitted to be given under this Agreement  shall be
in  writing  and  shall be  deemed  to have  been  duly  given if (a)  delivered
personally,  (b) mailed by  first-class,  registered or certified  mail,  return
receipt requested, postage prepaid, or (c) sent by next-day or overnight mail or
delivery or (d) sent by telecopy or telegram.

                         (i)     if to Buyer to,

                                 Rich Products Manufacturing Corporation
                                 1150 Niagara Street
                                 Buffalo, New York  14213
                                 Attn:   William E. Grieshober, Jr.

                         (ii)    if to Seller to,

                                 Starbake, Inc.
                                 c/o Paramark Enterprises, Inc.
                                 One Harmon Plaza
                                 Secaucus, New Jersey 07094
                                 Attention:   Alan S. Gottlich, President

                                 With a copy to:

                                 Saul Feiger, Esq.
                                 152-18 Union Turnpike
                                 Kew Garden Hills, New York  11367

or, in each case,  at such other  address as may be  specified in writing to the
other parties hereto.  All such notices,  requests,  demands,  waivers and other
communications  shall be deemed to have been received (w)if by personal delivery
on the day after such delivery,  (x) if by certified or registered  mail, on the
seventh business day after the mailing thereof,  (y) if by next-day or overnight
mail or delivery,  on the day delivered,  (z) if by telecopy or telegram, on the
next day following the day on which such telecopy or telegram was sent, provided
that a copy is also sent by certified or registered mail.

         7.7 Headings. The headings contained in this Agreement are for purposes
of convenience only and shall not affect the meaning or  interpretation  of this
Agreement.

<PAGE>

         7.7 Entire Agreement.  This Agreement  constitutes the entire agreement
and supersede all prior  agreements and  understandings,  both written and oral,
between the parties with respect to the subject matter hereof.

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

         7.9  Governing  Law,  Etc.  This  Agreement  shall be  governed  in all
respects, including as to validity, interpretation and effect, by the law of the
State of  California,  without  giving  effect  to the  conflict  of laws  rules
thereof.

         7.10 Binding Effect.  This Agreement shall be binding upon and inure to
the benefit of the parties  hereto and their  respective  heirs,  successors and
permitted assigns.

         7.11  Assignment.  This Agreement  shall not be assignable or otherwise
transferable  by any party hereto without the prior written consent of the other
party  hereto,  provided that Buyer may assign this  Agreement  effective on the
Closing Date to any Affiliate of Buyer,  provided,  that no assignment  shall in
any way affect Buyer's obligations or liabilities under this Agreement.

         7.12 No Third  Party  Beneficiaries.  Except as provided in Section 8.2
with respect to  indemnification of Indemnified  Parties  hereunder,  nothing in
this  Agreement  shall  confer any rights upon any Person other than the parties
hereto and their respective heirs, successors and permitted assigns.

         7.13 Amendment;  Waivers, Etc. No amendment,  modification or discharge
of this Agreement, and no waiver hereunder, shall be valid or binding unless set
forth in writing and duly executed by the party against whom  enforcement of the
amendment,  modification,  discharge or waiver is sought.  Any such waiver shall
constitute a waiver only with respect to the specific  matter  described in such
writing and shall in no way impair the rights of the party  granting such waiver
in any other  respect  or at any other  time.  Neither  the waiver by any of the
parties  hereto of a breach of or a default under any of the  provisions of this
Agreement,  nor the failure by any of the parties, on one or more occasions,  to
enforce any of the  provisions  of this  Agreement  or to exercise  any right or
privilege  hereunder,  shall be  construed  as a waiver of any  other  breach or
default of a similar nature, or as a waiver of any of such provisions, rights or
privileges hereunder. The rights and remedies herein provided are cumulative and
are not exclusive of any rights or remedies that any party may otherwise have at
law or in equity.  The rights and remedies of any party based upon,  arising out
of or otherwise in respect of any  inaccuracy  or breach of any  representation,
warranty,  covenant or agreement or failure to fulfill any condition shall in no

<PAGE>

way be limited by the fact that the act, omission,  occurrence or other state of
facts upon which any claim of any such inaccuracy or breach is based may also be
the subject matter of any other representation,  warranty, covenant or agreement
as to which there is no inaccuracy or breach. The representations and warranties
of Seller shall not be affected or deemed waived by reason of any  investigation
made by or on  behalf  of  Buyer  (including  but not  limited  to by any of its
advisors, consultants or representatives) or by reason of the fact that Buyer or
any of such advisors,  consultants or representatives  knew or should have known
that any such representation or warranty is or might be inaccurate.

         IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first above written.

RICH PRODUCTS MANUFACTURING CORP.              STARBAKE, INC.

By_______________________________              By___________________________

Title______________________________            Title__________________________

RICH PRODUCTS CORPORATION                      PARAMARK ENTERPRISES, INC.

By_______________________________              By___________________________

Title______________________________            Title__________________________

<PAGE>

SCHEDULE 1.1
Specified Assets.

<PAGE>

SCHEDULE 1.2
Inventory.

<PAGE>

SCHEDULE 2.4
Assumed Liabilities.

<PAGE>

SCHEDULE 3.1.6
Liens on Assets.

<PAGE>

SCHEDULE 3.1.9
Intellectual Property

STARBAKE TM

<PAGE>

SCHEDULE 3.1.16
Employee Benefit Plans

None.

<PAGE>

EXHIBIT 4.3.3(b)
Assignment and Assumption Agreement

<PAGE>

EXHIBIT 4.3.6
Consulting Agreements

See Attached.

<PAGE>

EXHIBIT 4.3.7
License AgreementLICENSE AGREEMENT

         LICENSE  AGREEMENT  (the  "Agreement"),  dated as of  October  9, 2000,
between RICH PRODUCTS  MANUFACTURING  CORPORATION,  a Delaware corporation d/b/a
Jon Donaire Desserts,  with its principal office located at 1150 Niagara Street,
Buffalo, New York ("Licensee"), and STARBAKE, INC., a Delaware corporation, with
an office located at One Harmon Plaza, Secaucus, NJ 07094, ("Starbake") a wholly
owned subsidiary of Paramark Enterprises,  Inc., a Delaware corporation with its
principal  office  located  at One Harmon  Plaza,  Secaucus,  New  Jersey  07094
("Paramark").  Paramark and Starbake are hereinafter collectively referred to as
"Licensor".

                                 R E C I T A L S

         A. Simultaneously herewith,  Licensor and Licensee have entered into an
Asset Purchase  Agreement (the "Purchase  Agreement"),  a copy of which Purchase
Agreement is annexed hereto and incorporated by reference as EXHIBIT A;

         B. Pursuant to the Purchase Agreement,  Licensor, as Seller, is selling
and conveying,  and Licensee,  as Buyer, is purchasing and accepting  conveyance
of, certain Assets related to the operation of a commercial  bakery  Business by
Licensor at 1919 Friendship Drive, La Jolla, California;

         C.  The  Purchase  Agreement  contemplates  a  Closing  on  the  Assets
subsequent hereto, however Licensee desires to assume operational control of the
Assets simultaneously  herewith,  and Licensor is willing to grant such control,
all subject to the terms of this Agreement and the Purchase Agreement;

<PAGE>

         NOW, THEREFORE,  in consideration of the representations and warranties
made herein, and of the mutual benefits to be derived hereby, and other good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

1.   INCORPORATION  OF  RECITALS.   The  Recitals  set  forth   hereinabove  are
incorporated into and made a part of this Agreement.

2.  CAPITALIZED  TERMS.  All  capitalized  terms  used but not  defined  in this
Agreement  shall have the same meaning as  respectively  ascribed to them in the
Purchase Agreement.

3.  CONFLICT.  In the event of any conflict  between the terms of this Agreement
and the terms of the Purchase  Agreement,  the terms of this Agreement  shall be
deemed controlling as if same had amended the Purchase Agreement.

