Document:

exhibit10-4.htm

Exhibit 10.4

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

PRIME VENDOR AGREEMENT FOR PHARMACEUTICALS

           THIS AGREEMENT effective as of July 27, 2010 (the “Effective Date”), is between McKesson Corporation (“McKesson” or “MHS”), a Delaware corporation with its principal place of business at One Post Street, San Francisco, California 94104, and Omnicare, Inc. (“Omnicare”), a Delaware corporation with its principal place of business at 1600 RiverCenter 100 East RiverCenter Blvd. Covington, Kentucky 41011.

WHEREAS, MHS is engaged in the business of wholesale distribution of pharmaceuticals and the provision of related goods and services.  Omnicare is a pharmacy chain which dispenses pharmaceuticals and related goods and services through its long-term care, retail and specialty pharmacy facilities. Omnicare desires to avail itself on behalf of its owned and managed facilities of MHS’ distribution and other services upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the parties agree as follows:

 

	
1.             

	
DEFINITIONS

Except as otherwise stated herein, capitalized terms used in this Agreement will have the meanings set forth in Exhibit A hereto.

	
2.             

	
APPOINTMENT AND COMMITMENT

	
2.1             

	
Appointment of Prime Vendor.  Omnicare agrees (a) to purchase from MHS (i) at least [***] of the requirements for Pharmaceutical Products (excluding [***] and subject to clause (v), below) of Omnicare and the Omnicare Facilities, net of Permitted Purchases, as hereinafter defined (“Volume Net Purchase Percentage Requirement”); and (ii) an annual minimum of [***] in [***] purchases by [***] Omnicare Facilities (“[***] Purchase Requirement”), and (b) not to purchase Pharmaceutical Products from another wholesaler, except for purchases that are Permitted Purchases and purchases in amounts that would not cause Omnicare not to satisfy the requirement in (a)(i), above (collectively, “Prime Vendor Commitment”).

	
  

	
2.1.1

	
The term “Permitted Purchases” shall mean (i) purchases of [***]; (ii) purchases for [***], but only if such purchase is pursuant to a contractual commitment  of [***]; (iii) purchases from [***]; (iv) purchases of [***] that, as of the Effective Date, does not fall within the definition of Pharmaceutical Products (for example, [***]), but which during the term of this Agreement [***], but only to the extent [***]; and (v)  purchases of [***].  For the removal of doubt, nothing in this Agreement shall obligate Omnicare to purchase products or services now or hereafter offered by divisions of McKesson other than MHS that are not Pharmaceutical Products (e.g., robotics, medical surgical supplies, healthcare information systems.)

 

  

1

 

  

	
  

	
2.1.2

	
If Omnicare fails to meet either the Volume Net Purchase Percentage Requirement (as determined pursuant to Section 2.1.3) or a pro rata portion of the [***] Purchase Requirement during [***] (“Purchase Commitment Failure”), the alternative pricing matrices in Exhibit E attached hereto shall be applied to all Omnicare purchases during [***] in lieu of the pricing matrices set forth in Section 4.1, below.  At the completion of [***] in which Omnicare failed to meet either the Volume Net Purchase Percentage Requirement or [***] Purchase Requirement during [***], if Omnicare has met such requirements for [***], then McKesson shall pay Omnicare a true-up rebate in the additional amount necessary as though the applicable matrices set forth in Section 4.1 had been applied in lieu of the alternative pricing matrices in Exhibit E.  The pricing adjustment(s) applied pursuant to this Section 2.1.2 shall be the exclusive remedy for a Purchase Commitment Failure and, if applicable, any corresponding breach of the representation and warranty in Section 2.1.3, unless (w) during [***], Omnicare failed to meet both requirements of clause (a) of the definition of Prime Vendor Commitment, (x) during [***], Omnicare failed to meet clause (b) of the definition of Prime Vendor Commitment, (y) [***] is [***] in which Omnicare failed to meet clause (a) of the definition of Prime Vendor Commitment, or (z) Omnicare intentionally breached one or more requirements of the Prime Vendor Commitment.  In the case of sub-clause (w), (x), (y) or (z) of the foregoing sentence, MHS shall be entitled to all rights and remedies available to it notwithstanding any possibility that Omnicare may earn the true-up rebate available to it pursuant to this Section 2.1.2.

	
  

	
2.1.3

	
Omnicare represents and warrants that it will meet or exceed the Volume Net Purchase Percentage Requirement throughout the Term and will promptly notify McKesson of any failure to comply with the Volume Net Purchase Percentage Requirement.  If McKesson [***], then, within [***], Omnicare [***].  In the event [***], [***], which notice shall set forth in reasonable detail [***].  Upon delivery of such notice the parties [***].

	
  

	
2.1.4

	
Omnicare agrees: (i) to purchase [***] and (ii) to purchase [***].  Purchases under this Section shall mean purchases from McKesson under this Agreement and purchase calculations shall be calculated [***].

	
2.2             

	
Omnicare Facilities.  The term “Omnicare Facility” shall be defined as a facility now or hereafter owned or controlled by Omnicare that orders, dispenses, handles, packages, repackages, stores or otherwise uses pharmaceutical products, including, but not limited to, a pharmacy, repackaging operation and/or warehouse location, and Omnicare  Purchasing Company, L.P.; provided that (i) any such facility that is controlled but not owned by Omnicare shall not be included as an “Omnicare Facility” under this Agreement unless such facility meets MHS’s reasonable credit requirements and (ii) any such facility, whether owned or controlled by Omnicare, shall not be included as an “Omnicare Facility”  under this Agreement without the prior written consent of McKesson if the addition of such facility would materially alter the average cost to serve Omnicare’s then existing Omnicare Facilities.  A list of all current Omnicare Facilities is attached to this Agreement as Exhibit B and incorporated herein by this reference.    Upon the addition (subject to any consent required pursuant to this Section 2.2) or deletion (e.g., sale or closure) of any Omnicare Facility, Omnicare shall give McKesson written notice of such addition or deletion, and Exhibit B will be deemed amended by such written notice.  Omnicare agrees to provide McKesson with such information regarding new facilities as reasonably required to open a new account therefor.

 

  

2

  

 

	
3.             

	
TERM AND TERMINATION

	
3.1             

	
This Agreement shall supersede the Prime Vendor Agreement for Pharmaceuticals (made December 22, 2003 and effective January 1, 2004), as amended.  This Agreement shall have an initial term from July 27, 2010 through October 31, 2013 (“Initial Term”), and following the Initial Term, this Agreement shall be renewed automatically for up to two (2) successive one-year period(s) (each such period a “Renewal Term”) unless McKesson shall have given Omnicare written notice of non-renewal at least one hundred fifty (150) days prior to the expiration of the Initial Term or then current Renewal Term.  For purposes of this Agreement, the period beginning on the Effective Date and continuing through the earlier of (i) the expiration Initial Term or the last Renewal Term or (ii) the effective date of any termination of this Agreement pursuant to Section 3.2, shall be defined as the “Term” of this Agreement.  Each twelve-month period ending on any June 30 following the Effective Date shall constitute a “Contract Year,” except that the first Contract Year shall be the period from July 27, 2010 through June 30, 2011.  McKesson’s offer to enter into this Agreement shall automatically expire at 5:00p.m. Eastern Time on July 26, 2010, unless this Agreement has been executed and delivered by Omnicare to McKesson prior to such time.

 

3.2           This Agreement may be terminated prior to expiration only as follows:

	
  

	
3.2.1

	
Omnicare may terminate this Agreement [***] in accordance with Sections [***], 13.3 and 13.6.  MHS may terminate this Agreement in accordance with Sections [***], [***], 13.3 and 13.6. Either party may terminate this Agreement upon (i) the other party’s failure to make any payment due hereunder within fifteen (15) days following written notice of such failure or (ii) any other material breach of the Agreement by either party which remains uncured forty-five (45) days following written notice thereof.

	
  

	
3.2.2

	
Upon the occurrence of any of the following events to a party, the other party may, without prejudice to its other rights, terminate this Agreement upon written notice:

	 	
3.2.2.1

	
If such party shall wind up, liquidate, or dissolve itself; or

	 	
3.2.2.2

	
If such party shall file any petition under any bankruptcy, reorganization, insolvency or moratorium laws, or any other law or laws for the relief of or in relation to the relief of debtors; or

 

	 	
3.2.2.3

	
If such party shall file any involuntary petition under any bankruptcy statute or a receiver or trustee shall be appointed to take possession of all or a substantial part of its assets which has not been dismissed or terminated within sixty (60) days of the date of such filing or appointment; or

	 	
3.2.2.4

	
If such party shall make a general assignment for the benefit of creditors or shall become unable or admit in writing its inability to meet its obligations as they mature; or

 

  

3

  

 

	 	
3.2.2.5

	
If such party shall institute any proceedings for liquidation or the winding up of its business other than for purposes of reorganization, consolidation or merger.

	
3.2.3             

	
[***]

	
3.2.4             

	
[***]

3.3           Continuing Obligations.  In the event of a termination hereunder:

	
3.3.1             

	
Obligations Incurred Prior to Termination.  The liability of each party for obligations incurred prior to the effective termination or expiration date, and any associated finance charges, costs of collection, reasonable attorneys’ fees and late payment fees pursuant to Section 4.6.6, shall survive termination.

	
3.3.2             

	
Obligation for Additional Products.  Omnicare shall be obligated to purchase from MHS all Additional Products that (i) have been purchased by MHS exclusively for Omnicare as of the date of such termination or notice of termination and (ii) cannot be returned by MHS to the vendor for a full refund.  Omnicare shall pay the original invoice price charged to MHS by the vendor of such Additional Products or the contract price in effect at the time of purchase by Omnicare, if lower, less any cash discount received by MHS.  Any such Additional Product will be saleable, undamaged, have at least six months dating (with the exception of private label items) and will be delivered in one shipment to Omnicare or to a destination designated by Omnicare.  Omnicare shall also be liable for all shipping charges that would otherwise be charged pursuant to the terms of this Agreement.

	
3.3.3             

	
The following provisions of this Agreement will survive termination or expiration of this Agreement in accordance with their terms: Section 3.3 (Continuing Obligations), Section 4.5 (Cost Verification), Section 4.6.3 (Payment Terms)(with respect to Products ordered and shipped during the Term of this Agreement), Section 4.6.6 (Late Payment Fees), Section 4.6.7 (Right to Change Payment Terms)(with respect to Products ordered and shipped during the Term of this Agreement), Section 4.8, Section 4.9, Section 5.4 (Returned Goods) (with respect to Products ordered and shipped during the Term of this Agreement), Section 5.5 (Product Warranty; Authorized Distributor/Pedigree)(with respect to Products ordered and shipped during the Term of this Agreement), Section 12 (Confidential Information), and Sections 13.3, 13.4, 13.5, 13.7, 13.10, 13.11, 13.12, 13.13, 13.15 (Governing Law), 13.16 (Entire Agreement) and 13.18 (Punitive Damages).

	
4.             

	
PRICING AND PAYMENT

 

	
4.1             

	
[***].  Subject to Subsection 4.2 below, McKesson agrees to distribute and sell Products to Omnicare Facilities [***].  Omnicare may elect to change its payment terms among those set forth in Section 4.6.3, subject to credit approval, [***]. In the event of such change, the pricing set forth in the applicable Pricing Matrices will be adjusted in accordance with the following table:

 

  

4

  

 

PAYMENT TERM ADJUSTMENTS FOR ALL FACILITIES

 

	
Terms

	
Adjustment

	
[***]

	
[***]

	  	  
	
[***]

	
[***]

	  	  
	
[***]

	
[***]

	  	  
	
[***]

	
[***]

PRICING MATRIX FOR NON-RETAIL OMNICARE FACILITIES

 

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

PRICING MATRIX FOR QUALIFYING RETAIL FACILITIES

 

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

PRICING MATRIX FOR NON- QUALIFYING RETAIL FACILITIES

 

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  

Pricing incorporates the elimination of [***].  Omnicare reserves the right to review [***].

All Retail Omnicare Facilities will receive [***].

	
4.1.1             

	
The pricing matrices herein are based on Omnicare [***], and are further conditioned upon Omnicare [***]:

	
4.1.1.1                        

	
[***]

	
4.1.1.2                        

	
[***]

 

  

5

  

 

	
4.1.1.3                        

	
[***]

Omnicare can elect to have [***] included in [***], subject to delivery to MHS of reasonably supporting documentation therefor.

If Omnicare fails during [***] to achieve [***] or [***].  Following the giving of any such notice, the parties [***].  If the parties come to agreement [***].  If the parties have not come to agreement [***].  The alternative pricing matrices set forth in Exhibit E attached hereto shall be applied to all purchases under this Agreement during [***] in lieu of the pricing matrices set forth in Section 4.1 above.  For purposes of this Section, “[***]” shall mean [***].  For the avoidance of doubt, the foregoing shall not limit any rights or remedies available to McKesson for breach of Section 2.

	
4.1.2             

	
If Products purchased by [***] meets or exceeds, for [***], [***].  Following the giving of any such notice, the parties [***]. 

If Products purchased by [***] during [***] meets or exceeds [***], then [***], and [***] on prior written notice [***].

	
4.1.3             

	
Beginning on the Effective Date, but subject to the immediately following sentence, McKesson shall provide to Retail Omnicare Facilities the pricing [***] available to Qualifying Retail Facilities based on [***].  For any Non-Qualifying Period, MHS shall apply the pricing [***] available for Non-Qualifying Retail Omnicare Facilities to purchases made by Retail Omnicare Facilities during such Non-Qualifying Period through [***].

	
4.1.4             

	
Pricing in this Agreement is based upon [***].  In the event of any [***] from any manufacturer [***], Omnicare and MHS will [***].  Should Omnicare and MHS [***], provided that [***] after reasonable written notice thereof, and such purchase [***], provided that nothing in this Section 4.1.4 shall require [***].

	
4.1.5             

	
From time to time, Omnicare and MHS may enter into separate pricing arrangements for certain [***] Products.  Such [***] Products may be priced in accordance with such separate pricing arrangements and not the Pricing Matrices herein, provided however that purchases of such [***] Products [***].  The list of such [***] Products, current as of the Effective Date, is attached here to as Exhibit D.  Exhibit D may be updated from time to time upon the agreement of the parties.

	
4.2             

	
Specially Priced Product. The purchase price for selected Products (limited to generic products sold under MHS proprietary generics programs (e.g., McKesson OneStop Generics® Program, Network Net), repackaged pharmaceuticals, [***], private label products, health and beauty care products, medical surgical supplies, home health care/durable medical equipment, Products acquired by MHS from vendors not offering customary cash discounts or other terms, and other Slow Moving and/or non-pharmaceutical, Products) will not be based upon [***] described in Section 4.1 above, but will instead be billed in accordance with the terms and conditions established by MHS (including applicable markup) for such Products.  Products described in this paragraph are sometimes referred to as "Specially Priced Products."

 

  

6

  

 

	
4.3             

	
Taxes.  The foregoing pricing does not include any applicable sales, use, business and occupation, or other taxes on the sale of Products hereunder (other than taxes on McKesson’s net income), which will be added to the pricing of Products sold to Omnicare Facilities.

	
4.4             

	
[***]. The foregoing pricing [***].  No [***] will [***] in which [***].

	
  

	
4.5

	
Cost Verification.  Upon Omnicare’s reasonable request and prior written notification, invoices reflecting MHS’ acquisition cost with respect to Products purchased by Omnicare from and after the Effective Date but, in any event, within the prior 12 month period during the Term (excluding purchases of [***]), shall be made available for audit by a representative of Omnicare during business hours. During the six-month period following the Term, Omnicare shall have one opportunity to verify invoices from the last 12-month period of the Term as set forth in this Section 4.5, to the extent not already audited.

 

	
4.6             

	
Credit and Payment

	
4.6.1             

	
MHS will invoice direct to Omnicare for all Products ordered and shipped.  Invoices will not be dated prior to the date of actual shipment.  Omnicare shall be responsible for payment of goods and services provided by MHS to Omnicare.

	
4.6.2             

	
Invoices shall be in one of MHS’ standard forms selected by Omnicare.

	
4.6.3             

	
Payment Terms. The following payment terms options for Products covered by this Agreement are available to Omnicare, on at least 30 days’ prior notice, effective beginning in the quarter following such notice; unless, at the time of any election by Omnicare to change its payment terms, its financial condition is not, in the reasonable opinion of MHS, adequate to support such new terms.

	
4.6.3.1                        

	
[***] Prepayment Terms.  The prepayment is a one-time payment equivalent to [***] (based on the most recent three-month purchase history) which is held as a deposit by MHS.  The amount of the required deposit will be adjusted quarterly, and may be adjusted as often as monthly, to cover increases or decreases in purchase volume.  Following such one time payment, all purchases are payable as set forth below under [***] Terms. Payment is required via ACH or other EFT acceptable to MHS.

	
4.6.3.2                        

	
[***] Payment Terms: Invoices dated from [***] are due and payable by [***]. Payment is required once a week via ACH or other EFT acceptable to MHS.

	
4.6.3.3                        

	
[***] Payment Terms: Invoices dated from the [***] are due and payable on the [***].  Invoices dated from the [***] are due and payable on the [***]. Payment is required via ACH or other EFT acceptable to MHS.

	
4.6.3.4                        

	
[***] Payment Terms: Invoices dated from the [***]  are due and payable on the [***]. Payment is required via ACH or other EFT acceptable to MHS.

	
4.6.3.5                        

	
Other Payment Terms: As mutually agreed by the parties.

 

  

7

  

 

	
  

	
4.6.4

	
For purposes of this Agreement, "due and payable" means that Omnicare shall make any payments due hereunder on such date as shall be required to provide MHS with good funds in hand on each of the designated due dates specified in the Payment Term section of this Agreement. Omnicare may defer payment with respect to any shortage in a shipment, but only to the extent of such shortage and only if Omnicare has notified MHS of such shortage within three (3) business days of receipt of the shipment.

	
  

	
4.6.5

	
If Omnicare continues to elect [***] Payment Terms, if the payment due date is a holiday, payment is due and payable on the following day.  If Omnicare elects any other Payment Terms, if the due date falls on a weekend day or holiday, payment is due and payable on the preceding business day.

 

 

	
  

	
4.6.6

	
Late Payment Fees.  Payment by either party other than as stated may result in a late payment fee equal to [***].  A party imposing a late payment fee shall provide courtesy notification to the other party of such fee and the specific payment to which it relates (such notice by McKesson shall be deemed sufficient if made via fax, email or phone call to the attention of Omnicare’s Vice President of Purchasing) within ten (10) days of the late payment.  The late payment fee shall be calculated on the basis [***].  Upon the applicable party’s request, the late payment fee shall be payable in arrears on the 10th and 25th of each month.

	
  

	
4.6.7

	
Right to Change Payment Terms.  Without limiting MHS’s rights under this Agreement or applicable law, which rights are hereby expressly reserved, MHS reserves the right to change a payment term (including imposing the requirement of cash payment upon delivery with an adjustment in pricing consistent with the pricing matrix in Section 4.1 plus associated additional handling charges) or limit total credit, if Omnicare fails to make any payment in accordance with the terms of this Agreement, except for Excused Late Payments.  “Excused Late Payments” shall mean (i) payments made during the [***] and at a time when [***] and (ii) payments made during the [***] at a time when [***], provided that the payments described in clauses (i) and (ii) occur during the [***]; provided further that the payments described in clauses (i) and (ii) are [***].

	
  

	
4.6.8

	
[***].  On at least thirty (30) days’ prior written notice to McKesson, Omnicare shall have the right, on a quarterly basis, effective for the following quarter, to elect to have such part of its [***], provided that Omnicare’s election shall cause [***].  Unless and until such notice is given, Omnicare’s [***] will reflect [***]. This [***].  This [***] will be reported and disclosed consistent with Section 13.11.

	
  

	
4.6.9

	
[***].  Every [***] that is not [***] will be entitled to receive [***], payable [***]. This [***] will be reported and disclosed consistent with Section 13.11.

	
  

	
4.6.10

	
[***]. Omnicare’s pricing will be [***] in accordance with the table below [***].  [***] pursuant to this Section shall [***].  [***]  This [***] will be reported and disclosed consistent with Section 13.11.

                                              [***]                       [***]

Ø [***]                 [***]

Ø [***]                 [***]

Ø [***]                 [***]

 

  

8

  

 

	
4.6.11                        

	
[***].  If an Omnicare Facility elects to [***], the appropriate pricing schedule percentage [***].  Omnicare or any Omnicare Facility may elect to [***].  McKesson reserves the right to disallow a [***].  This [***] will be reported and disclosed consistent with Section 13.11.

	
4.6.12                        

	
[***].  Conditioned upon Omnicare’s [***] exceeding [***] in [***], [***] in accordance with the table below (“[***]”).  Any [***] pursuant to this Section [***].  This [***] will be reported and disclosed consistent with Section 13.11.

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

 

	
4.6.13                        

	
OneStop Program.  Omnicare hereby agrees that each Retail Omnicare Facility (other than [***]) will participate in the OneStop Program (each such Retail Omnicare Facility, a “OneStop Facility”).  Omnicare shall have the right to opt out of such participation by providing McKesson at least [***] advance written notice thereof.  Omnicare acknowledges and agrees that Omnicare Facilities [***] with respect to the OneStop Program, including but not limited to any [***], other than as set forth herein.

 

Omnicare has previously executed and delivered the Retail Omnicare Facility Authorization and agrees to continue to comply with such form.

4.7           [***]

	
4.7.1             

	
[***].  Omnicare [***] based on [***] as follows:

 

 

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
4.7.1.1                        

	
“[***]” shall mean, with respect to any [***], the [***].   

