Document:

a6274010ex10b.htm

Exhibit 10 (b)

 

TASTY BAKING COMPANY

 

PURCHASE AND SALE AGREEMENT

 

 

THIS AGREEMENT is made this 5th day of April, 2010, (the “Agreement”) by and between TASTY BAKING COMPANY, a Pennsylvania corporation (“Seller”) whose address is 3 Crescent Drive, Suite 200, Philadelphia PA 19129 and TKMG ASSOCIATES, L.P., a Pennsylvania limited partnership (“Buyer”) whose address is 120 East Lancaster Avenue, Ardmore, Pennsylvania 19003.

 

In consideration of the mutual and several covenants and agreements set forth below, the Buyer and Seller, intending to be legally bound, do covenant and agree as follows

 

1.           The Transaction.  Subject to the terms and conditions hereinafter set  forth, Seller agrees to sell and Buyer agrees to purchase the following (collectively, the “Property”):  those lots, tracts, or properties (the “Real Property”) situated in the City of Philadelphia, Commonwealth of Pennsylvania, being the former Tasty Baking Company sites particularly described in Exhibit “A” attached hereto (subject to confirmation by the title search set forth in paragraph 6 of this Agreement) and having street addresses of (i) 2706-10 Fox Street and (ii) 2900-40 Fox Street (collectively, also know as 3413 Fox Street) (the “Fox Street Property”) and having street addresses of (iii) 2701 W. Hunting Park Avenue, (iv) 2711 W. Hunting Park Avenue, (v) 2729-33 W. Hunting Park Avenue, (vi) 2749 W. Hunting Park Avenue, (vii) 2801 W. Hunting Park Avenue, (viii) 2803 W. Hunting Park Avenue and (ix) 2851-55 W. Hunting Park Avenue (collectively, also known as 2801 W. Hunting Park Avenue) (the “Hunting Park Avenue Property”), together with any machinery, systems, equipment and other items of personal property owned by Seller and attached or appurtenant to, located on and used in connection with the ownership, use, operation or maintenance of the Property which Seller, at its sole option, has not removed from the Real Property on or prior to Settlement (collectively, the “Personalty”), and all rights, easements, and appurtenances to the Property.  The Real Property is a portion of Philadelphia County Tax Parcels (i) 38-2-163000, (ii) 88-4-133500, (iii) 88-4-776800, (iv) 88-4-776900, (v) 88-4-776820, (vi) 38-2-001300, (vii) 88-4-128501 (viii) 88-4-

 

  

  

  

 

128503 and (ix) 88-4-776840.  The Real Property will be surveyed during the Due Diligence Period at which point the exact legal description will be provided.

 

2.           Purchase Price.  The purchase price shall be Six Million ($6,000,000) Dollars to be paid from Buyer to Seller as follows:

 

a.           Within seventy-two (72) hours of the execution of this Agreement, the Buyer shall deposit the sum of One Hundred  Thousand ($100,000.00) Dollars (the “Initial Deposit”) as an escrow deposit to be held by Land Services USA, Inc. as agent for First American Title Insurance Company (the “Escrow Agent”), which will  issue the Title Policy contemplated herein.  An additional Five Hundred  Thousand $500,000.00 Dollars (the “Additional Deposit,” which together with the Initial Deposit is sometimes hereinafter collectively referred to as the “Deposit”) shall be deposited with the Escrow Agent at the end of the Feasibility Period provided Buyer has not terminated this Agreement.  Escrow Agent shall hold the Deposit for the benefit of the Seller if Buyer defaults.  Buyer's tax ID number is: 23-2413380.  Buyer and Seller agree that the Escrow Agent shall be liable only for acts of willful misconduct.  Buyer and Seller direct Escrow Agent to return the Deposit to Buyer at Settlement, provided that the full purchase price is paid by Buyer at Settlement in accordance with paragraph 2b of this Agreement.  The Deposit shall be substantially in the form of Unconditional Irrevocable Letters of Credit in the form attached as Exhibit “B” issued by Firstrust Bank (the “Letter(s) of Credit”).

 

b.           At Settlement Buyer shall pay Seller the purchase price by wire transfer.

 

c.           On or prior to Settlement, Seller, at its option, may deliver to Buyer a proposed allocation of the Purchase Price between the Real Property and Personalty, for Buyer’s review and approval.

 

3.           Feasibility.

 

a.           Buyer shall have ninety (90) days from the date of full execution of this Agreement (the “Feasibility Period”) to determine whether the Property is suitable for Buyer's intended purpose, on the conditions set forth in paragraph 10 of this Agreement.

 

  

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b.           If Buyer, in the exercise of its sole discretion, decides that the Property is not suitable for Buyer's intended purpose for any reason or for no reason Buyer may terminate this Agreement by giving Notice to this effect to Seller at any time during the Feasibility Period but not thereafter.  If such Notice is given, Buyer shall be entitled to a return of its Initial Deposit.  Once the Feasibility Period expires and if Buyer has not exercised its right to terminate, Buyer's right to terminate this Agreement under the terms of this paragraph 3 shall expire absolutely, and the Initial Deposit and Additional Deposit shall be non-refundable to Buyer, unless Buyer terminates this Agreement due to Seller’s failure to deliver title in accordance with the terms of this Agreement.  Notwithstanding anything set forth herein to the contrary, at Settlement, the Deposit will be refunded to Buyer provided that the full Purchase Price is paid to Seller in accordance with Paragraph 2b of this Agreement, unless Seller has drawn on the Letter of Credit(s), in which case, the amount drawn down by Seller will be applied to the Purchase Price.

 

c.           If Buyer does not terminate this Agreement on or prior to ninety (90) days from the date hereof, as provided for in paragraph 3b of this Agreement.  Buyer agrees to accept the Property on an AS IS, WHERE IS condition, with all faults.  Buyer specifically acknowledges that if Settlement occurs, it has agreed to purchase the Property as a result of its inspection and studies and not due to any warranties, representations or covenants expressed or implied regarding the condition of the Property made by Seller or by anyone acting or purporting to act on Seller's behalf except as specifically set forth herein.  Buyer further acknowledges that Seller has made no warranty or representation and is making no warranty or representation regarding the environmental condition of the Property.  Effective at Settlement and to the fullest extent permitted by law, Buyer hereby releases, discharges and forever acquits Seller and all of Seller’s officers, directors, shareholders, employees, agents and independent contractors and successors, and each and every one of them, from all demands, claims, liabilities, obligations, costs and expenses, which Buyer may suffer or incur relating to the Property.

 

4.           Conditions of Settlement.

 

a.           It shall be a condition precedent to Buyer's obligation to settle hereunder that each of the following conditions shall have been satisfied:

 

  

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(1)           That Buyer and Seller shall have each executed a copy of this Agreement and delivered the same to other;

 

(2)           That Seller, at Seller’s expense shall have received a zoning change from the City of Philadelphia substantially in the form attached hereto as Exhibit “C” (the “Zoning Approval” or the “Zoning Condition”). Seller shall diligently and in good faith seek such Zoning Approval.  In no event shall Buyer submit applications for governmental approvals and zoning changes or variances, without obtaining Seller’s prior written approval therefore, which approval shall not be unreasonably denied, delayed or conditioned.

 

b.           If the Zoning Condition is not satisfied by the sixtieth (60th) day following the end of the Feasibility Period, Seller shall have the right to extend the date for Settlement, on the conditions set forth in this paragraph 4b, for up to six (6) month (the “Zoning Extension Period”), upon notice to Buyer on or before the first day of the Zoning Extension Period.  The right of Seller to extend Settlement shall apply only if an application in furtherance of satisfying the Zoning Condition is pending and the body before which it is pending has not yet issued a final decision.

 

c.             In the event that the conditions set forth in paragraph 4a of this Agreement are not satisfied within either (i) the 60 day period following the end of the Feasibility Period or (ii) if Seller has exercised its right to extend the date for Settlement as set forth in paragraph 4b of this Agreement, the Zoning Extension Period, Buyer shall have the right either to waive any such condition and proceed to Settlement or to terminate this Agreement by notifying Seller in writing.  If Buyer does not waive such condition, the parties direct Escrow Agent to return the Deposit to Buyer and neither party shall have any further liability to the other.  Further, if Buyer terminates this Agreement on account of a failure of a condition or because Buyer determines that the Property is not suitable and terminates under paragraph 3 of this Agreement, Buyer agrees to deliver, if and only to the extent specifically requested by Seller in writing, an assignment of Buyer's interests in and to all engineering plans, studies, and other materials to Seller.

 

  

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d.           Buyer agrees to cooperate with Seller in connection with the Zoning Condition including, where necessary, signing application forms if required and executing assignment of permit forms.  The parties agree that all costs and expenses associated with the satisfaction of the Zoning Condition as set forth in paragraph 4 of this Agreement shall be assumed by Seller.

 

e.           Seller’s obligations to close are conditional upon:

 

(i)           Execution and delivery by Buyer of an agreement between Buyer and Allegheny West Foundation, in form acceptable to Seller, which shall provide that Buyer shall fund not less than $60,000 per year to the Allegheny  West Foundation for the longer of (A) so long as Buyer or one of its affiliates owns the Property or (B) ten years (the “Allegheny West Agreement”).

 

(ii)           Seller’s right, at any time prior to Settlement to terminate the Agreement of Sale in order to sell all or a portion of the Property to an entity selected by the Pennsylvania Gaming Control Board for a Philadelphia Slot License (or to the entity that had previously had an option to buy the Property in connection with its application for a Philadelphia Slot license).  In the event of such termination, Seller shall return to Buyer any Deposit, any Additional Deposit, and shall pay to Buyer an amount equal to (i) the reasonable out-of-pocket costs incurred by Buyer in connection with its due diligence review of the Property from the date of the Agreement of Sale through the date of such termination; plus (ii) an amount determined as follows: 

 

 

	
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$100,000 if  Seller terminates within 90 days after the date of  the Agreement of Sale

 

	
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$250,000 if Seller terminates between 91 and 180 days after the date of the Agreement of Sale; or

 

	
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$500,000 if Seller terminates more than 180 days after  the date of the Agreement of Sale.

 

(iii)            Execution and delivery by Buyer and Seller of an agreement, on terms and in form acceptable to both Buyer and Seller (the “Gaming 

 

  

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Agreement”) which shall provide that if within two years from Settlement all or a portion of the Property is selected by the Pennsylvania Gaming Control Board as a location for a Philadelphia Slot License, and the Property is sold or leased to an entity selected for such Philadelphia Slot License, Buyer shall pay Seller an amount equal to the lesser of (i) $5,000,000 or (ii) 33.33% of Buyer’s Net Profit on the Property.  For purposes of the foregoing,  “Buyer’s Net Profit” in the event Buyer sells the Property to an owner of the Philadelphia Slot License shall equal the difference between (a) the amount paid to Buyer by the owner of the Philadelphia Slot License for the Gaming Portion of the Property, less all reasonable out-of-pocket costs and expenses incurred by Buyer in connection with such sale and (b) the amount paid at Settlement by Buyer to Seller for the Gaming Portion of the Property (which amount shall be calculated by multiplying the square footage of the Gaming Portion of the Property by the per square foot purchase price of the entire Property paid by Buyer to Seller).   In the event Buyer leases the Property to an owner of the Philadelphia Slot License, the “Buyer’s Net Profit” shall equal the difference between (a) the rent to be paid over the term of the lease at a capitalization rate agreed to by Buyer and Seller and in the event Buyer and Seller cannot agree to such capitalization rate, such rate will be determined by an appraisal process as to be more particularly set forth in the Gaming Agreement and (b) the amount paid at Settlement by Buyer to Seller for the Gaming Portion of the Property (calculated as set forth above).