4. LICENSE. Licensor hereby grants Licensee an exclusive license (the "License")
pursuant to which Licensee will, simultaneously with the execution herewith:

a.   Assume  control of the Assets and the Business as if a Closing had occurred
     under the Purchase Agreement;

b.   Accept  all  indicia  of  beneficial,  but not  legal,  title in all of the
     Assets;

c.   Have sole control and responsibility for all income and expenses related to
     the  Assets and the  Business  for  transactions  arising in respect to the
     Assets and the Business after the date of this Agreement;

d.   Assume full legal  liability for the Assumed  Liabilities as of the date of
     this  Agreement  and make  payments  therefor to Licensor not less than ten
     (10) days before the respective due dates for such payments unless Licensor
     directs  Licensee  in writing  to make any such  payments  directly  to the
     respective lessors and/or vendors;

<PAGE>

e.   Promptly  take  such  action as is  necessary  to insure  the  Business  in
     compliance  with the  requirements  set forth in the Lease and name on said
     insurance the lessor on the Lease and the Licensor as additional  insureds.
     An insurance  certificate  evidencing  the  foregoing  must be delivered to
     Licensor  within  forty eight (48) hours of the  execution  of this License
     Agreement.

5.  LICENSE  FEE.  Licensee  shall pay  Licensor a monthly  license  fee of Four
Thousand Dollars  ($4,000.00)(representing a per diem of $133.34) for the period
from the date of this Agreement  until the Closing,  or the  termination of this
License as more  specifically set forth  hereinbelow.  Licensee shall prepay the
license fee through  December 31, 2000  simultaneously  herewith.  To the extent
that a  Closing  occurs  prior  to  December  31,  2000,  or this  Agreement  is
terminated,  then any unearned  license fee shall be, as the case may be, either
(a) credited against the cash portion of the Purchase Price at Closing or (b) if
the Agreement is  terminated,  then  refunded to Licensee by certified  check or
wire  transfer to accounts  designated  by Licensee  within five (5) days of the
date of such  termination.  To the  extent  that the  Closing  may  occur  after
December 31, 2000, the Licensee shall continue to pay the monthly license fee on
January 1, 2001 and the first of each and every month  thereafter up to the date
of the Closing or the termination of this Agreement.

6.  REPRESENTATIONS  AND  WARRANTIES.  All  of  Licensor's  representations  and
warranties set forth in the Purchase  Agreement,  except as to those relating to
corporate status and authority, shall be deemed to have been made simultaneously
herewith  and,  subject to Section 7.2 of the Purchase  Agreement  shall have no
applicability for any periods subsequent to the date of this Agreement.

7.  COVENANTS OF SELLER.  None of Seller's  covenants set forth in Article IV of
the Purchase  Agreement  shall be effective  after the date hereof  except as to
those  covenants  set forth in Sections  4.1.2  through  4.1.8 and 4.3.2 through
4.3.6.

8.  INDEMNIFICATION.  Licensor's and Licensee's respective indemnity obligations
set forth in Article VI of the Purchase Agreement are modified so that the words
"Closing"  and "Closing  Date" therein is replaced by the words "the date of the
License Agreement".

9. LICENSE AGREEMENT TERMINATION. The License Agreement shall terminate upon the
earlier of the following:

a.   Closing under the Purchase Agreement;

b.   Termination of the Purchase  Agreement pursuant to the respective rights to
     terminate  granted therein,  including without  limitation,  termination by
     Licensor  in the event  Paramark  is unable to obtain  the  consent  of its
     shareholders to the transaction  contemplated by the Purchase  Agreement as
     required by applicable law and the rules and  regulations of the Securities
     and Exchange Commission.

<PAGE>

In such event,  this Agreement  shall be terminated and Buyer shall be obligated
to  re-convey  the  Assets  to  Seller,  all  as  more  particularly  set  forth
hereinbelow.