	
4.7.1.2                        

	
If Omnicare in good faith disputes the [***] due to the classification of Pharmaceutical Product as [***] and such classification resulted in [***], Omnicare and MHS [***] within [***] of written notice thereof by Omnicare.  Omnicare shall include in such notice the Pharmaceutical Product(s) which are the basis for such dispute and reasonable supporting documentation for the classification of the Pharmaceutical Product(s) as [***].

 

  

9

  

 

	
4.7.1.3                        

	
The above [***] and [***]. This [***] will be reported and disclosed consistent with Section 13.11 (Antikickback Compliance).

	
4.7.1.4                        

	
In the event that MHS [***], MHS [***] on [***] prior written notice, and the parties [***].

	
4.7.2             

	
Top Tier OneStop Program.

	
4.7.2.1                        

	
Each OneStop Facility may purchase OneStop Program products through the Top Tier OneStop Program.  The current list of Top Tier OneStop Program products available for purchase under the Top Tier OneStop Program (“Program Products”) and the negotiated net prices for each (“Negotiated Net Prices”) is attached hereto as Exhibit C, which may be amended, modified and supplemented from time to time as set forth below (“Program Products”).

	
4.7.2.2                        

	
[***].  [***] shall be [***] followed by [***].

	
4.7.2.3                        

	
[***].

The OneStop Facilities [***] on the [***] commencing on [***].  The [***] will be calculated [***].  For the avoidance of doubt, if [***], Omnicare [***].  For purposes of this Section, “[***]” shall mean [***].

McKesson may offer updated Negotiated Net Prices by [***], which, unless reasonably objected to by Omnicare within [***], shall take effect for [***] until further revised pursuant to this paragraph.  In the event Omnicare objects pursuant to the prior sentence, the parties [***], and the [***] shall take effect on a prospective basis at the start of [***].  The parties agree that such procedures shall be sufficient to amend Exhibit C with out any further action. Notwithstanding the foregoing, nothing in this Agreement shall prohibit McKesson from removing a product from Exhibit C at any time; provided, however, McKesson shall provide Omnicare with prior written notice of such removal (which notice may be made via e-mail).

McKesson [***] no later than [***].  The [***] will be reported and disclosed consistent with Section 13.11 (Antikickback Compliance).

	
4.7.2.4                        

	
If, during the term of this Agreement, Omnicare [***], then McKesson [***].  If McKesson [***], OneStop Facilities [***] the applicable products offered to Omnicare through the Top Tier OneStop Program from McKesson.  If McKesson [***], Omnicare [***] the applicable Program Product from the Top Tier OneStop Program.

 

  

10

  

 

	
4.7.2.5                        

	
In the event that McKesson terminates its McKesson OneStop Generics® Program for its customers generally, McKesson [***] on [***] prior written notice, and the parties [***].

	
4.7.3             

	
[***].  Each Omnicare Facility [***]; provided that, [***]. McKesson [***] no later than [***].  For purposes of this Section, “[***]” shall mean [***].

	
4.8  

	
Without limiting any other Section of the Agreement, McKesson [***] for [***] against [***].

 

The [***] pursuant to this Agreement are [***] and will be reported and disclosed consistent with Section 13.11.

 

	
4.9  

	
Notwithstanding anything to the contrary set forth in this Agreement, with respect to the partial calendar month and the partial calendar quarter at the beginning of the Term and any partial calendar month or partial calendar quarter at the end of the Term, all [***] will be adjusted downward proportionally to take into account the reduced number of days in such first partial calendar month, first partial calendar quarter, last partial calendar month (if any), and last partial calendar quarter (if any).

	
5.             

	
DISTRIBUTION SERVICES

	
5.1.1             

	
Agreement to Distribute.  Subject to the pricing and other terms and conditions of this Agreement, MHS agrees to sell and distribute all pharmaceutical products (whether over-the-counter, prescription, or scheduled pharmaceuticals) and related healthcare products normally stocked by a wholesale pharmaceutical distributor to eligible Omnicare Facilities. An Omnicare Facility may from time to time request that additional products (“Additional Products”) be stocked by MHS to satisfy such Omnicare Facility's reasonable needs.  Such request shall be in writing, and shall be accompanied by a utilization estimate of the Additional Products meeting the manufacturer’s minimum order requirements. All manufacturers of Additional Products must offer industry standard trade terms and must meet MHS’ standard indemnification, insurance and other requirements to become an approved vendor. Subject to Section 2.1.4, sales and distribution may be on a Direct Store Delivery or Dock-to-Dock basis.

	
5.1.2             

	
Ordinary course orders for products to be shipped to Omnicare non-warehouse facilities in normal volumes and regular purchase velocity will be handled as Direct Store Delivery.  Orders that are in excess of [***], except that the following categories of sales [***]:

	
5.1.2.1                        

	
Sales of [***], orders which are (i) consistent with [***]; (ii) repeated in [***]; (iii) from vendors that have approved such [***]; and (iv) as to which Omnicare agrees to purchase [***].

	
5.1.2.2                        

	
[***], upon such prior notice as is reasonably required for the parties to obtain [***], which shall initially be no less than [***], and which shall be adjusted by good faith agreement of the parties based on their joint experience in obtaining such [***].

 

  

11

  

  

5.2           Ordering

	
  

	
5.2.1

	
Electronic Transmission.  All Omnicare Facilities purchasing Products hereunder are required to transmit their orders electronically via MHS’ toll-free order entry system.

	
  

	
5.3

	
Delivery

	
5.3.1            

	
Scheduled Deliveries.  MHS will make one (1) delivery per day, Monday through Friday (excluding holidays), to each of the Omnicare Facilities.  MHS will make all Monday – Friday regular deliveries to Omnicare no later than 10:00 am.  Omnicare or the individual Omnicare location may charge MHS [***] for any delivery that is delivered later than [***].

	
5.3.2            

	
Order Transmission Times.  Orders transmitted to MHS by the local distribution center's order transmission deadline shall be delivered on the next business day.  Order cut off time for transmissions Sunday through Thursday shall be no earlier than 7:00pm.

	
5.3.3            

	
F.O.B.  All deliveries of Products will be F.O.B. destination to the Omnicare Facilities within the United States at their respective addresses set forth on Exhibit B, except in the states of Hawaii and Alaska in which delivery fees may apply.

	
5.3.4            

	
Transportation.  MHS may make deliveries to Omnicare Facilities by MHS’s trucks, common carriers or other means selected by MHS.

	
5.3.5            

	
Emergency Service.  MHS provides emergency service twenty-four (24) hours per day, seven (7) days per week.  MHS will make available to each Omnicare Facility emergency telephone and pager numbers for primary and secondary contacts at each distribution center which services such Omnicare Facility.  Extraordinary delivery costs (e.g., air freight shipments and after hours delivery services) will be at the expense of the Omnicare Facility.  Each Omnicare Facility will be allowed [***].  Each [***] will be subject to the fee table below:

	
Via:

	
Fee:

	
Will Call

	
[***]

	
Ground

	
[***]

	
Two Day

	
[***]

	
Overnight

	
[***]

*Note: There are restrictions on hazardous items (which are shipped via ground courier) and controlled substances (which must be filled by the primary Distribution Center).

	
5.3.6            

	
Disaster Plan.  MHS has a plan to provide for delivery in the event of a natural disaster.  MHS’ local distribution center will assist the Omnicare Facility in developing and implementing a custom procurement plan to respond to natural disasters which affect such Omnicare Facility and/or such distribution center.

 

  

12

  

 

	
5.3.7            

	
Alternate Sourcing of Product.  In the event a distribution center is out of a particular product, MHS can ship shorted product(s) from another MHS distribution center and the product will be delivered within 48 hours.  When requested by an Omnicare Facility before 1:00pm, MHS will make reasonable efforts to have the required product alternate sourced and delivered within 24 hours of the request.

	
5.3.8            

	
Shipments will be in accordance with all applicable regulations and packaging requirements. Cytotoxic agents are shipped in special plastic wrapped bags with special oncology logo attached for identification purposes. All products that are temperature sensitive will be shipped with the appropriate protective packaging.

	
5.3.9            

	
Order Separation by Department or Cost Center: MHS agrees to deliver Product to an Omnicare facility sorted by the designated departments if Omnicare transmits orders separated by department via McKesson’s electronic ordering system.

	
5.3.10                        

	
Material Safety Data Sheet: When requested by an Omnicare Facility, MHS will provide Material Safety Data Sheets.

	
  

	
5.4

	
Returned Goods.  Subject to any applicable federal and/or state law, rule or regulation (including without limitation laws, rules and regulations of the State of Florida), MHS will process returned goods for items purchased by Omnicare from MHS, in accordance with this Returned Goods Policy (which is subject to change by MHS under the circumstances described in Section 5.4.7, effective upon thirty (30) days' prior notice to Omnicare), as follows:

5.4.1 Definitions

	
5.4.1.1                        

	
Saleable Products shall include the following:

	
·  

	
Products are determined saleable by MHS based upon the ability to resell the item without special handling, refurbishing or other expense; or

	
·  

	
Saleable Products must have dating of the then current month plus six (6) months remaining until expiration. Exceptions to this dating policy are:

	
i)  

	
Refrigerated and other temperature-controlled Products; or

 

	
ii)  

	
Products deemed permanently short-dated by MHS and manufacturers.

In the above-specified instances as set forth in Subsections 5.4.1.1(i) and (ii), the Omnicare Facility shall be permitted to return the Products with the then current month plus three (3) months remaining until expiration.

 

  

13

  

 

	
5.4.1.2                        

	
Unsaleable Products shall include the following:

	
·  

	

Products with less than the then current month plus six (6) months remaining until expiration (except as otherwise provided in Section 5.4.1.1);

 

	
·  

	
Products with torn or damaged packaging;

 

	
·  

	
Products with labels attached (prescription or price sticker);

 

	
·  

	
Products that are soiled, stained or worn;

 

	
·  

	
Products that fail to have a safety or security seal intact; or

 

	
·  

	

Products returned to McKesson that do not include such Omnicare Facility’s signature on the returns authorization form to assure that the Product has been stored and protected under proper conditions specified by the manufacturer.

	
5.4.1.3                        

	
MHS reserves the right to determine whether a Product is saleable or unsaleable upon inspection of the returned item.

5.4.2           Products Authorized For Return to MHS

  Omnicare must provide signed verification certifying that proper conditions for storage, handling and shipping have been maintained for all Products returned to McKesson.

	
5.4.2.1                        

	
Saleable Product and Unsaleable Product purchased from MHS, unless otherwise blocked for return as required by manufacturer return policies, regulatory requirements, or where MHS is unable to obtain financial reimbursement from the manufacturer.   ;

	
5.4.2.2                        

	
Unsaleable Products purchased from MHS which can be returned by MHS to the manufacturer according to their policy;

	
5.4.2.3                        

	

McKesson Private Label Products (Valu-Rite®, Health Mart®, and SunmarkTM )

	
5.4.2.4                        

	
Products recalled by a manufacturer or in the case of a manufacturer  withdrawing the Product from market in original manufacturer containers.  Authorized returns of partials require the Omnicare Facility to include pill counts, NDC and lot number for any Products not returned in its original manufacturer container.

 

  

14

  

 

	
5.4.3  

	
Products not eligible for return shall include the following:

	
·  

	
Products that were not purchased from MHS;

 

	
·  

	
Products that are not physically carried by MHS;

 

	
·  

	

Expired Products that go beyond a manufacturer’s acceptable return period;

 

	
·  

	
Saleable Products that have been improperly stored (unless returnable as an Unsaleable Product);

 

	
·  

	

Unsaleable returns of Customer’s or its group purchasing organization’s private label Products;

 

	
·  

	

Products not in their original container;

 

	
·  

	

Products requiring refrigeration except for Products shipped by McKesson in error or received damaged, or signed and verified by Omnicare that the Product integrity is intact;

 

	
·  

	

Repackaged Products (includes RxPak, overbag or “Robot-ready” products) that have less than nine (9) months dating or are defined as Unsaleable Product;

 

	
·  

	
Products discontinued by manufacturer and no longer stocked by MHS;

 

	
·  

	
Controlled Substances containing hazardous materials;

 

	
·  

	
Partial bottles, liquids and other containers (except in the instance of recall of a Product) other than Controlled Substances;

 

	
·  

	
Schedule II Controlled Substances (as evaluated on individual return requests); or

 

	
·  

	
Products damaged or defaced at the Omnicare Facility location or on the shelf (unless returnable as Unsaleable Product).

 

	
5.4.4  

	

Product Shortages and Mispicks.  MHS will provide credit for Product shortages and mispicks, provided that (x) Omnicare or the Omnicare Facility provides McKesson the applicable invoice number and (y) any claim is submitted within [***] of the original invoice date.  Claims filed after [***] will not be considered.

 

	
5.4.5  

	
[***]. MHS will provide the following [***] as calculated from the date of [***]:

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

Omnicare Facility Eligibility

 

                Any existing or future owned or managed Omnicare Facility shall be eligible for returns and percentage of credit provided under this Agreement.

 

  

15

  

 

	
5.4.6  

	
Pricing Determination on Returned and Recalled Goods

MHS will use the invoice price when an Omnicare Facility provides a valid invoice number.

If no invoice number is provided, the following pricing rules will apply:

	
·  

	
For Products which are Contract Products on the date the return authorization is created, an Omnicare Facility will be credited the Contract Price.

 

	
·  

	
For non-Contract branded Rx/OTC Products, an Omnicare Facility will be credited a weighted average price based on such Omnicare Facility’s past twelve (12) month purchase history.

 

	
·  

	
For non-Contract Generic Products, an Omnicare Facility will be credited the lowest price paid by such Omnicare Facility over the past twelve (12) months.

 

	
·  

	
For non-Contract Products purchased more than 12 months prior to the date the return authorization is created, an Omnicare Facility will be credited the manufacturer's published acquisition cost (exclusive of cash discounts) on the date of the of the return authorization.

Any handling charges will apply where appropriate to the determined price.

 

Final credit issued is based upon the condition and timing of the returned goods to MHS.

	
5.4.7  

	
Notification of Changes

MHS reserves the right to change the above stated Returned Goods Policy at any time with thirty (30) days' notification to Omnicare, provided such changes are necessary in MHS’ reasonable opinion to comply with changes in applicable law or other governmental requirements or reflect changes in manufacturer return policies.

	
  

	
5.5

	
Product Warranty; Authorized Distributor/Pedigree. McKesson warrants and guarantees to Omnicare that as of the date of delivery, the Products will not be adulterated, misbranded or counterfeit drugs within the meaning of the Federal Food, Drug and Cosmetic Act, 21 U.S.C. 301 et seq., as amended (the “Act”) and in effect at the time of such delivery or within the meaning of any applicable state or municipal law  and such Product is not, at the time of such delivery, merchandise which may not be introduced into interstate commerce under the provisions of Sections 404 or 405 of the Act (21 U.S.C. 344 and 355).  Without limitation of the foregoing, McKesson warrants and guarantees that each Product will be handled by it in compliance with all applicable legal requirements and such applicable manufacturer specifications to the extent communicated from manufacturer to McKesson (including, without limitation, appropriate temperature control.)  McKesson further warrants and guarantees to Omnicare that McKesson is, and at all times during the Term of this Agreement will be, an authorized distributor of record for each of the Products and will, unless otherwise agreed by the parties, deliver the Products with any legally required pedigree in compliance with the Prescription Drug Marketing Act ("PDMA"), which added section 503(e) to the Food, Drug, and Cosmetic Act (21 U.S.C. 353(e)), applicable regulations set forth at 21 C.F.R Part 203.50 and all applicable State laws.

	
6.             

	
SERVICE LEVEL

[***].  For purposes of this Agreement, the following inventory management definitions and service level performance commitments are outlined below:

 

  

16

  

 

	
6.1             

	
Definitions:

	
  

	
6.1.1

	
[***] shall mean an MHS system that [***].  Items are [***].  The [***] are determined by [***].  Specifically, the [***] are used to determine an [***].  The [***].  [***] are set at the account level.   Items that are [***] are [***].  For example, [***].  Items with variability in actual or anticipated demand are typically [***].

This program is not designed to restrict the customer’s ability to do business effectively.  If an Omnicare Facility [***].   MHS requires [***].  If the [***], MHS will require [***].  A [***] will also require [***].  MHS will provide Omnicare on [***]. [***] applied to Omnicare orders shall be [***].

	
  

	
6.1.2

	
Manufacturer Unable to Supply (MUS) items are items unable to be supplied due to the manufacturer’s inability to meet market demand.  These are shortages typically greater than 3-5 business days.  Orders received partially complete, orders received after their scheduled delivery day, and orders not shipped to the distribution center leading to an omit are classified as a MUS. MHS will validate with the supplier the reason of the shortage and expected resolution.  The reasons for MUS may include production delays, quality control issues, raw material shortages, discontinuation of product, and recalls.

	
  

	
6.1.3

	
Temporary outs  shall mean short term outages that are not attributed to a manufacturer supply issue.  The reasons for temporary outs may include:

· Lead time variability

· Demand variability

· Cycle count discrepancies

· Delays in receiving

	
6.2             

	
MHS shall maintain a [***] line adjusted service level on Omnicare’s top 200 dollar volume items, and a [***] line adjusted service level on all of Omnicare’s items.  MHS shall deliver to Omnicare a quarterly written report showing its line adjusted service level for each calendar quarter of the Term, including a detailed calculation of same, not later than thirty (30) business days after the end of each such quarter.  Service level is defined as the total number of lines shipped divided by the total number of lines ordered, minus the following exclusions:

	
·  

	
Manufacturer Unable to Supply (MUS)

	
·  

	
Products not stocked by MHS

	
·  

	
All discontinued items or items recalled by manufacturer

	
·  

	
Product reordered within 48 hours of an original shortage

	
·  

	
Products whose usage exceed 150% of the most recent average without notice

	
·  

	
Products supplied through alternate source or product substitution delivered by the following day.

Partial lines will be counted as the actual percentage of the line filled (e.g., 6 of 10 equal 60% of the line

	
6.3             

	
In the event MHS fails to maintain the [***], MHS will credit such Omnicare Facility in an amount equal to [***].  So long as MHS is current in the crediting of such amounts, such failure shall not in itself constitute a default hereunder.

 

  

17

  

 

	
6.4             

	
MHS will provide Omnicare a monthly summary of all items omitted due to manufacturer unable to supply (MUS).  This summary shall be in the electronic media format currently in use between the parties, or such other format as the parties may mutually agree upon from time to time.

	
6.5             

	
Implementation of New or Newly Acquired Omnicare Facilities.    New or newly acquired Omnicare Facilities [***] of (i) [***] and (ii) such [***].

7.           CONTRACT MANAGEMENT

	
7.1             

	
MHS agrees to service all manufacturers’ contracts negotiated by Omnicare, provided such manufacturers are approved suppliers of MHS that have satisfied its indemnification, insurance and other corporate requirements. Products will be supplied at Omnicare’s negotiated contract price plus MHS’ applicable markup or discount as described in the Cost of Goods section above.

	
7.2             

	
MHS is able to [***]. MHS will load [***].  MHS will load the files electronically or manually depending on the medium in which the bid file data is furnished to MHS. All [***]. As deemed eligible by manufacturers, for [***], Omnicare will receive the [***], unless Omnicare notifies MHS otherwise.

	
7.3             

	
MHS shall have up to forty-five (45) days to perform the initial loading of a group purchasing organization contract from receipt of the notification from the group purchasing organization.  Thereafter, MHS will load vendor contract updates within five (5) business days after the applicable bid file data is furnished to MHS by Omnicare’s group purchasing organization and confirmed by the vendor.

	
7.4             

	
An Omnicare Facility's eligibility for participation under a vendor contract must be authorized by the vendor, Omnicare and/or Omnicare’s group purchasing organization before the contract is loaded by MHS for such Omnicare Facility.  Each Omnicare Facility and Omnicare shall be liable for unpaid chargebacks resulting from eligibility and/or pricing issues. Omnicare is also responsible for denied chargebacks due to the lack of proper notification of group membership.

	
7.5             

	
In the event a vendor: (i) makes an assignment for the benefit of creditors, files a petition in bankruptcy, is adjudicated insolvent or bankrupt, or if a receiver or trustee is appointed with respect to a substantial part of the vendor's property or a proceeding is commenced against it which will substantially impair its ability to pay on chargebacks; or (ii) otherwise defaults in the payment of chargebacks to MHS, Omnicare shall be invoiced and become liable for the unpaid chargebacks allocable to its purchases from such vendor.

	
7.6             

	
Price Discrepancy Process. The MHS contract pricing specialist assigned to Omnicare will [***] to address price file accuracy.  Omnicare will submit to MHS [***].  Omnicare will [***] to submit all claims for such credits and any other documentation related to the pricing discrepancy [***]. With the data received from Omnicare, MHS will [***].  All discrepancies between Omnicare’s information and the MHS file information will be [***].

 

  

18

  

 

	
7.7             

	
Should pricing information from Omnicare and the MHS contract pricing file conflict, the documentation from the manufacturer shall take precedence.  Omnicare has the right to directly contact the manufacturer for verification of contract pricing.

	
7.8             

	
As a result of MHS research, if credit is required to correct a contract pricing error, MHS will complete this process within fifteen (15) days of verification of the correct price.

	
7.9             

	
MHS will credit Omnicare for all price errors that are validated during this fifteen (15) day period; in the event that MHS is unable to complete its research within the fifteen (15) day period, MHS will reimburse Omnicare for the reported price discrepancies.  Such credit will be offset by researched and reconciled add bills from denied chargebacks by manufacturers and approved for payment according to the then current payment terms if the dollar amount of add bills exceed credit and re-bills.

