Document:

EXHIBIT 10.4

 

ASSIGNMENT OF LEASE

 

THIS ASSIGNMENT is made effective the 26th
day of March, 2008 (the “Effective Date”), by NEWT’S DISCOUNT PHARMACY, INC.,
an Oklahoma corporation (the “Assignor”) in favor of APOTHECARYRX, LLC, an
Oklahoma limited liability company (the “Assignee”).

 

W I T N E S S E T H :

 

WHEREAS, the Assignor is the tenant under
that certain lease dated September 24, 2007, between Treyron Limited
Liability Company, as lessor (the “Landlord”) and the Assignor, as tenant,
which is attached to this Assignment at Exhibit “A” (collectively the “Lease
Agreement”);

 

WHEREAS, the Assignor desires to assign to
the Assignee all of the Assignor’s right, title and interest in and to the
Lease Agreement.

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

 

1.             Assignor’s
Warranties.  The Assignor represents
and warrants that the Assignor has heretofore duly executed and delivered the
Lease Agreement and that there exist no other agreements, amendments or
understandings to which the Assignor is a party relating to the Lease
Agreement.  The Assignor further
represents and warrants that the rent is paid through March 31, 2008, and the
Assignor has complied to the date hereof with all covenants on the Assignor’s
part in the Lease Agreement, including, without limitation, the payment of
rents.

 

2.             Assignment.  The Assignor hereby assigns and transfers to
the Assignee and the Assignee’s successors and assigns all of the Assignor’s
right, title and interest in and to the Lease Agreement, together with all of
the benefits thereunder.

 

3.             Assumption.  The Assignor hereby delegates and the Assignee
hereby assumes and agrees to perform all of the Assignor’s obligations under the
Lease Agreement effective the date hereof.

 

[Signature Pages to Follow]

 

 

SIGNATURE PAGE

(Assignment
of Lease)

 

IN WITNESS WHEREOF, the parties have executed
this Assignment effective the date first above written.

 

 

	
   

  	
  NEWT’S
  DISCOUNT PHARMACY, INC.,

  
	
   

  	
  an
  Oklahoma corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/JEREMY
  AVANCE

  
	
   

  	
   

  	
  Jeremy
  Avance, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Assignor”)

  	
   

  
				

 

 

SIGNATURE PAGE

(Assignment
of Lease)

 

IN WITNESS WHEREOF, the parties have executed
this Assignment effective the date first above written.

 

 

	
   

  	
  APOTHECARYRX,
  LLC, an Oklahoma limited

  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/LEWIS
  P. ZEIDNER

  
	
   

  	
   

  	
  Lewis
  P. Zeidner, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Assignee”)

  	
   

  
				

 

 

SIGNATURE PAGE

(Assignment of Lease)

 

The Landlord hereby consents to this
Assignment of Lease and represents and warrants to the Assignee that the Assignor
is not in default under the Lease Agreement, the Lease Agreement is in full
force and effect, there exist no other agreements, amendments or understandings
to which the Assignor or the Landlord is a party relating to the Lease
Agreement, and the rent under the Lease Agreement is paid through March 31,
2008.

 

 

	
   

  	
  TREYRON LIMITED LIABILITY COMPANY,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title: 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (“Landlord”)EXHIBIT 10.5

 

SECURITY
AGREEMENT

 

THIS SECURITY
AGREEMENT is executed effective the 26th day of March, 2008, by APOTHECARYRX,
LLC, an Oklahoma limited liability company (the “Borrower”), in favor of NEWT’S
DISCOUNT PHARMACY, INC., an Oklahoma corporation (the “Lender”).

 

W I T N E S S E T H:

 

WHEREAS, the
Borrower is liable to the Lender under that certain Promissory Note of even
date herewith in the original face amount of Four Hundred Thousand Dollars ($400,000)
(the “Note”);

 

NOW,
THEREFORE, for and in consideration of the premises and the agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of all of which are hereby acknowledged, the Borrower hereby agrees
with the Lender as follows:

 

1.             Security Interest.  As collateral security for the Secured
Indebtedness (as hereafter defined), the Borrower hereby grants to the Lender a
security interest in the following property used in connection with the
Borrower’s retail pharmacy located at 1900 N. Classen Blvd., Oklahoma City,
OK 73106 102 West Noble, Guthrie, Ok 73044 (collectively, the “Property”):  (a) the furniture, fixtures, equipment,
computer hardware and software and other articles of tangible personal property
acquired by the Borrower under that certain Pharmacy Purchase Agreement dated March 24,
2008, among the Borrower, the Lender and affiliates of the Lender (the “Purchase
Agreement”); (b) the intangible personal property acquired under the  Purchase Agreement, including, without
limitation, names (including the name “Professional Discount Pharmacy” and “Pendergraft
Drugs”), telephone numbers, pager numbers, cellular and digital phone numbers,
internet web sites, electronic mail addresses, customer and prospective
customer lists, books, records, files and computer software; (c) the
Borrower’s interest under the lease agreements for the land and improvements
where the pharmacy is located; and (d) customer files and customer records
whether paper files, computer data or EMR.

 

2.             Secured
Indebtedness.  The security interest
granted hereby in the Property is given to secure the Borrower’s payment of
(the “Secured Indebtedness”):  (a) the
Note together with interest thereon; and (b) the obligations of the
Borrower to the Lender under this Agreement.

 

3.             Borrower’s
Representations and Covenants.  The
Borrower hereby warrants, represents and agrees as follows:

 

	
  3.1.