 

5.           Settlement. Settlement shall take place at 2600 One Commerce Square, Phila., PA, or at such other place as Buyer and Seller shall agree in writing, on or before the later of (a) sixty (60) days after the expiration of the Feasibility Period, (b) if the Zoning Condition has not 

 

  

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been met within sixty (60) days after the expiration of the Feasibility Period and Seller has exercised its right to the Zoning Extension Period in accordance with the provisions of paragraph 4b of this Agreement, sixty (60) days after receipt of the Zoning Condition, or (c) such other time as Buyer and Seller shall agree in writing (the “Settlement”), but in no event later than eight (8) months after the end of the Feasibility Period.

 

6.           Title.  Prior to the expiration of the Feasibility Period, Buyer shall secure a title commitment from a recognized title insurance company authorized to do business within the Commonwealth of Pennsylvania committing to insure title as good and marketable or insurable at prevailing rates.  Buyer shall furnish a copy of such commitment to Seller within the Feasibility Period.  At Settlement, the Property shall be conveyed free and clear of all liens and monetary encumbrances placed on the Property by Seller, but subject to any and all easements, reservations, restrictions and encroachments as disclosed in the title commitment.  Seller shall not subject the Property to the imposition of any subsequent easements, reservations, restrictions or encroachments of any nature which cannot be removed prior to Settlement, without the written consent of Buyer.

 

7.            Documents at Settlement.  At Settlement, Seller shall deliver to Buyer:

 

a.           A deed to the property containing a special warranty in recordable form.

 

b.           A Bill of Sale for the Personalty.

 

c.           The Gaming Agreement.

 

d.           Such instruments as shall be reasonably necessary to accomplish the purposes of this Agreement.

 

e.           The Zoning Ordinances as signed by the Mayor and  in compliance with Paragraph 4 above.

 

At Settlement, Buyer shall deliver to Seller:

 

a.           The Purchase Price

 

  

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b.           The Allegheny West Agreement.

 

c.           The Gaming Agreement

 

8.           Settlement Adjustments. All real estate taxes and the annual minimum water and sewer rents or charges, if any, for the current year in which Settlement takes place, assessed or imposed upon the Property, shall be pro-rated to the date of Settlement on the basis of the fiscal year of the taxing authority.  At Settlement, Buyer and Seller shall each pay one-half of the total real estate transfer taxes assessed upon this transaction, subject to the obligations of Buyer set forth in paragraph 18 of this Agreement.

 

9.           Tenders Waived.  The tender of an executed deed by Seller is hereby waived,  but nothing herein contained shall be construed as a waiver of the concurrent obligation of Buyer to pay the balance of the purchase price at Settlement.

 

10.           Entry Prior to Settlement.

 

a.           Seller shall permit Buyer and Buyer's agents, representatives, engineers, and other persons designated by Buyer to enter upon the Property upon the giving of reasonable advance notice to Seller, for purposes of permitting Buyer to exercise its rights under paragraph 3 of this Agreement (the “Investigations”), provided that the timing and number of such entries and the manner in which they are performed must be reasonable.  Seller shall make available to Buyer and its designees, for inspection and copying, all documents, reports, files, books and records and other information relating to the Real Property.  Within seven (7) days after the Effective Date, Seller shall deliver to Buyer plans, specifications, surveys, title reports, drawings, certificates, notices, environmental reports, engineering reports, geo-technical reports, studies or other similar documents in Seller’s possession relating to the Real Property.  Throughout the Feasibility Period, Seller shall provide Buyer and its designees access to the Property at any time during regular business hours upon reasonable advance notice to Seller for the purpose of conducting the Investigations.  Seller hereby authorizes Buyer and its designees to consult with governmental agencies concerning the Property.

 

b.           In addition, after the expiration of the Feasibility Period, Buyer shall be permitted to enter the Property for purposes of showing the Property, but not for purposes of 

 

  

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performing any test borings, physical inspections or similar work (the “Access,” which together with the Investigations hereinafter referred to as “Entries”).

 

c.           Seller will cooperate with Buyer in allowing such Entries.

 

d.           In connection with the Entries, Buyer shall, without charge to Seller, obtain and maintain, at Buyer’s own expense, a policy of commercial general liability insurance, written on an occurrence basis, with a minimum limit of One Million Dollars ($1,000,000.00) per occurrence / Three Million Dollars ($3,000,000.00) aggregate, which shall include Seller as an additional insured.  Promptly following the Effective Date and before any Entries:  Buyer shall deliver to Seller a certificate of insurance evidencing such insurance and endorsement.  Buyer shall pay all costs and expenses of the Entries and shall defend, indemnify and hold harmless Seller and its agents, employees and contractors from and against any and all loss, costs, damages, liability, settlement, cause of action or threat thereof, or expenses (including, without limitation, reasonably attorneys’ fees and costs) arising from or relating to the Entries.  Buyer shall promptly repair and restore any damage to the Property attributable to Buyer’s Entries and return the Property to substantially the same condition as existed prior to the conduct of the Entries.  Any information Buyer receives as a result of the Entries shall be kept confidential and Buyer shall not disclose, directly or indirectly, such information to any third-party.  In addition, unless specifically requested by Seller in writing, Buyer shall not deliver or convey in any manner to Seller any reports or other information arising out of the Entries.

 

11.           Remedies for Breach.

 

a.           Subject to paragraph 11c of this Agreement, if Buyer shall breach or fail to perform or comply with any of the material terms and provisions of this Agreement to be performed and complied with by Buyer, Seller shall have as its sole and exclusive remedy the right to retain the Deposit and any Additional Deposit, together with interest earned thereon, as assessed and liquidated damages and not as a penalty, and thereafter neither party shall have any further rights, liabilities or obligations under this Agreement, and Seller shall have no other remedy against Buyer, except Buyer shall remain liable to Seller for its obligations under paragraph 10 of this Agreement. 

 

  

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b.           Subject to paragraph 11c of this Agreement, if Seller shall breach or fail to perform or comply with any of the material terms and provisions of this Agreement, then Buyer as its sole and exclusive remedies, may (i) terminate this Agreement, whereupon the Escrow Agent shall promptly return the Deposit and any Additional Deposit, together with interest earned thereon to Buyer and Seller shall reimburse Buyer for any reasonable third party costs incurred by Buyer in connection with this Agreement including, but not limited to, all reasonable legal fees, third party reports, engineering and architectural work and financing expenses (“Buyer’s Expenses”), but in no event shall Buyer’s Expenses for purposes of Seller’s payment thereof pursuant to this paragraph 11b exceed $100,000.00 and thereafter neither party shall have any further rights, liabilities or obligations under this Agreement or (ii) pursue an action for specific performance of Seller’s obligations hereunder.

 

c.           In the event either Buyer or Seller shall breach or fail to perform or comply with any of the material terms and provisions of paragraph 4e(ii) of this Agreement,  after the issuance of a Philadelphia Slot License as more particularly set forth in paragraph 4e(ii) of this Agreement, in addition to the rights and remedies afforded the applicable parties as set forth in paragraph 11a and paragraph 11b of this Agreement, the non-defaulting party may exercise any rights or remedies available to such party at law or in equity as a result of any such default of the material terms and provisions of paragraph 4e(ii) of this Agreement.

 

12.           Condition of Property.  Seller agrees that during the pendency of this Agreement the Property will be maintained in a manner that will not have a material adverse impact on Buyer’s intended development, reasonable wear and tear and damage due to casualty excepted.  Seller agrees to pay real estate taxes when due and to maintain or cause to be maintained liability and general hazard insurance upon the buildings on the Property.

 

13.           Loss or Casualty; Condemnation.

 

a.           Damage to the Property by fire or other insured-against casualty between the date hereof and the time of Settlement shall not impair the obligations of either party under this Agreement.  In consideration thereof, Seller agrees to continue to maintain insurance with risks generally known as extended coverage in the amount presently carries, at Seller’s cost and expense, until Settlement.  In the event of such a casualty loss, if Buyer completes Settlement, 

 

  

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the net proceeds of any insurance (plus the amount of any deductibles) collected prior to Settlement will be paid or credited to Buyer at Settlement, and all unpaid claims and rights in connection with losses under any policies will be assigned to Buyer at Settlement.  The amount of any unpaid claims will not, however, be credited on account of the Purchase Price.  Seller shall give prompt written notice to Buyer of any material damage to, or destruction of the Property, and shall provide reasonable notice to Buyer regarding the adjustment of the loss related to the Property.

 

b.           Any taking or condemnation of the Property for any public or quasi-public purpose or use by any competent authority in appropriate proceedings or by right of eminent domain that has a material adverse affect upon Buyer’s planned use of the Property shall permit Buyer, at its option, to terminate this Agreement by giving notice to Seller within twenty (20) days after receipt of notice of any such proposed taking on or before the date fixed for Settlement and in such case Buyer and Seller shall direct Escrow Agent to return the Deposit to Buyer.  If Buyer does not terminate this Agreement under this paragraph 13, the Purchase Price for the Property shall be reduced by the total of any awards or other proceeds received by Seller with respect to such taking and at Settlement, Seller shall assign to Buyer all remaining rights of Seller in and to any awards and other proceeds payable by reason of such taking.  Seller agrees to notify Buyer of any eminent domain proceedings promptly after Seller learns of such proceedings.

 

14.           Time.  For purposes of this Agreement, all references to time including, specifically, the Settlement date, shall be of the essence.

 

15.           Possession.   Seller shall deliver possession of the Property to Buyer at  Settlement free of any tenancies or other possessors’ interests.

 

16.           Warranties and Affirmative Obligations of the Parties.

 

a.           Representations and Warranties of Seller.  Seller, to induce Buyer to enter into this Agreement and to purchase the Property, warrants and represents to, and covenants with, Buyer, as of the date of this Agreement, Seller’s knowledge, information and belief, as follows:

 

  

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(1)           Powers.  Seller has full power in accordance with law, and is duly authorized, to enter into this Agreement and to perform the covenants and transactions set forth in this Agreement.  Neither the execution of this Agreement by Seller, nor the performance of its terms, nor Settlement hereunder shall constitute a violation or breach by Seller under any agreement by which it or the Property is bound or shall result in the violation by Seller of any judgment, order, decree or ruling of any court or governmental or administrative body having jurisdiction over the Seller, its business or the Property or shall result in a violation of any applicable law, rule, order or regulation of any governmental authority.

 

(2)           Governmental Notices.  Seller has received no notice from any governmental authority requiring any work, repairs, construction, alterations or installations on or in connection with the Property, or asserting any violation of any material federal, state county or municipal laws, ordinances, codes, orders, regulations or requirements materially affecting any portion of the Property.