	
7.10             

	
Omnicare shall be responsible for notifying vendors and MHS of any change in membership.  Each Omnicare Facility’s membership must be authorized by the vendor and the group purchasing organization before contracts are loaded to the account. (Notification should be sent to the National Processing Center, McKesson Health Systems, 1220 Senlac, Carrollton, TX 75006.)  The membership notification process can be set up for electronic transmission.

	
7.11             

	
When requested by Omnicare, MHS will provide reasonable pricing verification and/or proof of delivery for shipments pursuant to a bona fide request by Omnicare.

8.           ORDERING EQUIPMENT AND REPORTS

	
8.1             

	
One (1) Telxon hand held electronic order entry unit with a bar code scanning wand will be supplied to each Omnicare Facility at no charge upon such Omnicare Facility’s request.  Additional Telxon units are available for Thirty-Five Dollars ($35.00) per month per Telxon.  To accommodate annual physical inventories, a reasonable number of additional Telxon units will be loaned to Omnicare Facilities at no charge for a 3-week period, not to exceed four such requests per year.

	
8.2             

	
As a replacement to the EconoLink system, McKesson Connect is offered to each Omnicare Facility at no charge and shall be subject to a separate license agreement between the parties governing use and maintenance.

	
  

	
8.3

	
MHS shall provide Omnicare Corporate Headquarters with access to McKesson Connect and corporate office management reporting.

	
  

	
8.4

	
MHS shall retain title to all hardware provided hereunder and Omnicare Facilities shall return same to MHS upon the earlier of termination of this Agreement or termination of such Omnicare Facility's use of MHS as Prime Vendor.

	
8.5             

	
In the event MHS discontinues use of Telxon, EconoLink2000 system, Group EconoLink2000 system and/or McKesson Connect during the term of this Agreement, and replaces it with another service offering, MHS will make such replacement offering available to Omnicare Facilities at no charge.

 

  

19

  

 

	
8.6             

	
Shelf Labels & Price Stickers.  MHS will supply each Omnicare Facility with bar-coded shelf labels and price stickers at no charge via the McKesson Connect functionality.

 

	
9.             

	
ACCOUNT MANAGEMENT

	
9.1             

	
Account Manager.  MHS shall furnish to all Omnicare Facilities a professional account manager knowledgeable in the various aspects of pharmacy purchasing to assist on an as-necessary basis in inventory control and management, ordering processes and problem solving.  Routine visits shall be made monthly unless otherwise determined between MHS and the Omnicare Facility. Business Planning and Review Meetings will be scheduled quarterly.

	
9.2             

	
Quarterly Business Reviews.  Omnicare and MHS shall conduct quarterly business reviews to include appropriate management and maintain focus on the critical metrics of performance within the scope of this Agreement, and the key initiatives for the success of both organizations.

	
10.             

	
OMNICARE’S REPRESENTATIONS

Omnicare represents that:

	
10.1             

	
Omnicare understands that nothing herein shall restrict or limit MHS in any way with respect to the prices it may charge to Omnicare Facilities for products not covered under this program.

	
10.2             

	
All Products purchased by non-Retail Omnicare Facilities are purchased for dispensing to patients of such Omnicare Facilities or for such patients’ own use and, further, shall not be resold or used for any other purpose.

[EXCEPT FOR SECTION HEADINGS, THE NEXT TWO PAGES OF THE AGREEMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

	
11.             

	
[***]

	
11.1             

	
[***]

 

	
11.2             

	
[***] 

 

	
11.3             

	
[***]

 

	
11.4             

	
[***]

 

	
11.5             

	
[***]

 

  

20

  

 

	
12.             

	
CONFIDENTIAL INFORMATION

	
12.1             

	
Confidential Information. Except as specifically set forth in Section 12.2, neither party shall, without the prior written consent of the other party, provide, disclose, transfer or otherwise make available any Confidential Information, or any portion or copy thereof, to any third party.  Each party shall take the same security precautions to protect against disclosure or unauthorized use of the Confidential Information that it takes with its own confidential information of a similar kind, which in no event shall be less than a reasonable standard of care to prevent any such disclosure or unauthorized use.  For purposes of this Agreement, “Confidential Information” shall mean all non-public information relating to the other party’s business, including (i) technical, marketing, financial, personnel and planning information and medical records, (ii) other information that is marked confidential or which the receiving party should reasonably to know to be confidential given the nature of the information and the circumstance of disclosure, and (iii) this Agreement and the terms and conditions hereof; provided, however, that Confidential Information will not include any information:

	
12.1.1                

	
lawfully obtained or created by either party independently of, and without use of, Confidential Information and without breach of any obligation of confidence;

	
12.1.2                

	
that is in or enters the public domain without breach of any obligation of confidence; or

	
12.1.3                

	
required to be disclosed by law, to the extent required to comply with that legal requirement, provided that the party making such disclosure will promptly notify the other party of such requirement and allow the other party a reasonable opportunity to request confidential treatment of such information.

	
12.2             

	
Use and Disclosure. Notwithstanding the requirements of Section 12.1, each party may (i) disclose Confidential Information to its employees or contractors solely to the extent that they need to know such Confidential Information for the purposes of this Agreement, and who are bound by confidentiality terms with respect to that Confidential Information no less restrictive than those contained in Section 12.1;and (ii) use  Confidential Information  only for the purpose of performing its obligations under this Agreement.

	
12.3             

	
Return of Confidential Information.  Each party will return to the other party, and destroy or erase all of the other party’s Confidential Information in tangible form, upon the expiration or termination of this Agreement, and each party will promptly certify in writing to the other party that it has done so.

	
12.4             

	
Use of Purchase Information.  Without limiting the generality of the foregoing provisions of this Section 12, McKesson will not distribute Omnicare purchase information for reasons other than the submission of chargeback requests to the manufacturer, without the express written authorization of an officer of Omnicare.

	
13.             

	
MISCELLANEOUS

	
13.1             

	
External Event.

	
  

	
13.1.1

	
For purposes of this Section, an “External Event” shall mean an event or series of events [***] that has or is likely to have [***].    By way of illustration and not of limitation, an External Event may include [***]. In response to [***].  The [***] shall identify [***].  As soon as practicable after receipt of such [***], but in any event [***].  Simultaneously with such receipt, [***], which notice shall set forth [***].  If, [***], the parties [***].  If there [***].

  

21

  

	
  

	
13.1.2

	
Each party agrees that prior to filing any lawsuit or other legal action against the other party regarding any issue or dispute arising out of or otherwise relating to this Section 13.1, the parties will submit such issue or dispute to mediation pursuant to Section 11.5 of this Agreement.

	
  

	
13.2

	
Assignment.  Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, which consent will not be unreasonably withheld; provided, however, that Omnicare may assign its rights and obligations under this Agreement, without the prior written consent of McKesson, to a successor to Omnicare’s business by reason of merger, sale of all or substantially all of Omnicare’s assets or similar transaction; provided, further, however, that MHS may assign its rights and obligations under this Agreement, without the prior written consent of Omnicare, to a subsidiary or parent of MHS (but in such event MHS shall remain liable for any nonperformance of this Agreement by its assignee unless otherwise agreed to with Omnicare).

	
  

	
13.3

	
Severability.  If all or part of a provision of this Agreement is found illegal or unenforceable in a respect not material to either party, it will be enforced to the maximum extent permissible, and the legality and enforceability of the remainder of that provision and all other provisions of this Agreement will not be affected.  If all or part of a provision of this Agreement is found illegal or unenforceable in a respect material to either party, it will also be enforced to the maximum extent permissible, and the legality and enforceability of the remainder of that provision and all other provisions of this Agreement will not be affected; provided, that the parties shall negotiate in good faith to replace such illegal or unenforceable provision with a provision which is legal and enforceable and achieves the same objective to the greatest extent possible; provided, further, that if the parties are unable to reach agreement upon such a replacement provision within thirty (30) days after the provision in question is declared illegal or unenforceable, any party materially and adversely affected by such determination shall be entitled to terminate this Agreement by giving the other party not less than sixty (60) days’ written notice of termination.

	
  

	
13.4

	
Notices.  All notices directed to the parties' legal rights and remedies under this Agreement will be provided in writing and will reference this Agreement.  Such notices will be deemed given: (i) if sent by facsimile, when complete transmission to the recipient is confirmed by the sender's facsimile machine; (ii) if sent by postage prepaid registered or certified U.S. Post mail, then five (5) working days after sending; or (iii) if sent by commercial courier, then at the time of receipt confirmed by the recipient to the courier on delivery.  All notices to a party will be sent to its address set forth below, or to such other address as may be designated by that party by notice to the sending party in accordance with this section:

If to MHS:

McKesson Corporation

One Post Street, 22nd Floor

San Francisco, California 94104

Attention:      Director, Deal Development

McKesson Corporation

Fax: (415) 983-8650

 

  

22

  

 

With a copy to:

Law Department

McKesson Corporation

One Post Street, 33rd Floor

San Francisco, California  94104

Attention:     Counsel

McKesson Health Systems

Fax: (415) 983-9369

If to Omnicare, Inc.:

Omnicare, Inc.

1600 RiverCenter  II

                                100 East RiverCenter Blvd.

                                Covington, KY 41011

Attention:   Dan Maloney

                     Vice President - Purchasing

                     Fax: (859) 392-3333 

                     Phone: (859) 392-3356 

With a copy to:

General Counsel

Omnicare, Inc.

1600 RiverCenter  II

100 East RiverCenter Blvd.

Covington, KY 41011

Fax: (859) 392-3333 

Phone: (859) 392-3300 

	
  

	
13.5

	
Waiver.  Any failure of a party to exercise or enforce any of its rights under this Agreement will not act as a waiver of such rights.

	
  

	
13.6

	
Force Majeure.   A party will not be liable to the other party for any failure or delay in performance caused by fires, shortage of materials or transportation, government acts, acts of terrorism, or any other matters beyond the first party's reasonable control, and such failure or delay will not constitute a material breach of this Agreement.  A party shall give the other party prompt written notice of any event excusing its nonperformance pursuant to this Section, including a detailed description of such event, the exact nature and extent of such party’s nonperformance caused thereby and the anticipated duration of same.  A party shall give the other party further written notice of the end of any force majeure event.  In the event that a party’s non-performance pursuant to this Section continues for more than sixty (60) days and such non-performance is material to the other party, the other party may terminate this Agreement by giving written notice of termination to the other party.  Notwithstanding anything to the contrary set forth in this Agreement, to the extent that McKesson’s material failure to supply Products is excused pursuant to this Section, during the period of non-performance contemplated herein (a) Omnicare shall be entitled to obtain Products from one or more alternate suppliers to the extent McKesson is unable to supply such items, and (b) if such nonperformance results in Omnicare failing to satisfy any commitment or condition hereunder, Omnicare shall not be deemed to have failed to satisfy such commitment or condition.  Upon the termination of any force majeure event, Omnicare’s duties and obligations under this Agreement shall simultaneously and automatically resume.

 

  

23

  

 

	
  

	
13.7

	
Amendment.  This Agreement may be modified, or any rights under it waived, only by a written document executed by both parties.

	
  

	
13.8

	
Publicity.  Following the execution of this Agreement, the parties may issue a joint press release or other public announcement regarding the execution of this Agreement, in such form as mutually agreed by the parties.  No other public announcement or press release regarding this Agreement or the activities performed under this Agreement shall be made by either party except as may be required, upon the advice of independent counsel to such party, in order to prevent liability to such party under applicable securities laws or otherwise with the prior written consent of the other party.

	
  

	
13.9

	
Counterparts.  The parties may execute this Agreement in one or more counterparts, each of which will be an original, and which together will constitute one instrument.

	
  

	
13.10

	
Relationship of Parties.  Each party enters into and performs this Agreement as an independent contractor of the other party.  This Agreement will not be construed as constituting a relationship of employment agency, partnership, joint venture or any other form of legal association, except as expressly set forth in this Agreement.  Each party will have no power, and will not represent that it has any power, to bind the other party or to assume or to create any obligation or responsibility on behalf of the other party or in the other party's name.

	
  

	
13.11

	
Antikickback Compliance.  IT IS THE INTENT OF THE PARTIES TO ESTABLISH A BUSINESS RELATIONSHIP WHICH COMPLIES WITH THE MEDICARE AND MEDICAID ANTI-KICKBACK STATUTE AS SET FORTH AT 42 U.S.C. §1320a-7b(b).  IN ACCORDANCE WITH 42 C.F.R.§ 1001.952(h), MHS (AS SELLER) WILL (A) FULLY AND ACCURATELY REPORT ANY DISCOUNT ON INVOICES, STATEMENTS, OR REPORTS SUBMITTED TO OMNICARE OR OMNICARE FACILITIES, OR (B) WHERE THE VALUE OF A DISCOUNT IS NOT KNOWN AT THE TIME OF A SALE, FULLY AND ACCURATELY REPORT THE EXISTENCE OF A DISCOUNT PROGRAM ON THE INVOICE, STATEMENT, OR REPORTS SUBMITTED TO OMNICARE OR OMNICARE FACILITIES AND, WHEN THE VALUE OF THE DISCOUNT BECOMES KNOWN, PROVIDE OMNICARE AND OMNICARE FACILITIES WITH DOCUMENTATION OF THE CALCULATION IDENTIFYING THE SPECIFIC GOODS OR SERVICES PURCHASED TO WHICH THE DISCOUNT WILL BE APPLIED TO OMNICARE AS BUYER.  WHERE A DISCOUNT OR OTHER REDUCTION IN PRICE IS APPLICABLE, THE PARTIES ALSO INTEND TO COMPLY WITH THE REQUIREMENTS OF 42 U.S.C. §1320a-7b(b)(3)(A) AND THE “SAFE HARBOR” REGULATIONS REGARDING DISCOUNTS OR OTHER REDUCTIONS IN PRICE SET FORTH AT 42 C.F.R. §1001.952(h).  IN THIS REGARD, THE PARTIES ACKNOWLEDGE THAT MHS WILL SATISFY ANY AND ALL REQUIREMENTS IMPOSED ON SELLERS BY THE SAFE HARBOR AND OMNICARE AND/OR OMNICARE FACILITIES WILL SATISFY ANY AND ALL REQUIREMENTS IMPOSED ON BUYERS.  THUS, OMNICARE  AND/OR OMNICARE FACILITIES WILL ACCURATELY REPORT ON THE APPLICABLE COST REPORT, UNDER ANY STATE OR FEDERAL PROGRAM WHICH PROVIDES COST BASED REIMBURSEMENT TO OMNICARE FOR THE PRODUCTS AND SERVICES COVERED BY THIS AGREEMENT, THE NET COST ACTUALLY PAID BY AN OMNICARE FACILITY, AND FOR ANY FEDERAL HEALTH CARE PROGRAM WHICH PROVIDES CHARGE-BASED REIMBURSEMENT TO OMNICARE FACILITIES OMNICARE AGREES TO MAKE AVAILABLE, UPON REQUEST BY THE SECRETARY OF THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES OR A STATE AGENCY, INFORMATION PROVIDED TO OMNICARE BY MCKESSON CONCERNING DISCOUNTS PROVIDED PURSUANT TO THIS AGREEMENT.  MCKESSON HAS INFORMED OMNICARE OF OMNICARE'S FEDERAL STATUTORY AND REGULATORY REPORTING OBLIGATIONS.  IN THE EVENT EITHER PARTY DETERMINES THAT THIS DISCOUNT PROGRAM MAY NOT COMPLY WITH SUCH STATUTES, THE PARTIES AGREE TO WORK TOGETHER TO ESTABLISH A DISCOUNT STRUCTURE THAT MEETS THE REQUIREMENTS OF SUCH STATUTES.  TO THE EXTENT ANY APPLICABLE LAW, REGULATION, OR GOVERNMENTAL OR JUDICIAL ORDER REQUIRES DISCLOSURE TO ANY GOVERNMENTAL AGENCY OF ANY INFORMATION REGARDING MHS’S SALE OF PRODUCTS TO OMNICARE UNDER THIS AGREEMENT MHS WILL USE REASONABLE BEST EFFORTS TO PROVIDE OMNICARE PRIOR NOTICE BEFORE MAKING SUCH DISCLOSURE.

 

  

24

  

 

	
  

	
13.12

	
COMPLIANCE WITH "ANTI-KICKBACK STATUTE".  The Parties hereby certify that they will not violate the Medicare/Medicaid Anti-Kickback Statute, 42 U.S.C 1320a-7b(b), with respect to the performance of this Agreement.

	
  

	
13.13

	
Construction of Agreement.  This Agreement has been negotiated by the parties and its provisions will not be presumptively construed for or against either party.  The headings and section titles in this Agreement are used for convenience only, and will not affect the construction or interpretation of this Agreement.

	
  

	
13.14

	
[***].  MHS shall use [***] to provide Omnicare [***].

	
  

	
13.15

	
Governing Law. This Agreement and all rights and liabilities of the parties shall be subject to and governed by the substantive law (and not the choice of law rules) of the State of New York.

	
 

 

	
13.16             

	
Entire Agreement.  This Agreement embodies the entire agreement between the parties with regard to the subject matter hereof and supersedes all prior agreements, understandings and representations (including without limitation, that certain Prime Vendor Agreement for Pharmaceuticals between MHS and Omnicare made December 22, 2003 and effective January 1, 2004, as amended, certain Letters of Understanding between MHS and Omnicare dated January 28, 2007 and December 1, 2008) with the exception of any separate pricing arrangements for certain Generics Products as contemplated under Section 4.1.4, or any promissory note, security agreement or other credit or financial related document(s) executed by Omnicare or between Omnicare and McKesson.  This Agreement may not be modified, supplemented or extended except by a writing signed by both parties. This Agreement supersedes any and all prior MHS agreements and discount plans in which any Omnicare Facility may currently be participating.

 

  

25

  

 

	
13.17             

	
Nothing in this Agreement shall be construed as requiring McKesson to perform any obligations hereunder or engage in any action or omission that McKesson reasonably determines as violating or puts McKesson in jeopardy of violating any applicable law.  Without limiting the generality of the foregoing, McKesson shall comply with all applicable laws, rules, regulations, ordinances and governmental requirements, guidelines and pronouncements relating to controlled pharmaceutical drugs (“Controlled Substances”), including but not limited to the Federal Controlled Substances Act and regulations promulgated thereunder by the Drug Enforcement Administration.  In the event that (i) performance of the terms of this Agreement would cause McKesson, in its reasonable determination, to be noncompliant with or in jeopardy of being noncompliant with any federal, state or local law, rule, regulation or ordinance or any governmental requirement, guideline or pronouncement involving Controlled Substances or any other regulated products or activities, including but not limited to the Drug Enforcement Administration’s regulatory requirements for verifying its customers and reporting suspicious or excessive orders, or (ii) McKesson receives a complaint, notice, warning letter or other communication from a governmental agency alleging noncompliance with any Controlled Substances laws, rules or regulations in relation to McKesson’s distribution of the Pharmaceutical Products under this Agreement or to Omnicare’s actions or omissions with respect to Controlled Substances or any other regulated products or activities, McKesson shall have the right, within its sole and absolute discretion, to limit or deny any order for Controlled Substances as warranted by McKesson’s established diversion monitoring program.

 

	
13.18             

	
Punitive Damages.  NEITHER PARTY SHALL HAVE ANY LIABILITY FOR ANY PUNITIVE OR EXEMPLARY DAMAGES, WHETHER OR NOT SUCH PARTY IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  

 

	
13.19             

	
[***].  Omnicare agrees to provide MHS, through its division McKesson Packaging Services, [***].  Omnicare further agrees to provide MHS [***].  If MHS [***], Omnicare agrees to [***]; subject to Omnicare reasonably determining that [***].

 

	
13.20             

	
This Agreement covers the distribution of Products within the United States, Puerto Rico and the United States territories.

 

 

 

EXECUTION COPY

  

26

  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year written below.

	
OMNICARE, INC.

	  	
MCKESSON CORPORATION

	
 

By: /s/ Dan Maloney

	  	
 

By: /s/ Paul Julian

	
Signature

 

Dan Maloney

	  	
Signature

 

Paul Julian

	
Printed Name

 

Vice President - Purchasing

	  	
Printed Name

 

Executive Vice President and Group President

	
Title

 

July 26, 2010

	  	
Title

 

July 26, 2010

	
Date

	  	
Date

EXECUTION COPY

  

27

  

EXHIBIT A

DEFINITIONS

“ACH” means automated clearing house.

“Additional Products” has the meaning set forth in Section 5.1.1.

“[***]” has the meaning set forth in Section [***].

“[***]” means, for [***].

“[***]” for [***] means [***].

“[***]” for [***] means [***].

“[***]” will be determined by [***].

 

 

“[***]” means [***].

“Confidential Information” has the meaning set forth in Section 12.1.

“Contract Price” means the cost (before distribution fees) for a Contract Product determined pursuant to the pricing contract (to which MHS has access) negotiated by Omnicare or the group purchasing organization to which it is a member and the manufacturer of the Contract Product.

“Contract Product” means a Product for which Omnicare is entitled to a Contract Price (via a chargeback to be processed through MHS) pursuant to a pricing contract negotiated by Omnicare or a group purchasing organization of which it is a member and the manufacturer of such Contract Product.

“Contract Year” has the meaning set forth in Section 3.1.

“[***]”  means: [***].

“Direct Store Delivery” or “DSD” means sales from McKesson’s inventory to non-warehouse Omnicare Facilities.

”Dock-to-Dock” or “DTD” sales means sales of products pursuant to orders which are outside of normal direct store delivery to Omnicare Facilities supported by MHS’ forward distribution centers and which are not received into MHS’ inventory system, but are either shipped directly to Omnicare Facilities by the manufacturer or are manually received by McKesson and sent to Heartland/Vanguard.  Dock-to-Dock sales shall include, without limitation, drop shipments.

“EFT” means electronic funds transfer.