  	
   

  	
  Location. The Borrower is a limited
  liability company duly formed and in good standing in the State of Oklahoma.

  
	
   

  	
   

  	
   

  
	
  3.2.

  	
   

  	
  Title. The Borrower has absolute title to
  the Property free and clear of all liens, encumbrances and security interests
  except for the security interest hereby granted to the Lender, and the
  Borrower warrants and will defend the same unto the Lender against the claims
  and demands of all persons and parties whomsoever.

  

 

 

	
  3.3.

  	
   

  	
  Lender Security Interest. This Agreement
  creates a valid and binding security interest in the Property securing the
  Secured Indebtedness. There are no consents required in connection with the
  grant by the Borrower of the security interests in the Property. The Borrower
  has good right and lawful authority to pledge the Property in the manner
  hereby done or contemplated. All filings and other actions necessary or
  appropriate to perfect or protect such security interest will be or have been
  duly taken.

  
	
   

  	
   

  	
   

  
	
  3.4.

  	
   

  	
  Inspection. The Lender may from time to
  time, upon request, inspect all of the Borrower’s records concerning any of
  the Property.

  
	
   

  	
   

  	
   

  
	
  3.5.

  	
   

  	
  Financing Statement. The Lender is
  authorized to file a financing statement covering the Property.

  
	
   

  	
   

  	
   

  
	
  3.6.

  	
   

  	
  Notifications. The Borrower will immediately
  notify the Lender of any change in the Borrower’s name or identity. In any
  notice furnished pursuant to this paragraph 3.6, the Borrower will expressly
  state that the notice is required by this Agreement and contains facts that
  will or may require additional filings of financing statements or other
  notices for the purpose of continuing perfection of the Lender’ security
  interest in the Property.

  

 

4.             Lender Expenditures.  If the Borrower fails to make any expenditure
or pay any sum necessary to discharge any lien, encumbrance, levy, security
interest or other charge on the Property as required hereby, the Lender may,
but will not be required to, make any expenditure for such purpose or purposes
and all sums so expended shall be payable on demand, shall bear interest at the
rate specified in the Note and all such sums and interest will additionally be
secured hereby.  The Borrower will pay
all costs of filing any financing, continuation or termination statements with
respect to the security interest granted hereby in the Property.

 

5.             Subordination.  After the execution of this Agreement, the
Borrower may execute one or more security agreements covering the Property in
favor of the Borrower’s lender.  On the
request of the Borrower from time to time, the Lender agrees to consent to the
subordination of this Agreement and the liens created hereunder to the liens of
any such security agreement and to execute any certificate or other instrument
for such purpose that the holder of such liens might reasonably request.

 

6.             Default;
Remedies.  If the Borrower fails to
keep, observe, comply with and perform all of the obligations and undertakings
under this Agreement or the Note or fails to pay any principal or interest on
the Note when due, then, and in any such event, the Lender may, at its option,
declare all or any portion of the Secured Indebtedness to be immediately due
and payable and may proceed to enforce payment of the same, to exercise any or
all rights and remedies provided herein, by the Oklahoma Uniform Commercial
Code and otherwise available at law or in equity.  All remedies hereunder are cumulative, and
any indulgence or waiver by the Lender shall not be construed as an abandonment
of any other right hereunder or of the power to enforce the same or another
right at a later time.

 

2

 

7.             Lender Duties.  The powers conferred upon the Lender by this
Agreement are solely to protect its interest in the Property and will not
impose any duty upon the Lender to exercise any such powers.  The Lender shall be under no duty whatsoever
to make or give any presentment, demand for performance, notice of
nonperformance, protest, notice of protest, notice of dishonor, or other notice
or demand in connection with any of the Property or the Secured Indebtedness,
or to take any steps necessary to preserve any rights against prior
parties.  The Lender shall not be liable
for failure to collect or realize upon any or all of the Secured Indebtedness
or Property, or for any delay in so doing, nor shall the Lender be under any
duty to take any action whatsoever with regard thereto.

 

8.             Termination.  Upon payment in full of the Secured Indebtedness
the Lender will, within three (3) business days after such payment, take
all actions necessary to fully release and terminate all of the Lender’s
interests in the Property including, without limitation, filing a written
termination statement in the form prescribed under the UCC and reassigning to
the Borrower, without recourse, the Property and all rights conveyed hereby.

 

9.             Successors and
Assigns.  The covenants and
agreements herein contained by or on behalf of the Borrower shall bind the
Borrower, and the Borrower’s legal representatives, successors and assigns and
shall inure to the benefit of the Lender and the Lender’ successors and
assigns.

 

10.           Invalidity.  If any provision hereof shall for any reason
be held to be invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provision hereof.

 

[Signature Pages to Follow]

 

3

 

SIGNATURE
PAGE TO SECURITY AGREEMENT

 

IN WITNESS
WHEREOF, this Agreement has been executed by the parties effective the date
first above written.

 

	
   

  	
  APOTHECARYRX, LLC,

  	
   

  
	
   

  	
  an Oklahoma limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /S/LEWIS P. ZEIDNER

  
	
   

  	
   

  	
  Lewis P. Zeidner, President

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Borrower”)

  	
   

  
					

 

 

SIGNATURE PAGE TO SECURITY AGREEMENT

 

IN WITNESS
WHEREOF, this Agreement has been executed by the parties effective the date
first above written.

 

	
   

  	
  NEWT’S DISCOUNT PHARMACY, INC.,

  
	
   

  	
  an Oklahoma corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /S/JEREMY AVANCE

  
	
   

  	
   

  	
  Jeremy Avance, President

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Lender”)

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