 

(3)           Litigation.  There are no pending judicial, municipal or administrative proceedings affecting the Property, including, without limitation, proceedings for or involving collections, alleged building code or environmental or zoning violations, or personal injuries or property damage alleged to have occurred on the Property by reason of the condition, use of, or operations on the Property, except those arising in the normal course of doing business which are not material to the Property.  No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings are pending, or to the best of Seller’s knowledge, threatened, against Seller  any of such proceedings contemplated by Seller.  Seller is and shall remain responsible after the Settlement Date for defending (or continuing) any such suit, proceeding or other matter in respect of the Property relating to periods prior to the Settlement Date, and all damage, loss, expenses and costs related thereto.

 

(4)           Assessments.  No assessments or charges for any public improvements have been made against the Property which remain unpaid, no 

 

  

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improvements to the Property or any roads or facilities abutting the Property have been made or ordered for which a lien, assessment or charge can be filed or made, and Seller has no actual knowledge of any plans for improvements by any governmental or quasi-governmental authority which might result in a special assessment against the Property.  Seller has not incurred any obligations relating to the installation of or connecting to any sanitary sewers or storm sewers which shall be enforceable against the Property except such as have been paid to date.  Any public improvements ordered, advertised, commenced or completed after the date of this Agreement shall be the responsibility of Buyer, provided Buyer completes purchase of the Property at Settlement.

 

(5)           Contracts.  There are no management, employment, service, equipment, supply, maintenance, water, sewer or other utility or concession agreements, or (“Service Contracts”) with respect to or affecting the Property which will burden the Property or Buyer after Settlement in any manner whatsoever, except for instruments of record.

 

(6)           Property.  Seller holds fee title to the Property.

 

(7)           There are no existing leases, whether oral or written, agreements of sale, options, tenancies, licenses or any other claims to possession affecting the Property which cannot be terminated at or prior to Settlement.

 

(8)           If, after Seller’s execution hereof and prior to Settlement, any event occurs or condition exists which renders any of the representations contained in this paragraph 16a untrue or misleading, Seller shall promptly notify Buyer.  The representations, warranties, and covenants set forth in this paragraph 16a are true and correct as of the date of this Agreement, and shall be true and correct at the time of Settlement.

 

(b)           Representations and Warranties of Buyer.  Buyer hereby represents and warrants to, and covenants with Seller, as follows, which representations, warranties, and covenants are true, correct and complete at Settlement and shall survive Settlement:

 

  

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(1)           Buyer is a Pennsylvania Limited Partnership duly organized, validly existing and in good standing under the laws of the Commonwealth of Pennsylvania and has authority to enter into and consummate its obligations under this Agreement.

 

(2)           Buyer has the power and authority to enter into this Agreement, and the execution, delivery and performance of this Agreement, and the execution, delivery and performance of this Agreement have been duly authorized by all necessary action on Buyer’s part.

 

(3)           Buyer’s entering into this Agreement or its consummation of the transactions contemplated hereby does not and will not violate any provision of the Limited Partnership Agreement of Buyer, or any indenture or order by which Buyer is bound, or any rule, order or law applicable to it.

 

17.           Broker Commissions.  Buyer and Seller each represent to the other that  neither has dealt with any other real estate broker or agent in connection with this transaction except for US Realty Associates Inc and Binswanger.  In the event that any real estate broker or agent asserts a claim for a commission, fee or other compensation relating to this transaction, the party with whom it is asserted such real estate broker or agent dealt shall indemnify and hold harmless the other party for such commission, fee or compensation, and related costs and expenses (including reasonable attorneys fees) and shall defend all actions seeking same.  Under separate Agreements, Seller shall pay Binswanger and Buyer shall pay US Realty Associates Inc. any Brokerage fees due from this transaction.

 

18.           Assignment.  This Agreement may not be assigned by the Buyer to any other party or entity without the written consent of Seller, except that the rights, but not the liabilities or obligations under this Agreement, may be assigned by Buyer at Closing to an entity in which Buyer owns at least fifty-one percent (51 %) or greater, without Seller's written consent, provided that Buyer shall be responsible for any and all real estate transfer taxes assessed upon such assignment.

 

19.           Recording.  This Agreement shall not be recorded in any office of record.

 

  

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20.           Captions.  The captions of this Agreement are for the convenience or reference only; they are not part of this Agreement and do not in any way limit or add to the terms or provisions thereof.  As used herein, all terms and pronouns shall include the singular and plural and shall include all genders, as the context may reasonably suggest.

 

21.           Multiple Counterparts.  This Agreement may be executed in multiple photocopied counterparts, each of which said executed counterpart shall be deemed an original for all purposes.  The parties further agree that any facsimile communication shall be deemed to have been fully delivered and shall be as effective as an original signature and shall be equally binding as though delivered directly by hand to each other.

 

22.           Entire Agreement.  This Agreement contains the entire Agreement of the parties and expressly supersedes any prior oral or written agreement pertaining to the Property or the transaction.  Any amendment, revision or other change to this Agreement to be valid must be in writing and signed by the party affected thereby.

 

23.           Successors in Interest.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.

 

24.           Governing Law. This Agreement is made in, and shall be governed by, the laws of the Commonwealth of Pennsylvania.

 

25.           Notices.  All notices or other communications required or permitted to be given under the terms of this Agreement shall be in writing, and shall be deemed effective on (i) the first business day following when sent by nationally-recognized overnight courier, or (ii) the third business day following when deposited in the United States mail and sent by certified mail, postage prepaid, return receipt requested, addressed as follows.:

 

 

	 	To Seller:	Tasty Baking Company

3 Crescent Drive, Suite 200

Philadelphia PA 19112

Attn:  Larry Weilheimer, Esq.

 

 

  

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	 	With copy to: 	Stradley Ronon Stevens & Young, LLP

2600 One Commerce Square

Philadelphia, PA  19103

Attn:  Linda Ann Galante, Esq.
	 	 	 
	 	Buyer: 	TKMG Associates, L.P.

120 East Lancaster Avenue

Ardmore, PA  19003

Attn: Michael Grasso
	 	 	 
	 	With copy to:	Richard A. Koory, Esq.

120 East Lancaster Avenue

Ardmore, PA  19003
	 	 	 
	 	Escrow Agent:	Land Services USA, Inc.

1835 Market Street

Suite 420

Philadelphia, PA 19103

 

The effective date of any Notice shall be (a) in the case of personal hand delivery, on the day of delivery to either Buyer or to Seller; or (b) in the case of certified mail delivery, on the date of delivery by the Post Office as indicated on the registered receipt.

 

26.           Escrow Agent.  The Escrow Agent shall hold the Deposit under the terms of this Agreement.  The Escrow Agent shall apply the Deposit provided in this Agreement.  Any action of the Escrow Agent shall be requested in writing by the respective parties hereto with copies of such requests sent as provided in paragraph 25 of this Agreement.  The Escrow Agent shall have no responsibility to Buyer or Seller except as specifically provided in this Agreement and shall not be responsible for the performance by Buyer or Seller of any obligation set forth in this Agreement.  The Escrow Agent shall be liable solely for its own gross negligence or willful default.  The Escrow Agent shall be entitled to rely conclusively on the genuineness of any notice, authorization, instructions or other documents delivered to it under this Agreement which purports to have been signed by Buyer or Seller.

 

27.           Mutual Cooperation and Consent.  Buyer and Seller agree to cooperate with each other to satisfy the conditions of Settlement set forth in paragraph 4 of this Agreement, at no cost to Seller.

 

  

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28.           Signs.  Seller hereby consents to Buyer placing a sign(s), subject to Seller’s prior written approval of such signs, upon the Premises announcing the anticipated opening of the mixed use Retail Center  after the expiration of the Feasibility Period but prior to Settlement.  If the Settlement is not completed and as soon as it is known that the Settlement will not be completed, Buyer shall remove such sign(s) at Buyer’s expense.

 

29.           Confidentiality.  This Agreement and the terms of this Agreement are confidential and shall not be disclosed except to consultants, investors, lenders, advisors and affiliates, as required by law, or as otherwise set forth herein; provided, however, that Seller shall be permitted to disclose that this Agreement has been executed as well as the information contained in this Agreement in any securities filings, including but not limited to a Form 8-K Filing, in accordance with applicable Federal Law.

 

30.           Guaranty.  Metro Development Company (the “Guarantor”) hereby guarantees all obligations and liabilities of Buyer under this Agreement.  Guarantor has full power in accordance with law, and is duly authorized, to enter into this Agreement and to perform the covenants and transactions set forth in this Agreement.  Neither the execution of this Agreement by Guarantor, nor the performance of its terms, nor Settlement hereunder shall constitute a violation or breach by Guarantor under any agreement by which it or the Property is bound or shall result in the violation by Guarantor of any judgment, order, decree or ruling of any court or governmental or administrative body having jurisdiction over the Guarantor, its business or the Property or shall result in a violation of any applicable law, rule, order or regulation of any governmental authority.

 

  

17

  

 

IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written.

 

	 	

SELLER:

	 
	 	 	 
	 	TASTY BAKING COMPANY, a Pennsylvania 

corporation	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Laurence Weilheimer	 
	 	Name: Laurence Weilheimer	 
	 	Title:  Sr. Vice President	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Date: Apri 5, 2010	 	 	 

 

	 	

BUYER:

	 
	 	 	 
	 	

TKMG ASSOCIATES, L.P., a Pennsylvania 

limited partnership

	 
	 	 	 	 
	
 

	
By:

	

TK GP, INC., a Pennsylvania corporation, 

its General Partner

	 
	 	 	 	 
	 	 	 	 
	 	 	By: Michael Grasso	 
	 	 	Name:  Michael M. Grasso	 
	 	 	Title:  President	 
	 	 	 	 
	 	 	 	 
	Date: Apri 2, 2010	 	 	 

 

	 	GUARANTOR	 
	 	 	 
	 	METRO DEVELOPMENT COMPANY	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Michael Grasso	 
	 	Name: Michael Grasso 	 
	 	Title: President
	 	 	 	 
	 	 	 	 
	Date: Apri 2, 2010	 	 	 

 

 

 

  

18

  

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

PREMISES “A”

 

ALL THAT CERTAIN lot or piece of ground, SITUATE in the 38th Ward of the City of Philadelphia, County of Philadelphia, State of Pennsylvania, described as follows, to wit:

 

BEGINNING at a point formed by the intersection of the Northwesterly side of Hunting Park Avenue (100 feet wide) and the Southwesterly side of Fox Street (80 feet wide); thence extending South 72 degrees, 34 minutes, 05 seconds West along the said Northwesterly side of Hunting Park Avenue the distance of 142 feet 7-3/4 inches to a point; thence North 33 degrees 08 minutes 16 seconds West 156 feet 11-5/8 inches to a point; thence North 72 degrees 35 minutes 05 seconds East 142 feet 6-1/2 inches to a point on the said Southwesterly side of Fox Street; thence South 33 degrees 10 minutes 29 seconds East along the said Southwesterly side of Fox Street 157 feet 0 inches to a point on the said Northwesterly side of Hunting Park Avenue being the first mentioned point and place of beginning.

 

BEING known as 2701 West Hunting Park Avenue.