10. PROCEDURE IN THE EVENT OF TERMINATION OF THE LICENSE AGREEMENT.  If Licensee
shall  receive  written  notice (the  "Termination  Notice") from  Licensor,  or
Licensor's counsel,  that the Purchase Agreement is being terminated pursuant to
Section 9(b) hereinabove then each and all of the following shall occur or shall
be deemed to have occurred:

a.   All right,  title and  interest to the Assets  shall be deemed to have been
     automatically  re-conveyed to Licensor  simultaneously with the Termination
     Notice and Licensor shall immediately reassume possession of the Assets and
     the Business;

b.   Licensor and Licensee shall make immediate  arrangements for the Licensor's
     repurchase  from  Licensee  of  any  applicable  inventory  related  to the
     Business, as then existing, as mutually agreed; and

c.   Licensee shall fully cooperate with Licensor in effectuating  the intent of
     this Section 10 so that Licensor may reassume control of the Assets and the
     Business  as same  was held by  Licensor  prior  to the  License  Agreement
     subject to transactions  entered into by Licensee in the ordinary course of
     business after the date of this Agreement.

11.  SEVERABILITY.  If any  provision of this  Agreement,  including any phrase,
sentence,  clause, section or subsection is inoperative or unenforceable for any
reason,  such circumstances shall not have the effect of rendering the provision
in question  inoperative or unenforceable in any other case or circumstance,  or
of  rendering  any other  provision  or  provisions  herein  contained  invalid,
inoperative, or unenforceable to any extent whatsoever.

<PAGE>

12. NOTICES. All notices,  and other communications  required or permitted to be
given under this Agreement  shall be in writing and shall be deemed to have been
duly given if (a) delivered personally, (b) mailed by first-class, registered or
certified  mail,  return  receipt  requested,  postage  prepaid,  or (c) sent by
next-day or overnight mail or delivery or (d) sent by telecopy.

                          (i)  If to Licensee:

                               Rich Products Manufacturing Corporation
                               1150 Niagara Street
                               Buffalo, New York 14213

                               Attn:   William E. Grieshober, Jr.

                          (ii) If to Licensor:

                               Starbake, Inc.
                               c/o  Paramark Enterprises, Inc.
                               One Harmon Plaza
                               Secaucus, New Jersey   07094

                               Attention:   Alan S. Gottlich, President

                               With a copy to:

                               Saul Feiger, Esq.
                               152-18 Union Turnpike
                               Kew Garden Hills, New York  11367

or, in each case,  at such other  address as may be  specified in writing to the
other parties hereto. All such notices and other  communications shall be deemed
to have been received (w)if by personal delivery on the day after such delivery,
(x) if by certified or registered  mail,  on the seventh  business day after the
mailing  thereof,  (y) if by next-day or overnight mail or delivery,  on the day
delivered,  (z) if by telecopy,  on the next day following the day on which such
telecopy was sent.

13.  ENTIRE  AGREEMENT.  This  Agreement  constitutes  the entire  agreement and
supersedes  all prior  agreements  and  understandings,  both  written and oral,
between the parties with respect to the subject matter hereof.

14. COUNTERPARTS.  This Agreement may be executed in several counterparts,  each
of which shall be deemed an original and all of which shall together  constitute
one and the same instrument.

15.  GOVERNING  LAW,  ETC.  This  Agreement  shall be governed in all  respects,
including as to validity,  interpretation and effect, by the law of the State of
California, all as more specifically set forth in the Purchase Agreement.

16.  BINDING  EFFECT.  This  Agreement  shall be  binding  upon and inure to the
benefit  of the  parties  hereto  and their  respective  heirs,  successors  and
permitted assigns.

17. ASSIGNMENT. This Agreement shall not be assignable or otherwise transferable
by any party hereto without the prior written consent of the other party hereto.

18.  AMENDMENT;  WAIVERS,  ETC. No amendment,  modification or discharge of this
Agreement,  and no waiver hereunder,  shall be valid or binding unless set forth
in writing  and duly  executed  by the party  against  whom  enforcement  of the
amendment, modification, discharge or waiver is sought.

<PAGE>

         IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first above written.

LICENSEE:

RICH PRODUCTS MANUFACTURING CORP.

By_______________________________
Title______________________________

LICENSOR:

STARBAKE, INC.

By:      __________________

LICENSOR:

PARAMARK ENTERPRISES, INC.

By:      __________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]