“Generic” means (a) any Pharmaceutical Product sold pursuant to an abbreviated new drug application under the Federal Food, Drug and Cosmetics Act, and (b) any “authorized generic drug” as such term is defined at 42 C.F.R. §447.506(a).

 

  

28

  

 

“[***]” has the meaning set forth in the definition of [***].

“[***]” has the meaning set forth in Section [***].

“[***]” has the meaning set forth in Section [***].

“McKesson OneStop Generics® Program” has the meaning set forth in the definition of OneStop Program.

“[***]” means [***].

“[***]” has the meaning set forth in [***].

“Non-Qualifying Retail Facilities” shall mean all Retail Omnicare Facilities [***].

“Omnicare Facilities” has the meaning set forth in Section 2.2.

"[***]" means [***].

“OneStop Program” means the proprietary McKesson OneStop Generics® program (“McKesson OneStop Generics® Program”), including the auto-substitution feature, available to Omnicare pursuant to this Agreement.  For purposes of this Agreement, [***] (as described in Section [***]) are [***].

“Pharmaceutical Products” means [***].

“Prime Vendor” means that MHS shall be the first choice for the purchase of all Pharmaceutical Products normally purchased through wholesale pharmaceutical distributors.

“Prime Vendor Commitment” has the meaning set forth in Section 2.1.

“Products” means collectively Pharmaceutical Products, Additional Products and any and all of the pharmaceutical products and related healthcare products available for sale from MHS.

“Purchase Commitment Failure” has the meaning set forth in Section 2.1.2.

“Qualifying Retail Facilities” means, with respect to [***], all Retail Omnicare Facilities (other than [***]), provided that the following requirements are met: [***]. 

 “Retail” means Omnicare Facilities which principally dispense medications to patients on a walk-in basis, rather than through medication delivery.  In no event shall an Omnicare Facility which principally dispenses medications via medication delivery (e.g., LTC) or the mail (e.g., specialty) be deemed “Retail” hereunder as a consequence of such Omnicare Facility dispensing a small proportion of its medications to walk-in customers.

“Service Level” has the meaning set forth in Section 6.

“Slow Moving Product” means Product that is [***] by sales volume of its therapeutic class (as defined by First DataBank) and which either has a therapeutic equivalent listed in the FDA Orange Book (i.e., a Generic equivalent) with the same strength, dosage and presentation (e.g., tablets, capsules or suspension) available from McKesson or has another package size of the given strength, dosage and presentation from the same manufacturer available from McKesson.

“[***]” has the meaning set forth in Section [***].

“[***]” has the meaning set forth in Section [***].

 EXECUTION COPY

  

29

  

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

 

EXHIBIT B

OMNICARE FACILITIES LIST

	
CUSTOMER NUMBER

	
CUSTOMER NAME

	
003995

	
NEIGHBORCARE INF DME

	
006733

	
APS - HICKORY

	
007568

	
OMNICARE HLTH NETWORK DME

	
014837

	
EVERGREEN PHCY, INC

	
020906

	
NCS HLTHCARE OF KANSAS

	
027621

	
ROESCHEN'S OMNICARE PHARM

	
031427

	
NIHAN & MARTIN RETAIL   M

	
034699

	
ZZINDEPENDENT HEALT021610

	
041985

	
DANNY'S PHCY DME

	
044697

	
NCS HEALTHCARE CORP

	
044898

	
CENTRAL PHARMACY CO

	
048725

	
BROADWAY DME PHCY

	
059323

	
OMNICARE OF FT WORTH

	
068658

	
GLOBALREHABLP

	
070304

	
SO.DESERT LTC/LCPS AQUISI

	
077176

	
OMNI OF PERRYSBURG DSD-CL

	
080633

	
ASCO HEALTHCARE INC

	
085433

	
HEARTLAND PHY OF IL-DIV V

	
093934

	
CAPITOL HOME INFUSION-HIV

	
098722

	
OMNICARE PHOENIX

	
108252

	
OMNICARE OF ST. CAMILLUS

	
112009

	
OMNICARE KING PRUSSIA IV

	
116499

	
HEARTLND PHY OF IL-DIV II

	
116768

	
EVERGREEN PHARMACY

	
116824

	
NEIGHBRCARE CEDR CREST RT

	
129340

	
CREEKSIDE MANAGED CARE

	
136934

	
PINNACLE PHARM LACROSSE

	
137746

	
MAIN STREET PHARMACY RTL

	
144543

	
OMNICARE OF CAROLINA

	
147820

	
NEIGHBORCARE EAGLES TRACE

	
149444

	
MAIN STREET PHCY LLC RTL

	
156831

	
ELDERCARE HOME PHARM

	
166770

	
NEIGHBORCARE  BROOKSBY RT

	
169797

	
STERLING HEALTHCARE SVS

	
178713

	
NCS HLTHCARE OF MEMPHIS

	
182778

	
BEST CARE PHARMACY

	
182949

	
PHCY ASSOC GLENS FALLS

	
182998

	
ROYAL CARE HHC       DME

	
185066

	
OMNICARE OF WESTERN NY

	
190407

	
MAIN STREET PHCY LLC RTL

	
193277

	
OMNICARE CL INTERVENTION

	
203541

	
NEIGHBORCARE OAK CREST RT

	
203618

	
MAIN STREET PHCY LLC RTL

  

30

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

  

	
207869

	
BAKERSFIELD HEART HOSP

	
214868

	
OMNICARE OF NEW HARTFORD

	
215652

	
APS - AUSTIN

	
216325

	
HOME PHARMACY SERVICES

	
225714

	
WILLIAMSON HARRISONBURG

	
228500

	
BROADWAY LTC

	
228515

	
OMNI NCT INV 180

	
232007

	
OMNICARE OF SOUTH FLORIDA

	
234460

	
NEIGHBORCARECHARLESTON RT

	
243438

	
ENLOE IV PEORIA DIV 2

	
243611

	
OMNI CLINICAL RSRCH DSD

	
244024

	
OMNI CLINICAL RSRCH DTD

	
250680

	
NEIGHBORCARE LINDEN PONDS

	
250858

	
MAIN STREET PHCY LLC RTL

	
254788

	
VANGARD LABS, INC - DTD

	
256471

	
NEIGHBORCARE SOUTHGATE RT

	
258422

	
SUPERIOR CARE PHCY IDAHO

	
260589

	
OMNICARE SOUTHERN PINES

	
267415

	
OMNICARE ANNAPOLIS JNC MS

	
272209

	
OMNICARE OF NACHOGDOCHES

	
281824

	
OMNICARE SVCS PHARM PITTS

	
284302

	
OMNICARE OF WACO

	
287958

	
EVERGREEN PHARM IV

	
302272

	
UNITY MEDICAL & SURG HOSP

	
303424

	
STAT CARE PHARMACY

	
305565

	
PHARMACY CARE ASSOC

	
312851

	
NATIONAL EXT CARE PHCY

	
313652

	
GLOBAL REHAB SAN ANTONIO

	
316168

	
OMNICARE CHICO CA

	
323898

	
OMNICARE ANNAPOLIS JCTN

	
325901

	
ROESCHEN'S BEHAVE HLTH

	
326105

	
EXCELLE RX-INC MEMPHIS

	
332846

	
OMNICARE OF HOUSTON

	
334167

	
NEIGHBRCARE  BOOTHWYN DME

	
334809

	
OMNICARE-MINNESOTA #2

	
336176

	
PHARMACY SUPPORT SERVICES

	
337267

	
RIVER PARK HOSPITAL PHCY

	
339323

	
PUGET PHARMACY

	
339965

	
NCS HEALTHCARE OF DOVER

	
340350

	
NEIGHBRCAR  BRAINTREE DME

	
347202

	
COMM MEDICAL PHCY DME

	
351905

	
BRIDGEPORT PH SV LKWD LTC

	
353895

	
HYTECH PHARMACY EDI

	
355468

	
OMNICARE OF BISHOP GADSDN

	
356526

	
OMNICARE OF EDISON

	
356594

	
MYERLEE PHARMACY LTC

	
360866

	
OMNICARE OF FLORENCE

	
368951

	
NIHAN & MARTIN

  

31

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

  

	
373484

	
NCS HLTHCARE HERRIN DIVII

	
373755

	
NEIGHBORCARE FORT WAYNE

	
375008

	
OMNICARE OF GOLDEN

	
377783

	
OMNICARE KING PRUSSIA-LTC

	
383758

	
HOSPICE OF CINCINNATI EDI

	
385329

	
OMNICARE OF TAMPA

	
389283

	
OMNICARE OF LODI

	
390039

	
BEEBER PHARMACIES INC  SD

	
390047

	
EVERGREEN PHARMACEUTICAL

	
390054

	
CARE PHARMACEUTICAL  XXXX

	
390062

	
CONSULTING & PHARM SERV

	
390120

	
D&R PHARMACARE LOUISVL SU

	
390138

	
D&R PHARMACARE LEXGTON SX

	
390153

	
ENLOE DRUGS, INC DECATUR

	
390179

	
ENLOE DRUGS, INC PEORIA

	
390211

	
OMNICARE PHCY OF MIDWEST

	
390229

	
HEARTLAND HEALTH SERVICES

	
390245

	
HEARTLAND HLTH SVC

	
390344

	
PHARMED HOLDINGS INC

	
390435

	
OMNICARE DIST CTR LLC DSD

	
390450

	
HOME CARE PHARMACY     SI

	
390468

	
OMNICARE OF NITRO WV

	
390484

	
INTERLOCK PHARMACY

	
390492

	
INTERLOCK PHCY SYSTEMS

	
390500

	
INTERLOCK/OMNICARE PHCY

	
390526

	
LOMED PRESC SVCS

	
390542

	
MANAGED HLTH CARE PHCY

	
390567

	
NO SHORE PHCY SVCS  (DC)

	
390583

	
OMNICARE OF QUAD CITIES

	
390591

	
HOME CARE PHAR, ASHLAND

	
390625

	
PRN PHARMACEUTICAL INC SU

	
390633

	
SEQUOIA HEALTH SVC - PHCY

	
390641

	
SEQUOIA HEALTH SVC- TULSA

	
390666

	
SHORE PHARM PROVIDES, INC

	
390674

	
SPECIALIZED PHCY SVCS

	
390682

	
SPECIALIZED PHY/NORTH DIV

	
390690

	
THREE FORKS LTD PRTSHP SX

	
390716

	
UNICARE, INC PRATVILLE

	
390732

	
OMNICARE PHCY-PERRYSBURG

	
390757

	
OMNICARE INC ELINK LEAD

	
392175

	
WILLIAMSONS  PHY RICHMOND

	
393662

	
NEIGHBORCARE  MARIS GR RT

	
393975

	
EXTENDED CARE ASSOCIATES

	
394419

	
OMNICARE OF MORGANTOWN

	
396173

	
NCS HLTHCARE OF EASTLAKE

	
402905

	
OMNICARE OF NEW MEXICO

	
403319

	
PHARMACY CONSULTANTS INC

	
408591

	
D&R PHARMCARE WHSE     SU

  

32

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

  

	
411353

	
ROESCHEN'S HIV

	
413763

	
NBR MT.WASHINGTON PED HSP

	
420161

	
OMNICARE REDDING, CA

	
425704

	
TRUSTPOINT HOSP PHARMACY

	
427052

	
EXCELLERX-INC MEMPHIS EDI

	
427338

	
OMNICARE INFUSION DIV 2

	
428237

	
MEDICATE LTC PHCY

	
434969

	
MED WORLD PHARMACY INC

	
435688

	
OMNICARE/DO NOT USE-NDC-W

	
438275

	
OMNICARE PHAR SVCS GREEN

	
442882

	
RESOURCE PHCY INC

	
443707

	
OMNICARE DIST CTR LLC DSD

	
445041

	
RX SERVICES WILMINGTON

	
446330

	
NEIGHBORCARE OF NH

	
452775

	
VILLAGE STHRN DESERT PHCY

	
453380

	
NCS HLTHCARE OF VERMONT

	
455948

	
OMNICARE OASIS ACCT ELINK

	
457322

	
OMNICARE PHCY OF FL, LP

	
462970

	
OMNI OF PERRYSBRG DTD-CL

	
465468

	
OLD OMNICARE ITEMS

	
489522

	
NEIGHBORCARE PORTSMOUTH

	
491038

	
NCS HLTHCARE OF APPLETON

	
496137

	
HOSPICE OF DAYTON EDI

	
497665

	
CSR, INC

	
502843

	
RESOURCE PHCY INC

	
509367

	
NEIGHBORCARE RICHMOND

	
512667

	
OPTION CARE DME

	
513359

	
DENMAN PHARMACY IV

	
518234

	
RX SVS WILLIAMSON DRUG CO

	
519522

	
GRACE MED CTR OP

	
519819

	
OMNICARE OF NEBRASKA

	
520628

	
PBM PLUS MO

	
523960

	
OMNICARE OF LUBBOCK

	
527698

	
HYTECH PHARMACY INC

	
527704

	
NEIGHBORCARE ROANOKE

	
533764

	
MESH PHARMACY RETAIL

	
534551

	
NEIGHBRCAR  SALISBURY DME

	
535169

	
NEIGHBORCARE SAN ANTONIO

	
536734

	
HOSPICE OF CINCINNATI

	
536873

	
NEIGHBORCARE SAN BERN IV

	
538640

	
NEIGHBORCARE  SAN DIEGO

	
541365

	
PALOMBO'S MED RITE PHCY

	
542768

	
PLUM CREEK SPECIALTY HOSP

	
544254

	
SUN PHARMACY

	
545418

	
OMNICARE PHCY MIDWEST DME

	
551690

	
OMNICARE OF URBANDALE

	
552381

	
OMNICARE OF SCRANTON

	
554667

	
DENMAN PHCY SERVICES

  

33

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

  

	
573391

	
NEIGHBORCARE GBMC E HPG

	
582095

	
NEIGHBORCARE SOUTH BEND

	
588588

	
NEIGHBRCAR SPRINGFELD DME

	
589084

	
OMNICARE OF PHARR

	
597046

	
NEIGHBORCARE ST AGNES HSP

	
608584

	
EXCELLE RX - PA

	
622649

	
PINNACLE PHARM MADISON

	
625167

	
UNITED PHARM ASSOC HENDER

	
628116

	
ARLINGTON CLINICAL DME

	
636203

	
OMNICARE OF PA EAST

	
640726

	
OMNICARE OF CORPUS CHRIST

	
643362

	
NCS HLTHCRE-CARE FOR LIFE

	
644068

	
OMNICARE OF ROCHESTER

	
645615

	
COMM MEDICAL PHCY LTC

	
645618

	
COMM MED PHCY RETAIL-EAST

	
645768

	
COMM MEDICAL PHCY RETAIL

	
645901

	
COMM MED PHCY WEST RETAIL

	
646744

	
NEIGHBORCARE  TOWSON DME

	
652808

	
OMNICARE OF TYLER

	
653464

	
VANGARD LABS INC DSD

	
655914

	
SUNSCRIPT PHARMACY

	
658097

	
GLOBAL REHAB FT. WORTH

	
661228

	
NEIGHBORCARE  WALDORF DME

	
662094

	
NEIGHBORCARE WHIPPANY

	
664001

	
COMM MED PHCY DME-EAST

	
664038

	
COMM MEDICAL PHCY DME

	
665718

	
OMNICARE OF MAINE

	
671000

	
OMNICARE OF WILLIAMSPORT

	
672351

	
PSI ARKANSAS PHARMACY

	
680648

	
OMNICARE OF CENTRAL OHIO

	
681978

	
NCS HEALTHCARE OF MONTANA

	
683033

	
NEIGHBORCARE  CROZER RTL

	
686310

	
OMNICARE OF HEBREW HOME

	
689487

	
ARLINGTON INFUSION, INC

	
691156

	
OMNICARE CORP RETAIL

	
694154

	
NEIGHBORCARE INFUS THRPY

	
710164

	
NEIGHBORCARE WOODHOLME RT

	
710190

	
OMNICARE CENTRAL FLORIDA

	
713946

	
OMNICARE OF RHODE ISLAND

	
715528

	
NEIGHBORCARE PROF PCY RTL

	
717360

	
OMNICARE OF SYRACUSE

	
718784

	
OMNICARE OF HUNTSVILLE

	
725277

	
LTC PHARMACY SVCS

	
725288

	
LTC PHCY SVCS DME

	
726090

	
NEW YORK STATE OMRDD

	
728783

	
GRACE MEDICAL CENTER

	
733446

	
PHARMACY SERV OF INDIANA

	
736524

	
NCS HLTHCARE S CAROLINA

  

34

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

  

	
737010

	
NEIGHBORCR GBMC EAST RTL

	
746119

	
OMNICARE PHCY OF PUEBLO

	
748076

	
EXCELLE WHOLESALE EDI

	
750851

	
OMNICARE OF SOUTH DAKOTA

	
754516

	
PHARM-CORP OF MAIN

	
759589

	
OMNICARE OF N ILLINOISXX

	
768115

	
NEIGHBORCARE STJOSEPH HPG

	
777492

	
OMNICARE-MINNESOTA

	
783576

	
KERR HEALTH CARE SVCS

	
792457

	
EVERGREEN PHARM SUPPLY

	
793760

	
EVERGREEN PHCY INC PTLD

	
803340

	
CORPUS CHRISTI SPEC EDI

	
803966

	
NEIGHBORACARE  TOWSON RTL

	
806421

	
NEIGHBRCAR BON SECOUR HSP

	
808954

	
HOSPICE OF DAYTON

	
829088

	
ARLINGTON CLINICAL

	
831125

	
OMNI OF NY/CITY MKT PHCY

	
832160

	
SYNERGY HEALTHCARE SERVIC

	
834858

	
OMNICARE PHCY OF TENN

	
835841

	
NEIGHBORCARE PERSONALCARE

	
838323

	
ARLINGTON CLINICAL INFUS

	
844425

	
CORPUS CHRISTI SPEC HOSP

	
856968

	
ZELLMED SOLUTIONS INC.

	
857537

	
NEIGHBORCARE HWRD CTY GEN

	
863832

	
NEIGHBRCARE  EASTPOINT RT

	
869290

	
MCCLELLAND HOME HLTH PHCY

	
871668

	
NEIGHBRCARE NAYLOR CRT RT

	
871821

	
EXCELLE WHOLESALE

	
874496

	
EXCELLE RX - PA EDI

	
879313

	
NEIGHBRCARE OWING MILL RT

	
881041

	
NEIGHBRCAR REISTERSTWN RT

	
897585

	
NEIGHBRCAR  ST JOSEPH HSP

	
903919

	
NEIGHBORCR CHAMP DAVS RTL

	
905877

	
OMNICARE MED SUPPLY CHAIN

	
906180

	
SUPERIOR CARE SLC DME

	
906198

	
OMNICARE CORP ACCT

	
906859

	
CARTERS INSTITUTIONAL

	
906917

	
OMNICARE OF CONNECTICUT

	
906966

	
CAMPO MEDICAL PHARMACY

	
906982

	
OMNICARE OF JACKSON

	
907063

	
HYTECH HOMECARE

	
907097

	
VITAL CARE INFUSIONS

	
907113

	
SPECIALIZED PHAR SERV WST

	
907139

	
ENLOE DRUGS, MPD PEORIA

	
907147

	
ENLOE DRUGS, MPD DECATUR

	
907436

	
EVERGREEN PHARMACY

	
907980

	
UNICARE, INC-PRATVILLE

	
907998

	
CHERRY HILL PHARMACY LTC

  

35

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

  

	
908053

	
OMNICARE DIST CTR LLC DTD

	
908087

	
SUPERIOR CARE PHARMACY

	
908095

	
SUPERIOR CARE ST GEORGE

	
908111

	
OMNICARE OF NASHVILLE

	
914585

	
NEIGHBORCARE  LIBERTY RTL

	
920018

	
VANGARD LABS PREBUY DTD

	
920215

	
EVERGREEN PH EAST SPOKANE

	
920284

	
VANGARD LABS PREBUY DSD

	
920961

	
TERENCE CARDINAL COOKE HL

	
926136

	
NEIGHBORCARE MERCY MC HSP

	
935342

	
OMNICARE OF PANAMA CITY

	
941435

	
MEDICAL ARTS HEALTH CARE

	
944632

	
SEQUOIA HEALTH SVC IV

	
952222

	
NEIGHBRCAR ELDERSBURG RTL

	
959000

	
OMNICARE DIST CENTER LLC

	
959001

	
OMNICARE DIST CTR LLC DTD

	
965955

	
NBR HOWARD GEN HOSP HPG

	
967330

	
OMNICARE OF SOUTH FL EDI

	
967532

	
NEIGHBRCAR PHCY SINAI HSP

	
967886

	
OMNI NCT DTD 163

	
978652

	
ADVANCED CARE SCRIPTS

	
981438

	
PHARMACY SUPPORT SVCS

	
983038

	
VANGUARD ADVAN PHCY SVCS

	
983689

	
HEARTLAND PHARM OF PA

	
986737

	
HMIS INC INSTIT SERV

	
986885

	
LEVINDALE HEBREW GERI CT

	
987067

	
RAINIER LTC PHARM STORE#2

	
987279

	
HOLLAND DRUG EDI

	
987317

	
HOLLAND DRUG

	
990917

	
CENTRE PHARMACY SERVICES

	
991472

	
OMNICARE DIST CTR LLC DTD

EXECUTION COPY

  

36

  

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

EXHIBIT C

NEGOTIATED NET PRICES

	
NDC

	
Description

	
Economost #

	
Negotiated Net Price

	
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37

  

 

	
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38

  

 

	
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39

  

 

	
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[***]

 

 

EXECUTION COPY

  

40

  

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

EXHIBIT D

SEPARATELY PRICED [***] PRODUCTS

[***]

EXECUTION COPY

  

41

  

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL “[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

 

EXHIBIT E

ALTERNATIVE PRICING MATRIX

PRICING MATRIX FOR NON-RETAIL OMNICARE FACILITIES

 

	
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PRICING MATRIX FOR QUALIFYING RETAIL FACILITIES

 

	
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PRICING MATRIX FOR NON- QUALIFYING RETAIL FACILITIES

 

	
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EXECUTION COPY

  

42exhibit101.htm - Generated by SEC Publisher for SEC Filing

 

 

	

SHARE EXCHANGE AGREEMENT

	

SHARE EXCHANGE AGREEMENT, dated as of October 22, 2010 (this "Agreement) by and among STANDARD GOLD CORP., a Nevada corporation (' Standard Gold ), PHYTOMEDICAL TECHNOLOGIES, INC., a Nevada corporation (the "Company") and the persons listed on Exhibit A annexed hereto, representing the holders of all of the issued and outstanding securities of Standard Gold (the "Standard Gold Stockholders").