 

PREMISES “B”

 

ALL THAT CERTAIN lot or piece of ground with the buildings and improvements thereon erected, described in accordance with a Plan of Property made September 21, 1959 by John H. Robinson, Surveyor and Regulator of the 6th District and a sub-sketch added thereto November 18, 1959, SITUATE in the 38th Ward of the City of Philadelphia, as follows, to wit:

 

BEGINNING at a point on the Northerly side of Hunting Park Avenue (100 feet wide) 142 feet 7-3/4 inches Westwardly from the intersection of the Westerly line of Fox Street (80 feet wide) and the Northerly line of Hunting Park Avenue (100 feet wide); thence South 72 degrees, 35 minutes, 5 seconds West along the Northerly line of Hunting Park Avenue 86 feet 9-5/8 inches; thence North 33 degrees, 8 minutes, 16 seconds West through a wall 156 feet 11-5/8 inches to a corner of land of Clarice F. Ransome; thence North 72 degrees, 35 minutes, 5 second s East along said land of Clarice F. Ransome 86 feet 9-5/8 inches; thence by lands now or late of Gulf Oil Corporation South 33 degrees, 8 minutes, 16 seconds East 156 feet 11-5/8 inches to the place of beginning.

 

BEING known as 2711 West Hunting Park Avenue.

 

PREMISES “C”

 

ALL THAT CERTAIN lot or piece of ground with the buildings and improvements thereon erected SITUATE in the 38th Ward of the City of Philadelphia.

 

BEGINNING at a point in the Northwesterly side of Hunting Park Avenue (100 feet wide) at the distance of 229 feet 5-3/8 inches Southwestwardly from the Southwesterly side of Fox Street (80 feet wide); thence extending North 33 degrees, 8 minutes, 16 seconds West 206 feet 7-3/4 inches 

 

  

A-1

  

 

to a point; thence extending North 57 degrees, 38 minutes, 38 seconds East 49 feet 7 inches to a point in the right of way line of the Richmond Branch of the Philadelphia and Reading Railroad; thence extending along said right of way line South 69 degrees, 10 minutes, 31 seconds West 77 feet 7-5/8 inches to a point; thence extending along said right of way line South 70 degrees, 25 minutes, 1 seconds West 21 feet 7-3/4 inches to a point; thence extending along said right of way line South 70 degrees, 25 minutes, 31 seconds West 100 feet 8-5/8 inches to a point; thence extending along said right of way South 71 degrees, 40 minutes, 31 seconds West 21 feet 7-3/4 inches to a point; thence extending South 34 degrees, 26 minutes, 0 seconds East 212 feet 2-7/8 inches to the Northwesterly side of Hunting Park Avenue; thence extending along said northwesterly side of Hunting Park Avenue North 72 degrees, 35 minute, 5 seconds East 145 feet 9 inches to the point and place of beginning.

 

BEING No. 2729-33 Hunting Park Avenue.

 

PREMISES “D”

 

ALL THAT CERTAIN lot or piece of ground SITUATE in the 38th Ward of the City of Philadelphia as follows, to wit:

 

BEGINNING at a point on the Southwesterly side of Fox Street (80 feet wide) at the distance of 157 feet Northwestward from the Northwesterly side of Hunting Park Avenue (100 feet wide); thence extending South 72 degrees, 35 minutes, 5 seconds West 229 feet 4-1/8 inches to a point; thence extending North 33 degrees, 8 minutes, 16 seconds West 49 feet 8-1/8 inches to a point; thence extending the four following courses and distances:  (1) North 57 degrees, 38 minutes, 38 seconds East 49 feet 7 inches; (2) North 69 degrees, 10 minutes, 31 seconds East 23 feet 1 inch; (3) North 67 degrees, 40 minutes, 31 seconds East 50 feet 5-5/8 inches to the Southwesterly side of said Fox Street; thence along same South 33 degrees, 10 minutes, 29 seconds East 78 feet 3-1/2 inches to beginning.

 

PREMISES “E”

 

ALL THAT CERTAIN lot or piece of ground SITUATE in the 38th Ward of the City of Philadelphia according to a survey thereof made by H. M. Fuller, Esquire, Surveyor and Regulator of the 13th district.

 

BEGINNING at the intersection of the Northwesterly side of Hunting Park Avenue (one hundred feet wide) and the Northeasterly side of McMichael Street (seventy feet wide but not open); thence extending Northeastwardly along said Hunting Park Avenue one hundred fifty-nine feet four and three-eighths inches, more or less, to a point-thence Northeastwardly still along said Hunting Park Avenue ninety-five feet seven and one-eighth inches, more or less, to a point; thence on a line extending North thirty-four degrees twenty-six minutes eight seconds West two hundred and twelve feet two and seven-eighth inches, more or less, to the right-of-way of the Richmond Branch of the Philadelphia and Reading Railway; thence along the same South seventy-one degrees forty minutes thirty-one second West seventy-nine feet one inch, more or less, to a point; thence still along the same South seventy-two degrees fifty-five minutes thirty-one seconds West one hundred feet eight and five-eighth inches, more or less, to a point; hence still along the same South seventy-four degrees ten minutes thirty-one seconds West seventy-six

 

  

A-2

  

 

feet eleven and three-eighths inches, more or less to a point in the Northeasterly side of said McMichael Street and thence Southeastwardly along the Northeasterly side of said McMichael Street two hundred fifty-three feet eleven and one-half inches, more or less, to the place of beginning.

 

BEING known as 2749 West Hunting Park Avenue.

 

PREMISES “F”

 

ALL THAT CERTAIN lot or piece of ground, SITUATE in the 38th Ward of the City of Philadelphia, bounded and described according to a plan and survey thereof made by W. F. Wingate, Surveyor and Regulator 13th Survey District, June 19th, 1919 (a copy thereof being filed in Deed Book JMH No. 489 page 408) as follows:

 

BEGINNING at a point the intersection of the Northwestwardly side of Hunting Park Avenue (100 feet wide) and Southwestwardly side of McMichael Street (70 feet wide), thence along the said Southwestwardly side of McMichael Street North 33 degrees, 10 minutes 29 seconds West 275 feet 5 3/8 inches to a point in the Southerly right of way line of the Richmond Branch of the Philadelphia and Reading Railway, thence along the said side of said right of way line South 75 degrees, 25 minutes 31 seconds West 50 feet 9 1/2 inches and South 76 degrees 40 minutes 31 seconds West 100 feet 8 5/8 inches and South 77 degrees 55 minutes 31 seconds West 100 feet 8 5/8 inches and South 79 degrees 10 minutes 31 seconds West 100 feet 8 5/8 inches and South 80 degrees 25 minutes 31 seconds West 100 feet 8 5/8 inches and South 81 degrees 40 minutes 31 seconds West 31 feet 3 inches to a corner of lands of John and James Dobson, thence along the same South 29 degrees 2 minutes 6 seconds East 107 feet and 8 1/8 inches to a point in the Northeasterly line of right of way of the Philadelphia, Germantown and Norristown Railroad, said point being 60 feet from the center line of said Railroad, thence along the same South 67 degrees 56 minutes 26 seconds East 265 feet 6 5/8 inches and thence South 22 degrees 3 minutes 34 seconds West 27 feet to a point ins aid right of way line said point being 33 feet from the center line of said Railroad, thence along said right of way line South 87 degrees 56 minutes 26 seconds East 130 feet 9 1/8 inches to a point on the Northwesterly side of Hunting Park Avenue aforesaid, thence along the same North 58 degrees 2 minutes 54 seconds East 255 feet 1 3/4 inches to place of beginning.

 

SUBJECT to the exception and reservation of the water now flowing on and passing through, along and across a certain creek or stream of water situated on and running through, upon and across the premises as fully set forth and recited in a certain deed given and executed by Elizabeth D. Riddle, and others, Surviving Executors and Trustees to said Philip J. Baur, dated July 23, 1919 and recorded at Philadelphia in Deed Book JMH No. 489 page 408.

 

PREMISES “G”

 

ALSO ALL THAT CERTAIN lot or piece of ground with the buildings and improvements thereon erected described as follows to wit:

 

BEGINNING at a marble stone at the intersection, of the southern right of way line of the Richmond Branch of the Philadelphia and Reading Railroad and the Northeasterly line of right of way of the Philadelphia, Germantown and Norristown Railroad said point being 60 feet from the 

 

  

A-3

  

 

center line of said Philadelphia, Germantown and Norristown Railroad thence along the right of way line of the said Philadelphia, Germantown and Norristown Railroad, South 67 degrees 56 minutes 26 seconds East 201 feet 5 1/2 inches to a corner of lands of Tasty Baking Company, thence along the line of the Tasty Baking Company land North 29 degrees, 2 minutes 6 seconds West 107 feet 8 1/8 inches to a point in the southern right of way line of the Richmond Branch of the Philadelphia and Reading Railroad, thence along the Southerly side of said Richmond Branch by a line curving to the southward and Westward with a radius of 4,616 feet 9 inches, 135 feet 7 1/4 inches to the first mentioned marble stone and place of beginning, being about .156 acres more or less.

 

TOGETHER with that portion of the former bed of McMichael Street which became vested in grantors herein by the striking from City Plan No. 285 McMichael Street from Hunting Park Avenue to the right of way line of the Richmond Branch, Reading Company and reserving and placing on the City Plan a certain right of way for water main purposes and public utility purposed on 11/6/1967.

 

PREMISES “H”

 

ALL THAT CERTAIN lot or piece of ground with the buildings and improvements thereon erected, SITUATE in the 38th Ward of the City of Philadelphia and described according to a Survey and Plan of Property made for Donna Sandermar by Daniel W. Silverman, Surveyor and Regulator of the 6th Survey District, dated March 2nd, 1977, as follows, to wit:

 

BEGINNING at a point formed by the intersection of the Southwesterly side of Fox Street (80 feet wide) and the Southeasterly side of Roberts Avenue (78 feet wide); thence extending from said point of beginning South 33 degrees, 10 minutes, 29 seconds East along the said Southwesterly side of Fox Street 919 feet 6-1/2 inches to a point; thence extending South 60 degrees, 25 minutes, 54 seconds West 386 feet 2-1/2 inches to a point; thence extending North 33 degrees, 54 minutes, 10 seconds West 218 feet 6-3/8 inches to a point; thence extending South 56 degrees, 49 minutes, 31 seconds West 174 feet 2-1/4 inches to a point; thence extending North 33 degrees, 10 minutes, 29 seconds West 198 feet 11-7/8 inches to a point; thence extending South 56 degrees, 49 minutes, 31 seconds West crossing the Northeasterly side of former McMichael Street (70 feet wide) stricken from City Plan and vacated, reserved as a Right of Way for purpose of inspection, maintenance, repairing or reconstruction of existing 48 inches water mains, 120 feet to a point on the Southwesterly side of said former McMichael Street; thence extending North 33 degrees, 10 minutes, 29 seconds West along the said Southwesterly side of former McMichael Street 477 feet 9 inches to a point on the Southeasterly side of Roberts Avenue; thence extending North 56 degrees, 49 minutes, 31 seconds East along the said Southeasterly side of Roberts Avenue re-crossing the said Northeasterly side of former McMichael Street 682 feet 5 inches to the said Southwesterly side of Fox Street, being the first mentioned point and place of beginning.