WHEREAS, on October 22, 2010, the Board of Directors of the Company adopted resolutions approving the Company's acquisition of shares of Standard Gold by means of a share exchange with the Standard Gold Stockholders, upon the terms and conditions hereinafter set forth in this Agreement; and

WHEREAS, the aggregate number of shares of Standard Gold common stock, par value $0.0001 per share (the "Standard Gold Common Stock") owned by the Standard Gold Stockholders set forth on Exhibit A constitute 100% of the issued and outstanding securities of Standard Gold, on a fully diluted basis (collectively, the "Standard Gold Shares'"), and the Standard Gold Stockholders desire to sell and transfer their Standard Gold Shares in exchange for newly-issued shares (the "Company Shares'') of the Company's common stock, par value $0.00001 per share (the "Company Common Stock") pursuant to the terms and conditions of this Agreement (the "Share Exchange") so that prior to the consummation of the Financing and the Loan Conversion (each as hereinafter defined), the Company Shares issued to the Standard Gold Stockholders shall constitute approximately 72% of the issued and outstanding shares of Common Stock of the Company immediately after the closing of the transactions contemplated herein, without giving effect to the consummation of the Financing and the Loan Conversion (as defined below); and

WHEREAS, it is the intention of the parties that: (i) the Share Exchange shall qualify as a tax-free reorganization under Section 368(a) (1) (B) of the Internal Revenue Code of 1986, as amended (the "Code"); and (ii) the Share Exchange shall qualify as a transaction in securities exempt from registration or qualification under the Securities Act of 1933, as amended and in effect on the date of this Agreement (the "Securities Act"); and

WHEREAS, as soon as practicable following the consummation of the Share Exchange, and as a condition to its consummation, the Company shall have received minimum subscriptions of an aggregate of $2,000,000.00 of its securities pursuant to a self directed public offering of its securities pursuant to the terms and conditions of a prospectus contained in its registration statement (SEC No. 333-165883) (the "Registration Statement") as the same may be amended from time to time (the "Financing").

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the parties hereto agree as follows:

 

 

 

 

	

ARTICLE I

	

EXCHANGE OF STANDARD GOLD SHARES FOR COMPANY SHARES

Section 1.1                   The Share Exchange. On the Closing Date (as hereinafter

defined) and upon the terms and subject to the conditions set forth in this Agreement, each Standard Gold Stockholder shall (i) assign, transfer, convey and deliver to the Company share certificates representing the Standard Gold Shares owned by such Standard Gold Stockholder, resulting in the transfer of all 28,205,199 Standard Gold Shares held by the Standard Gold Stockholders immediately prior to the consummation of the Share Exchange, and which shall constitute 100% of the issued and outstanding Standard Gold Shares. Each such certificate so delivered shall be accompanied by a properly executed and authenticated stock power. In consideration and exchange for the Standard Gold Shares, the Company shall issue, transfer, convey and deliver to the Standard Gold Stockholders an aggregate of 607,539,940 Company Shares, to be allocated among the Standard Gold Stockholders as provided on Exhibit B (the "Company Shares"), annexed hereto.

Section 1.2                   Closing and Actions at Closing. The closing of the Share

Exchange (the "Closing") shall take place at 10:00 a.m. New York time on the day the conditions to closing set forth in Articles V and VI herein have been satisfied or waived, or at such other time and date as the parties hereto shall agree in writing (the "Closing Date"), at the offices of Sierchio & Company, LLP, 430 Park Avenue, Suite 702, New York, New York 10022, or at such other place as the parties hereto may agree to in writing.

Section 1.3                   Taking of Necessary Action; Further Action. If, at any time

after the Closing, any further action is necessary or desirable to carry out the purposes of this Agreement, the Standard Gold Stockholders, Standard Gold and the Company (as applicable) will take all such lawful and necessary action.

Section 1.4                   Officers of the Company at Closing Date. On the Closing

Date, Mr. Amit S. Dang, the Company's sole officer, shall resign from his positions as President and Chief Executive Officer and Chief Financial Officer, and Daniel Bleak shall be appointed as the Company's President and Chief Executive Officer and Chief Financial Officer.

	

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents, warrants and agrees that all of the statements in the following subsections of this Article II are true and complete as of the date hereof. The disclosure schedule attached hereto as Schedules 2.2 through 2.19 (the "Company Disclosure Schedules'") are divided into sections that correspond to the sections of this Article II. The Company Disclosure Schedules comprise lists of all exceptions to the truth and accuracy in all material respects of, and of all disclosures or descriptions required by, the representations and warranties set forth in this Article II.

	

2

 

 

 

 

	

Section 2.1                    Corporate Organization.

a.                                            The Company is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has all requisite corporate power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition or results of operation of the Company. "Material Adverse Effect" means, when used with respect to the Company, any event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of the Company, or materially impair the ability of the Company to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement, or (ii) changes in the United States securities markets generally.

b.                                           Copies of the certificate of incorporation and by-laws of the Company with all amendments thereto, as of the date hereof (the "Company Charter Documents"), have been furnished to Standard Gold, and such copies are accurate and complete as of the date hereof. The minute books of the Company contain the minutes of all meetings of the Company's Board and stockholders of the Company from its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the Company's Board and stockholders of the Company. The Company is not in violation of any of the provisions of the Company's Charter Documents.

Section 2.2                    Capitalization of the Company.

a.                      The authorized capital stock of the Company consists of

2,001,000,000 shares: 2,000,000,000 shares are authorized as Common Stock, of which 241,487,995 shares are, and will be, issued and outstanding immediately prior to the Share Exchange, the Financing and the Loan Conversion, and 1,000,000 shares are authorized as preferred stock, of which no shares are issued and outstanding.

b.                     All of the issued and outstanding shares of Common Stock of the

Company immediately prior to the Share Exchange are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance with all applicable federal and state securities laws and state corporate laws, and have been issued free of preemptive rights of any security holder. Except with respect to securities to be issued in connection with the Financing, the Loan Conversion and to the Standard Gold Stockholders pursuant to the terms hereof, or as otherwise described in Schedule 2.2(b) of the Company Disclosure Schedules, as of the date of this Agreement there are no outstanding or authorized options, warrants, agreements, commitments, conversion rights, preemptive rights or other rights to subscribe

	

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for, purchase or otherwise acquire or receive any shares of the Company's capital stock, nor are there or will there be any outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights, pre-emptive rights or rights of first refusal with respect to the Company or any Company Common Stock, or any voting trusts, proxies or other agreements, understandings or restrictions with respect to the voting of the Company's capital stock.

Section 2.3                    Subsidiaries and Equity Investments. Except as described in

Schedule 2.3 of the Company Disclosure Schedules, the Company does not directly or indirectly own any capital stock or other securities of, or any beneficial ownership interest in, or hold any equity or similar interest, or have any investment in any corporation, limited liability company, partnership, limited partnership, joint venture or other company, person or other entity (each a "Person").

Section 2.4                   Authorization, Validity and Enforceability of Agreements.

The Company has all corporate power and authority to execute and deliver this Agreement and all agreements, instruments and other documents to be executed and delivered in connection with the transactions contemplated by this Agreement (collectively, the "Transaction Documents''), to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and each of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of the Company, and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement or the Transaction Documents or to consummate the transactions contemplated hereby and thereby. Each of this Agreement and the Transaction Documents constitutes the valid and legally binding obligation of the Company and is enforceable in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors' rights generally. The Company does not need to give any notice to, make any filings with, or obtain any authorization, consent or approval of any Governmental Authority (defined hereafter) or other Person in order for it to consummate the transactions contemplated by this Agreement, other than filings that may be required or permitted under states securities laws, the Securities Act and/or the Securities Exchange Act of 1934, as amended (the "Exchange Act") resulting from the issuance of the Company Shares or securities in connection with the Financing and the Loan Conversion.

Section 2.5                   No Conflict or Violation. Neither the execution and delivery

of this Agreement or the Transaction Documents by the Company, nor the consummation by the Company of the transactions contemplated hereby or thereby will: (i) contravene, conflict with, or violate any provision of the Company Charter Documents; (ii) violate any constitution, statute, regulation, rule, Order (defined hereafter), ruling, charge or other restriction of any court or other federal or national, state or provincial, municipal or local government, governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, political subdivision, commission, court, tribunal, official, arbitrator or arbitral body ("Governmental Authority") to which the Company was subject, (iii) conflict with, result in a breach of, constitute a

	

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default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which the Company is a party or by which it is bound, or to which any of its assets or properties are subject; or (iv) result in or require the creation or imposition of any lien, mortgage, pledge, deed of trust, hypothecation, security interest or other encumbrance of any nature (each a "Lien") upon or with respect to any of the Company's assets, including without limitation the Company Shares. For the purposes of this Agreement "Order" shall mean any written order, writ, judgment, injunction, subpoena, indictment, demand, decree, stipulation, determination or award entered by or with any Governmental Authority.

Section 2.6                   Litigation. Except as described in Schedule 2.6 of the

Company Disclosure Schedules, there is no action, suit, proceeding or investigation ("Action") pending or, to the knowledge of the Company, currently threatened against the Company or any of its affiliates, that may affect the validity of this Agreement or the Transaction Documents or the right of the Company to enter into this Agreement and the Transaction Documents or to consummate the transactions contemplated hereby or thereby. There is no Action pending or, to the knowledge of the Company, currently threatened against the Company or any of its affiliates, before any court or by or before any Governmental Authority, nor is there any Order of any court or other Governmental Authority against the Company or any of its affiliates. Neither the Company nor any of its affiliates is a party or subject to the provisions of any Order of any court or Governmental Authority. There is no Action by the Company or any of its affiliates relating to the Company currently pending or which the Company or any of its affiliates intends to initiate.

Section 2.7                    Compliance with Laws. The Company has been and is in

compliance with, and has not received any notice of any violation of any, applicable law, Order, ordinance, regulation or rule of any kind whatsoever, including without limitation the Securities Act, the Exchange Act, the applicable rules and regulations of the Securities and Exchange Commission ("SEC") or the applicable securities laws and rules and regulations of any state.

Section 2.8                   Financial Statements; SEC Reports.

a.                      The Company's financial statements (the "Company Financial

Statements'') contained in its periodic reports filed with the SEC (the "SEC Reports'') have been prepared in accordance with generally accepted accounting principles applicable in the United States of America ("U.S. GAAP') applied on a consistent basis throughout the periods indicated, except that those Company Financial Statements that are not audited do not contain all footnotes required by U.S. GAAP. The Company Financial Statements fairly present the financial condition and operating results of the Company as of the dates, and for the periods, indicated therein, subject to normal year-end audit adjustments. Except as set forth in the Company Financial Statements or as disclosed in Schedule 2.8(a) of the Company Disclosure Schedules, the Company has no material liabilities (contingent or otherwise). The Company is not a guarantor or indemnitor of any indebtedness of any other Person. The Company

	

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maintains a standard system of accounting established and administered in accordance with U.S. GAAP.

	

b.                     Except as disclosed in Schedule 2.8(b) of the Company Disclosure

Schedules, since December 31, 2008, the Company has timely filed all of its SEC Reports. Each of the SEC Reports, as the same may have been amended, has complied in all material respects with the applicable provisions of the Securities Act and the Exchange Act and/or regulations promulgated thereunder.

Section 2.9                   Books and Records. The books and records of the Company

are true, accurate and complete in all material respects.

Section 2.10                  Employee Benefit Plans. Except as described in Schedule

2.10 of the Company Disclosure Schedules, the Company does not have any "Employee Benefit Plan" as defined in the U.S. Employee Retirement Income Security Act of 1974 or similar plans under any applicable laws.

Section 2.11                  Tax Returns, Payments and Elections. Except as described in

Schedule 2.11 of the Company Disclosure Schedules, the Company has filed all Tax (as defined below) returns, statements, reports, declarations and other forms and documents (including, without limitation, estimated tax returns and reports and material information returns and reports) ("Tax Returns") required pursuant to applicable law to be filed with any Tax Authority (as defined below). All such Tax Returns are accurate, complete and correct in all material respects, and the Company has timely paid all Taxes due and adequate provisions have been and are reflected in the Company's Financial Statements for all current taxes and other charges to which the Company is subject and which are not currently due and payable. None of the Company's federal income tax returns have been audited by the Internal Revenue Service. The Company has no knowledge of any additional assessments, adjustments or contingent tax liability (whether federal or state) of any nature whatsoever, whether pending or threatened against the Company for any period, nor of any basis for any such assessment, adjustment or contingency. The Company has withheld or collected from each payment made to each of its employees, if applicable, the amount of all Taxes (including, without limitation, federal income taxes, state and local income taxes and any applicable foreign taxes) required to be withheld or collected therefrom, and has paid the same to the proper Tax Authority. For purposes of this Agreement, the following terms have the following meanings: "Tax" (and, with correlative meaning, "Taxes" and "Taxable") means any and all taxes including, without limitation, (x) any net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, value added, net worth, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed by any United States, state, local or foreign Governmental Authority or regulatory body responsible for the imposition of any such tax (domestic or foreign) (a "Tax Authority"), (y) any liability for the payment of any amounts of the type described in (x) as a result of being a member of an affiliated, consolidated, combined or unitary group for any taxable period or as the result of being a transferee or

	

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successor thereof, and (z) any liability for the payment of any amounts of the type described
in (x) or (y) as a result of any express or implied obligation to indemnify any other Person.

Section 2.12                  No Liabilities or Obligations. Except as described in

Schedule 2.12 of the Company Disclosure Schedules, upon the Closing Date, the Company
will have no debt, liabilities or obligations of any kind whatsoever other than (i) liabilities and
obligations reflected in the Company Financial Statements; (ii) accounts payable incurred in
the ordinary course of business since the date of the last balance sheet reflected in the
Company Financial Statements, none of which are material in nature or exceed $10,000, in
the aggregate; and (iii) liabilities and obligations with respect to the transactions contemplated
hereby and pursuant to the Financing.

Section 2.13                  No Broker Fees. Except as described in Schedule 2.13 of the

Company Disclosure Schedules, no brokers, finders or financial advisory fees or commissions
will be payable by or to the Company or any of its affiliates with respect to the transactions
contemplated by this Agreement.

Section 2.14                  Duly Authorized. The issuance of the Company Shares has

been duly authorized and, upon delivery to the Standard Gold Stockholders of certificates
therefor in accordance with the terms of this Agreement, the Company Shares will be validly
issued in compliance with all applicable federal and state securities and corporate laws, fully
paid, and nonassessable, will have the rights, preferences and privileges specified, will be free
of preemptive rights, and will be free and clear of all liens and restrictions, other than liens
created by the Standard Gold Stockholders and restrictions on transfer imposed by this
Agreement and any applicable securities laws and the regulations and rules promulgated

	

thereunder.

Section 2.15                  Employees.

a.                                           The Company does not have any employees.

b.                                           Other than Amit S. Dang and Jeet S. Sidhu, the Company does not have

	

any officers or directors. No director or officer of the Company is a party to, or is otherwise bound by, any contract (including any confidentiality, non-competition or proprietary rights agreement) with any other person that in any way adversely affects or will materially affect (i) the performance of his duties as a director or officer of the Company, (ii) the ability of the Company to conduct its business, or (iii) the ability of the Company to consummate the transactions contemplated by this Agreement.

Section 2.16                  Interested Party Transactions.

Except as described in Schedule 2.16 of the Company Disclosure Schedules, no officer, director or principal stockholder of the Company or any affiliate or "associate" (as such term is defined in Rule 405 as promulgated by the SEC under the Securities Act) of any such Person, has or has had, either directly or indirectly, (1) an interest in any Person which (a) furnishes or sells services or products which are furnished or sold or are proposed to be furnished or sold by the Company, or (b) purchases from or sells or furnishes to, or proposes to purchase from, sell to or furnish the

	

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Company any goods or services; or (2) a beneficial interest in any contract or agreement to
which the Company is a party or by which it may be bound or affected.

Section 2.17                  Intellectual Property. Schedule 2.17 of the Company

Disclosure Schedules sets forth a description of all of the Intellectual Property, which the
Company owns, uses or licenses in its activities as presently conducted. For the purposes of
this Agreement, "Intellectual Property" means all industrial and intellectual property,
including, without limitation, all U.S. and non-U.S. patents, patent applications, patent rights,
trademarks, trademark applications, common law trademarks, Internet domain names, trade
names, service marks, service mark applications, common law service marks, and the
goodwill associated therewith, copyrights, in both published and unpublished works, whether
registered or unregistered, copyright applications, franchises, licenses, know-how, trade
secrets, technical data, designs, customer lists, confidential and proprietary information,
processes and formulae, all computer software programs or applications, layouts, inventions,
development tools and all documentation and media constituting, describing or relating to the
above, including manuals, memoranda, and records, whether such intellectual property has
been created, applied for or obtained anywhere throughout the world.

Section 2.18                  Shell Company. The Company is a "shell company" as defined

in Rule 405 as promulgated pursuant to the Securities Act ("Rule 405").

Section 2.19                  Scheduled Liabilities. Schedule 2.19 of the Company

Disclosure Schedules, sets forth a list and the estimated amount of all liabilities of the
Company to be paid or discharged at Closing.

Section 2.20                  Disclosure. This Agreement, the schedules hereto and any

certificate attached hereto or delivered in accordance with the terms hereof by or on behalf of
the Company in connection with the transactions contemplated by this Agreement, when
taken together, do not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements contained herein and/or therein not
misleading.

	

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF STANDARD GOLD

Standard Gold represents, warrants and agrees that all of the statements in the
following subsections of this Article III are true and complete as of the date hereof. The
disclosure schedules attached hereto as Schedules 3.2 through 3.19 (the "Standard Gold
Disclosure Schedules") are divided into sections that correspond to the sections of this
Article III. The Standard Gold Disclosure Schedules comprise lists of all exceptions to the
truth and accuracy in all material respects of, and of all disclosures or descriptions required
by, the representations and warranties set forth in this Article III.

	

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Section 3.1

	

Corporate Organization.

	

a.                                             Standard Gold is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has all requisite corporate power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition or results of operation of Standard Gold. "Material Adverse Effect" means, when used with respect to Standard Gold, any event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of Standard Gold, or materially impair the ability of Standard Gold to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement, or (ii) changes in the United States securities markets generally.

b.                                           Copies of the certificate of incorporation and by-laws of Standard Gold with all amendments thereto, as of the date hereof (the "Standard Gold Charter Documents"), have been furnished to the Company, and such copies are accurate and complete as of the date hereof. The minute books of Standard Gold are current as required by law, contain the minutes of all meetings of Standard Gold's Board and stockholders of Standard Gold from its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by Standard Gold's Board and stockholders of Standard Gold. Standard Gold is not in violation of any of the provisions of the Standard Gold Charter Documents.

Section 3.2                    Capitalization.

a.                                           The authorized capital stock of Standard Gold consists of 500,000,000 shares, $0.0001 par value per share, of which 28,205,199 shares are, and will be, issued and outstanding immediately prior to the Share Exchange.

b.                                           All of the issued and outstanding shares of Standard Gold Common Stock immediately prior to the Share Exchange are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance with all applicable federal and state securities laws and state corporate laws, and have been issued free of preemptive rights of any security holder. Except as otherwise described in Schedule 3.2(b) of the Standard Gold Disclosure Schedules, as of the date of this Agreement there are no outstanding or authorized options, warrants, agreements, commitments, conversion rights, preemptive rights or other rights to subscribe for, purchase or otherwise acquire or receive any shares of Standard Gold's capital stock, nor are there or will there be any outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights, pre-emptive rights or rights of first refusal with respect to Standard Gold or any Standard Gold Common Stock, or any

	

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voting trusts, proxies or other agreements, understandings or restrictions with respect to the voting of Standard Gold's capital stock.

Section 3.3                    Subsidiaries and Equity Investments. Standard Gold does

not, directly or indirectly, own any capital stock or other securities of, or any beneficial ownership interest in, or hold any equity or similar interest, or have any investment in any Person.

Section 3.4                   Authorization, Validity and Enforceability of Agreements.

Standard Gold has all corporate power and authority to execute and deliver this Agreement and the Transaction Documents, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. Each of this Agreement and the Transaction Documents constitutes the valid and legally binding obligation of Standard Gold and is enforceable in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally. Standard Gold does not need to give any notice to, make any filings with, or obtain any authorization, consent or approval of any Governmental Authority or other Person in order for it to consummate the transactions contemplated by this Agreement and the Transaction Documents, other than filings that may be required under state securities laws, the Securities Act and/or the Exchange Act resulting from the transfer and exchange of the Standard Gold Shares. The execution and delivery of this Agreement and the Transaction Documents by Standard Gold and the consummation by Standard Gold of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of Standard Gold, and no other corporate proceedings on the part of Standard Gold are necessary to authorize this Agreement and the Transaction Documents or to consummate the transactions contemplated hereby or thereby.

Section 3.5                   No Conflict or Violation. Neither the execution and delivery of

this Agreement or the Transaction Documents by Standard Gold, nor the consummation by Standard Gold of the transactions contemplated hereby or thereby will: (i) contravene, conflict with or violate any provision of the Standard Gold Charter Documents, (ii) violate any constitution, statute, regulation, rule, Order, ruling, charge or other restriction of any Governmental Authority to which Standard Gold is subject, (iii) conflict with, result in a breach of, constitute a default (or an event or condition which, with or without notice or lapse of time or both, would constitute a default), under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which Standard Gold is a party or by which it is bound, or to which any of its assets is subject; or (iv) result in or require the creation or imposition of any Lien of any nature upon or with respect to any of Standard Gold's assets.

Section 3.6                    Compliance with Laws and Other Instruments. Except as

would not have a Material Adverse Effect on Standard Gold and except as set forth in Schedule 3.6 of the Standard Gold Disclosure Schedules, the business and operations of Standard Gold have been and are being conducted in accordance with all applicable federal, state and local laws, rules and regulations and all applicable Orders, determinations and awards of all courts and other Governmental Authorities. Except as would not have a Material Adverse Effect on Standard Gold, Standard Gold is not, and is not alleged to be, in violation of, or (with or without

	

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notice or lapse of time or both) in default under, or in breach of, any term or provision of the Standard Gold Charter Documents or of any indenture, loan or credit agreement, note, deed of trust, mortgage, security agreement or other material agreement, lease, license or other instrument, commitment, obligation or arrangement to which it is a party or by which any of its properties, assets or rights are bound or affected. To the knowledge of Standard Gold, no other party to any material contract, agreement, lease, license, commitment, instrument or other obligation to which Standard Gold is a party is (with or without notice or lapse of time or both) in default thereunder or in breach of any term thereof. Standard Gold is not subject to any obligation or restriction of any kind or character, nor is there, to the knowledge of Standard Gold, any event or circumstance relating to Standard Gold that materially and adversely affects in any way its business, properties, assets or prospects or that would prevent or make burdensome their performance of or compliance with all or any part of this Agreement or the Transaction Documents, or the consummation of the transactions contemplated hereby or thereby.

Section 3.7                   Brokers' Fees. Except as described in Schedule 3.7 of the

Standard Gold Disclosure Schedules, no brokers, finders or financial advisory fees or commissions will be payable by or to Standard Gold or any of its affiliates with respect to the transactions contemplated by this Agreement.

Section 3.8                    Title to and Condition of Properties. Except as set forth in

Schedule 3.8 of the Standard Gold Disclosure Schedules, Standard Gold owns or holds under valid leases or other rights to use all real property, plants, machinery and equipment necessary for the conduct of its business as presently conducted, except where the failure to own or hold such property, plants, machinery and equipment would not have a Material Adverse Effect. To the knowledge of Standard Gold, the material buildings, plants, machinery and equipment necessary for the conduct of Standard Gold's business as presently conducted are structurally sound, are in good operating condition and repair and are adequate for the uses to which they are being put, in each case, taken as a whole, and none of such buildings, plants, machinery or equipment are in need of maintenance or repairs, except for ordinary, routine maintenance and repairs that are not material in nature or cost. Standard Gold further represents and warrants that the closing of the transactions contemplated by the Agreement of Conveyance, transfer and Assignment of Assents and Assumption of Obligations dated as of January 30, 2010 by and among Bullfrog Holdings, Inc, NPX Metals, inc. and Standard Gold (the "Assignment and Assumption Agreement") has occurred and that Standard Gold has satisfied in full its payment obligations thereunder, including, but not limited to Section 1.2 thereof and that there have been and there are no defaults by Standard Gold thereunder. Schedule 3.8 of the Standard Gold Disclosure Schedules sets forth a complete list of all of the obligations assumed by Standard Gold under the terms of the Assignment and Assumption Agreement.

Section 3.9                   Absence of Undisclosed Liabilities. Except as set forth in

Schedule 3.9 of the Standard Gold Disclosure Schedules, Standard Gold has no debt, obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due) arising out of any transaction entered into at or prior to the Closing Date or any act or omission at or prior to the Closing Date, except to the extent set forth on or reserved against on the Unaudited Standard Gold Financial Statements (as hereinafter defined). Standard Gold

	

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has not incurred any liabilities or obligations under agreements entered into, except in the usual
and ordinary course of business, since August 31, 2010.

Section 3.10                  Changes.

Standard Gold has not, since August 31, 2010:

a.                                            Ordinary Course of Business. Entered into any transaction with third
parties other than in the usual and ordinary course of business, except for this Agreement and
the other documents to be entered into in connection with the transactions contemplated by
this Agreement;

b.                                           Adverse Changes. Suffered or experienced any change in, or
affecting, its condition (financial or otherwise), properties, assets, liabilities, business,
operations or results of operations other than changes, events or conditions in the usual and
ordinary course of their business, none of which would have a Material Adverse Effect;

c.                                           Loans. Made any loans or advances or extended credit to any Person
other than travel advances and reimbursement of expenses made to employees, officers and
directors in the ordinary course of business;

d.                                           Liens. Created or permitted to exist any material Lien on any property
or asset of Standard Gold, other than (a) Liens for taxes not yet payable or in respect of which
the validity thereof is being contested in good faith by appropriate proceedings and for the
payment of which the relevant party has made adequate reserves; (b) Liens in respect of
pledges or deposits under workmen's compensation laws or similar legislation, carriers,
warehousemen, mechanics, laborers and materialmen and similar Liens, if the obligations
secured by such Liens are not then delinquent or are being contested in good faith by
appropriate proceedings conducted and for the payment of which the relevant party has made
adequate reserves; (c) statutory Liens incidental to the conduct of Standard Gold's business
which were not incurred in connection with the borrowing of money or the obtaining of
advances or credits and that do not in the aggregate materially detract from the value of its
property or materially impair the use thereof in the operation of its business; and (d) Liens
that would not have a Material Adverse Effect;

e.                                            Capital Stock. Issued, sold, disposed of or encumbered, or authorized
the issuance, sale, disposition or encumbrance of, or granted or issued any option to acquire
any shares of its capital stock or any other of their securities or any equity security of any
class of Standard Gold, or altered the term of any of its outstanding securities or made any
change in its outstanding shares of capital stock or its capitalization, whether by reason of
reclassification, recapitalization, stock split, combination, exchange or readjustment of shares,
stock dividend or otherwise;

f.                                            Dividends. Declared, set aside, made or paid any dividend or other
distribution to any of its stockholders;

	

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g.                                           Material Standard Gold Contracts. Terminated or modified any or
all agreements, contracts, arrangements, leases, commitments or otherwise, of Standard Gold,
of the type and nature that is required to be filed with the SEC (each a "Material Standard
Gold Contract"), except for termination upon expiration in accordance with the terms thereof
or as set forth in Schedule 3.10(g) of the Standard Gold Disclosure Schedules;

h.                                           Claims. Released, waived or cancelled any claims or rights relating to
or affecting Standard Gold in excess of $10,000 in the aggregate or instituted or settled any
Action involving in excess of $10,000 in the aggregate;

i.                                            Discharged Liabilities. Except as set forth in Schedule 3.10(i) of the

Standard Gold Disclosure Schedules, paid, discharged or satisfied any claim, obligation or
liability in excess of $10,000 in the aggregate, except for liabilities incurred prior to the date
of this Agreement in the ordinary course of business;

j.                       Indebtedness. Except as set forth in Schedule 3.10(j) of the Standard

Gold Disclosure Schedules, created, incurred, assumed or otherwise become liable for any
indebtedness in excess of $10,000 in the aggregate, other than professional fees;

k.                     Guarantees. Guaranteed or endorsed any obligation or net worth of

any Person;

l.                      Acquisitions. Acquired the capital stock or other securities or any

ownership interest in, or substantially all of the assets of, any other Person;

m.                    Accounting. Changed its method of accounting or the accounting

principles or practices utilized in the preparation of the Unaudited Standard Gold Financial
Statements; or

n.                     Agreements. Except as set forth in Schedule 3.10(n) of the Standard

Gold Disclosure Schedules, entered into any agreement, or otherwise obligating Standard
Gold to do any of the foregoing.

Section 3.11                  Material Standard Gold Contracts.

Standard Gold has made available to the Company, prior to the date of this Agreement, true,
correct and complete copies of each Material Standard Gold Contract.

a.                      No Defaults. Each Material Standard Gold Contract is a valid and

binding agreement of Standard Gold and is in full force and effect. Except as would not have
a Material Adverse Effect, Standard Gold is not in breach or default of any Material Standard
Gold Contract to which it is a party and, to the knowledge of Standard Gold, no other party to
any Material Standard Gold Contract is in breach or default thereof. Except as would not
have a Material Adverse Effect, no event has occurred or circumstance exists that (with or
without notice or lapse of time) would (a) contravene, conflict with or result in a violation or
breach of, or become a default or event of default under, any provision of any Material
Standard Gold Contract or (b) permit Standard Gold or any other Person the right to declare a
default or exercise any remedy under, or to accelerate the maturity or performance of, or to

	

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cancel, terminate or modify any Material Standard Gold Contract. Standard Gold has not received written notice of the pending or threatened cancellation, revocation or termination of any Material Standard Gold Contract to which it is a party. There are no renegotiations of, or attempts to renegotiate, or outstanding rights to renegotiate any material terms of any Material Standard Gold Contract.

Section 3.12                  Material Assets. The Unaudited Standard Gold Financial

Statements reflect the material properties and assets (real and personal) owned or leased by Standard Gold.

Section 3.13                  Litigation; Orders. There are no Actions pending or, to the

knowledge of Standard Gold, currently threatened against Standard Gold or any of its affiliates, that may affect the validity of this Agreement or the Transaction Documents or the right of Standard Gold to enter into this Agreement and the Transaction Documents or to consummate the transactions contemplated hereby or thereby. There are no Actions (whether federal, state, local or foreign) pending or, to the knowledge of Standard Gold, threatened against or affecting Standard Gold's properties, assets, business or employees. To the knowledge of Standard Gold, there are no facts that might result in or form the basis for any such Action. Standard Gold is not subject to any Orders.

Section 3.14                  Licenses; Permits. Except as would not have a Material

Adverse Effect and except as set forth in Schedule 3.14 of the Standard Gold Disclosure Schedules, Standard Gold possesses from the appropriate Governmental Authority, all licenses, permits, authorizations, approvals, franchises and rights that are necessary for Standard Gold to engage in its business as currently conducted and to permit it to own and use its properties and assets in the manner in which it currently owns and uses such properties and assets and as it contemplates owning and using such properties and assets (collectively, "Standard Gold Permits"). Standard Gold has not received written notice from any Governmental Authority or other Person that it is lacking any license, permit, authorization, approval, franchise or right necessary for it to engage in its business as currently conducted and to permit Standard Gold to own and use its properties and assets in the manner in which it currently owns and uses such properties and assets. Except as otherwise would not have a Material Adverse Effect, the Standard Gold Permits are valid and in full force and effect. Except as would not have a Material Adverse Effect, no event has occurred or circumstance exists that may (with or without notice or lapse of time): (a) constitute or result, directly or indirectly, in a violation of or a failure to comply with any Standard Gold Permit; or (b) result, directly or indirectly, in the revocation, withdrawal, suspension, cancellation or termination of, or any modification to, any Standard Gold Permit. Standard Gold has not received written notice from any Governmental Authority or any other Person regarding: (a) any actual, alleged, possible or potential contravention of any Standard Gold Permit; or (b) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation, termination of, or modification to, any Standard Gold Permit. All applications required to have been filed for the renewal of the Standard Gold Permits have been duly filed on a timely basis with the appropriate Persons, and all other filings required to have been made with respect to the Standard Gold Permits have been duly made on a timely basis with the appropriate Persons, except as would not have a Material Adverse Effect. All Standard Gold Permits are renewable by their terms or in the ordinary course of business without the need to comply

	

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with any special qualification procedures or to pay any amounts other than routine fees or similar charges, all of which have, to the extent due, been duly paid.

Section 3.15                  Interested Party Transactions. Except as disclosed in

Schedule 3.15 of the Standard Gold Disclosure Schedules, no officer, director or stockholder of Standard Gold or any affiliate or "associate" (as such term is defined in Rule 405 promulgated by the SEC under the Securities Act) of any such Person, have or have had, either directly or indirectly, (1) an interest in any Person which (a) furnishes or sells services or products which are furnished or sold or are proposed to be furnished or sold by Standard Gold, or (b) purchases from or sells or furnishes to, or proposes to purchase from, sell to or furnish Standard Gold any goods or services; or (2) a beneficial interest in any contract or agreement to which Standard Gold is a party or by which it may be bound or affected.

Section 3.16                  Governmental Inquiries. Standard Gold has provided to the

Company a copy of each material written inspection report, questionnaire, inquiry, demand or request for information received by Standard Gold from any Governmental Authority, and Standard Gold's response thereto, and each material written statement, report or other document filed by Standard Gold with any Governmental Authority.

Section 3.17                  Intellectual Property. Except as set forth in Schedule 3.17 of the

Standard Gold Disclosure Schedules, Standard Gold does not own, use or license any Intellectual Property in its business as presently conducted. No Intellectual Property of Standard Gold has been or is now involved in any dispute, opposition, invalidation or cancellation proceeding, and no such action has been threatened. No Intellectual Property, wherever situated or registered, of Standard Gold, to the knowledge of Standard Gold, is infringed, or has been challenged or, to the knowledge of Standard Gold, threatened in any way, and no Intellectual Property of Standard Gold, to the knowledge of Standard Gold, interferes with the Intellectual Property of any other Person, and no Intellectual Property of Standard Gold is alleged to infringe or interfere with the Intellectual Property of any other Person. Except as would not have a Material Adverse Effect, Standard Gold has not taken any action that would result in the voiding or invalidation of any of its Intellectual Property.

Section 3.18                  Stock Option Plans; Employee Benefits.

a.                                            Standard Gold does not have any stock option plans providing for the grant by Standard Gold of stock options to directors, officers or employees.

b.                                           Standard Gold does not have any employee benefit plans or arrangements covering its present and former employees or providing benefits to such persons in respect of services provided to Standard Gold.

c.                                           Neither the consummation of the transactions contemplated hereby alone, nor in combination with another event, with respect to each director, officer, employee and consultant of Standard Gold, will result in (a) any payment (including, without limitation, severance, unemployment compensation or bonus payments) becoming due from Standard Gold (b) any increase in the amount of compensation or benefits payable to any such individual or (c) any acceleration of the vesting or timing of payment of compensation

	

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payable to any such individual. No agreement, arrangement or other contract of Standard Gold provides benefits or payments contingent upon, triggered by, or increased as a result of a change in the ownership or effective control of Standard Gold.

Section 3.19                  Environmental and Safety Matters. Except as set forth in

Schedule 3.19 of the Standard Gold Disclosure Schedules and except as would not have a Material Adverse Effect:

a.                                            Standard Gold has at all times been and is in compliance with all Environmental Laws (as defined below) applicable to Standard Gold. There are no Actions pending or threatened against Standard Gold alleging the violation of any Environmental Law or environmental permit applicable to Standard Gold or alleging that Standard Gold is potentially responsible for any environmental site contamination. None of Standard Gold, its directors, officers, or employees or Affiliates has received any written notice, or to their knowledge unwritten notice, regarding any actual or alleged violation of Environmental Law, or any liabilities or potential liabilities (whether accrued, absolute, contingent, unliquidated or otherwise), including any investigatory, remedial or corrective obligations, relating to any of them or its facilities arising under any Environmental Law.

b.                                           Neither this Agreement nor the consummation of the transactions contemplated by this Agreement shall impose any obligations to notify or obtain the consent of any Governmental Authority or third Persons under any law or other requirement relating to the environment, natural resources, or public or employee health and safety or relating to the storage, generation, use, handling, manufacture, processing, transportation, import, export, treatment, release or disposal of any Hazardous Materials ("Environmental Laws") applicable to Standard Gold. "Hazardous Materials" means any pollutant, contaminant, including asbestos and asbestos-containing materials, hazardous waste, hazardous materials, hazardous substances, petroleum, radioactive materials and polychlorinated biphenyls, all as defined and regulated under any Environmental Law.

Section 3.20                  Financial Statements. Standard Gold has previously

provided the Company with Standard Gold's unaudited financial statements for the period from inception to August 31, 2010, including, in each case, the notes thereto (the "Unaudited Standard Gold Financial Statements").The Unaudited Standard Gold Financial Statements (a) are in accordance with the books and records of Standard Gold ; (b) present fairly the financial condition and the results of operations, changes in stockholder's equity and cash flow of Standard Gold for the periods therein specified; and (c) have been prepared in accordance with U.S. GAAP applied on a consistent basis during the periods concerned.

Section 3.21                  Tax Returns, Payments and Elections. Standard Gold has filed

all Tax Returns, required pursuant to applicable law to be filed with any Tax Authority. All such Tax Returns are accurate, complete and correct in all material respects, and Standard Gold has timely paid all Taxes due and adequate provisions have been and are reflected in the Unaudited Standard Gold Financial Statements for all current taxes and other charges to which Standard Gold is subject and which are not currently due and payable. None of Standard Gold's federal income tax returns have been audited by the Internal Revenue Service. Standard Gold has no knowledge of any additional assessments, adjustments or contingent tax liability (whether federal

	

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or state) of any nature whatsoever, whether pending or threatened against Standard Gold for any period, nor of any basis for any such assessment, adjustment or contingency. Standard Gold has withheld or collected from each payment made to each of its employees, if applicable, the amount of all Taxes (including, without limitation, federal income taxes, state and local income taxes and any applicable foreign taxes) required to be withheld or collected therefrom, and has paid the same to the proper Tax Authority.

Section 3.22                  Disclosure. This Agreement, the schedules hereto and any

certificate attached hereto or delivered in accordance with the terms hereof by or on behalf of Standard Gold or the Standard Gold Stockholders in connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements contained herein and/or therein not misleading.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE STANDARD GOLD

STOCKHOLDERS

The Standard Gold Stockholders hereby represent and warrant, severally and not jointly, as of the date hereof and with respect only to the Standard Gold Shares owned by such Standard Gold Stockholder, to and for the benefit of the Company as follows:

Section 4.1                   Authority. Such Standard Gold Stockholder has the right,

power, authority and capacity to execute and deliver this Agreement and each of the Transaction Documents to which such Standard Gold Stockholder is a party, to consummate the transactions contemplated by this Agreement and each of the Transaction Documents to which such Standard Gold Stockholder is a party, and to perform such Standard Gold Stockholder's obligations under this Agreement and each of the Transaction Documents to which such Standard Gold Stockholder is a party. This Agreement has been, and each of the Transaction Documents to which such Standard Gold Stockholder is a party will be, duly and validly authorized and approved, executed and delivered by such Standard Gold Stockholder. Assuming this Agreement and the Transaction Documents have been duly and validly authorized, executed and delivered by the parties thereto other than such Standard Gold Stockholder, this Agreement and each of the Transaction Documents to which such Standard Gold Stockholder is a party constitutes the legal, valid and binding obligation of such Standard Gold Stockholder, enforceable against such Standard Gold Stockholder in accordance with their respective terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally.

Section 4.2                   No Conflict. Neither the execution or delivery by such Standard

Gold Stockholder of this Agreement or any Transaction Document to which such Standard Gold Stockholder is a party, nor the consummation or performance by such Standard Gold Stockholder of the transactions contemplated hereby or thereby will, directly or indirectly, (a) contravene, conflict with, or result in a violation of any provision of the certificate of

	

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incorporation, by-laws or other organizational documents of such Standard Gold Stockholder (if such Standard Gold Stockholder is not a natural person); (b) contravene, conflict with, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, any agreement or instrument to which such Standard Gold Stockholder is a party or by which the properties or assets of the such Standard Gold Stockholder are bound; or (c) contravene, conflict with, or result in a violation of, any law or Order to which such Standard Gold Stockholder, or any of the properties or assets of such Standard Gold Stockholder, may be subject.

Section 4.3                   Litigation. There is no pending Action against such Standard

Gold Stockholder that involves the Standard Gold Shares or that challenges, or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement and, to the knowledge of such Standard Gold Stockholder, no such Action has been threatened, and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Action.

Section 4.4                   Acknowledgment of Transfer Restrictions; Shell Company.

Such Standard Gold Stockholder understands and agrees that the Company Shares to be issued pursuant to this Agreement have not been registered under the Securities Act or the securities laws of any state and that the issuance of the Company Shares is being effected in reliance upon an exemption from registration afforded either under Section 4(2) of the Securities Act for transactions by an issuer not involving a public offering or Regulation D promulgated thereunder. Moreover, each Standard Gold Stockholder acknowledges that the Company is a "shell company" as that term is defined in Rule 405 and that as a consequence thereof, such Standard Gold Stockholder may be precluded from selling or otherwise transferring his Company Shares in reliance upon Rule 144 as promulgated pursuant to the Securities Act under certain circumstances.

a.                   Status. By its execution of this Agreement, such Standard Gold Stockholder represents and warrants to the Company as indicated on Exhibit C hereto, that it is (i) an "accredited investor," as defined in Regulation D promulgated under the Securities Act or (ii) is not a "U.S. person," as defined in Regulation D promulgated under the Securities Act; and, such Standard Gold Stockholder understands that the Company Shares are being offered and sold to such Standard Gold Stockholder in reliance upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Standard Gold Stockholder set forth in this Agreement, in order that the Company may determine the applicability and availability of the exemptions from registration of the Company Shares on which the Company is relying.

b.                  Additional Representations and Warranties. Each Standard Gold Stockholder further makes the representations and warranties to the Company set forth on Exhibit D.