 

PREMISES “I”

 

ALL THAT CERTAIN lot or piece of ground with the buildings and improvements thereon erected, SITUATE in the 38th Ward of the City of Philadelphia, and described according to a 

 

  

A-4

  

 

plan thereof made by W.F. Wingate, Esquire Surveyor and Regulator of the 13th District, dated the 2nd day of June, A.D. 1930, as follows, to wit:

 

BEGINNING at a point in the Northwesterly side of Hunting Park Avenue (100 feet wide) at the distance of two hundred two feet eight and three, quarter inches Northeastwardly from the Northeasterly side of 29th Street (as now laid out on the City Plan 50 feet wide, not opened); thence along a line at right angles to said Hunting Park Avenue Northwardly thirty one degrees, fifty seven minutes, six seconds West one hundred twenty six feet and seven eighths of an inch to a point in the Southerly right of way line of the Centennial Branch of the Philadelphia and Reading Railroad (66 feet wide); thence by said Southerly right of way line Eastwardly on a line curving to the right with a radius of six hundred eighty one feet eleven and seven eighths inches, the arc distance of one hundred ninety six feet six and three fourths inches to a point in the first mentioned side of Hunting Park Avenue; thence by the same side of Hunting Park Avenue Southwardly fifty eight degrees, two minutes, fifty four seconds Westwardly one hundred fifty feet to a point, the place of beginning.

 

BEING Nos. 2851-2855 West Hunting Park Avenue.

 

PREMISES “J”

 

ALSO ALL THAT CERTAIN lot or piece of ground, SITUATE in the 38th Ward of the City of Philadelphia.

 

BEGINNING at a point in the Southerly right of way line of Bellevue Branch of the Railroad of Reading Company, opposite engineering station 240/92, more or less, said point being the 2 following courses and distances from the intersection of the Northeasterly side of Henry Avenue (100 feet wide):  (1) North fifty eight degrees, two minutes, fifty four seconds East seven hundred seventy one feet nine and one half inches to a point; and (2) North thirty one degrees fifty seven minutes six seconds West one hundred twenty six feet seven eighths of an inch to the point of beginning; thence from said point of beginning along a line through lands of Reading Company the 6 following courses and distances:  (1) North thirty one degrees, fifty seven minutes, six seconds West twelve feet four and five eighths inches to a point; (2) South eighty seven degrees, thirty seven minutes, six seconds East eighteen feet ten and seven eighths inches to a point; (3) along the arc of a circle curving to the right and having a radius of two hundred ninety nine feet ten and five eighths inches, being thirty three feet, more or less, distance radially from and concentric and with the existing center line of tract of Bellevue Branch of the Railroad of Reading Company and the Philadelphia, Germantown and Norristown Railroad connection to the Bellevue Branch of the Railroad of Reading Company an arc distance ninety three feet eight and one quarter inches to a point of compound curve; (4) along the arc of a circle curving to the right having a radius of seven hundred twenty four feet eleven and three quarter inches, being thirty three feet, more or less, radially distant from and concentric with the existing center line of tract of Philadelphia, Germantown and Norristown Railroad connecting to the Bellevue Branch of the Railroad of Reading Company, an arc distance of thirty four feet, five and three quarter inches to a point; (5) South sixteen degrees, twenty eight minutes, forty four seconds West one foot, six and five eighths inches to a point; and (6) along the arc of a circle curving to the right, having a radius of seven hundred twenty three feet five and one eighth inches being thirty four feet six inches, more or less, distant from the existing center line of the Southerly tract of the 

 

  

A-5

  

 

 

Philadelphia, Germantown and Norristown Railroad connection to the Bellevue Branch of the Reading Company, an arc distance of fifty nine feet no inches to a point on the Northwesterly side of Hunting Park Avenue (100 feet wide); thence along the arc of a circle curving to the left and dividing lands of Reading Company from lands of others, having a radius of six hundred eighty one feet eleven and seven eighths inches and an arc distance of one hundred ninety six feet seven and one half inches to the place of beginning.

 

 

  

A-6

  

 

EXHIBIT B

 

STANDBY LETTER OF CREDIT

 

	IRREVOCABLE LETTER OF CREDIT NO:	
AMOUNT: $_______________

	 	 
	ISSUED DATE:	EXPIRATION DATE:
	 	 
	April _____, 2010	April ____, 2011
	 	 
	 	 
	 	 
	BENEFICIARY:	 
	 	 
	

Tasty Baking Company

3 Crescent Drive, Suite 200,

Philadelphia, PA  19129

	 
	 	 
	 	 
	APPLICANT: 	TKMG Associates, L.P. 

120 East Lancaster Avenue

Ardmore, PA  19003

Attn: Michael Grasso

	 

 

We hereby establish our irrevocable Standby Letter of Credit in Tasty Baking Company’s favor by order and for the account of TKMG Associates, L.P. for the sum in an aggregate amount not to exceed _________________ Dollars immediately available by the presentation of Beneficiary’s sight draft in an amount not exceeding the credit hereby established and accompanied by:

 

 

1. Beneficiary’s signed statement certifying that:

 

Applicant is entitled to payment pursuant to the terms of that certain Agreement of Sale and Purchase between Applicant and Beneficiary dated April ____, 2010.

 

Partial drawings under this Letter of Credit shall be permitted.

 

The drawing under this Letter of Credit must be accompanied by the original Letter of Credit for proper endorsement.  We hereby agree with Beneficiary that any draft drawn under or in compliance with the terms of this STANDBY LETTER OF CREDIT will be duly honored if presented to us on or before

 

 

  

B-1

  

 

Presentation of such draft, certificates and the original Letter of Credit for cancellation shall be made at our offices located at _______________, Philadelphia, PA, specifically referring thereon to _________________ Standby Letter of Credit No. ________________.

 

If a drawing is made by you hereunder on a Business Day, and provided that such drawing and the documents presented in connection therewith strictly conform to the terms and conditions herein, payment shall be made to you of the amount specified, in immediately available funds, within two (2) Business Days after presentation.  “Business Day” shall mean any day other than Saturday, a Sunday or a day on which banking institutions in Pennsylvania are authorized or required by law to close.

 

This Standby Letter of Credit is non-transferable. Only you may make a drawing under this Letter of Credit.  Upon the payment to you or your account of the amount specified in a sight draft drawn hereunder, we shall be fully discharged on our obligation under this Letter of Credit in respect of such sight draft to you or any other person.

 

It is a condition of this Letter of Credit that it shall be automatically extended, without amendment, for additional periods of one (1) year from the present and each future expiration date, unless we notify you in writing to the above address by registered, certified or hand delivered mail at least (60) days prior to such expiration date, that this Letter of Credit will not be extended for any such additional period.

 

This Letter of Credit is subject to the “International Standby Practices (ISP98), International Chamber of Commerce Publication No. 590”.  This Letter of Credit  shall also be in writing and shall be addressed to us at specifically referring thereon to ____________________ Letter of Credit No. _________________.

 

 

 

	 	 	 
	 	 	

[must be issued by a bank acceptable to Seller, with offices for drawing of L/C in center city Philadelphia]

 

  

  

B-2

  

 

 

EXHIBIT C

ZONING APPROVAL

AN ORDINANCE

To amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Hunting Park Avenue, Henry Avenue, Roberts Avenue, and Fox Street; and amending Sections 14-304 and 14-309 of The Philadelphia Code, entitled, respectively, “Area Shopping Center District” and “‘C-3’ Commercial,” by providing for additional permitted uses; all under certain terms and conditions.

The Council of the City of Philadelphia hereby ordains:

SECTION 1:  Pursuant to Section 14-103 of The Philadelphia Code, The Philadelphia Zoning Maps are hereby amended by changing the zoning designations of certain areas of land within an area bounded by Hunting Park Avenue, Henry Avenue, Roberts Avenue, and Fox Street, from the existing zoning designations indicated on Map “A” set forth below to the zoning designations indicated on Map “B” set forth below.

SECTION 2:  Section 14-304 of The Philadelphia Code is hereby amended to read as follows:

§ 14-304. "C-3" Commercial District.

 

(1) Use Regulations. The specific uses permitted in this district shall be the erection, construction, alteration, or use of buildings and/or land for:

*           *           *

 

(c) All other uses permitted in "C-2" Commercial Districts, subject to all the use qualifications set forth therein, except:

*           *           *

(.3)  That the following uses shall not require a Zoning Board of Adjustment Certificate:

*           *           *

(.k)  In the area bounded by Hunting Park Avenue, Henry Avenue, Roberts Avenue, and Fox Street:  a single facility on which all of the following uses are conducted:  retail sale of automobile fuels; retail sale of prepackaged foods; take out restaurant; provided that no more than one (1) such facility shall be permitted within the District within such boundaries.

*           *           *

 

  

  

  

 

SECTION 3.  Section 14-309 of The Philadelphia Code is hereby amended to read as follows:

§14-309.                                “ASC” Area Shopping Center District.

*           *           *

(2) Use regulations.  The specific uses permitted in this district shall be the erection, construction, alteration or use of buildings and/or land for the following services and/or sales on the premises at retail, separately or in any combination:

*           *           *

(l)           In the area bounded by Hunting Park Avenue, Henry Avenue, Roberts Avenue, and Fox Street: take out restaurants; provided that no more than four (4) take out restaurants shall be permitted within the District within such boundaries.

SECTION 4.  The provisions of Section 2 shall expire eighteen months from the effective

date of this Ordinance.

SECTION 5.  This Ordinance shall become effective immediately.

 

Explanation:

Italics indicate new matter added.

[Brackets] indicate matter deleted.Exhibit 10.1

                                  30 April 2010

                              Enox Biopharma, Inc.

                                Dr. Lundberg Jon

                               Dr. Weitzberg Eddie

                                  Nitricare HB

                  Assignment of Patents and Patent Applications
<PAGE>
                              DATED APRIL 29, 2010

BETWEEN:

(1)      ENOX  BIOPHARMA,  INC., a company  incorporated in the state of Nevada,
         USA, whose principal  office is at 3849 West 13th Avenue,  Vancouver BC
         V6R239, Canada (the "ASSIGNEE");

(2)      DR. LUNDBERG JON,  Swedish Passport number 45618433 whose address is at
         Stenbocksvagen 6, S-182 62, Djursholm, Stockholm, Sweden ("LUNDBERG");

(3)      DR. WEITZBERG EDDIE,  Swedish Passport number 56589903 whose address is
         at Nybrogtan 24, S-114 39 Stockholm, Sweden ("WEITZBERG"),

(4)      NITRICARE HB, a [company]  incorporated under the laws of Sweden, whose
         a  registered  address is at  Stenbocksvagen  6,  S-182 62,  Djursholm,
         Stockholm,  Sweden (the  "NITRICARE"  and  together  with  Lundberg and
         Weitzberg - the "ASSIGNOR")

(together, the "PARTIES").

(A)      WHEREAS Lundberg and Weitzberg are the sole inventors of the Inventions
         (as defined below).

(B)      AND WHEREAS Nitricare is wholly owned (100%) by Lundberg and Weitzberg.

(C)      AND WHEREAS the Assignor is the  proprietor of the  Inventions  and the
         applicant for the Patents (as defined below).