Section 4.5                    Stock Legends. Each Standard Gold Stockholder hereby

agrees with the Company as follows:

	

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a.                                           Securities Act Legend. The certificates evidencing the Company Shares issued to such Standard Gold Stockholder will bear the following legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS .

b.                                           Other Legends. The certificates representing such Company Shares, and each certificate issued in transfer thereof, will also bear any other legend required under any applicable law, including, without limitation, any state corporate and/or state securities laws or under the applicable federal and provincial laws of Canada (the "Applicable Canadian Securities Laws").

c.                                            Opinion. Such Standard Gold Stockholder shall not transfer any or all of the Company Shares pursuant to Rule 144, under the Securities Act or absent an effective registration statement under the Securities Act and applicable state securities law covering the disposition of the Company Shares, without first providing the Company with an opinion of counsel (which counsel and opinion are reasonably satisfactory to the Company) to the effect that such transfer will be made in compliance with Rule 144, under the Securities Act or will be exempt from the registration and the prospectus delivery requirements of the Securities Act and the registration or qualification requirements of any applicable state securities laws.

Section 4.6                    Ownership of Shares. Such Standard Gold Stockholder is both

the record and beneficial owner of the applicable Standard Gold Shares. Such Standard Gold Stockholder is not the record or beneficial owner of any other shares of Standard Gold. Such Standard Gold Stockholder has and shall transfer at the Closing, good and marketable title to the Standard Gold Shares, free and clear of all Liens, restrictions on transfer or adverse claims of any nature whatsoever.

Section 4.7                   Pre-emptive Rights. At Closing, such Standard Gold Stockholder

does not have any pre-emptive rights or any other rights to acquire any shares of Standard Gold that have not been waived or exercised.

	

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ARTICLE V

	

CONDITIONS PRECEDENT TO OBLIGATIONS OF STANDARD GOLD AND THE STANDARD GOLD STOCKHOLDERS

The obligations of Standard Gold and the Standard Gold Stockholders to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by Standard Gold and the Standard Gold Stockholders at their sole discretion:

Section 5.1                   Representations and Warranties of the Company. All

representations and warranties made by the Company in this Agreement shall be true and correct in all material respects on and as of the Closing Date, except insofar as the representations and warranties relate expressly and solely to a particular date or period, in which case, subject to the limitations applicable to the particular date or period, they will be true and correct in all material respects on and as of the Closing Date with respect to such date or period.

Section 5.2                   Agreements and Covenants. The Company shall have performed

and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with on or prior to the Closing Date.

Section 5.3                   Consents and Approvals. All consents, waivers, authorizations

and approvals of any Governmental Authority and of any other Person required in connection with the execution, delivery and performance of this Agreement shall have been duly obtained and shall be in full force and effect on the Closing Date.

Section 5.4                   No Violation of Orders. No preliminary or permanent injunction

or other Order issued by any court or Governmental Authority, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any Governmental Authority, which declares this Agreement invalid in any respect or prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of the Company, taken as a whole, shall be in effect; and no action or proceeding before any court or Governmental Authority shall have been instituted or threatened by any Governmental Authority, or by any other Person which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

Section 5.5                   No Bankruptcy Proceedings. No proceeding in which the

Company shall be a debtor, defendant or party seeking an order for its own relief or reorganization shall have been brought or be pending by or against the Company or under any United States, state or foreign bankruptcy or insolvency law.

Section 5.6                   Applicable Exemption from Registration under the Securities

Act. Standard Gold shall be satisfied that the issuance of the Company Shares to the Standard Gold Stockholders, in connection with the Share Exchange, shall be exempt from registration pursuant to Section 4(2) of the Securities Act, Regulation D promulgated under the Securities Act, or any other applicable exemption therefrom.

	

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Section 5.7                   Form 8-K. A final draft of a Current Report on Form 8-K, which

discloses the Company's entering into this Agreement, the consummation of the Share Exchange, and which also includes all information required to be reported with respect to a transaction in which a public "shell company" ceases to be a "shell company" including, without limitation, the information required pursuant to "Sections 2.01 - Completion of Acquisition or Disposition of Assets" regardless of whether or not the Company ceases to be a "shell company" (the "Super 8-K"), shall have been approved by Standard Gold, the Company and their respective legal advisors, to be filed with the SEC within four (4) business days after the Closing Date.

Section 5.8                    Other Closing Documents. Standard Gold shall have received

such certificates, instruments and documents in confirmation of the representations and warranties of the Company, the Company's performance of its obligations hereunder, and/or in furtherance of the transactions contemplated by this Agreement as the Standard Gold Stockholders and/or their respective counsel may reasonably request.

Section 5.9                   Financing. Pursuant to the terms and conditions of the Financing,

the Company shall have received minimum subscriptions for an aggregate of $1,500,000 of its securities (the "Minimum Subscription Amount").

Section 5.10                  Loan Conversion. The outstanding principal balance of and

accrued and unpaid interest on, the Company's promissory note dated March 2, 2010 in the principal amount of 1,067,527.40 (the "Rayat Note"), shall have been converted as of the Closing Date into an aggregate of 40,000,000 shares of the Company's common stock, $0.00001 par value per share (the "Loan Conversion").

Section 5.11                  Shareholder Consent. The Company shall have obtained

and delivered the written consent of its shareholders owning more than 50% of the issued and outstanding shares of the Company's Common Stock (the "Shareholder Consent") to the consummation of the SGC Acquisition and the change of the Company's name to a name to be determined by the Company's Board of Directors (the "Name Change").

Section 5.12                  Documents. The Company shall have caused the following

documents to be delivered to Standard Gold and the Standard Gold Stockholders:

a.                                            share certificates evidencing the Company Shares registered in the name of each Standard Gold Stockholder, as set forth on Exhibit B annexed hereto;

b.                                           a Secretary's Certificate, dated the Closing Date, certifying attached copies of (A) the Company Charter Documents, (B) the resolutions of the Company's Board approving this Agreement, the Transaction Documents and the transactions contemplated hereby and thereby; and (C) the incumbency of each authorized officer of the Company signing this Agreement and the Transaction Documents to which the Company is a party;

	

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c.                                            a Certificate of Good Standing of the Company dated not more than five (5) business days prior to the Closing Date;

d.                                           this Agreement and each of the Transaction Documents to which the Company is a party, duly executed;

e.                                           an Officer's Certificate of the Company, dated the Closing Date, certifying as to Sections 5.1, 5.2, 5.3, 5.4 and 5.5; and

f.                                            such other documents as Standard Gold may reasonably request for the purpose of (i) evidencing the accuracy of any representation or warranty of the Company,

(ii)   evidencing the performance by the Company of, or the compliance by the Company with, any covenant or obligation required to be performed or complied with by the Company,

(iii)    evidencing the satisfaction of any condition referred to in this Article V, or (iv) otherwise facilitating the consummation of any of the transactions contemplated by this Agreement and the Transaction Documents.

ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY

The obligations of the Company to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by the Company in its sole discretion:

Section 6.1                   Representations and Warranties of Standard Gold and the

Standard Gold Stockholders. All representations and warranties made by Standard Gold and the Standard Gold Stockholders on behalf of themselves individually, in this Agreement shall be true and correct on and as of the Closing Date except insofar as the representation and warranties relate expressly and solely to a particular date or period, in which case, subject to the limitations applicable to the particular date or period, they will be true and correct in all material respects on and as of the Closing Date with respect to such date or period.

Section 6.2                   Agreements and Covenants. Standard Gold and the Standard

Gold Stockholders shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by each of them on or prior to the Closing Date.

Section 6.3                    Consents and Approvals. All consents, waivers, authorizations

and approvals of any Governmental Authority and of any other Person required in connection with the execution, delivery and performance of this Agreement, shall have been duly obtained and shall be in full force and effect on the Closing Date.

Section 6.4                   No Violation of Orders. No preliminary or permanent injunction

or other Order issued by any court or other Governmental Authority, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any Governmental Authority that declares this Agreement invalid or unenforceable in any respect or which prevents the

	

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consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of Standard Gold, taken as a whole, shall be in effect; and no action or proceeding before any court or Governmental Authority shall have been instituted or threatened by any Governmental Authority, or by any other Person which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

Section 6.5                   No Bankruptcy Proceedings. No proceeding in which Standard

Gold shall be a debtor, defendant or party seeking an order for its own relief or reorganization shall have been brought or be pending by or against Standard Gold or under any United States, state or foreign bankruptcy or insolvency law.

Section 6.6                   Applicable Exemption from Registration under the Securities

Act. The Company shall be satisfied that the issuance of the Company Shares to the Standard Gold Stockholders, in connection with the Share Exchange, shall be exempt from registration pursuant to Section 4(2) of the Securities Act, Regulation D promulgated under the Securities Act, or any other applicable exemption therefrom.

Section 6.7                   Form 8-K. A final draft of the Super 8-K shall have been

approved by Standard Gold, the Company and their respective legal advisors, to be filed with the SEC within four (4) business days after the Closing Date.

Section 6.8                    Other Closing Documents. The Company shall have received

such certificates, instruments and documents in confirmation of the representations and warranties of Standard Gold and the Standard Gold Stockholders and the performance of Standard Gold's and the Standard Gold Stockholders' respective obligations hereunder and/or in furtherance of the transactions contemplated by this Agreement as the Company or its counsel may reasonably request.

Section 6.9                   Financing. The Minimum Subscription Amount shall have been

received by the Company.

Section 6.10                  Loan Conversion. The Loan Conversion or the Note Payment

shall have been consummated.

Section 6.11                  Scheduled Liabilities. The Scheduled Liabilities shall have been

paid.

Section 6.12                  Audited Financial Statements. Standard Gold shall have

delivered to the Company its audited financial statements for the period from incorporation through August 31, 2010, which audited financial statements shall not reflect any material changes (as determined solely by the Company") from the Unaudited Standard Gold Financial Statements.

	

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Section 6.13                  Lock-Up Agreement.                Each of the Standard Gold

Stockholders shall have executed and delivered to the Company the Lock-Up Agreement attached hereto as Exhibit E.

Section 6.14                  Shareholder Consent. The Shareholder Consent shall have

been delivered.

Section 6.15                  Other Documents. Standard Gold and the Standard Gold

Stockholders shall have caused the following documents to be delivered to the Company at the Closing:

a.                                            share certificates evidencing the number of Standard Gold Shares, along with executed share transfer forms transferring such Standard Gold Shares to the Company;

b.                                           a Secretary's Certificate, dated the Closing Date, certifying attached copies of (A) the Standard Gold Charter Documents, (B)the resolutions of Standard Gold's Board approving this Agreement, the Transaction Documents and the transactions contemplated hereby and thereby; and (C) the incumbency of each authorized officer of Standard Gold signing this Agreement and the Transaction Documents to which Standard Gold is a party;

c.                                            a Certificate of Good Standing of Standard Gold dated not more than five (5) business days prior to the Closing Date;

d.                                          this Agreement and each of the Transaction Documents to which Standard Gold and the Standard Gold Stockholders is a party, duly executed;

e.                                           an Officer's Certificate of Standard Gold, dated the Closing Date, certifying as to Sections 6.1, 6.2, 6.3, 6.4 and 6.5; and

f.                                            such other documents as the Company may reasonably request for the purpose of (A) evidencing the accuracy of any of the representations and warranties of the Standard Gold and the Standard Gold Stockholders , (B) evidencing the performance of, or compliance by Standard Gold and the Standard Gold Stockholders with, any covenant or obligation required to be performed or complied with by Standard Gold and the Standard Gold Stockholders, as the case may be, (C) evidencing the satisfaction of any condition referred to in this Article VI, or (D) otherwise facilitating the consummation or performance of any of the transactions contemplated by this Agreement and the other Transaction Documents.

Section 6.16                  No Claim Regarding Stock Ownership or Consideration.

There must not have been made or threatened by any Person, any claim asserting that such Person (a) is the holder of, or has the right to acquire or to obtain beneficial ownership of the Standard Gold Shares, or any other stock, voting, equity, or ownership interest in, Standard Gold, or (b) is entitled to all or any portion of the Company Shares.

	

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ARTICLE VII

	

ADDITIONAL AGREEMENTS

Section 7.1                   Post Effective Amendment. The Company shall file a post

effective amendment to the Registration Statement (the "PEA") no later than October 29, 2010. Standard Gold, and to the extent required, the Standard Gold Stockholders, shall provide the Company with all necessary information regarding Standard Gold's activities, business, properties for inclusion in the PEA, on a timely basis, as requested by the Company.

Section 7.2                   Use of Financing Proceeds. Anything herein to the contrary

notwithstanding, the Company may use a portion of the proceeds from the Financing to pay the Scheduled Liabilities.

Section 7.3                    Termination; Termination Date.

a.                   Termination. This Agreement may be terminated at any time (i) by the mutual written consent of Standard Gold and the Company, (ii) by Standard Gold in the event there is a breach by the Company of its representations, warranties or covenants, which breach if curable, has not been cured within ten (10) days after receipt by the Company of a written notice of such breach from Standard Gold, or (iii) by Company in the event there is a breach by Standard Gold of its representations, warranties or covenants, which breach if curable, has not been cured within ten (10) days after receipt by Standard Gold of a written notice of such breach from the Company; any termination pursuant to this Section 7.3(a) shall be binding on and effective as to all of the Standard Gold Stockholders.

b.                   Termination Date. If the Closing shall not have been consummated on or prior to December 31, 2010 (the "Termination Date"), this Agreement shall terminate and be of no further force or effect.

Section 7.4                   Name Change. At the Closing or as soon thereafter as is

practicable, the Company will file an amendment to its articles of incorporation with the Secretary of State of the State of Nevada effecting the Name Change.

ARTICLE VIII POST-CLOSING AGREEMENTS

Section 8.1                   Filing of the Super 8-K. The Super 8-K shall be filed with the

SEC within four (4) business days after the Closing Date.

Section 8.2                    SEC Documents. From and after the Closing Date, in the event

the SEC notifies the Company of its intent to review any SEC Report filed prior to the Closing Date or the Company receives any oral or written comments from the SEC with respect to any

	

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SEC Report filed prior to the Closing Date, the Company shall promptly respond to any such oral or written comments.

Section 8.3                   Public Disclosure. Unless otherwise permitted by this Agreement,

Standard Gold and the Company shall consult with each other before issuing any press release or otherwise making any public statement or making any other public (or non-confidential) disclosure (whether or not in response to an inquiry) regarding the terms of this Agreement and the transactions contemplated hereby, and neither shall issue any such press release or make any such statement or disclosure without the prior approval of both the Company and Standard Gold (which approval shall not be unreasonably withheld), except as may be required by law or by obligations pursuant to any listing agreement with any national securities exchange, or the Financial Industry Regulatory Authority, as applicable, in which case the Company and/or Standard Gold shall use its commercially reasonable efforts to consult with each other before issuing such press release or making such public statement or disclosure. Anything herein to the contrary notwithstanding, the parties hereto acknowledge that a copy of this Agreement will be attached as an exhibit to the Super 8-K and the PEA.

ARTICLE IX MISCELLANEOUS PROVISIONS

Section 9.1                    Successors and Assigns. This Agreement shall inure to the

benefit of, and be binding upon, the parties hereto and their respective successors and assigns; provided, however, that no party shall assign or delegate any of the obligations created under this Agreement without the prior written consent of the other parties.

Section 9.2                   Fees and Expenses. Except as otherwise expressly provided in this

Agreement, all legal and other fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such fees, costs or expenses.

Section 9.3                   Notices. All notices and other communications given or made

pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested) or facsimile to the parties at the following addresses:

If to Standard Gold or the Standard Gold Stockholders, to:

Standard Gold Corp.

3266 W Galveston Dr. Suite 107

Apache Junction, AZ 85120

Attention: President

Facsimile: (480) 288-6532

	

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with copies, which shall not constitute notice, to:

Sichenzia Ross Friedman Ference LLP
61 Broadway, 32nd Floor
New York, NY 10006
Attention: Harvey Kesner, Esq.
Tel. No.: (212) 930-9700
Fax No.: (212)930-9725

If to the Company, to:

PhytoMedical Technologies, Inc.

100 Overlook Drive, 2nd Floor

Princeton, New Jersey, 08540

Attention: President and Chief Executive Officer

Facsimile: (248) 671-0315

with copies, which shall not constitute notice, to:

Sierchio & Company, LLP
430 Park Avenue, Suite 702
New York, NY 10022
Attention: Joseph Sierchio, Esq.
Tel. No.: (212) 246-3030
Fax No.: (212)246-3039

or to such other persons or at such other addresses as shall be furnished by any party by like
notice to the others, and such notice or communication shall be deemed to have been given or
made as of the date so delivered or mailed. No change in any of such addresses shall be
effective insofar as notices under this Section 9.3 are concerned unless such changed address
shall have been given to such other party hereto as provided in this Section 9.3.

Section 9.4                   Entire Agreement. This Agreement, together with the

exhibits hereto, represents the entire agreement and understanding of the parties with
reference to the transactions set forth herein and no representations or warranties have been
made in connection with this Agreement other than those expressly set forth herein or in the
exhibits, certificates and other documents delivered in accordance herewith. This Agreement
supersedes all prior negotiations, discussions, correspondence, communications,
understandings and agreements between the parties relating to the subject matter of this
Agreement and all prior drafts of this Agreement, all of which are merged into this
Agreement. No prior drafts of this Agreement and no words or phrases from any such prior
drafts shall be admissible into evidence in any action or suit involving this Agreement.

Section 9.5                    Severability. This Agreement shall be deemed severable, and the

invalidity or unenforceability of any term or provision hereof shall not affect the validity or
enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu

	

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of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and enforceable.

Section 9.6                   Counterparts. This Agreement may be executed in any number

of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement or amendments thereto and of signature pages by facsimile transmission or by email transmission in portable digital format, or similar format, shall constitute effective execution and delivery of such instrument(s) as to the parties and may be used in lieu of the original Agreement or amendment for all purposes. Signatures of the parties transmitted by facsimile or by email transmission in portable digital format, or similar format, shall be deemed to be their original signatures for all purposes.

Section 9.7                   Convenience of Forum; Consent to Jurisdiction. The parties to

this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the State of New York located in County of New York, and/or the United States District Court for the Southern District of New York, in respect of any matter arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party as provided in Section 9.3.

Section 9.8                   Remedies Cumulative; Specific Performance. The rights and

remedies of the parties hereto shall be cumulative and not alternative. The parties agree that, in the event of any breach or threatened breach by any party to this Agreement of any covenant, obligation or other provision set forth in this Agreement for the benefit of any other party to this Agreement, such other party shall be entitled, in addition to any other remedy that may be available to it, to: (i) a decree or order of specific performance or mandamus to enforce the observance and performance of such covenant, obligation or other provision; and (ii) an injunction restraining such breach or threatened breach. The parties further agree that no Person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 9.8, and the parties irrevocably waive any right they may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

Section 9.9                   Governing Law. This Agreement shall be governed by and

interpreted and enforced in accordance with the laws of the State of New York without giving effect to the choice of law provisions thereof.

Section 9.10                 Amendments and Waivers. Except as otherwise provided herein,

no amendment or waiver of any provision of this Agreement shall be valid unless the same shall be in writing and signed by (i) the Company; (ii) Standard Gold and (iii) a majority of the Standard Gold Stockholders. No waiver by any party of any default, misrepresentation, or breach

	

28

 

 

 

 

	

of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any
prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any such prior or subsequent occurrence.

Section 9.11                  Construction.

a.                                           For purposes of this Agreement, whenever the context requires: (i) the
singular number shall include the plural, and vice versa; (ii) the masculine gender shall
include the feminine and neuter genders; (iii) the feminine gender shall include the masculine
and neuter genders; and (iv) the neuter gender shall include the masculine and feminine
genders.

b.                                              Each of the parties hereto has been represented by legal counsel
except to the extent that such party has declined legal counsel. Accordingly, the parties hereto
agree that any rule of construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied in the construction or interpretation of this Agreement.

c.                                           Except as otherwise indicated, all references in this Agreement to
"Sections," "Schedules" and "Exhibits" are intended to refer to Sections of this Agreement
and Schedules and Exhibits to this Agreement.

[SIGNATURE PAGE FOLLOWS]

	

29

 

 

 

 

	

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the

date first above written.

 

	

 

STANDARD GOLD CORP.

By: /s/John D. Bleak 

Name: John D. Bleak

Title: President

PHYTOMEDICAL TECHNOLOGIES, INC.

By: /s/Amit S. Dang 

Name: Amit S. Dang

Title: CEO / President 

[SIGNATURE PAGE FOR STANDARD GOLD STOCKHOLDERS FOLLOWS

ON THE NEXT PAGE]

	

30

 

 

 

	

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the

date first above written.

	

STANDARD GOLD STOCKHOLDERS:

	

Josie Mann

Darren Mann

Ethny Lindsay

Casa Madrid Holdings, Inc.

Joyce Lindsay

Rosalind Lindsay

Denis Corin

Oliver Lindsay

Johnathan Lindsay

Randall Reneau

Stefanus International Inc.

Daniel Bleak

Joshua Bleak

Floyd Bleak

Taylor Housser

Glynn Fisher

Anthony Huston

Sandra Corin

Kian Ehsan

Kristian Andresen

Theresa Grigg

Boucheron Investments

David Sidders

Lindsay Capital

Derrick Townsend

James Taylor

Cat Brokerage AG

Clifton Pinkard

Charna Fuchs

Michael & Jennifer Evans

New Paradigm Capital

Copper Eagle

Berlin Financial Corp.