(D)      AND WHEREAS the Assignee is interested in receiving and being  assigned
         and the  Assignor  has agreed to assign and transfer the Patents to the
         Assignee on the terms set out in this Agreement.

IT IS THEREBY AGREED:

1.       INTERPRETATION

1.1      In this Agreement the following words and expressions shall, unless the
         context otherwise requires, have the following meanings:

         "BUSINESS  DAY": a day other than a Saturday,  Sunday or public holiday
         when banks are normally open for business.

         "IMPROVEMENT":  any  improvement,  enhancement or  modification  to the
         technology  that  is  the  subject  of any  of  the  Patents  or to any
         Invention.

         "INVENTION":  any  invention  method  or device  described,  disclosed,
         contained and claimed in any Patent.

         "PATENT":  any patent applications,  short particulars of which are set
         out in  SCHEDULE  1, any similar  application  filed in any  additional
         country or  territory  in the world,  and any patent  issued in respect
         thereto.

1.2      Clause and schedule  headings  shall not affect the  interpretation  of
         this Agreement.

1.3      The schedules  form part of this  Agreement and shall have effect as if
         set out in full in the body of this Agreement.

1.4      Unless the context  otherwise  requires,  words in the singular include
         the plural and in the plural include the singular.

1.5      Any words following the terms INCLUDING,  INCLUDE, IN PARTICULAR or any
         similar  expression  shall be construed as  illustrative  and shall not
         limit the sense of the words preceding those terms.

1.6      A PERSON includes a natural person,  corporate or  unincorporated  body
         (whether or not having separate legal personality).

                                        2
<PAGE>
1.7      Any  obligation  in this  Agreement  on a  person  not to do  something
         includes, without limitation, an obligation not to agree, allow, permit
         or acquiesce in that thing being done.

1.8      Any  obligation,   warranty  and  representation  of  the  Assignor  is
         collectively and severally an obligation,  warranty and  representation
         of Lundberg and Weitzberg and Nitricare.

2.       ASSIGNMENT

         Pursuant to and for the  consideration  set out in Clause 4 below,  the
         Assignor   hereby  vests,   transfers  and  assigns  to  the  Assignee,
         absolutely with full title guarantee,  all its right, title,  interest,
         claim  and  demand  in and to  all  and  any  Patents  and  Inventions,
         including:

2.1      in respect of any and each application in the Patents:

          (a)  the right to claim  priority  from and to  prosecute  and  obtain
               grant of patent; and

          (b)  the right to file  divisional  applications  based thereon and to
               prosecute  and  obtain  grant  of  patent  on each  and any  such
               divisional application;

2.2      in respect of each and any Invention, the right to file an application,
         claim priority from such application, and prosecute and obtain grant of
         patent  or  similar  protection  in or in  respect  of any  country  or
         territory in the world;

2.3      the right to extend to or  register  in or in respect of any country or
         territory in the world each and any of the Patents  (including each and
         any  of  the  applications  comprised  in  the  Patents)  or  filed  as
         aforesaid,  and to extend to or  register  in, or in  respect  of,  any
         country or territory in the world any patent or like protection granted
         on any of such applications.

2.4      the absolute  entitlement to any patents granted pursuant to any of the
         applications comprised in the Patents or filed as aforesaid; and

2.5      the right to bring, make, oppose, defend, appeal proceedings, claims or
         actions  and obtain  relief (and to retain any  damages  recovered)  in
         respect of any infringement,  or any other cause of action arising from
         ownership,  of any of the Patents or any patents  granted on any of the
         applications  in the Patents or filed as aforesaid,  whether  occurring
         before, on or after the date of this assignment.

3.       IMPROVEMENTS

3.1      If the Assignor makes,  devises,  or discovers,  or otherwise  acquires
         rights in, any  Improvement it shall,  promptly  notify the Assignee in
         writing, giving details of the Improvement.

3.2      Unless prohibited by law, the Assignor shall immediately  assign,  vest
         and transfer to the Assignee, for no additional consideration, all such
         Improvements  and the  Inventions  related  thereto which shall be then
         regarded as part of the Patents,  and the  provision  of the  Agreement
         shall  apply  to  them  (subject  to the  applicable  changes).  If any
         applicable   law   prohibits   such   assignment   for  no   additional
         consideration,   the   Parties   hereby   agree  that  the   additional
         consideration  to be paid for the assignment of  Improvements  shall be
         ONE US Dollar.

         Notwithstanding  the above,  if by the operation of law such assignment
         is  not  possible,  the  Assignor  shall  grant  the  Assignee,  for no
         additional  consideration,  a  worldwide,  royalty-free,   irrevocable,
         perpetual exclusive licence to use, make, manufacture, sell, reproduce,
         distribute,  modify,  display,  prepare  derivative works, or any other
         rights available with respect to Improvements and any rights therein.

4.       CONSIDERATION

         In  consideration  for the  assignment  and  transfer  of the  Patents,
         Inventions and Improvements  hereunder,  Nitricare HB shall receive the
         following compensation:

4.1      Fifteen  thousands US dollars  (USD 15,000) upon the  execution of this
         Agreement, the receipt of which the Assignor expressly acknowledges;

                                        3
<PAGE>
4.2      Forty-Five thousands US dollars (USD 45,000), to be paid in three equal
         quarterly  instalments  of fifteen  thousands  US dollars  (USD 15,000)
         each, on the following dates: July 30th, 2010,  October 29th, 2010, and
         January 31st 2011.

4.3      A warrant [, issued upon execution of this  Agreement,] to purchase two
         hundred thousand (200,000) shares of common stock,  $0.0001,  par value
         per share,  of the  Assignee,  at an exercise  price and subject to the
         terms set out in the  warrant,  a form of which is  attached  hereto as
         SCHEDULE 2.

4.4      It is hereby clarified and agreed that the said  consideration is final
         and conclusive, and that the Assignor (or any of Lundberg and Weitzberg
         and  Nitricare)  or any  third  party,  shall  not be  entitled  to any
         additional  consideration,  payment,  fee  or  royalties  of  any  kind
         whatsoever,  even if the Assignee generates or receives any revenues or
         payments of any type in connection with the Patents.

4.5      Each Party shall be  responsible  for its own tax  liabilities  arising
         from this Agreement.  However,  if the Assignor is required to withhold
         any amounts from any  payment,  it shall  effect such  withholding  and
         remit such amounts to the appropriate taxing authorities.

         For the  avoidance of doubt it is clarified  that all payments  made by
         the Assignee under this agreement are inclusive of VAT, if applicable.

5.       REPRESENTATIONS AND WARRANTIES

5.1      Each Party hereby represents and warrants to the other Parties that:

          (a)  Assignee has the requisite corporate power and authority to enter
               into  and  perform  this  Agreement  and  issue  the  Warrant  in
               accordance  with the terms hereof.  The  execution,  delivery and
               performance   of  this   Agreement   by  the   Assignee  and  the
               consummation by it of the transactions  contemplated  hereby have
               been  duly and  validly  authorized  by all  necessary  corporate
               action,  and no further consent or  authorization  of Assignee or
               its Board of Directors or stockholders is required;

          (b)  It will not breach the terms of any agreement or arrangement with
               any third party by entering into this  Agreement  and  performing
               its obligations hereunder;

          (c)  Its obligations under this Agreement  constitute its legal, valid
               and binding  obligations,  enforceable  in accordance  with their
               respective    terms    subject    to    applicable    bankruptcy,
               reorganisation,  insolvency, moratorium or similar laws affecting
               creditors'  rights  generally  and  to  equitable  principles  of
               general application; and

          (d)  No litigation,  arbitration or administrative  suit or proceeding
               before any court, tribunal,  governmental body, agency,  official
               or  arbitrator  is pending or, so far as it is aware,  threatened
               against it hat would, if adversely determined, affect its ability
               to  perform  its  obligations  under this  Agreement,  or that is
               likely to affect the legality, validity or enforceability against
               it of the  Agreement  or its ability to perform  its  obligations
               under this Agreement.

5.2      In  addition,  the  Assignor  hereby  represents  and  warrants  to the
         Assignee that:

          (a)  Lundberg and Weitzberg are the sole  inventors and  developers of
               the   Inventions,    without   any   contribution,    assistance,
               participation or alleged rights of any third party;

          (b)  it is the sole legal and  beneficial  owner of the Inventions and
               the  Patents  and it is  properly  registered  as  the  inventor,
               applicant  and  proprietor  thereof  and no other  person has any
               rights in or with respect to any Patent;

          (c)  it is entitled to transfer,  vest and assign the  Inventions  and
               Patents in accordance with the terms of this Agreement;

          (d)  all declarations and documents  required,  until the date of this
               Agreement,  by the various  patent  offices in the  countries  in
               which  the  Patents  are  registered,  in order to  register  the
               Patents  have  been  duly  executed,   submitted,   approved  and
               registered;

                                        4
<PAGE>
          (e)  all application,  registration and renewal fees until the date of
               this Agreement in respect of each of the Patents have been paid;

          (f)  it has not transferred, vested, assigned or licensed or otherwise
               granted any of the rights under the Patents;

          (g)  each  Patent is free  from any  encumbrance,  security  interest,
               option,  mortgage,  charge,  lien,  right of third party or other
               adverse rights;

          (h)  it is unaware of any  infringement or likely  infringement of, or
               any challenge or likely  challenge to the validity of, any of the
               Patents  or of  anything  that might  render  any of the  Patents
               invalid or subject to a compulsory  licence  order or prevent any
               application in the Patents proceeding to grant;

          (i)  the  exploitation  of the Patents will not infringe the rights of
               any third party; and

          (j)  all  previous  assignments  of the  Patents  are  valid  and were
               registered within applicable time limits

6.       INDEMNITY

6.1      The Assignor shall indemnify and hold the Assignee harmless against all
         and any loss, damages,  liability and costs (including reasonable legal
         expenses)  that the  Assignee  suffers  or  incurs as a result of or in
         connection  with any breach by the Assignor of the warranties in Clause
         5 above or other  obligations  under this Agreement.  At the request of
         the  Assignee  and at its  expense,  the  Assignor  shall  provide  all
         reasonable  assistance  to enable  the  Assignee  to resist  any claim,
         action or proceedings  brought against the Assignee as a consequence of
         that breach. This indemnity shall apply whether or not the Assignee has
         been negligent or at fault.

6.2      If a payment due from the Assignor  under this clause is subject to tax
         (whether by way of direct assessment or withholding at its source), the
         Assignee shall be entitled to receive from the Assignor such amounts as
         shall  ensure  that the net  receipt,  after tax,  to the  Assignee  in
         respect  of the  payment  is the same as it would  have  been  were the
         payment not subject to tax.

6.3      Nothing  in this  Agreement  shall  have the  effect  of  excluding  or
         limiting  any  liability  for  death  or  personal   injury  caused  by
         negligence or for fraud.

7.       FURTHER ASSURANCES

7.1      The Assignor shall, at the Assignee's expense,  perform (or procure the
         performance  of) all  further  acts and things,  and sign,  execute and
         deliver (or procure the signing,  execution or delivery of) all further
         deeds,  declarations and documents,  required by various patent offices
         in  the  countries  in  which  the  Patents  are  registered  or may be
         registered,  or by any law, or which the Assignee requests, in order to
         vest in the Assignee the full benefit of the right,  title and interest
         assigned to the Assignee under this Agreement,  and to ensure that such
         assignments   have  been  duly   executed,   submitted,   approved  and
         registered, including but not limited to:

          (a)  registration  of the Assignee as applicant for, or proprietor of,
               the Patents;

          (b)  application for any patent with respect to the Inventions, in any
               territory or Country in the world;

          (c)  assisting the Assignee in obtaining,  maintaining,  defending and
               enforcing any Patent,  and assisting  with any other  proceedings
               which may be brought by or against the Assignee against or by any
               third party  relating to the rights  assigned by this  Agreement;
               and

          (d)  at the request and expense of the Assignee provide any assistance
               required in connection with any other  proceedings  regarding any
               of the Patents.

7.2      The  Assignor  shall  otherwise  do  all  it  reasonably  can,  at  the
         Assignee's  expense, to vest the rights and title to the Patents in the
         Assignee.

                                        5
<PAGE>
7.3      The Assignor hereby appoints the Assignee to be its attorney to execute
         and do any such instrument or thing, and generally to use its name, for
         the purpose of giving the Assignee the benefit of this  Agreement.  The
         Assignor  acknowledges in favour of a third party that a certificate in
         writing  signed by the Assignee or any person  appointed in  accordance
         with Clause 7.5 that any  instrument  or act falls within the authority
         conferred by this Agreement  shall be conclusive  evidence that such is
         the case.

7.4      This  power  of  attorney  is  irrevocable  as long  as the  Assignor's
         obligations under this agreement remain undischarged.

7.5      Without prejudice to Clause 7.2, the attorney may, in any way it thinks
         fit and in the name and on behalf of the Assignor:

          (a)  take any action  that this  Agreement  requires  the  Assignor to
               take;

          (b)  exercise any rights which this  Agreement  gives to the Assignor;
               and

          (c)  appoint  and remove one or more  substitute  attorneys  with full
               power  as the  Assignor's  attorney  on terms  that the  attorney
               thinks fit.

7.6      The Assignor must ratify and confirm  everything  that the attorney and
         any substitute attorney does or arranges using the powers granted under
         this clause.

7.7      The Assignor  shall  without  delay  communicate  and deliver up to the
         Assignee  all  available  information  and  materials  relating  to all
         Inventions, Patents and Improvements.

7.8      The Assignor  shall give notice in writing to the Assignee  promptly on
         becoming aware of any  infringement  or suspected  infringement  of any
         Patent.

7.9      The Assignor  shall not do or allow to be done anything  which would or
         might prejudice the rights of the Assignee under this Agreement.

8.       PATENTS RELATED COSTS

         For the avoidance of doubt it is hereby  clarified and agreed that from
         the date of this Agreement and thereafter, the Assignee will assume all
         costs and expenses  related to the Patents (other than those explicitly
         set out under Clause 5.2(e)), including their maintenance costs and all
         costs associated with their approval.

9.       RE-ASSIGNMENT

9.1      Notwithstanding  anything to the contrary under this  Agreement,  it is
         agreed that if, at any time prior to the execution of the Warrant,  the
         Assignee:  (i) ceases to do business;  (ii)  becomes  unable to pay its
         debts as they fall due; (iii) becomes or is deemed insolvent;  (iv) has
         a  receiver,  liquidator,  manager,  administrator  or similar  officer
         appointed in respect of the whole or any part of its assets or business
         (or is the  subject of a filing with any court for the  appointment  of
         any such officer);  (v) makes any  composition or arrangement  with its
         creditors;  or (vi) any  equivalent or similar  action or proceeding is
         taken or suffered in any jurisdiction, and the same is not dismissed or
         discharged within 30 days, the Assignor may demand, by a written notice
         to the Assignee,  to revoke the  assignment and transfer of the Patents
         and Inventions taken in accordance with this Agreement, as follows:

          (a)  the Assignee shall vest, transfer and assign back to the Assignor
               all the rights,  titles and  interests  in and to the Patents and
               Inventions, that were assigned or transferred to it in accordance
               with this Agreement;

          (b)  the Assignor shall return to the Assignee any and all payments it
               has received in accordance with this Agreement,  plus interest at
               a rate of 5% per annum,  compounded  daily,  from the date it has
               received  such payment until the date such payment is returned in
               accordance with this Clause; and

          (c)  the  Assignor  shall  return to the  Assignee  the warrant it has
               received under Clause 4.3.

                                        6
<PAGE>
9.2      the Parties shall,  at the Assignor  expense,  perform all further acts
         and  things,  and sign,  execute  and  deliver  of all  further  deeds,
         declarations and documents, as may be required for such re-assignment.

10.      VARIATION

         An amendment or a variation of this Agreement shall be valid only if it
         is made in writing and signed by all Parties.

11.      REMEDIES

11.1     The  failure  to  exercise  or delay in  exercising  a right or  remedy
         provided by this  Agreement  or by law does not  constitute a waiver of
         the right or remedy or a waiver of other rights or remedies.  No single
         or partial  exercise of a right or remedy provided by this Agreement or
         by law prevents further exercise of the right or remedy or the exercise
         of another right or remedy.

11.2     Each  Party's  rights and  remedies  contained  in this  Agreement  are
         cumulative and not exclusive of rights or remedies provided by law.

12.      SEVERABILITY

         If, at any time, any provision of this Agreement is or becomes illegal,
         invalid  or   unenforceable  in  any  respect  under  any  law  of  any
         jurisdiction,  neither the legality,  validity or enforceability of the
         remaining  provisions nor the legality,  validity or  enforceability of
         such  provision  in any  other  respect  or under  the law of any other
         jurisdiction will in any way be affected or impaired.

13.      ENTIRE AGREEMENT

         This  Agreement  constitutes  the entire  agreement  and  understanding
         between the Parties and supersedes all other  agreements  both oral and
         in writing between them in respect to its subject matter.

14.      ASSIGNMENT

         Otherwise as expressly  provided  herein, a Party shall not be entitled
         to assign  any of its  rights  and  obligations  under  this  Agreement
         without the prior written approval of the other Parties.

15.      NO PARTNERSHIP OR AGENCY

         Nothing  in this  Agreement  is  intended  to, or shall be  deemed  to,
         constitute a  partnership  or joint  venture of any kind between any of
         the Parties,  not  constitute  any Party the agent of another party for
         any purpose, nor constitute an  employer-employee  relationship between
         the Parties.

16.      RIGHTS OF THIRD PARTIES

         A person who is not a party to this Agreement shall not have any rights
         under or in connection with it.

17.      NOTICES

         Any notice  required or allowed under this  Agreement  shall be made in
         writing by  registered  mail  return  receipt  requested,  courier,  or
         facsimile  and served to  addresses  mentioned  at the  heading of this
         Agreement,  or to such other  address,  fax  number,  as a Party  shall
         notify  the other  Parties  in  writing  from time to time.  Any notice
         served by post shall be deemed to have been served three  Business Days
         following  the date of  posting;  or the next  Business  Day  following
         transmission by facsimile;  or if delivered personally,  at the time of
         delivery; and in proving such service it shall be sufficient proof that
         the envelope containing the notice was properly addressed and posted as
         a pre-paid letter by registered delivery post.

18.      COUNTERPARTS

         This Agreement may be executed in any number of  counterparts,  each of
         which shall be an original and all of which together shall evidence the
         same agreement.

                                        7
<PAGE>
19.      GOVERNING LAW AND JURISDICTION

19.1     This  Agreement  and  any  disputes  or  claims  arising  out  of or in
         connection  with its subject  matter are  governed by and  construed in
         accordance with the law of Nevada,  USA  (disregarding  any conflict of
         laws rules).

19.2     The  parties  irrevocably  agree that the  courts of Nevada  shall have
         non-exclusive  jurisdiction  to settle any dispute or claim that arises
         out of or in connection  with this  assignment or its subject matter or
         formation (including non-contractual disputes or claims).

IN WITNESS  WHEREOF the parties have executed  this  Agreement on the date first
above written.

NITRICARE HB

By: /s/ Jon Lundberg               /s/ Eddie Weitzberg
   ----------------------------    ----------------------------
Name:  Jon Lundberg                Eddie Weitzberg
Title: Prof.                       Prof.

DR. LUNDBERG JON

/s/ Jon Lundberg
-------------------------------

DR. WEITZBERG EDDIE

/s/ Eddie Weitzberg
-------------------------------

ENOX BIOPHARMA, INC.

By: /s/ Itamar David
   ----------------------------
Name:  Itamar David
Title: CEO

                                       8
<PAGE>
                            SCHEDULE 1 - THE PATENTS

<TABLE>
<CAPTION>
Territory       Publication no     Application no         Date filed    [Date granted]              Title
---------       --------------     --------------         ----------    --------------              -----
<S>             <C>               <C>                    <C>           <C>                 <C>
Israel                                176289              2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

South Africa                          2006/05719          2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

South Korea                           2006-7013479        2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

Norway                                20063105            2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

China                                 200480041720.7      2004-12-15    Issue fee paid     New device and method for
                                                                        March 18, 2010     prevention of nocosomial
                                                                                           infections

Japan           P2007-534361A         2006-545287         2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

EPO                                   04809058.3          2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

Australia                             2004296174          2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

USA             US 2007/0239107       10/583,113          2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections

Hong Kong       HK1103667             07112417.3          2004-12-15                       New device and method for
                                                                                           prevention of nocosomial
                                                                                           infections
</TABLE>

                                        9
<PAGE>
                                   SCHEDULE 2

                                   THE WARRANT

THE WARRANT EVIDENCED HEREBY, AND THE SECURITIES ISSUABLE  HEREUNDER,  HAVE BEEN
AND SHALL BE ISSUED  WITHOUT  REGISTRATION  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED,  OR THE APPLICABLE STATE SECURITY LAWS. THE WARRANT AND SUCH SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE,
AND SHALL NOT BE SOLD, TRANSFERRED,  PLEDGED OR HYPOTHECATED UNLESS THE PROPOSED
DISPOSITION IS THE SUBJECT OF A CURRENTLY EFFECTIVE REGISTRATION STATEMENT UNDER
SAID ACT AND UNDER  APPLICABLE  STATE  SECURITIES LAWS OR UNLESS THE COMPANY HAS
RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO
THE COMPANY, TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SAID ACT
AND SUCH STATE SECURITIES LAWS IN CONNECTION WITH SUCH DISPOSITION.

                              ENOX BIOPHARMA, INC.

                          COMMON STOCK PURCHASE WARRANT

                                 Warrant No: W73

                        Original Issue Date: May 3, 2010

                       Void After: 11:59 P.M., May 2, 2012

                           This Warrant is Issued to:

                                  NITRICARE HB

(hereinafter  called the "HOLDER,"  which term shall include the Holder's  legal
representatives,  heirs,  successors  and  assigns)  by Enox  Biopharma,  Inc. a
corporation  (hereinafter  referred to as the  "COMPANY").  This  Warrant may be
transferred by the Holder only in accordance with the provisions of Section 10.