NPX Metals, Inc.

Alan S. Honig C/F Harrison Honig UTMA/FL

	

31

 

 

 

 

	

Alan S. Honig C/F Cameron Honig UTMA/FL Alan S. Honig C/F Ryan Honig UTMA/FL Alan S. Honig C/F Jacob Honig UTMA/FL Sandor Capital Master Fund, L.P. Barry Honig

 

	

BY: /s/ John Lindsay

 

	

Name: John Lindsay

	

Title: Attorney in Fact for each of the Above named Standard Gold Shareholders

 

	

32

 

 

 

 

	

EXHIBIT A

	

STANDARD GOLD STOCKHOLDERS

Name                                                          Number of Standard

Gold Shares

	

Alan Lindsay
	

1,211,774

	

Josie Mann
	

18,984

	

Darren Mann
	

151,874

	

Ethny Lindsay
	

1,898,426

	

Casa Madrid Holdings, Inc.
	

629,055

	

Joyce Lindsay
	

493,591

	

Rosalind Lindsay
	

75,937

	

Denis Corin
	

227,811

	

Oliver Lindsay
	

395,465

	

Johnathan Lindsay
	

1,378,437

	

Randall Reneau
	

227,811

	

Stefanus International Inc.
	

1,518,740

	

Daniel Bleak
	

1,869,948

	

Joshua Bleak
	

1,015,658

	

Floyd Bleak
	

265,780

	

Taylor Housser
	

113,906

	

Glynn Fisher
	

1,214,993

	

Anthony Huston
	

75,937

	

Sandra Corin
	

75,937

	

Kian Ehsan
	

75,937

	

Kristian Andresen
	

37,969

	

Theresa Grigg
	

45,562

	

Boucheron Investments
	

569,528

	

David Sidders
	

75,937

	

Lindsay Capital Corp.
	

1,404,835

	

Derrick Townsend
	

227,811

	

James Taylor
	

37,969

	

Cat Brokerage AG
	

75,937

	

Clifton Pinkard
	

3,037

	

Charna Fuchs
	

151,874

	

Michael & Jennifer Evans
	

22,781

	

New Paradigm Capital
	

759,370

	

Copper Eagle, Inc.
	

1,750,000

	

Berlin Financial Corp.
	

1,401,387

	

NPX Metals, Inc.
	

3,000,000

	

Isaiah Capital Trust
	

1,750,000

	

Forte Investments Group, Inc.
	

1,000,000

 

 

 

	

Box Capital Corp.   
	

750,000

	

Sandor Capital Master Fund, L.P.    
	

324,976

	

Barry Honig    
	

1,857,010

	

TOTAL   
	

28,181,984

 

 

	

34

 

 

 

 

	

EXHIBIT B

	

ALLOCATION OF COMPANY SHARES

			
	 
	Name 	Number of 	Number of 
	 	Standard Gold 	Company 
	 	Shares 	Shares 
	Alan Lindsay 	1,211,774 	26,101,612 
	Josie Mann 	18,984 	408,915 
	Darren Mann 	151,874 	3,271,366 
	Ethny Lindsay 	1,898,426 	40,892,096 
	Casa Madrid Holdings, Inc. 	629,055 	13,549,845 
	Joyce Lindsay 	493,591 	10,631,950 
	Rosalind Lindsay 	75,937 	1,635,683 
	Denis Corin 	227,811 	4,907,049 
	Oliver Lindsay 	395,465 	8,518,316 
	Johnathan Lindsay 	1,378,437 	29,691,533 
	Randall Reneau 	227,811 	4,907,049 
	Stefanus International Inc. 	1,518,740 	32,713,660 
	Daniel Bleak 	1,869,948 	40,278,680 
	Joshua Bleak 	1,015,658 	21,877,273 
	Floyd Bleak 	265,780 	5,724,901 
	Taylor Housser 	113,906 	2,453,535 
	Glynn Fisher 	1,214,993 	26,170,949 
	Anthony Huston 	75,937 	1,635,683 
	Sandra Corin 	75,937 	1,635,683 
	Kian Ehsan 	75,937 	1,635,683 
	Kristian Andresen 	37,969 	817,852 
	Theresa Grigg 	45,562 	981,405 
	Boucheron Investments 	569,528 	12,267,633 
	David Sidders 	75,937 	1,635,683 
	Lindsay Capital Corp. 	1,404,835 	30,260,146 
	Derrick Townsend 	227,811 	4,907,049 
	James Taylor 	37,969 	817,852 
	Cat Brokerage AG 	75,937 	1,635,683 
	Clifton Pinkard 	3,037 	65,417 
	Charna Fuchs 	151,874 	3,271,366 
	Michael & Jennifer Evans 	22,781 	490,703 
	New Paradigm Capital 	759,370 	16,356,830 
	Copper Eagle, Inc. 	1,750,000 	37,695,000 
	Berlin Financial Corp. 	1,401,387 	30,185,876 
	NPX Metals, Inc. 	3,000,000 	64,620,000 
	Isaiah Capital Trust 	1,750,000 	37,695,000 

 

 

 

 

 

			
	Forte Investments Group, Inc. 	1,000,000 	21,540,000 
	Box Capital Corp. 	750,000 	16,155,000 
	Sandor Capital Master Fund, L.P. 	324,976 	6,999,983 
	Barry Honig 	1,857,010 	39,999,995 
	TOTAL 	28,181,984 	607,039,935 
	 	 	26,101,612 

 

	

36

 

 

 

 

	

EXHIBIT A

	

DEFINITION OF "ACCREDITED INVESTOR" AND "U.S. PERSON"

The term "accredited investor" means (PLEASE CHECK ALL APPLICABLE BOXES):

?                    A bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Securities Act; an investment company registered under the Investment Company Act of 1940 (the "Investment Company Act") or a business development company as defined in Section 2(a)(48) of the Investment Company Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of US $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 ("ERISA"), if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of US $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.

?                    A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

?                    An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US $5,000,000.

?                    A director or executive officer of the Company.

?                    A natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his or her purchase exceeds US $1,000,000 (not including the value of their primary residence).

?                     A natural person who had an individual income in excess of US $200,000 in each of the two most recent years or joint income with that person's spouse in excess of US $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

?                    A trust, with total assets in excess of US $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) (i.e., a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment).

?                    Any entity in which all of the equity owners are accredited investors.

 

 

 

	

1. The term "U.S. person" means:

	

I.            Any natural person resident in the United States;

II.            Any partnership or corporation organized or incorporated under the laws of
the United States;

III.          Any estate of which any executor or administrator is a U.S. person;

iv.            Any trust of which any trustee is a U.S. person;

v.             Any agency or branch of a foreign entity located in the United States;

vi.            Any non-discretionary account or similar account (other than an estate or
trust) held by a dealer or other fiduciary for the benefit or account of a U.S.
person;

vii.           Any discretionary account or similar account (other than an estate or trust)
held by a dealer or other fiduciary organized, incorporated, or (if an
individual) resident in the United States; and

viii.         Any partnership or corporation if:

A.      Organized or incorporated under the laws of any foreign
jurisdiction; and

B.      Formed by a U.S. person principally for the purpose of investing in
securities not registered under the Act, unless it is organized or
incorporated, and owned, by accredited investors (as defined in Rule
501(a) of Regulation S) who are not natural persons, estates or
trusts.

2. The following are not "U.S. persons":

i. Any discretionary account or similar account (other than an estate or trust)
held for the benefit or account of a non-U.S. person by a dealer or other
professional fiduciary organized, incorporated, or (if an individual) resident
in the United States;

II.            Any estate of which any professional fiduciary acting as executor or
administrator is a U.S. person if:

A.      An executor or administrator of the estate who is not a U.S. person
has sole or shared investment discretion with respect to the assets of
the estate; and

B.      The estate is governed by foreign law;

III.          Any trust of which any professional fiduciary acting as trustee is a U.S.
person, if a trustee who is not a U.S. person has sole or shared investment

	

38

 

 

 

 

	

discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. person;

	

iv.            An employee benefit plan established and administered in accordance with
the law of a country other than the United States and customary practices
and documentation of such country;

v.             Any agency or branch of a U.S. person located outside the United States if:

	

A. The agency or branch operates for valid business reasons; and

	

B. The agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance or banking regulation, respectively, in the jurisdiction where located; and

	

vi. The International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension plans, and any other similar international organizations, their agencies, affiliates and pension plans.

	

b. United States. "United States" means the United States of America, its territories and
possessions, any State of the United States, and the District of Columbia.

STANDARD GOLD STOCKHOLDER:

By: /s/ John Lindsay

 

	

Name: John Lindsay

	

Title: Attorney in Fact

	

39

 

 

 

 

	

EXHIBIT A

	

ADDITIONAL STANDARD GOLD STOCKHOLDER REPRESENTATIONS

[______________________________ j1 further represents and warrants to the Company

as follows:

1.                  Such person or entity qualifies as an Accredited Investor on the basis set forth on Exhibit C to this Agreement.

2.                  If such person is not a "US Person" such person represents and acknowledges that the Company Shares have not been offered to it in the United States and the individuals making the decision to purchase the Company Shares and executing and delivering this Agreement on its behalf of were not in the United States when the decision was made and this Agreement was executed and delivered; all offers and sales of the Company Shares shall be made in compliance with all applicable laws of any applicable jurisdiction and, particularly, in accordance with Rules 903 and 904, as applicable, of Regulation S or pursuant to registration of the Company Shares under the Securities Act or pursuant to an exemption from registration; it will not engage in any activity for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for any of the Company Shares and, neither such person or entity nor any of its affiliates will directly or indirectly maintain any short position, purchase or sell put or call options or otherwise engage in any hedging activities in any of the Company Shares or any other securities of the Company until after the end of the Distribution Compliance Period (as defined in Regulation S), and acknowledges that such activities are prohibited by Regulation S.

3.                  If such Standard Gold Stockholder is a resident of the provinces of Alberta, British Columbia, or Ontario, such person or entity understands that it is purchasing the Company Shares pursuant to certain exemptions from the registration and prospectus requirements of applicable securities legislation in Canada afforded by, without limitation, prospectus delivery requirements of the Applicable Canadian Securities Laws afforded by Section 2.13 of the "National Instrument 45-106 Prospectus and Registration Exemptions" and, as a consequence, (A) certain rights, remedies and protections under securities legislation will not be available to Standard Gold in connection with the acquisition of the Company Shares; (B) Standard Gold may not receive information that would otherwise be required to be provided to it under Applicable Canadian Securities Laws; (C) Company is relieved from certain obligations that would otherwise apply under securities legislation; and (D) resale of the Company Shares may be further restricted pursuant to Applicable Canadian Securities Laws.

	

1 Insert Name of Standard Gold Stockholder

 

 

 

 

	

4.                  Such person or entity has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect such shareholder's interests in connection with the transactions contemplated by this Agreement.

5.                   Such person or entity has consulted, to the extent that it has deemed necessary, with its tax, legal, accounting and financial advisors concerning its investment in Company Shares.

6.                   Such person or entity understands the various risks of an investment in Company Shares and can afford to bear such risks for an indefinite period of time, including, without limitation, the risk of losing its entire investment in Company Shares.

7.                   Such person or entity has had access to the Company's SEC Reports.

8.                  Such person or entity has been furnished during the course of the transactions contemplated by this Agreement with all other public information regarding the Company that such person or entity has requested and all such public information is sufficient for such person or entity to evaluate the risks of investing in Company Shares.

9.                  Such person or entity has been afforded the opportunity to ask questions of and receive answers concerning the Company and the terms and conditions of the issuance of Company Shares.

10.               Such person or entity is not relying on any representations and warranties concerning the Company made by the Company or any officer, employee or agent of the Company, other than those contained in the Agreement.

11.               Such person or entity is acquiring Company Shares for such person's or entity's, as the case may be, own account, for investment and not for distribution or resale to others.

12.               Such person or entity will not sell or otherwise transfer Company Shares, unless either (a) the transfer of such securities is registered under the Securities Act or (b) an exemption from registration of such securities is available, or otherwise than pursuant to all applicable laws, including, Applicable Canadian Securities Laws.

13.               Such person or entity understands and acknowledges that the Company is under no obligation, or intention, to register Company Shares for sale under the Securities Act.

14.               Such person or entity consents to the placement of a legend on any certificate or other document evidencing Company Shares substantially in the form set forth in Section 4.5(a) hereof and as otherwise required by applicable laws.

	

2

 

 

 

 

	

15.               Such person or entity represents that the address of such person set forth in Exhibit A to this Agreement is the principal residence if he is an individual or its principal business address if it is a corporation or other entity.

16.               Such person or entity understands and acknowledges that Company Shares have not been recommended by any federal or state securities commission or regulatory authority, that the foregoing authorities have not confirmed the accuracy or determined the adequacy of any information concerning the Company that has been supplied to such person or entity and that any representation to the contrary is a criminal offense.

17.               Such person or entity acknowledges that the representations, warranties and agreements made by such person or entity herein shall survive the execution and delivery of this Agreement and the purchase of Company Shares.

STANDARD GOLD STOCKHOLDER:

 

 

	

By: /s/ John Lindsay
Name: John Lindsay

	

Title: Attorney in Fact

	

3

 

 

 

 

	

Exhibit E

	

LOCK-UP AGREEMENT

	

THIS LOCK-UP AGREEMENT (the "Agreement") is made and entered into as of <>, 2010 by and among PhytoMedical Technologies, Inc. a Nevada corporation (the "Company") and each of the other signatories hereto (individually a "Holder" and collectively, the "Holder").

Capitalized terms used and not defined herein shall have the meanings ascribed to them in that certain Share Exchange Agreement (defined below).

RECITALS

WHEREAS, the Holders collectively own all of the issued and outstanding shares of Standard Gold Corp., a Nevada corporation (the "SGC");

WHEREAS, the Holders, the Company and SGC are parties to a Share Exchange Agreement dated as of October 22, 2010 (the "Share Exchange Agreement") pursuant to which the Company is acquiring 100% of the outstanding shares of the capital stock of SGC in exchange for shares of the Company's common stock, par value $0.0001 per share ("Company Common Stock"), and certain other parties named therein;

WHEREAS, upon consummation of the transactions contemplated by the Share Exchange Agreement, each of the Holders is to receive the number of shares (the "Exchange Shares") of the Company Common Stock set forth on Exhibit B to the Share Exchange Agreement; and

WHEREAS, as a material inducement for the parties to enter into the Share Exchange Agreement and as a condition to the parties' respective obligations to close under the Share Exchange Agreement, each of the Holders and the Company have agreed to execute and deliver to the Company this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Representations and Warranties. Each of the parties hereto, by their respective execution and delivery of this Agreement, hereby represents and warrants to the others and to all third party beneficiaries of this Agreement that (a) such party has the full right, capacity and authority to enter into, deliver and perform its respective obligations under this Agreement, (b) this Agreement has been duly executed and delivered by such party and is the binding and enforceable obligation of such party, enforceable against such party in accordance with the terms of this Agreement and (c) the execution, delivery and performance of such party's obligations under this Agreement will not conflict with or breach the terms of any other agreement, contract, commitment or understanding to which such party is a party or to which the assets or securities of such party are bound.

 

 

 

 

	

Each of the Holders has independently evaluated the merits of its decision to enter into and deliver this Agreement, and each such Holder confirms that it has not relied on the advice of the Company or any other person.

2.               Beneficial Ownership. Holder hereby represents and warrants that upon consummation of the transactions contemplated by the Share Exchange Agreement and the issuance to such holder of the number of Exchange Shares set forth opposite such Holder's name on Exhibit B to the Share Exchange Agreement, such holder will be the beneficially owner (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder) only to the Holder's Shares (as defined below) and does not possess any economic or derivative interest in any other securities of the Company. For purposes of this Agreement the shares of Company Common Stock beneficially owned by the Holder or which the Holder has the contractual right to acquire after the date hereof are collectively referred to as the "Holder's Shares," which term also shall include any shares of Company Common Stock or securities convertible into or exchangeable for Common Stock acquired by the Holder after the date hereof (i) upon any stock split, recapitalization or reorganization and (ii) in any non-public transaction from another holder of Company Common Stock as of the date of this Agreement.

3.              Lock-Up

(a)   Except as otherwise expressly provided herein, and subject to any other restrictions prohibiting the offer, sale or transfer of the Holder's Shares under applicable United States federal or state securities laws, rules and regulations (collectively, the "Regulations"), each Holder irrevocably agrees that:

(i)   For a period of one year commencing on the Closing Date (the "Lock-Up Period "), the Holder will not offer, pledge, encumber, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, or announce the offering of, any of the Shares (including any securities convertible into, or exchangeable for, or representing the rights to receive, Common Stock) or engage in any Short Sales (as defined below) with respect to any security of the Company (collectively, the "Lock-Up Restrictions"); and

(ii)    Upon the expiration of the Lock-Up Period, all of the Lock-Up Restrictions shall expire in their entirety, subject to the Regulations.

(b)       Each Holder agrees and acknowledges that the Company may (i) imprint an appropriate legend describing the terms of this Agreement on each stock certificate representing the Holder's Shares, (ii) place a stop order with the Company's transfer agent on all Holder's Shares, including those which are covered by a registration statement filed under the Securities Act and (iii) notify its transfer agent in writing of the stop order and the restrictions on the Holder's Shares and direct the transfer agent not to process any attempts by the Holder to resell or transfer any Holder's Shares except in compliance with this Agreement.

	

2

 

 

 

	

(c) The resale restrictions set forth in this Agreement shall be in addition to all other restrictions on transfer imposed by applicable United States and state securities laws, rules and regulations.

4.               Certain Permitted Transfers. Notwithstanding anything contained in this Agreement, the Holder may transfer its Shares to its affiliates, spouse and lineal descendants for estate planning purposes, at such value as determined by the Holder to be appropriate, or, subject to compliance with all applicable securities laws and pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended, in each case as evidenced by an opinion of counsel acceptable to the Company, and the prior written consent of the Company, to an unaffiliated third party (individually, a "Transferee") provided that the Transferee (or the legal representative of the Transferee) executes an agreement to be bound by all of the terms and conditions of this Agreement in connection with the resale of any Shares, in form and substance reasonably satisfactory to and to be executed by the Company. Further, Holder shall be permitted to pledge, encumber, or create a security interest in any or all of the hares to secure the payment or performance of indebtedness and other obligations of the Company to bona fide commercial lending institutions.

5.                Termination of Agreement upon Certain Events. In the event of: (a) a completed tender offer to purchase all or substantially all of the Company's issued and outstanding securities or (b) a merger, consolidation or other reorganization of the Company with or into an unaffiliated entity that results in a subsequent change in control of the Company, then this Agreement shall terminate as of the closing of such event and the Shares restricted pursuant hereto shall be released from such restrictions.

6.               Rights of Holder. Except to the extent provided in this Agreement or any other agreements between the parties hereto, the Holder shall be entitled to exercise its beneficial rights of ownership over the Shares, including the right to vote the Holder's Shares for any and all purposes.

7.                  No Registration Rights. Each Holder acknowledges that the Company has not and will not register any or all of the Exchange Shares prior to the expiration of the Lock-Up Period.

8.               Remedies. The Company shall have the right to specifically enforce all of the obligations of the Holder under this Agreement (without posting a bond or other security), in addition to recovering damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Holder recognizes that if it fails to perform, observe, or discharge any of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to the Company. Therefore, the Holder agrees that the Company shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security. If the Company prevails in an action to enforce this Agreement, it shall be entitled to receive from the Holder reimbursement for all fees and expenses incurred in connection therewith, including reasonable fees of counsel.

	

3

 

 

 

 

	

9.               Further Assurances. Each of the Holders and the Company shall take all such actions reasonably necessary to effectuate the terms and conditions of this Agreement.

10.                Third-Party Beneficiaries. The Holder and the Company acknowledge and agree that this Agreement is entered into for the benefit of and is enforceable by the Company and each holder of the Company's securities and their successors and assigns.

11.               No Additional Fees/Payment. Other than the consideration specifically referenced herein, the parties hereto agree that no fee, payment or additional consideration in any form has been or will be paid to the Holder in connection with this Agreement.

12.           Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested) or facsimile to the parties at the following addresses:

If to a Holder, to the address set forth on the Signature Page hereof for such Holder.

C/o Standard Gold Corp. Standard Gold Corp. 3266 W Galveston Dr. Suite 107 Apache Junction, AZ 85120 Attention: President Facsimile: (480) 288-6532

If to the Company, to:

PhytoMedical Technologies, Inc.

100 Overlook Drive, 2nd Floor

Princeton, New Jersey, 08540

Attention: President and Chief Executive Officer

Facsimile: (248) 671-0315

or to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be deemed to have been given or made as of the date so delivered or mailed. No change in any of such addresses shall be effective insofar as notices under this Section 12 are concerned unless such changed address shall have been given to such other party hereto as provided in this Section 12.

13.           Entire Agreement. This Agreement and the Share Exchange Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof, and may not be amended except by a written instrument executed by the parties hereto.

14.           Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective

	

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when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf' signature page were an original thereof.

15.           Severability This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and enforceable.

16.            Governing Law. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of New York without giving effect to the choice of law provisions thereof. The parties to this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the State of New York located in County of New York, and/or the United States District Court for the Southern District of New York, in respect of any matter arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party as provided in Section 16.

	

[SIGNATURE PAGEFOLLOWS]

	

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IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement as of the day and year first above written.

	

PHYTOMEDICAL TECHNOLOGIES, INC.

By: 

Name:  

Title: 

HOLDER:

By: 

Name: 

 

	

Title: 

Address For Notices Pursuant to Section 12 of this Agreement:

_____________________________________________________

_____________________________________________________

_____________________________________________________

 

	

Facsimile:

Email Address: __

 

 

	

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