     1.  EXERCISE OF WARRANT.  For value  received  and subject to the terms and
conditions hereinafter set forth, the Holder is entitled, upon surrender of this
Warrant  at any time on or after May 3, 2010 and on or prior to May 2, 2012 (the
"EXERCISE  DATE")  (along  with the  exercise  notice form  annexed  hereto (the
"EXERCISE  NOTICE")  duly  executed,  and any  certificate(s)  representing  the
Warrant Shares (as hereinafter  defined) (the "WARRANT SHARE  CERTIFICATE"))  at
the office of the Company at Suite #303, 1687 West Broadway,  Vancouver, British
Columbia or such other  office in the United  States of which the Company  shall
notify the Holder  hereof in  writing,  to  purchase  from the  Company,  at the
purchase  price  hereinafter  specified  (as  adjusted  from  time to time,  the
"EXERCISE PRICE"), up to 200,000 shares (the "WARRANT SHARES") (as adjusted from
time to time) of the Common Stock, 1.00 par value per share, of the Company (the
"COMMON  STOCK").  The initial  Exercise  Price  shall be $1.00 per share.  This
Warrant may be exercised in whole or in part on an Exercise Date.

     2. ISSUANCE OF WARRANT SHARES.  As promptly as practicable  after surrender
of this Warrant and receipt of payment of the Exercise Price,  the Company shall
issue and deliver to the Holder a certificate  or  certificates  for the Warrant
Shares purchased  hereunder,  in certificates of such  denominations and in such
names as the Holder may specify.

                                       10
<PAGE>
     3. PAYMENT OF EXERCISE  PRICE.  Payment of the Exercise Price shall be made
by check  made  payable  to the  order of the  Company  or by wire  transfer  of
immediately  available  funds to a bank  account  designated  by the Company [in
available funds in U.S. Dollars].

     4.  ADJUSTMENT FOR DIVIDENDS,  DISTRIBUTIONS,  SUBDIVISIONS,  COMBINATIONS,
MERGERS, CONSOLIDATIONS OR SALE OF ASSETS

     4.1 Manner of Adjustment.

     (a)  Stock  Dividends,  Distributions  or  Subdivisions.  In the  event the
Company  shall  issue  shares  of  Common  Stock  in  a  stock  dividend,  stock
distribution or  subdivision,  the Exercise Price in effect  immediately  before
such stock dividend, stock distribution or subdivision shall,  concurrently with
the effectiveness of such stock dividend, stock distribution or subdivision,  be
proportionately  decreased and the number of shares of Common Stock  purchasable
by exercise of this Warrant shall be proportionately increased.

     (b) Combinations or Consolidations.  In the event the outstanding shares of
Common  Stock  shall  be  combined  or  consolidated,   by  reclassification  or
otherwise, into a lesser number of shares of Common Stock, the Exercise Price in
effect   immediately   prior  to  such  combination  or   consolidation   shall,
concurrently  with the  effectiveness of such combination or  consolidation,  be
proportionately  increased and the number of shares of Common Stock  purchasable
by exercise of this Warrant shall be proportionately decreased.

     (c) Adjustment for Reclassification, Exchange or Substitution. In the event
that the class of securities issuable upon the exercise of this Warrant shall be
changed into the same or a different number of shares of any class or classes of
stock, whether by capital  reorganization,  reclassification or otherwise (other
than any event addressed by Sections 4.1(a), 4.1(b) or 4.1(d)), then and in each
such event the Holder shall have the right  thereafter  to exercise this Warrant
for the kind and  amount of shares of stock and other  securities  and  property
receivable  upon such  reorganization,  reclassification,  or other  change,  by
holders  of the  number of shares of the class of  securities  into  which  such
Warrant   might   have  been   exercisable   for   immediately   prior  to  such
reorganization,  reclassification,  or change, all subject to further adjustment
as provided herein.

     (d) Adjustment for Merger,  Consolidation  or Sale of Assets.  In the event
that the Company shall merge or consolidate  with or into another entity or sell
all of its assets, this Warrant shall thereafter be exercisable for the kind and
amount of shares of stock or other  securities  or property to which a holder of
the number of shares of Common Stock of the Company deliverable upon exercise of
this Warrant would have been entitled upon such  consolidation,  merger or sale;
and, in such case,  appropriate  adjustment  (as determined in good faith by the
Company's Board of Directors) shall be made in the application of the provisions
set forth in this Section 4 with  respect to the rights and interest  thereafter
of the Holder of this Warrant,  to the end that the provisions set forth in this
Section 4 shall  thereafter be  applicable,  as nearly as reasonably  may be, in
relation to any shares of stock or other property  thereafter  deliverable  upon
the exercise of this Warrant.

     4.2 Certificate as to  Adjustments.  Upon the occurrence of each adjustment
or readjustment of the Exercise Price pursuant to this Section 4, the Company at
its expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to the Holder a certificate setting forth such
adjustment  or  readjustment  and  showing  in detail  the facts upon which such
adjustment or readjustment is based.

                                       11
<PAGE>
     4.3 Closing of Books. The Company shall at no time close its transfer books
against the transfer of any shares of Common  Stock issued or issuable  upon the
exercise  of this  Warrant in any manner  which  interferes  with the timely and
proper issuance of such shares.

     5.  COVENANTS  OF THE  COMPANY.  During the period  within which the rights
represented  by this Warrant may be  exercised,  the Company  shall at all times
have  authorized  and  reserved  for the  purpose of issue upon  exercise of the
rights  evidenced  hereby,  a  sufficient  number  of  shares  of the  class  of
securities issuable upon exercise of this Warrant to provide for the exercise of
such rights.  All securities which may be issued upon the exercise of the rights
represented by this Warrant shall,  upon issuance,  be duly authorized,  validly
issued, fully paid and non-assessable and free from all taxes, liens and charges
with respect to the issue  thereof.  Upon  surrender for exercise,  this Warrant
shall be canceled and shall not be reissued;  provided,  however,  that upon the
partial exercise hereof a substitute Warrant of like tenor and date representing
the rights to subscribe  for and purchase any such  unexercised  portion  hereof
shall be issued.

     6. NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE.  This Warrant shall not entitle
the  Holder to any voting  rights or any other  rights as a  stockholder  of the
Company but upon  presentation  of this Warrant  with the  Exercise  Notice duly
executed  and the tender of payment of the  Exercise  Price at the office of the
Company  pursuant to the provisions of this Warrant,  the Holder shall forthwith
be deemed a stockholder  of the Company in respect of the  securities  for which
the Holder has so subscribed and paid.

     7. NO  CHANGE  NECESSARY.  The form of this  Warrant  need  not be  changed
because  of any  adjustment  in the  Exercise  Price or in the  number of shares
issuable upon its exercise. A Warrant issued after any adjustment or any partial
exercise or upon replacement may continue to express the same Exercise Price and
the  same  number  of  shares  (appropriately  reduced  in the  case of  partial
exercise) as are stated on this Warrant as initially  issued,  and that Exercise
Price and that number of shares shall be  considered  to have been so changed as
of the close of business on the date of adjustment.

     8.  ADDRESSES  FOR  NOTICES.  All  notices,  requests,  consents  and other
communications hereunder shall be in writing, either delivered in hand or mailed
by registered or certified mail, return receipt requested, or sent by facsimile,
and shall be deemed to have been duly made when delivered:

          If to the Holder, to the Holder's address as shown on the books of the
          Company; or

          If to the Company,  to the address set forth on the first page of this
          Warrant.

     9. SUBSTITUTION.  In the case this Warrant shall be mutilated, lost, stolen
or  destroyed,  the  Company  shall  issue  a new  Warrant  of  like  tenor  and
denomination  and deliver the same (a) in exchange and substitution for and upon
surrender  and  cancellation  of any  mutilated  Warrant,  or (b) in lieu of any
Warrant lost, stolen or destroyed,  upon receipt of evidence satisfactory to the
Company of the loss, theft, or destruction of such Warrant  (including,  without
limitation, a reasonably detailed affidavit with respect to the circumstances of
any  loss,  theft or  destruction),  and of  indemnity  (or,  in the case of the
initial  Holder or any  other  institutional  holder,  an  indemnity  agreement)
satisfactory to the Company.

     10.  TRANSFER  RESTRICTIONS.  This Warrant shall not be transferable by the
Holder and shall be  exercisable  only by the Holder.  Without the prior written
consent  of  the  Company,  the  Warrant  shall  not  be  assigned,  pledged  or
hypothecated in any way (whether by operation of law or otherwise) and shall not
be subject to execution,  attachment or similar process. Any attempted transfer,
assignment,  pledge, hypothecation or other disposition of the Warrant or of any

                                       12
<PAGE>
rights granted  hereunder  contrary to the provisions of this Section 10, or the
levy of any attachment or similar process upon the Warrant or such rights, shall
be null and void.

     11. TAXES. The Company makes no  representation  about tax treatment to the
Holder with respect to receipt or exercise of the Warrant or acquiring,  holding
or disposing of the Warrant  Shares,  and the Holder  represents that the Holder
has had the  opportunity  to  discuss  such  treatment  with  the  Holder's  tax
advisers.

     12.  REMEDIES.  Each party stipulates that the remedies at law in the event
of any default or threatened  default by the other party in the  performance  or
compliance  with any of the terms of this Warrant may not be adequate,  and that
such  terms  may  be  specifically  enforced  by  a  decree  for  that  specific
performance  of any agreement  contained  herein or by an  injunction  against a
violation of any of the terms hereof or otherwise.

     13.  GOVERNING  LAW.  This  Warrant  shall be  construed  and  enforced  in
accordance with, and governed by, the laws of the State of Nevada without regard
to its principles of conflicts of laws.

     14. MISCELLANEOUS. This Warrant and any term hereof may be changed, waived,
discharged or terminated  only by an instrument in writing  signed by the Holder
and the Company.

               [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

                                       13
<PAGE>
ENOX BIOPHARMA, INC.

By: /s/ Itamar David
   ----------------------------------
Title: CFO

Address: 1687 West Broadway, Suite 303, Vancouver BC Canada

ACCEPTED AND AGREED:

[NITRICARE HB]

By: /s/ Jon Lundberg                       /s/ Eddie Weitzberg
   -------------------------------------   -------------------------------------
Title: Prof.                               Prof.

Address: Stenbocksvagen 6, S-182 62, Djursholm, Sweden

ACKNOWLEDGED:

DR. LUNDBERG JON

/s/ Jon Lundberg
-------------------------------------

DR. WEITZBERG EDDIE

/s/ Eddie Weitzberg
-------------------------------------

                                       14
<PAGE>
                                     ANNEX A

                               NOTICE OF EXERCISE

To: ENOX BIOPHARMA, INC.

The  undersigned  hereby  irrevocably  elects to purchase  ___________  ordinary
shares of Enox  Biopharma,  Inc.  issuable  upon the  exercise  of the  attached
Warrant and requests that a certificate for such shares be issued in the name of
the undersigned and delivered to the address stated below and, if such number of
shares  shall  not be all the  shares  that  may be  purchased  pursuant  to the
attached  Warrant,  that a new  Warrant  evidencing  the right to  purchase  the
balance of such shares be delivered  to the  undersigned  at the address  stated
below.

Payment enclosed in the amount of USD ________________.

Dated: ____________________________

[NITRICARE HB]

Address: __________________________

Signature: ________________________

                                       15

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